Strong Operational Performance
Enerflex's Energy Infrastructure and Aftermarket Services business lines contributed 70% of the gross margin before depreciation and amortization in Q1 2025, demonstrating steady performance and reinforcing the company's ability to generate sustainable returns.
Deleveraging Success
Enerflex successfully reduced its leverage ratio to 1.3 times by the end of Q1 2025 from 1.5 times at the end of Q4 2024, reflecting strong operational performance and a focus on maximizing free cash flow.
Contract Compression Growth
Enerflex added approximately 20,000 horsepower during the quarter, exiting with 448,000 horsepower across its fleet and plans to exceed 475,000 horsepower by the end of 2025. New units are being deployed under multi-year contracts.
Improved Free Cash Flow
Free cash flow increased to $85 million in Q1 2025 compared to $72 million during Q1 2024 and $76 million during Q4 2024, primarily due to lower maintenance capital spend.
Cost Management
SG&A expenses were reduced by $21 million year-over-year and $35 million on a sequential basis, mainly due to decreased share-based compensation and lower depreciation and amortization expense.