Enerflex Ltd (NYSE:EFXT) Q2 2023 Earnings Conference Call August 10, 2023 8:00 AM ET

Company Participants

Stefan Ali - Vice President, IR and Business Development Energy Transition

Marc Rossiter - President, CEO & Director

Rodney Gray - Senior VP & CFO

Ben Park - Vice President, Corporate Controller

Conference Call Participants

Aaron MacNeil - TD Securities

Nick Corcoran - Acumen Capital

Keith MacKey - RBC Capital Markets

Tim Monachello - ATB Capital Markets

Operator

Good morning, ladies and gentlemen, and welcome to the Enerflex Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to your host, Stefan Ali, Vice President, Investor Relations and Business Development Energy Transition. Please go ahead.

Stefan Ali

Thank you, operator, and good morning, everyone. Thank you for joining us on our second quarter 2023 earnings call. With me today are Marc Rossiter, President and CEO; Rod Gray, Senior Vice President and CFO; and Ben Park, Vice President, Corporate Controller. During today's call, we'll touch on highlights from our second quarter results and provide an update on how we are progressing our near-term strategic priorities.

Before I turn it over to Mark, I'll remind everyone that today's discussion will include non-IFRS and other financial measures as well as forward-looking statements regarding Enerflex's expectations for future performance and business prospects. Forward-looking information involves risks and uncertainties, and the stated expectations could differ materially from actual results or performance. For more information, refer to the advisory statements within our news release, MD&A and other regulatory filings, all available on our website and under our SEDAR+ and EDGAR profiles. All dollar amounts discussed today are in Canadian dollars unless otherwise stated.

I'll now turn it over to our President and CEO, Marc Rossiter.

Marc Rossiter

Thanks, Stefan, and thanks to all our listeners for joining this morning's call. Last night, Enerflex reported results that reflect strong operational performance across our three core business lines and a continued focus on integrating Exterran and strengthening our financial position. In the second quarter, we delivered revenue of $777 million and adjusted EBITDA of $142 million, demonstrating the strength of our energy infrastructure and aftermarket services business lines as well as continued momentum in our North American Engineered Systems business.

The gross margin profile on our recurring businesses expanded from the first quarter. Our energy infrastructure platform benefited from more favorable terms on renewals and additional contracted revenues generated from the new energy infrastructure assets we brought online in the first half of the year. And our aftermarket services business benefited from increased activity levels, including continued global demand for spare parts.