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DATE

Thursday, November 6, 2025 at 10 a.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Paul Mahoney
  • Chief Financial Officer — Preet Dhindsa
  • Executive Vice President, Corporate Development and Strategy — Jeff Fetterly

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TAKEAWAYS

  • Revenue -- $777,000,000, up from $601,000,000 in Q3 2024 and $615,000,000 in Q2 2025; gain was mainly attributable to project pull-forward and the Oman BSAT C expansion.
  • Gross Margin Before Depreciation and Amortization -- $206,000,000 or 27% of revenue, compared to $176,000,000 or 29% in Q3 2024 and $175,000,000 or 29% in Q2 2025; the Oman BSAT C project contributed $14,000,000.
  • Adjusted EBIT (non-GAAP) -- $145,000,000, a company quarterly record, up from $120,000,000 in Q3 2024 and $130,000,000 in Q2 2025, driven by cost-saving initiatives and higher gross margins.
  • Free Cash Flow -- $43,000,000, down from $78,000,000 in Q3 2024, impacted by net working capital investments and higher growth capital spend, partially offset by asset sale proceeds in Latin America.
  • Net Earnings -- $37,000,000 or $0.30 per share, improving on $30,000,000 or $0.24 per share in Q3 2024, but down from $60,000,000 or $0.49 per share in Q2 2025; profitability benefited from higher gross margin and lower SG&A, partially offset by a $16,000,000 unrealized loss on redemption options for senior secured notes.
  • Net Debt -- $584,000,000 at quarter-end, a reduction of $108,000,000 from Q3 2024 and $24,000,000 since Q2 2025; includes $64,000,000 of cash and cash equivalents.
  • Bank-adjusted Net Debt to EBITDA Ratio -- Approximately 1.0x, improved from 1.9x in Q3 2024 and 1.3x at Q2 2025 end.
  • Return on Capital Employed (ROCE) -- 16.9%, a new company high, compared to 4.5% in Q3 2024 and 16.4% in Q2 2025.
  • Shareholder Returns -- $11,000,000 returned in Q3 via dividends and buybacks; 777,000 shares repurchased at a CAD12.98 average price.
  • Dividend Increase -- Quarterly dividend raised by 13% to CAD 4.25 per share, effective December 2025.
  • Engineered Systems Backlog -- $1,100,000,000 at September 30; bookings of $339,000,000 in Q3 with a 0.9 book-to-bill ratio, normalized for Oman project accounting.
  • U.S. Contract Compression -- 94% utilization across approximately 470,000 horsepower; fleet targeted to expand to 485,000 horsepower by year-end 2025.
  • International Energy Infrastructure -- Operates approximately 1,100,000 horsepower of compression and 24 BOOM projects in Bahrain, Oman, and Latin America, with a weighted average contract term of approximately 5 years.
  • Working Capital Build -- $41,000,000 net working capital increase in Q3, mainly due to higher accounts receivable, inventory for long-lead items, and Oman project investments.
  • Amended Credit Facility -- Maturity extended to July 2028, availability unchanged at $800,000,000.
  • Capital Expenditures -- $47,000,000 in Q3 comprising $33,000,000 in capex and $15,000,000 allocated to growth; full-year 2025 guidance maintained at approximately $120,000,000 total.

SUMMARY

Enerflex Ltd. (EFXT 1.12%) reported historically high adjusted EBIT and ROCE, reflecting improved financial efficiency and margin expansion. Segment performance was led by strong engineered systems activity, boost from the Oman BSAT C project, and robust U.S. contract compression utilization. Backlog and bookings in Engineered Systems signal continued revenue visibility, while management noted accelerated project execution pulled some revenue into the quarter. Shareholder returns increased through buybacks and the second consecutive annual dividend increase, underpinned by strengthened balance sheet and improved leverage profile. Strategic clarity is evolving, with a continued focus on core operations, disciplined capital deployment, and exploring growth in modular power generation and data center markets.

