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    Tim Monachello • ATB Capital Markets

    Tim Monachello's questions to Enerflex Ltd (EFXT) leadership

    Tim Monachello's questions to Enerflex Ltd (EFXT) leadership • Q2 2025

    Question

    Tim Monachello of ATB Capital Markets asked about the North American manufacturing facility expansion, future CapEx outlook, time-to-market advantages, the nature of recent strong bookings, the timing of margin normalization in Engineered Systems, and the forward trend for G&A expenses.

    Answer

    Interim President & CEO Preet Dhindsa and VP Jeff Fetterly addressed the questions. Dhindsa stated the facility expansion was acquiring land for future optionality, as current capacity is sufficient. Fetterly noted that 2026 CapEx planning is already underway due to supply chain lead times. He confirmed their vertical integration provides a time-to-market advantage and that Q2 bookings were normalized. Regarding margins, Fetterly reiterated guidance for a trend toward historical averages due to product mix shifts. Dhindsa added that G&A levels are benefiting from synergies and remain a key focus for optimization.

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    Tim Monachello's questions to Enerflex Ltd (EFXT) leadership • Q1 2025

    Question

    Tim Monachello from ATB Capital Markets asked about the mix of customer demand drivers, expectations for Q2 bookings, and the outlook for working capital and operational profitability improvements.

    Answer

    Executive Jeff Fetterly explained that Enerflex's customer base is weighted towards larger, stable operators focused on long-term drivers like LNG exports. Regarding working capital, he stated that after a strong Q1 recovery, the company expects a modest build for the rest of 2025, aiming for a neutral position for the full year. Interim CEO Preet Dhindsa added that profitability improvements will come from ongoing optimization of the company's footprint and processes, with a strong focus on reducing SG&A post-integration.

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    Tim Monachello's questions to Enerflex Ltd (EFXT) leadership • Q4 2024

    Question

    Tim Monachello from ATB Capital Markets questioned the strong Q4 Engineered Systems (ES) margins and the expected timeline for their normalization. He also asked about the sustainability of high margins in the U.S. rental compression business, the potential impact of tariffs, and the company's working capital outlook for 2025.

    Answer

    Executive Jeffrey Fetterly stated that ES margins will normalize progressively through 2025 as the backlog mix shifts to lower-margin compression projects. President and CEO Marc Rossiter affirmed the sustainability of U.S. rental compression margins, citing strong market fundamentals and a high-quality fleet. Regarding tariffs, Rossiter detailed mitigation strategies, viewing it as a manageable supply chain issue. SVP and CFO Preet Dhindsa projected a modest unwind of working capital in Q1 2025, followed by relative stability for the year.

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    Tim Monachello's questions to Enerflex Ltd (EFXT) leadership • Q1 2024

    Question

    Tim Monachello asked about contractual protections for the Kurdistan project, the timeline for a strategic decision, details of the Oman water solutions project extension, the momentum of Q1's strong bookings, and the impact of recent events on 2024 deleveraging targets.

    Answer

    President and CEO Marc Rossiter stated it was premature to discuss specific contract details but confirmed the company is in force majeure and focused on protecting its interests without being distracted from strategic priorities like debt reduction. He noted the Oman water project expansion will be operational by mid-2025, with the customer contributing significantly to CapEx. Regarding bookings, he mentioned the impact of the water project's reclassification and two cryo plant orders, while noting a potential slowdown in North American Engineered Systems. On deleveraging, Rossiter reiterated that debt reduction remains a top priority.

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