St. Albert, Alberta--(Newsfile Corp. - August 14, 2025) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment and services to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2, and other harmful emissions for small local and Tier One resource clients is pleased to announce its Q2 2025 results.
OVERALL PERFORMANCE AND RESULTS OF OPERATIONS
| Three months June 30, 2025 | Three months June 30, 2024 | Six months June 30, 2025 | Six months June 30, 2024 | |||||
| Revenue | $6,485,914 | $7,707,282 | $16,813,999 | $20,033,570 | ||||
| Gross margin | $1,645,511 | 25% | $3,318,336 | 43% | $6,820,853 | 41% | $10,214,681 | 51% |
| Adjusted EBITDA(1) | $799,425 | 12% | $2,651,694 | 34% | $5,215,280 | 31% | $8,989,547 | 45% |
| Net (loss) income and comprehensive income | $(929,022) | $76,423 | $2,048,874 | $4,067,937 | ||||
| (Loss) income per share - Basic | $(0.01) | $0.00 | $0.03 | $0.07 | ||||
| (loss) income per share - Diluted | $(0.01) | $0.00 | $0.02 | $0.07 |
(1) Identified and defined under "Non-IFRS Measures".
- Activity in the energy industry has been steadily increasing since the end of the second quarter and is expected to continue throughout the second half of the year. Industry data on long-term drilling and completions and long-term commodity prices all support improved activity. Additional investments in liquified natural gas systems also supports ongoing confidence in this sector. Enterprise's recent acquisition and exclusivity agreement solidifies its position as the market leader addressing the growing demand for reliable and efficient natural gas to electric power solutions, both within and outside the energy industry. The Company continues to see its customers embracing technological innovation to improve efficiency, reduce emissions and lower costs switching to natural gas as a cleaner and more efficient alternative to diesel. Enterprise will continue to work with all its stakeholders, including customers, suppliers, and indigenous partners to provide effective solutions to reduce harmful emissions while improving economic value. Enterprise will continue to monitor changing developments on tariffs being imposed by the United States. The majority of the Company's customers operate in the natural gas and infrastructure sectors, and as such, the impact of tariffs may be lower.
- Although activity levels during the first quarter of 2025 returned to levels consistent with 2024, activity during the second quarter reflected a traditional spring breakup with lower activity levels throughout the Western Canadian Sedimentary Basin. Gross margin and Adjusted EBITDA were not only impacted by lower activity levels, but also include additional non-recurring costs associated with the recent acquisition. Revenue for the three months ended June 30, 2025, was $6,485,914 compared to $7,707,282 in the prior period, a decrease of $1,221,368 or 16%. Gross margin for the three months ended June 30, 2025, was $1,645,511 compared to $3,318,336 in the prior period, a decrease of $1,672,825. Adjusted EBITDA for the three months ended June 30, 2025, was $799,428 compared to $2,651,694 in the prior period, a decrease of $1,852,269. Revenue for the six months ended June 30, 2025, was $16,813,999 compared to $20,033,570 in the prior period, a decrease of $3,219,571 or 16%. Gross margin for the six months ended June 30, 2025, was $6,820,853 compared to $10,214,681 in the prior period, a decrease of $3,393,828. Adjusted EBITDA for the six months ended June 30, 2025, was $5,215,280 compared to $8,989,547 in the prior period, a decrease of $3,774,267.
- On May 7, 2025, Enterprise closed the transaction to acquire 100% of the shares of Flex Leasing Power and Service ULC ("FlexEnergy Canada") from Flex Leasing Power and Service LLC ("FlexEnergy Solutions") for a purchase price of $20 million. With this strategic transaction, Enterprise becomes the exclusive supplier for FlexEnergy turbines in Canada, further solidifying its market leadership and positioning Enterprise at the forefront of addressing the growing demand for reliable and efficient natural gas to electric power solutions across Canada and various industries. The acquisition includes 17 turbines each with a 333 kW capacity, allows the Company access to add 2.0 MW units for future growth, and makes Enterprise the exclusive provider to rent, sell and service FlexEnergy turbines in Canada. Long-term rental contracts, along with long-term maintenance contracts, create a recurring revenue stream which will help to offset seasonality in operations. Post acquisition, the name of FlexEnergy Canada was changed to Evolution Power Solutions, Inc. ("EPS").
- On April 30, 2025, the Company finalized a new lending facility with The Bank of Montreal. The new Facility is to be used for acquisitions, capital expenditures, and working capital. It replaces the company's previous lending facility and consolidates Enterprise's debt resulting in a lower overall interest rate and lower borrowing costs. The Company's previous facility was paid out on February 28, 2025, which included a negotiated settlement discount of $1,500,000, resulting in a reduction to interest expense for the first half of 2025. The new facility bears interest at a rate of up to prime + 2%, is secured by a first charge on all company assets and is subject to certain financial covenants.
- For the six months ended June 30, 2025, the company generated cash flow from operations of $10,126,135 compared to $10,635,184 in the prior period. This change is consistent with revenue levels during the six months. The Company continues to utilize a combination of cash flow, debt and equity to right-size and modernize its equipment fleet to meet customer demands. During the six months ended June 30, 2025, the Company acquired $9,010,352 of capital assets for upgrading existing equipment and meeting specific requests from customers. The Company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages.
About Enterprise Group, Inc.
Enterprise Group, Inc is a consolidator of services-including specialized equipment rental to the energy/resource sector. The Company works with particular emphasis on systems and technologies that mitigate, reduce, or eliminate CO2 and Greenhouse Gas emissions for itself and its clients. The Company is well known to local Tier One and international resource companies with operations in Western Canada. More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedarplus.com. For questions or additional information, please contact:
For questions or additional information, please contact:
Leonard Jaroszuk: Chairman & CEO, or
Desmond O'Kell: President
contact@enterprisegrp.ca
780-418-4400
Forward-Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedarplus.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Non-IFRS Measures
The Company uses International Financial Reporting Standards ("IFRS"). Adjusted EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to adjusted EBITDA. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, adjusted EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. Adjusted EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.
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SOURCE: Enterprise Group Inc.