  • CEO Mahoney stated the engineered systems backlog "provides strong visibility into future revenue generation and business activity levels."
  • Management noted demand for engines in both compression and power generation is contributing to extended OEM lead times, with some configurations "now extending into 2027, and in some extreme cases, 2028."
  • Paul Mahoney reported that the book-to-bill ratio on a trailing eight-quarter average is "one times," indicating consistent replenishment of project backlog.
  • Enerflex is actively evaluating over 500 megawatts of power generation opportunities across business lines, supported by ongoing FEED studies.
  • Company priorities remain enhancing core profitability, leveraging positions in core markets, and maximizing free cash flow for financial strength and targeted growth.

INDUSTRY GLOSSARY

  • BOOM (Build, Own, Operate, and Maintain): Long-term project delivery model where a contractor delivers, owns, operates, and maintains infrastructure assets for clients over the contract term.
  • FEED (Front-End Engineering Design): Early phase project study that defines technical requirements and costs prior to major investment decisions.
  • Engineered Systems (ES): Enerflex’s custom-designed and built modular solutions for gas processing, compression, and power generation applications.
  • Aftermarket Services (AMS): Post-sale services including maintenance, parts, and operational support for Enerflex’s installed equipment base.

Full Conference Call Transcript

Paul Mahoney: Thanks, Jeff. And thank you all for joining us on this morning's call. I'm pleased to join Enerflex at a very exciting time for the company. The Enerflex team has made significant operational, financial, and strategic strides in recent quarters. I want to start off and thank the team across our global operations for their energy, their commitment, and all of their efforts. We are pleased to report another strong quarter of financial and operating results. The energy infrastructure and aftermarket services business lines continue to be the foundation of our results, contributing 58% of gross margin before depreciation and amortization during the third quarter.

The Engineered Systems business line benefited from favorable project sequencing and strong execution to generate the highest quarterly operating revenue in its history. First, I'll start with a few strategic and operational highlights. Enerflex's U.S. Contract compression business continues to perform well, led by increasing natural gas production in the Permian. Utilization remained stable at 94% during Q3 across a fleet size of approximately 470,000 horsepower. Enerflex remains on track to grow its North American contract compression fleet to approximately 485,000 horsepower by the end of 2025. We expect to continue expanding this business in 2026 and we'll provide more specifics early in the new year.

In the U.S., Enerflex was awarded a contract to construct a 200,000,000 cubic standard feet per day cryogenic gas processing facility associated with natural gas compression. The project will be executed by the engineered systems business line and scheduled for delivery during 2026 with a strategic client partner in the Permian Basin. The company continues to broaden and strengthen relationships within the midstream client partner base in the U.S., which includes strategic alliances and further developing relationships established through the acquisition of Exterran. During Q3, this resulted in Enerflex securing multiple orders for large compression equipment.

In Oman, Enerflex successfully completed the construction and startup of the Block 60 BSAT C expansion facility for its client partner OQ Exploration and Production. The project was delivered ahead of schedule and achieved first crude oil in less than eighteen months. Enerflex's investment is supported by a long-term contract and reported as a finance lease. In Argentina, Enerflex delivered a state-of-the-art all-electric gas compression station for a longstanding client partner in the Vaca Muerta shale play. Lastly, Enerflex received the prestigious award for its collaboration on a gas-to-energy project in Guyana. A first of its kind in Guyana, Enerflex provided the natural gas conditioning and cryogenic infrastructure for this project.

We will generate 300 megawatts of power, reduce the country's dependence on imported fuels, and expand access to power in underserved communities. And now a few comments on each of our business lines. Engineered Systems backlog as of September 30 of $1,100,000,000 provides strong visibility into future revenue generation and business activity levels. Bookings of $339,000,000 during Q3 compared to a trailing eight-quarter average of approximately $320,000,000. The book-to-bill ratio, calculated as bookings divided by revenue and normalized for accounting treatment associated with the BSAT C expansion project, was 0.9 times during Q3 and one times on a trailing eight-quarter average, highlighting that the company is consistently replenishing its backlog in line with project execution.

