Enerflex Ltd. Announces Fourth Quarter 2025 Financial And Operational Results, Agreement To Divest Non-Core Business And Provides Preliminary Outlook For 2026

Capital Allocation

Enerflex is targeting organic capital expenditures of $175 million to $195 million during 2026. This includes: (1) organic growth capital expenditures of $90 million to $100 million; (2) maintenance capital expenditures of $70 million to $80 million; and (3) PP&E and infrastructure investments of approximately $15 million to support the Company's ES business and activity in adjacent markets, including electric power generation.

Organic growth capital spending will continue to focus on customer supported opportunities and primarily allocated to expand the Company's contract compression fleet in the U.S. Notably, the fundamentals for contract compression in the U.S. remain strong, led by expected increases in natural gas production and capital spending discipline from market participants. Although not contemplated in the Company's 2026 capital spending plan, Enerflex continues to evaluate opportunities to organically expand its business in the Middle East.

Providing meaningful direct shareholder returns is a priority for Enerflex. During 2025, Enerflex returned $40 million to shareholders through dividend ($17 million) and share repurchases ($23 million). Going forward, capital allocation decisions will be based on delivering value to Enerflex shareholders and measured against Enerflex's ability to maintain balance sheet strength. In addition to disciplined growth capital spending, share repurchases and dividends, Enerflex will also consider further debt reduction to strengthen its balance sheet and lower net finance costs.

DIVIDEND DECLARATION

Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of CAD$0.0425 per share, payable on March 25, 2026 to shareholders of record on March 11, 2026.

CONFERENCE CALL AND WEBCAST DETAILS

Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, February 26, 2026 at 8:00 a.m. (MST), where members of senior management will discuss the Company's results. A question-and-answer period will follow.

To participate, register at. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at under the Investors section or can be accessed directly at.

NON-IFRS MEASURES

Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio, ES backlog and bookings, EI contract backlog, free cash flow, GM before depreciation and amortization and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex's performance. Refer to“Non-IFRS Measures” of Enerflex's MD&A for the three and twelve months ended December 31, 2025, for information which is incorporated by reference into this news release and can be accessed on Enerflex's website at and under the electronic profile of the Company on SEDAR+ and EDGAR at and, respectively.

ADJUSTED EBITDA

¹The Company included net loss, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
²Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments.
³EBIT includes $13 million derecognition of the embedded derivative asset associated with the redemption options in the 2027 Notes on the early redemption. Debt is managed within Corporate and is not allocated to reporting segments.

¹The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
²Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments.
³EBIT includes $2 million unrealized loss on the embedded derivative asset associated with the redemption options in the 2027 Notes. Debt is managed within Corporate and is not allocated to reporting segments.

¹The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
²Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments.
³EBIT includes $17 million derecognition and unrealized loss on redemption options associated with the 2027 Notes. The early redemption resulted in derecognition of the embedded derivative asset associated with the redemption options in the 2027 Notes. Debt is managed within Corporate and is not allocated to reporting segments.

¹The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
²Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments.
³EBIT includes $17 million unrealized gain on the embedded derivative asset associated with the redemption options in the 2027 Notes. Debt is managed within Corporate and is not allocated to reporting segments.

FREE CASH FLOW

The Company defines free cash flow as cash provided by (used in) operating activities, less total capital expenditures (growth and maintenance) for EI assets - operating leases and PP&E, mandatory debt repayments, and lease payments, while proceeds on disposals of PP&E and EI assets - operating leases are added back. Free cash flow may not be comparable to similar measures presented by other companies as it does not have a standardized meaning under IFRS. Management uses this non-IFRS measure to assess the level of free cash generated to fund other non-operating activities. These activities could include dividend payments, share repurchases, and non-mandatory debt repayments. Free cash flow is also used in calculating the dividend payout ratio.

¹Enerflex also refers to cash provided by operating activities before changes in working capital and other as“Funds from Operations” or“FFO”.
²Enerflex also refers to cash provided by operating activities as“Cashflow from Operations” or“CFO”.

BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO

Enerflex defines bank-adjusted net debt to EBITDA as borrowings under the Revolving Credit Facility (“RCF”) and Notes less cash and cash equivalents, divided by EBITDA for the trailing 12-months, as defined by the Company's lenders. In assessing the Company's compliance with financial covenants related to its debt, certain adjustments are made to EBITDA to determine Enerflex's bank-adjusted net debt to EBITDA ratio. These adjustments, and Enerflex's bank-adjusted net debt to EBITDA ratio, are calculated in accordance with, and derived from, the Company's financing agreements.

GROSS MARGIN BEFORE DEPRECIATION AND AMORTIZATION

Gross margin before depreciation and amortization is a non-IFRS measure defined as gross margin excluding the impact of depreciation and amortization. The historical costs of assets may differ if they were acquired through acquisition or constructed, resulting in differing depreciation. Gross margin before depreciation and amortization is useful to present operating performance of the business before the impact of depreciation and amortization that may not be comparable across assets.

ADVISORY REGARDING FORWARD-LOOKING INFORMATION

This news release contains“forward-looking information” within the meaning of applicable Canadian securities laws and“forward-looking statements” (and together with“forward-looking information”,“FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words“anticipate”,“believe”,“could”,“expect”,“future”,“may”,“potential”,“should”,“will” and similar expressions, (including negatives thereof) are intended to identify FLI.

