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Enterprise Group, Inc. (TSX: E,OTC:ETOLF) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment and services to the energyresource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Green House Gas (GHG) and other harmful emissions for small local and Tier One resource clients, is pleased to announce its Q3 2025 results.
| Three months Sept 30, 2025 | Three months Sept 30, 2024 | Nine months Sept 30, 2025 | Nine months Sept 30, 2024 | ||||||||||||||||||||||
| Revenue | $ | 9,210,402 | $ | 6,801,309 | $ | 26,024,402 | $ | 26,834,878 | |||||||||||||||||
| Gross margin | $ | 3,832,696 | 42% | $ | 2,521,317 | 37% | $ | 10,653,549 | 41% | $ | 12,735,996 | 47% | |||||||||||||
| Adjusted EBITDA(1) | $ | 3,114,522 | 34% | $ | 1,807,864 | 27% | $ | 8,329,803 | 32% | $ | 10,797,411 | 40% | |||||||||||||
| Net income (loss) and comprehensive income (loss) | $ | 819,592 | $ | (197,592 | ) | $ | 2,868,467 | $ | 3,870,346 | ||||||||||||||||
| Income per share - Basic | $ | 0.01 | $ | 0.00 | $ | 0.04 | $ | 0.07 | |||||||||||||||||
| Income per share - Diluted | $ | 0.01 | $ | 0.00 | $ | 0.03 | $ | 0.06 | |||||||||||||||||
| (1) Identified and defined under "Non-IFRS Measures". | |||||||||||||||||||||||||
Activity levels during the third quarter of 2025 significantly increased, after the Company experienced lower activity levels during the traditional quarter two spring breakup. Revenue for the three months ended September 30, 2025, was $9,210,402 compared to $6,801,309 in the prior period, an increase of $2,409,093 or 35%. Gross margin for the three months ended September 30, 2025, was $3,832,696 compared to $2,521,317 in the prior period, an increase of $1,311,379. Adjusted EBITDA for the three months ended September 30, 2025, was $3,114,522 compared to $1,807,864 in the prior period, an increase of $1,306,658. Revenue for the nine months ended September 30, 2025, was $26,024,402 compared to $26,834,878 in the prior period, a decrease of $810,476 or 3%. Gross margin for the nine months ended September 30, 2025, was $10,653,549 compared to $12,735,996 in the prior period, a decrease of $2,082,447. Adjusted EBITDA for the nine months ended September 30, 2025, was $8,329,803 compared to $10,797,411 in the prior period, a decrease of $2,467,608.
The integration of Evolution Power Solutions, Inc. continued throughout the third quarter and has resulted in several new power applications with customers, including a strategic partnership to deliver enhanced, bundled energy solutions for customers that do not have access to source natural gas. In the second quarter of 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 for a purchase price of $20 million. With this strategic transaction, Enterprise became 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. Enterprise is now the exclusive provider to rent, sell and service FlexEnergy turbines in Canada. Post acquisition, the name of FlexEnergy Canada was changed to Evolution Power Solutions, Inc.
During the quarter, the Company amended its lending facility with Bank of Montreal, in which it refinanced a mortgage and monetized $5,000,000 of equity on its Fort St. John property. All other terms and conditions remained the same. In the second quarter, the Company finalized a new lending facility with The Bank of Montreal to be used for acquisitions, capital expenditures, and working capital. It replaced the company's previous lending facility and consolidated 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. 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 nine months ended September 30, 2025, the company generated cash flow from operations of $11,029,393 compared to $12,102,914 in the prior period. 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. 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.ca. For questions or additional information, please contact:
For questions or additional information, please contact:
Leonard Jaroszuk, CEO & Chairman, or
Desmond O'Kell, President & Director
780-418-4400
contact@enterprisegrp.ca
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.ca) 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274269