The outlook for engineered systems is supported by healthy bidding activity and backlog visibility that extends into 2026. Notwithstanding, Enerflex continues to closely monitor near-term risks, including tariffs and commodity price volatility, and will proactively manage this business line. Activity levels for the ES product line during '25 are expected to reflect a pull forward of certain projects into the third quarter. Enerflex continues to expect gross margin for the ES business line in coming quarters to align more closely with the historical averages reflective of a shift in project mix. We believe the medium-term outlook for ES products and services is attractive, supported by anticipated growth in natural gas and produced water volumes across Enerflex's global footprint.

Results for the aftermarket services business line benefited from increased activity levels and customer maintenance activities during the quarter. We expect these trends to continue into 2026. The energy infrastructure business continues to perform well, supported by approximately $1,400,000,000 of revenue under contract. Our U.S. Contract compression fleet is an important part of our energy infrastructure asset base, and the fundamentals for this business remain strong. Operational KPIs for this business are highlighted on slides fifteen and sixteen of our investor presentation. Slides seventeen and eighteen highlight our international energy infrastructure business, which includes approximately 1,100,000 horsepower of operated compression and 24 build, own, operate, and maintain or BOOM projects in Bahrain, Oman, and Latin America.

The international energy infrastructure business has a strong contract position with a weighted average term of approximately five years and is expected to provide a steady foundation to Enerflex's financial performance in the coming years. I would like to comment briefly on strategic priorities. Since joining Enerflex in September, I've had the wonderful opportunity to visit the key parts of Enerflex's North American operation and interact across all levels of the company. The strength of Enerflex's people, culture, and position as a global leader have been evident. We expect to provide further insight into strategic priorities, including capital allocation, in the coming months following continued strategic clarity and discussion with our Board of Directors.

I would like to emphasize that our go-forward approach will, one, focus on Enerflex's strengths and areas of excellence; two, stay true to the values that have guided the company for decades; and three, continue to emphasize discipline, providing meaningful direct shareholder returns and making investments that support long-term shareholder value creation. In the near term, Enerflex's priorities are unchanged and include one, enhancing the profitability of core operations; two, leveraging the company's leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes; and three, maximizing free cash flow to strengthen Enerflex's financial position, provide direct shareholder returns, and invest in selective customer-supported growth opportunities.

Before I turn it over to Preet, I would like to briefly touch on emerging opportunities we are seeing in the electrical power generation part of our business, including opportunities associated with data centers. The delivery of modularized power generation solutions is a core competency of Enerflex. The engineered systems business line has been delivering these types of solutions for over thirty years, and our international energy infrastructure asset base includes upwards of 100,000 horsepower of modularized power generation assets. The microgrid power generation market in North America is very much in a formation stage, but recent announcements from OEM suppliers and industry participants provide an indication of the potential opportunities.

Although power generation represents a modest portion of Enerflex's current engineered systems backlog and overall business, we are developing solutions that we believe can address a range of applications and are excited about opportunities in 2026 and beyond. For context, we are currently conducting FEED studies for existing and potential client partners and evaluating over 500 megawatts of opportunities across our engineered systems and energy infrastructure business lines. We look forward to providing updates as Enerflex continues to develop this market opportunity. With that, I'll turn it over to Preet to speak to the financial side.

Preet Dhindsa: Thank you, Paul, and good morning, everyone. I'll start with highlights for the third quarter. We generated revenue of $777,000,000 in the third quarter compared to $601,000,000 in 2024 and $615,000,000 in Q2 2025. Higher revenue is primarily attributable to the Bisat C expansion project that Paul highlighted, which contributed $116,000,000 in revenue to the Engineered Systems product line and strong execution of ES projects alongside a high level of operational activity, which led to certain project milestones being achieved earlier than expected. This results in revenue being realized in Q3 that was originally anticipated in later periods.

