Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $777 million, up from $601 million in Q3 2024 and $615 million in Q2 2025, primarily driven by the BSAT C expansion project [14] - Gross margin before depreciation and amortization was $206 million, or 27% of revenue, compared to $176 million, or 29% in Q3 2024, and $175 million, or 29% in Q2 2025 [14] - Adjusted EBIT reached a record $145 million, compared to $120 million in Q3 2024 and $130 million in Q2 2025 [16] - Free cash flow decreased to $43 million in Q3 2025 from $78 million in Q3 2024 due to working capital investments [16] - Net earnings were $37 million, or $0.30 per share, compared to $30 million, or $0.24 per share in Q3 2024 [18] Business Line Data and Key Metrics Changes - The energy, infrastructure, and aftermarket services business lines contributed 58% of gross margin before depreciation and amortization during Q3 [4] - Engineered Systems backlog as of September 30 was $1.1 billion, with bookings of $339 million during Q3 [7] - Aftermarket Services gross margin before depreciation and amortization was 21% in the quarter, benefiting from increased customer maintenance activities [8] Market Data and Key Metrics Changes - The U.S. contract compression business maintained a stable utilization rate of 94% across a fleet of approximately 470,000 horsepower [5] - Enerflex's international energy infrastructure business includes approximately 1.1 million horsepower of operated compression and 24 BOOM projects in various regions [9] Company Strategy and Development Direction - The company aims to enhance profitability of core operations and leverage its position in core operating countries to capitalize on expected increases in natural gas and produced water volumes [10] - Enerflex plans to focus on disciplined capital allocation, including a 13% increase in quarterly dividends, reflecting confidence in its financial position [22] - The company is exploring opportunities in electrical power generation, particularly in the microgrid power generation market [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth fundamentals driven by global energy security and increasing demand for natural gas [24] - The company is closely monitoring near-term risks, including tariffs and commodity price volatility, while maintaining a proactive management approach [8] Other Important Information - Enerflex's bank-adjusted net debt to EBITDA ratio improved to approximately 1.2 times at the end of Q3 2025, down from 1.9 times at the end of Q3 2024 [19] - The company has initiated strategic inventory investments to support customer commitments and manage lead times effectively [36] Q&A Session Summary Question: What does the team think Enerflex does well and what needs improvement? - Management highlighted a focus on execution levers, cost management, and working capital efficiency as key areas of strength, while also identifying opportunities for digitization initiatives [26] Question: Can you elaborate on the potential for MobilePower and revenue opportunities? - Management indicated that 500 megawatts of opportunities could grow significantly, emphasizing the dynamic nature of the market and the company's experience in power generation [28] Question: How does Enerflex plan to participate in both Engineered Systems and Energy Infrastructure? - Management noted that speed and partnerships will be vital in capitalizing on opportunities in both areas, with a focus on operations and maintenance for Aftermarket Services [33] Question: What is the current state of inventory levels and supply chain for existing projects? - Management confirmed that strategic inventory investments are being made to support customer activity and manage lead times effectively [34] Question: Can you quantify how much revenue was pulled forward from Q4 into Q3? - Management suggested that the average revenue for the Engineered Systems business over the last couple of years was between $300 million and $325 million per quarter, indicating strong execution in Q3 [49]