Enerflex Ltd Q224 Earnings Summary
Intellectia.AI2024-08-08
Enerflex Ltd. Q2/24 Earnings Summary
Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) released its financial and operational results for the second quarter of 2024, which ended on June 30, 2024.
Key Financial Metrics
| Metric | Q2/24 | Q2/23 | Q1/24 | Y/Y Change | Q/Q Change | Consensus |
|---|---|---|---|---|---|---|
| Revenue | $614M | $579M | $638M | +6.0% | -3.8% | $562.3M |
| EPS | N/A | N/A | N/A | N/A | N/A | $-0.02 |
| Adjusted EBITDA | $122M | $107M | $69M | +14.0% | +76.8% | N/A |
Enerflex experienced a 6% year-over-year increase in revenue, reaching $614 million in Q2/24. Quarter-over-quarter, there was a slight decrease of 3.8%. Adjusted EBITDA set a new quarterly record at $122 million, marking a 14% increase over Q2/23 and a 76.8% increase compared to Q1/24. These financial figures underscore strong operational performance, driven primarily by higher Engineered Systems (ES) and After-market Services (AMS) revenue.
Operational Data
Additional operational data highlights include: - ES bookings recorded at $331 million, maintaining a total backlog of $1.3 billion as of June 30, 2024. - Utilization rate of 94% in the U.S. contract compression business with a fleet size of approximately 428,000 horsepower. - Revenue from U.S. contract compression business grew to $37 million, with a gross margin of 65%.
Management Commentary
Marc Rossiter, President, and CEO, emphasized the strong operational results and record adjusted EBITDA, highlighting the company's focus on profitability, streamlining geographical footprint, and enhancing external disclosures. Marc stated, "Visibility across the Company's business remains strong, supported by approximately $1.6 billion of contracted revenue."
Preet Dhindsa, Senior Vice President and CFO, reiterated the company's dedication to achieving its leverage framework target of 1.5x to 2.0x bank-adjusted net debt-to-EBITDA ratio.
Dividends and Stock Buyback Programs
Enerflex declared a quarterly dividend of CAD$0.025 per share, payable on October 2, 2024, to shareholders of record on August 22, 2024.
Forward Guidance
The company expects full-year 2024 capital spending to be at the low end of its $90 to $110 million guidance range.
Stock Price Movement
The company's after-event stock price experienced a slight decline of -0.57%.
Enerflex continues to prioritize operational efficiency, balance sheet health, and delivering value to shareholders. The strong backlog and strategic focus on core operations position the company well for future growth and debt reduction.
The segment revenue performance table was removed due to lack of detailed data. The rest of the report has been organized for clarity.
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