Gross margin before depreciation and amortization was $206,000,000 or 27% of revenue, including $14,000,000 related to the VESATC expansion project, compared to $176,000,000 or 29% of revenue in Q3 2024 and $175,000,000 or 29% of revenue during Q2 2025. As Paul referenced, the EI and AMS product lines generated 58% of consolidated gross margin before depreciation and amortization during Q3 2025, lower compared to 65% during Q3 2024 and our guidance for the full year 2025. As a result of contribution from the BINOSEPCE expansion project and strong ES activity. Energy infrastructure performance continued to be strong with gross margin before G&A of $95,000,000 compared to $91,000,000 in Q3 2024, and $86,000,000 in Q2 2025.

Aftermarket services gross margin before G&A was 21% in the quarter, benefiting from strong customer maintenance programs. SG&A was $71,000,000 in the quarter, down $11,000,000 from incurred in Q3 2024. Adjusted EBIT of $145,000,000 is a new quarterly record for Enerflex that compares to $120,000,000 in Q3 2024 and $130,000,000 during Q2 2025. Adjusted EBITDA benefited from higher gross margin before depreciation and amortization, cost-saving initiatives, and operational efficiencies. Cash provided by operating activities before changes in working capital, or FF, increased to $115,000,000 compared to $63,000,000 in Q3 2024 and $89,000,000 in Q2 2025, a function of higher adjusted EBITDA.

Free cash flow decreased to $43,000,000 in Q3 2025 compared to $78,000,000 during Q3 2024 due to working capital investments related to the execution projects in the ES business line and higher growth capital spend, offset partially by proceeds from the sale of EI assets in Latin America. We saw a build of $41,000,000 in net working capital during the third quarter, principally related to strong revenue recognition during the latter part of the quarter, which temporarily increased accounts receivable, strategic inventory investments to support future projects, including the purchase of select major components with increasing lead times, and continued investment in the BISS SC expansion project with $12,000,000 spent during the third quarter.

Return on capital employed increased to 16.9% in Q3 2025, a new record for the company, compared to 4.5% in Q3 2024 and 16.4% in Q2 2025. Higher ROCE is a function of the increase in trailing twelve-month EBIT and lower average capital employed, predominantly due to a decline in net debt. Net earnings of $37,000,000 or $0.30 per share in Q3 2025 compared to $30,000,000 or $0.24 per share in Q3 2024 and $60,000,000 or $0.49 per share in Q2 2025. Compared to Q3 2024, profitability benefited from higher gross margin, lower SG&A expense, and lower finance costs, partially offset by a $16,000,000 unrealized loss on redemption options related to senior secured notes.

Now we'll touch on our strong financial position. Enerflex exited Q3 2025 with net debt of $584,000,000, including $64,000,000 of cash and cash equivalents, a reduction of $108,000,000 compared to Q3 2024, and $24,000,000 compared to the 2025. Enerflex's bank-adjusted net debt to EBITDA ratio is approximately one point at the end of Q3 2025, down from 1.9x at the end of Q3 2024 and 1.3 times at the end of Q2 2025. In early Q3, Enerflex entered into an amended and restated credit agreement with respect to its syndicated secured revolving credit facility. The maturity of the facility has been extended by three years to July 2028, and availability is unchanged at $800,000,000. Let me shift to capital allocation.

First on our CapEx plans. We invested $47,000,000 in the business, consisting of $33,000,000 in capital expenditures, $15,000,000 for growth, and $14,000,000 primarily related to the VISTAT C expansion in the region. Enerflex continues to target a disciplined capital program in 2025, with total capital expenditures of approximately $120,000,000. This includes approximately $60,000,000 for maintenance and property, plant, and equipment, and $60,000,000 allocated to growth opportunities. Disciplined capital spending will focus on customer support opportunities primarily in the U.S. market. And now direct shareholder returns. Enerflex returned $11,000,000 to shareholders in Q3 and $35,000,000 during 2025, in the form of dividends and share repurchases.

