FreeTheAI

Enerflex Secures Major Power Contract to Push Backlog Over 1.75 GW

BullishMedium impact
EFXCA$34.26 0.56%

Enerflex Ltd. (TSX:EFX) has secured a new contract for more than 1 gigawatt of behind-the-meter natural gas power units. The major award expands the company's power generation backlog to over 1.75 gigawatts, with unit deliveries scheduled to run through 2028. Shares of Enerflex traded up 0.56% at 34.26 CAD following the announcement.

The multi-year award provides longer-term revenue visibility and helps stabilize production schedules through 2028. The deal aligns with growing demand for behind-the-meter energy solutions, particularly for data center applications. In addition to unit manufacturing, the larger installed base creates potential opportunities for higher-margin follow-on revenue through commissioning and aftermarket services.

To support its power infrastructure capacity, Enerflex is committing about $100 million toward overall capacity investments, which includes $15 million in planned capital expenditures for 2026. Investors will be monitoring how efficiently the company executes on these capital spending plans and whether expanded capacity translates into stronger revenue and earnings growth.

Key points

  • Enerflex secured a new contract for over 1 GW of behind-the-meter natural gas power units.
  • The new order increases the company's total behind-the-meter backlog to more than 1.75 GW through 2028.
  • Total capacity investments are estimated at $100 million, including $15 million in capital expenditures for 2026.
  • The expanding equipment footprint opens additional potential revenue from higher-margin commissioning and aftermarket services.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

What is Enerflex's new power contract?

Enerflex secured a contract for over 1 gigawatt of behind-the-meter natural gas power units, extending deliveries through 2028.

How large is Enerflex's current backlog?

Following the new 1 gigawatt award, Enerflex's behind-the-meter backlog grew to more than 1.75 gigawatts.

How much is Enerflex spending on capacity investments?

Enerflex plans around $100 million in total capacity investments, which includes $15 million in capital expenditure for 2026.