A backlog is a queue. It is not cash in the bank
Enerflex (TSX: EFX, NYSE: EFXT) reported second-quarter 2026 results on August 6. All of these prints are U.S. dollars. Engineered Systems backlog was US$1.453 billion at June 30, against US$1.227 billion a year earlier. Bookings were US$488 million against US$365 million. Book-to-bill was 1.6 times in the quarter and 1.5 times in the first half. The company calls that the highest ES forward visibility in its history. Bookings mix included cryogenic gas processing, refrigeration for LNG export, large compression stations, and power generation. That is shop work and compression, not a Canadian export pipe.
Revenue was US$582 million, down from US$615 million. Adjusted EBITDA was US$128 million. Free cash flow was US$32 million. Net earnings were US$30 million, or US$0.25 a share. Net debt was US$455 million. Bank-adjusted net debt to EBITDA was 0.8 times. Energy Infrastructure and After-Market Services made 69 percent of gross margin before depreciation. The revolver was extended to 2029 and the accordion went to US$200 million.
Asia Pacific is announced, not closed
On February 25 Enerflex agreed to sell most of its Asia Pacific operations to INNIO Group. The August 6 note says that sale is still on track for the second half of 2026, subject to close conditions and approvals. Do not write it as cash received. Organic capex is now US$185 million to US$195 million, with about US$100 million of growth spend and a 10 to 15 percent expansion of the U.S. contract compression fleet.
Neutral read
EFX is on the listed oilfield-services list. Banks were skipped. US$1.453 billion of backlog and US$488 million of bookings are the facts. Write LNG refrigeration in the bookings mix as kit for other people's plants, not as Enerflex becoming an exporter. Watch whether the backlog converts at the 18 percent ES margin, whether INNIO actually closes, and whether U.S. contract compression grows 10 to 15 percent.