Enerflex announces CEO transition and maintains 2025 forecast

Published 20/03/2025, 03:06
Enerflex announces CEO transition and maintains 2025 forecast

CALGARY, Alberta - Enerflex Ltd. (TSX: EFX) (NYSE: EFXT), a global provider of energy infrastructure solutions, disclosed today that Marc Rossiter has resigned from his roles as President, CEO, and Director, effective immediately. Preet Dhindsa, the company’s current Senior Vice President and CFO, has been appointed as Interim CEO. Meanwhile, Joe Ladouceur, Vice President Treasury, Tax & Insurance, will take over as Interim CFO.

The company has initiated a comprehensive search for a permanent CEO and has engaged a top executive search firm to aid in this process. Kevin Reinhart, Chair of the Board of Directors, expressed gratitude to Rossiter for his service and contributions, particularly during his six-year tenure as CEO.

Dhindsa, who joined Enerflex in October 2023, brings over two decades of experience in the energy and financial services sectors. He emphasized the company’s commitment to enhancing profitability, improving balance sheet health, and driving long-term growth and value creation.

In line with its strategic priorities, Enerflex, which generated $2.4 billion in revenue and $323 million in EBITDA over the last twelve months, is focused on enhancing core operations’ profitability, leveraging its position in key markets to capitalize on expected increases in natural gas and produced water volumes, and maximizing free cash flow. This includes a 50% increase in the company’s quarterly dividend and the implementation of a normal course issuer bid to increase direct shareholder returns.

Enerflex reaffirmed its 2025 outlook, expecting steady demand across its business lines and regions. The company is closely monitoring geopolitical tensions in North America and potential tariff impacts, which are anticipated to be mitigated by diversified operations and proactive risk management. Approximately 65% of gross margin before depreciation and amortization is projected to come from its Energy Infrastructure product line and After-Market Services business. The company also plans a disciplined capital program for 2025, with expenditures between $110 million and $130 million, focusing on customer-supported growth in the US and Middle East.

The announcement comes as Enerflex continues its 15-year track record of consistent dividend payments, with the stock showing strong momentum through a 31.6% price return over the past six months. According to InvestingPro analysis, the company is currently trading below its Fair Value, presenting a potential opportunity for investors. For deeper insights into Enerflex’s valuation and growth prospects, including access to comprehensive Pro Research Reports covering 1,400+ top stocks, consider exploring InvestingPro. The information in this article is based on a press release statement and InvestingPro data.

In other recent news, Enerflex Ltd. has released a preliminary outlook for the year 2025. The company made this announcement through a Form 6-K report filed with the U.S. Securities and Exchange Commission. While the report did not specify financial targets, Enerflex confirmed that a detailed report will be provided during its fourth-quarter results release. This strategic plan is expected to guide the company’s operations and financial performance for the upcoming year. Enerflex has not disclosed further details on its expected financial performance or any operational changes for 2025. Investors are advised to await the full details, which will be published in the company’s official fourth-quarter report. The timing of this release has been confirmed, although the exact date remains unspecified. This announcement comes as the industrial machinery sector continues to face various challenges and opportunities globally. Enerflex’s forthcoming details on its 2025 outlook will be closely monitored by investors interested in the company’s future direction.

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