The company repurchased 777,000 common shares at an average price of CAD12.98 per share during Q3 2025 and a total of approximately 2,700,000 common shares at an average price of CAD10.93, since its normal course issuer bid commenced on April 1, 2025, to September 30. Under the NCIB, which expires March 31, 2026, the company is authorized to acquire up to a maximum of approximately 6,200,000 common shares or approximately 5% of its public float as at the application date for cancellation. Enerflex's board of directors increased the company's quarterly dividend by 13% to CAD 4.25 per common share, effective with a dividend payable in December 2025.

The Board's decision to increase our dividend for a second consecutive year reflects confidence in our business and Enerflex's strong financial position and aligns with our priority to provide meaningful direct shareholder returns. 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 purchase, and dividends, Enerflex will also consider further debt reduction to strengthen its balance sheet and lower net finance costs. Unlocking greater financial flexibility positions the company to respond to evolving market conditions and capitalize on opportunities to optimize the debt stack.

I want to thank Enerflex employees for their efforts to continue to deliver strong operational and financial results. With that, I'll turn the call back over to Paul for closing remarks.

Paul Mahoney: Thanks, Preet. Let me reiterate that I'm pleased to join Enerflex at an exciting time for the company and appreciate all the efforts of the Enerflex team in making significant operational, financial, and strategic strides. We believe the long-term fundamentals driving our growth, including global energy security and the continued increase in demand for natural gas, remain firmly in place, and Enerflex is well-positioned for those fundamentals. We will now hand the call back to the operator for questions.

Operator: Thank you. And wait for your name to be announced. To withdraw your question, please press 11 again. Our first question comes from the line of Erin McNeil from TD Cowen.

Aaron MacNeil: Hey, morning all. Thanks for taking my questions. And Paul, congratulations on the new role. I can appreciate you're gonna give us an update in the coming months, but I guess I'm just curious to know what the team is telling you throughout the early days of your tenure in terms of what they think Enerflex does really well and what they think needs to be improved? And how does your prior experience sort of inform your perspective?

Paul Mahoney: Yes. Welcome. Thank you, Aaron, for the question and the comments. You know, first let me start that the openness and the transparency through my visitations for the first thirty days have been wonderful. I've probably met well over 1,300 to 1,400 people in thirty days. And so what I would say has been confirmation of really focusing and seeing the benefits still in front of us around ruthless focus on some execution levers. Being able to drive cost price opportunities and gross margin along with driving working capital efficiency and the efficient use of capital remain priorities as Enerflex has demonstrated.

I do see opportunities to enhance our core operation with digitization initiatives and efforts all while staying focused on our investment discipline. That being, around investing in core competent areas, core countries, and having a very strong specific line of sight for customer activity.

Aaron MacNeil: Okay. Great. You mentioned Mobile Power in your prepared remarks. I was hoping you could dive a bit deeper into that. How do you think about the Blue Sky potential for Enerflex? What would 500 megawatts of opportunities translate to in terms of potential revenue opportunity given the sort of immediacy of the demand, of this sort of product, does the return or margin profile differ versus other products in the portfolio?

Paul Mahoney: Great question. You know, this is a very, very embryonic state, I would say, in power, and it's changing quite rapidly. It's clear that speed is a key differentiator and a key need. You know, 500 megawatts could easily grow to well over one gigawatt, is what I'm trying to say. Using behind-the-meter need and application is seeing strong, strong dialogue activity, quoting activity, balancing OEM delivery dates, and really being able to make committed opportunities come forward. It's very dynamic. It's very much in an area that Enerflex has experienced. As I've said in my opening remarks, with thirty years of power experience. So, we're very excited about the opportunity, very cautious, very disciplined.

But it's a pretty dynamic situation at the moment.

Aaron MacNeil: Okay. Fair enough. Good luck with everything. Thanks for taking my questions.

Jeff Fetterly: Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Keith MacKey from RBC Capital Markets.

