Enerflex's Pivot to Data Center Power Infrastructure Gains Momentum

Dow Jones10-14 19:51

0751 ET - Enerflex is accelerating its pivot into high-growth data center infrastructure, leveraging two major behind-the-meter natural gas power awards. RBC's Keith Mackey says, "Enerflex continues to demonstrate strong execution in BTM power generation, with its backlog now exceeding 1.75GW." The analyst notes that the projects have capital-efficient deal structures where clients supply the primary generator engines, while Enerflex handles modular design and fabrication. Mackey estimates that the 1.75GW backlog maps to about $1.9 billion in prospective revenue and $366 million in gross margins. With this, he expects that the earnings stream should "comfortably exceed the $100 million incremental facility capital investment Enerflex has announced."

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