Enerflex Ltd. Announces Contract Award for Large-Scale Data Center Development

Enerflex expects the investments and ongoing operational initiatives to increase its Engineered Systems revenue capacity.

Rhea-AI Summary

Enerflex (NYSE: EFXT) won a contract to supply approximately 450 megawatts of natural gas-fired power generation for a North American data center developer. The units will supply power without a grid connection. Enerflex will design, engineer, fabricate and assemble them through its North American manufacturing operations, with deliveries scheduled to begin in 2027 and finish in 2028.

Its 2026 capital expenditure guidance includes approximately $15 million in property, plant, equipment and infrastructure investments supporting its Engineered Systems business and adjacent markets. Enerflex also authorized approximately $85 million for that business’s facilities and capabilities, with most spending expected during 2027.

4 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Contract award covers approximately 450 megawatts for a North American data center developer, with deliveries scheduled for 2027–2028.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Authorized facilities and capability expansion supports Engineered Systems; Enerflex expects investments and operational initiatives to increase revenue capacity.
• Minor pointEnerflex reports a power generation opportunity pipeline that continues to exceed 2 GW, not contracted awards.
• Minor point. Forward-looking: it has not happened yet and may not happen.The award creates opportunities for future commissioning, installation and after-market services, including digital solutions.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Authorized Engineered Systems investments require approximately $85 million, with the majority expected to be incurred during 2027. 3.1% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditure guidance includes approximately $15 million for Engineered Systems and adjacent-market infrastructure investments.

Key Figures

Generation capacity: approximately 450 megawatts ES business line investment: approximately $15 million ES facilities investment: approximately $85 million +1 more

Generation capacity

approximately 450 megawatts

Behind-the-meter natural gas-fired units for a data center developer

ES business line investment

approximately $15 million

Included in 2026 capital expenditure guidance

ES facilities investment

approximately $85 million

Authorized; the majority is expected to be incurred during 2027

Scheduled deliveries

2027–2028

Deliveries are scheduled to commence in 2027 and be completed in 2028

Key Terms

behind-the-meter, pp&e

2 terms

behind-the-meter technical

"approximately 450 megawatts of behind-the-meter natural gas-fired power generation"

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

pp&e financial

"PP&E and infrastructure investments of approximately $15 million"

PP&E stands for property, plant and equipment — the long-lived physical things a company uses to run its business, like buildings, factories, machinery and vehicles. Think of it as the tools and locations a company needs to produce goods or services; investors watch PP&E to judge how much the business has invested in its operations, how capital-intensive it is, and how depreciation of those assets will affect future profits and cash flow.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CALGARY, Alberta, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today announces the award of a major Engineered Systems (“ES”) project. The Company has been contracted to design, engineer, fabricate, and assemble approximately 450 megawatts of behind-the-meter natural gas-fired power generation units for a North American data center developer.

The project will be executed through Enerflex's North American manufacturing operations with deliveries scheduled to commence in 2027 and be completed in 2028.

To support this award and expected growth across Enerflex’s core markets, the Company is investing in expanding the capabilities of its ES business line. Included in Enerflex’s capital expenditure guidance for 2026 is PP&E and infrastructure investments of approximately $15 million to support the Company’s ES business line and activity in adjacent markets, including electric power generation. Enerflex has also authorized approximately $85 million of investments in its ES facilities and capabilities, the majority of which is expected to be incurred during 2027. These investments, combined with on-going initiatives to enhance collaboration, leverage scale, improve operational efficiency, and solidify capabilities, are expected to significantly increase revenue capacity of Enerflex’s ES business line. The Company expects to provide further updates regarding its 2026 capital program with the release of Q3/26 financial and operational results.

Paul Mahoney, Enerflex's President and Chief Executive Officer, commented: “This award leverages Enerflex's unique capabilities in providing an integrated design, engineering, full scale fabrication, and project execution solution for behind-the-meter power generation projects. The demand for reliable, prime power that does not require grid connection, supporting Artificial Intelligence and digital infrastructure development continues to grow. Building on more than four decades of power generation experience, Enerflex is well positioned to execute a wide range of power generation projects and convert our opportunity pipeline, that continues to exceed 2 GW, into meaningful commercial awards.”

In addition to the initial equipment scope, this award provides opportunities for future commissioning, installation, and after-market services support including digital solutions through Enerflex’s ReliaCore™ asset performance ecosystem, aligning with Enerflex’s commercial capabilities to support the full cycle requirements of behind-the-meter power generation development.

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: (i) the expected growth across Enerflex’s core markets; (ii) the Company’s 2026 guidance, including PP&E and infrastructure investments of approximately $15 million, to support the Company’s Engineered Systems business and activity in adjacent markets, including electric power generation; (iii) expectations that the majority of additional investments in our ES capabilities will be incurred in 2027, if at all; (iv) expectations pertaining to increases in revenue capacity of Enerflex’s Engineered Systems business; (v) expectations, and the timing associated with, the Company providing further updates regarding its 2026 capital program; (vi) the ability of the Company to capitalize and convert its opportunity pipeline into meaningful commercial awards, the terms and conditions of such awards, and the timing associated therewith, if at all; and (vii) the ability of the Company to capitalize on opportunities associated with the project including commissioning, installation, and after-market services support including digital solutions through Enerflex’s ReliaCore asset performance ecosystem, and the timing of such opportunities, if at all.

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: (i) the project proceeding in accordance with the terms of the applicable contract, including expected scope, timing, and customer performance obligations; (ii) deliveries to commence in 2027 and to be completed in 2028 as currently scheduled; (iii) demand for behind-the-meter power generation solutions, including demand associated with data center and digital infrastructure development, remaining consistent with current expectations; (iv) Enerflex's ability to execute the project utilizing its existing and expanded manufacturing capabilities and supply chain resources; (v) the availability of labour, equipment, components, and transportation services on commercially reasonable terms; (vi) capital expenditures and other investments being completed substantially in accordance with the Company's current plans, timelines, and cost estimates; (vii) the Company's ability to realize anticipated operational efficiencies, increased manufacturing capacity, and revenue opportunities resulting from such investments; (viii) general economic, market, and industry conditions remaining substantially consistent with current expectations; and (ix) the Company's ability to secure and execute future opportunities for commissioning, installation, and after-market services including digital solutions associated with the project.

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; (ii) the Company’s MD&A as at June 30, 2026; and (iii) 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 www.sedarplus.ca and www.sec.gov/edgar, 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.

ABOUT ENERFLEX

Enerflex is a leading provider of modular natural gas, power, and treated water technology 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 4,500 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 www.enerflex.com.

For investor and media enquiries, contact:

Paul Mahoney
President and Chief Executive Officer
E-mail: PMahoney@enerflex.com

Preet S. Dhindsa
Senior Vice President and Chief Financial Officer
E-mail: PDhindsa@enerflex.com

Jeff Fetterly
Vice President, Corporate Development and Capital Markets
E-mail: JFetterly@enerflex.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Enerflex’s data center power generation contract cover, and when are deliveries scheduled?

Enerflex will design, engineer, fabricate and assemble approximately 450 megawatts of natural gas-fired power generation units, with deliveries scheduled to commence in 2027 and be completed in 2028. The customer is a North American data center developer, and the project will use Enerflex’s North American manufacturing operations.

When will Enerflex provide another update on its 2026 capital program?

Enerflex expects to provide further updates on its 2026 capital program when it releases its Q3/26 financial and operational results.