Keith MacKey: Hi, good morning. Thanks for taking my questions and welcome to the call, Paul. Just to continue on the power angle. I know you noted it was across engineered systems and energy infrastructure. Can you maybe just detail a little bit more how you think you might be able to participate in both of those areas? And then as a follow-up would just be what your readiness would be to capitalize on some of these opportunities. Certainly, as you've mentioned, speed is of the essence, and the market appears to be moving at a very fast rate with a lot of announcements out from various types of companies these days.

So incremental color you can give on that would be appreciated.

Paul Mahoney: Yeah. Sure. So as I mentioned, I think speed being directly correlated to some of the OEM delivery pieces is what we're working through at the moment. There's opportunity around the recip engine space, natural gas being cost-efficient, speed being a differentiator, and Enerflex having a history and ability to execute are all coming together. It's very, very dynamic. You know, I see opportunities in engineered systems, but what we haven't mentioned is there's a strong opportunity for a follow-on, aftermarket services play for operations and maintenance. So, it's very exciting. And we're working very hard to build those partnerships.

Partnerships here are going to be not only with the supply base but also the power-related folks that are out there trying to solve this challenge for behind-the-meter activity and microgrid activity. And those partnership meetings and events have been occurring at a high pace.

Keith MacKey: Okay. Very good. And just, more broadly on the OEM engine availability, can you just comment on your inventory levels to support or execute existing projects as well as your ability to continue to book new work? How do you feel about the supply chain, both in engineered systems and aftermarket services from that standpoint?

Paul Mahoney: Yeah. Maybe I'll open up with some comments and maybe turn it to Preet here. But you know, I've had the opportunity to meet with our major OEM suppliers in the thirty days and get a really good understanding of what we could expect over the next twelve months. We have started to invest in some strategic inventory, that being tied specifically to customer activity, customer commitment. And so we've started to be able to manage what our 2026 commitments will be and what the lead times in our inventory position is.

Preet Dhindsa: Yes, Keith. The only thing I'd add is that you see the invested in working capital, largely that focused on the ES business, whereby long lead time equipment requires advanced bookings for that. So we've been doing that quarter over quarter. We feel good about supported activities that will clearly procure these items as and when they arrive. But the longer lead times are an area of focus for us. And once again, to invest in inventory in order to meet the customer support demand down the road.

Keith MacKey: Awesome. Appreciate the comments. Thanks a lot.

Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone, and wait for your name to be announced. To withdraw your question, please press 11 again. Our next question comes from the line of Tim Monachello from ATB Capital Markets.

Tim Monachello: Hey. Good morning, everyone, and congrats, Paul. First question, I just wanted to follow-up on the Allergan portfolio. You mentioned in your prepared remarks that you might be developing some additional product lines that you think maybe are better suited. My understanding is you have a pretty wide breadth of, I guess, megawatt packages that you can package for the market, but perhaps more suited to the smaller end of that. Can you talk a little bit about what the demand looks like in terms of package sizes and where your product lines fit in and what you might be developing?

Jeff Fetterly: As Paul referenced in the prepared remarks, there's a very wide range of potential applications, both size that you referenced, as well as configurations. I don't think it's appropriate for us to get into the details of that in any specific nature on the call. But as we talked about, we see a wide range of applications and significant opportunities that could align with those as well.

Tim Monachello: Okay. Understand there's probably some competitive dynamics there. Can you talk a little bit about, I guess, where you are in that process, if you're gonna have the products we do think is optimized for demand right now. When do you think that might be available?

Jeff Fetterly: And as Paul referenced in the prepared remarks, you know, this is a business on the engineered system side that we participated in for over thirty years. We continue to be active in delivering power generation solutions both domestically and internationally. And we continue to be responsive to the customers and engage with the OEMs and the customers to continue to customize those as well. So from our perspective, we believe real-time, but as Paul also referenced, this is an emerging developing market that's moving quite quickly too.

