Tim Monachello's questions to Enerflex (EFXT) leadership • Q2 2025
Question
Tim Monachello of ATB Capital Markets asked for details on the North American manufacturing facility expansion, the CapEx outlook for 2026, the company's competitive time-to-market, the strength in Q2 bookings, the expected margin normalization in Engineered Systems, and the future trend for G&A expenses.
Answer
Interim President & CEO Preet Dhindsa and VP Jeff Fetterly responded. Dhindsa clarified the facility expansion was an acquisition of adjacent land for future optionality. Fetterly noted that 2026 CapEx planning is progressing early due to supply chain lead times. On bookings, Fetterly confirmed Q2 was normalized with no lumpy orders and a book-to-bill of 1.1x. He reiterated that ES margins are expected to trend toward historical averages due to product mix. Dhindsa added that G&A levels are benefiting from synergies and a continued focus on optimization.