In particular, this news release includes (without limitation) FLI pertaining to:

• the anticipated completion of the divestiture of a majority of the Company's operations in the APAC region (the“APAC Divestiture”), and the timing thereof, if at all;
• expectations that Enerflex will be able to continue to deliver ES solutions in APAC following the APAC Divestiture;
• refinancing of the 2027 senior secured notes will reduce annual interest costs and enhance the Company's tax efficiency;
• continued expansion and deepening of relationships with upstream and midstream client partners across the U.S., particularly in the Permian basin;
• expectations that the U.S. contract compression business will continue to perform well, led by increasing natural gas production in the Permian;
• expectations that approved growth capital expenditures will deliver growth of at least 13% during 2026;
• expectations for further growth in 2027 and the ability of Enerflex to secure long-lead time components, if at all, to support such growth;
• the ability of Enerflex to build on momentum across its global operations during 2026;
• Enerflex's ability to enhance the profitability of its core operations, grow its business, and generate sustained, attractive returns for shareholders, and the time required in connection therewith, if at all;
• disclosures under the heading“Outlook” including:
  • expectations for continued steady demand across our business lines and geographic regions;
  • the highly contracted EI product line and the recurring nature of AMS will continue to underpin operating results;
  • customer contracts within Enerflex's EI product line will generate approximately $1.3 billion of revenue over their remaining terms;
  • expectations that performance of Enerflex's ES product line will remain steady, with the majority of the backlog of approximately $1.1 billion as at December 31, 2025, expected to convert into revenue over the next 12 months;
  • expected increases in natural gas and electric power generation across core operating countries will drive an attractive medium-term outlook for ES products and services;
  • Enerflex's ability to deliver on its near-term priorities and the time required in connection therewith, if at all;
  • targeted total capital expenditures during 2026 of approximately $175 million to $195 million, including (i) organic growth capital expenditures of $90 million to $100 million; (2) maintenance capital expenditures of $70 million to $80 million; and (3) PP&E and infrastructure investments of approximately $15 million;
  • selective customer supported growth investments continuing to be made in the US contract compression business;
  • continued strength in the fundamentals for contract compression in the U.S., led by expected increases in natural gas production and capital spending discipline from market participants;
  • the ability of the Company to capitalize on opportunities to organically expand its business in the Middle East, should they arise, if at all;
  • the ability of Enerflex to continue to make meaningful direct shareholder returns, including its ability to pay a sustainable quarterly cash dividend; and
  • considerations to further reduce debt to strengthen Enerflex's balance sheet and lower net financing costs.
    

FLI reflect Management's current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex's products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex's expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including but not limited to the ability of the Company to proactively manage the ES business line in response to near-term risks and uncertainties, including tariffs and commodity price volatility;

• that all conditions to completion of the APAC Divestiture will be satisfied or waived in a timely manner, that all regulatory and other approvals required for completion of the APAC Divestiture will be obtained and obtained in a timely manner, that the transaction to effect the APAC Divestiture will be completed on the agreed terms, and that the expected benefits of the APAC Divestiture will be realized within the expected timeframes;
• the ability of the Company to proactively manage the ES business line in response to near-term risks and uncertainties, including tariffs and commodity price volatility;
• natural gas and associated liquids and produced water volumes across Enerflex's global footprint will increase in line with expectations;
• market conditions, customer activity, and industry fundamentals will support stable demand across Enerflex's product lines and geographic regions throughout 2026;
• the high level of contractual commitments within the EI product line and the predictable, recurring revenue from AMS will continue;
• existing customer contracts within the EI product line will remain in effect and with no material cancellations or renegotiations over their remaining terms;
• risks related to lawsuits, arbitrations or other legal proceedings;
• the execution of projects within the ES product line will proceed as scheduled and the conversion to revenue will proceed without significant delays or cancellations;
• the Company's backlog providing strong visibility into future revenue generation and business activity levels;
• no significant unforeseen cost overruns or project delays;
• market conditions continuing to support the NCIB within the anticipated timeframe; and
• Enerflex will maintain sufficient cash flow, profitability, and financial flexibility to support the ongoing payment of a sustainable quarterly cash dividend, subject to market conditions, operational performance, and board approval.
  

As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading "Risk Factors" in: (i) Enerflex's Annual Information Form for the year ended December 31, 2025, dated February 25, 2026; and (ii) in other filings with Canadian securities regulators and the SEC, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at and, respectively. Other unpredictable or unknown factors not discussed in this news release could have material adverse effects on the actual results, performance, or achievements of Enerflex expressed in, or implied by, the FLI.

The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice.

The outlook provided in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. The outlook is based on the same assumptions and risk factors set forth above and is based on the Company's historical results of operations. The outlook set forth in this news release was approved by Management and the Board of Directors. Management believes that the prospective financial information set forth in this news release has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents the Company's expected course of action in developing and executing its business strategy relating to its business operations. The prospective financial information set forth in this news release should not be relied on as necessarily indicative of future results. Actual results may vary, and such variance may be material.

ABOUT ENERFLEX

Enerflex is a leading provider of modular natural gas, power technology and treated water solutions, delivering value through disciplined execution and a deliberate approach to where we compete. Our customer focused delivery model supports operational excellence, innovation, and scalability across our global footprint with a focus on creating long-term shareholder value.

With approximately 4,400 engineers, manufacturers, technicians, professionals, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the world's energy needs.

Enerflex's common shares trade on the Toronto Stock Exchange under the symbol“EFX” and on the New York Stock Exchange under the symbol“EFXT”. For more information about Enerflex, visit .

For investor and media enquiries, contact:

Paul Mahoney
President and Chief Executive Officer
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Preet S. Dhindsa
Senior Vice President and Chief Financial Officer
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Jeff Fetterly
Vice President, Corporate Development and Capital Markets
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