Tim Monachello: Yeah. Okay. That's helpful. Thank you. In terms of, I guess, the natural gas compression market, can you talk about leading edge demand a little bit and where we stand for lead times on key components like CAT engines and compressors?

Paul Mahoney: Yeah. Good question, Tim. You know, clearly in the production oil and gas production space, let's focus maybe on the Permian a bit. You do see a constrained capital discipline environment that's impacting, right, drilling and completions and things like that. But what you're also seeing is operators really trying to get the most out of their dollar spend. And so production optimization, production efficiencies are very, very high on the agenda. What that looks like from a compression standpoint, you still see the centralization of compression happening and occurring. You're seeing growth rates in perhaps different production technologies that would utilize the gas, the available gas, gas lift production technologies.

So the demand doesn't necessarily correlate with what you may think on drilling and completions and things. It's correlating to more centralization and leveraging gas for production optimization efforts.

Tim Monachello: Okay. And lead times for the engines and compressors, where do we think we're at there?

Jeff Fetterly: Tim, it's Jeff. It's obviously been fairly widely publicized the increases in lead times associated with certain engines and configurations. And we certainly are seeing that as Paul and highlighted in their earlier remarks, we've been responding to that with inventory investments and engagement on the OEM side. But we're certainly seeing certain engine configurations deliveries are now extending into 2027, and in some extreme cases, 2028. And it's really reflective of the convergence that you've seen in recent quarters between what have been traditionally more compression-oriented applications with power gen, while reciprocating engine side.

Tim Monachello: Okay. That's helpful too. And then just on the outlook, particularly for the engineered systems business, you know, when you back out the Oman project, margins are really strong in the quarter. And you guys have been guiding to margins coming down for a few quarters now. We haven't, I think that this probably outperformed your expectations and ours. I guess, why do you think you can't keep that going? Because I would have imagined that your backlog in the mix in that backlog had been shifting towards negative or towards lower margins over the last number of quarters here.

Preet Dhindsa: Tim, you're right. We've been guiding towards historical Enerflex averages for a couple of quarters now. The Oman project, obviously, that contributed $14,000,000 to gross margin, $100,000,000 came out of backlog for that into revenue. And we still feel, given mix, product mix in our backlog and bookings coming in, we still feel it's prudent to guide slightly to the mid-teen level historical averages. And then we feel that's still the right spot to be in, and we're pleased with our results to date. As Paul mentioned, look at operational efficiencies where we can. So Tim, if we feel we're trending in an even more constructive direction, we'll advise.

But right now, we feel good about the historical average gross margin, which is still something you should probably peg to.

Tim Monachello: Okay. And then last one for me. Can you help quantify how much was pulled forward from Q4 into Q3?

Jeff Fetterly: Tim, I think the easiest rule of thumb is when you look at the average in the ES business over the last couple of years, it's been between $300,000,000 and $325,000,000 per quarter. If you look at what we reported at close at just over $400,000,000 or close to $400,000,000, you back out the BSAT C expansion that we referenced, I think that would give you an indication of the strength of Q3 and the execution we saw in Q3 relative to normal cadence.

Tim Monachello: Okay. And then you think the most of that comes out of Q4? Like, the amount that you're above that cadence in Q3, you should be below it in Q4?

Jeff Fetterly: I don't know if we can give you a direct correlation, but this was referenced in the remarks. There was definitely some pull forward and accelerated execution that happened in the third quarter.

Tim Monachello: Okay. Very much for the commentary. Turn it back. Appreciate it.

Operator: Thank you. At this time, I would now like to turn the conference back over to Paul Mahoney for closing remarks.

Paul Mahoney: Before we close today's call, I'd like to take a moment to acknowledge the upcoming Remembrance Day in Canada and Veterans Day in the United States. We honor the courage and sacrifice of those who served and continue to serve in our armed forces, including many employees now part of the Enerflex family. Their dedication has safeguarded the freedoms and peace we enjoy today. Thank you for joining today's call, and we look forward to sharing our fourth quarter and year-end financial results in February.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.