Enterprise Group Announces Results for the Fourth Quarter and Full Year 2025
MWN-AI** Summary
Enterprise Group, Inc. (TSX: E; OTCQB: ETOLF), a consolidator of energy services focused on reducing CO2 and greenhouse gas emissions, reported its results for the fourth quarter and full year 2025, showcasing significant growth despite some challenges. For Q4 2025, the Company generated revenues of $10.33 million, up 32% from $7.81 million in Q4 2024, alongside a gross margin increase to $4.23 million, reflecting a 50% jump. Adjusted EBITDA for the quarter reached $3.46 million, a 52% year-over-year rise.
For the full year 2025, revenue totaled $36.35 million, marking a 5% increase from $34.65 million in 2024, while gross margin decreased marginally to $14.89 million due to continued shifts towards smaller, diverse projects across Alberta and British Columbia. The Company reported adjusted EBITDA of $11.79 million for FY 2025, down from $13.07 million the previous year.
The Company's income before tax was $4.54 million for the year, with a net income of $3.53 million, translating to earnings per share of $0.05, compared to $0.07 in the prior year. Despite these reductions, cash flow from operations showed a positive trend at $16.72 million, up significantly from $12.13 million in 2024.
A key highlight for 2025 was the acquisition of Flex Leasing Power and Service ULC, now known as Evolution Power Solutions, which strengthened Enterprise’s position in power solutions markets. Moreover, the Company undertook a refinancing of its lending arrangements leading to substantial savings, consolidating its debt, and optimizing its borrowing costs.
In summary, Enterprise Group continues to build a robust platform for growth, adapting its services and strategies to meet emerging energy demands while sustaining operational cash flow.
MWN-AI** Analysis
Enterprise Group, Inc. (TSX: E) reported strong growth in Q4 2025, showcasing a solid year amidst fluctuating market activity influenced by seasonal and geographical shifts in operations. The company's revenue surged by 32% year-over-year in the fourth quarter, reflecting a robust demand, particularly in Alberta, even as activities in Northeastern British Columbia showed signs of slowing.
The increase in revenue from $7.8 million to $10.3 million, alongside a notable gross margin rise of 50%, demonstrates Enterprise's effective management of costs while boosting operational efficiency. However, it's essential to observe that annual gross margin and Adjusted EBITDA decreased compared to 2024, indicating potential headwinds in sustaining profit margins in an evolving market.
The acquisition of Flex Leasing Power and Service ULC for $20 million stands out as a strategic move positioning Enterprise as a competitive player in the power solutions market. This transition broadens their service offerings beyond traditional energy-sector solutions, establishing a diversified platform which can enhance future growth rates.
Despite the challenges of fluctuating activity levels and heightened competition, the company’s positive cash flow from operations, which rose notably to $16.7 million, underscores a strong operational foundation. The refinanced lending facility that reduces borrowing costs further improves the company’s financial flexibility for future investments.
Given the current upward trajectory of Enterprise's revenues and its strategic realignment towards power solutions, investors should consider entering or increasing their positions in the stock. However, prudent diligence is advisable as the company navigates market volatility and potential impacts from larger economic conditions. Monitoring sector trends in emission-reduction technologies will also be crucial, given the growing emphasis on sustainability in the energy sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
St. Albert, Alberta--(Newsfile Corp. - March 12, 2026) - 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 Green House Gas (GHG) and other harmful emissions for small local and Tier One resource clients, is pleased to announce its Q4 2025 and FY2025 results.
| Three months December 31, 2025 | Three months December 31, 2024 | Year ended December 31, 2025 | Year ended December 31, 2024 | |||||||||||||||||||
| Revenue | $ | 10,329,226 | $ | 7,812,010 | $ | 36,353,628 | $ | 34,646,888 | ||||||||||||||
| Gross margin | $ | 4,231,879 | 41% | $ | 2,825,432 | 36% | $ | 14,885,431 | 41% | $ | 15,561,427 | 45% | ||||||||||
| Adjusted EBITDA(1) | $ | 3,460,469 | 34% | $ | 2,272,456 | 29% | $ | 11,790,275 | 32% | $ | 13,069,867 | 38% | ||||||||||
| Adjusted EBITDA(1) per share - Basic | $ | 0.04 | $ | 0.04 | $ | 0.15 | $ | 0.21 | ||||||||||||||
| Adjusted EBITDA(1) per share - Diluted | $ | 0.04 | $ | 0.04 | $ | 0.14 | $ | 0.20 | ||||||||||||||
| Income before tax | $ | 894,104 | $ | 798,456 | $ | 4,544,478 | $ | 4,668,801 | ||||||||||||||
| Net income and comprehensive income | $ | 664,312 | $ | 673,208 | $ | 3,532,781 | $ | 4,543,553 | ||||||||||||||
| Earnings per share - Basic | $ | 0.01 | $ | 0.01 | $ | 0.05 | $ | 0.07 | ||||||||||||||
| Earnings per share - Diluted | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.07 |
(1) Identified and defined under "Non-IFRS Measures".
Activity levels continued to increase in the fourth quarter and contributed to another solid year. Fiscal 2025 was more of a traditional year with respect to the seasonality of operations. After a strong quarter one, Enterprise experienced lower activity levels during the quarter two spring breakup, then activity levels increased in quarter three and continued to increase in quarter four. In addition to seasonality, Enterprise did experience a geographical shift of work as activity in Northeastern B.C. slowed and activity in Alberta increased. Increased activity included new power systems customers however, this was offset from slower activity with established customers in B.C. The composition of work also moved towards smaller duration projects which were more dispersed throughout the provinces, which impacted gross margin.
Revenue for the three months ended December 31, 2025, was $10,329,226 compared to $7,812,010 in the prior period, an increase of $2,517,216 or 32%. Gross margin for the three months ended December 31, 2025, was $4,231,879 compared to $2,825,432 in the prior period, an increase of $1,406,477 or 50%. Adjusted EBITDA for the three months ended December 31, 2025, was $3,460,469 compared to $2,272,455 in the prior period, an increase of $1,188,013 or 52%. Revenue for the year ended December 31, 2025, was $36,353,628 compared to $34,646,888 in the prior period, an increase of $1,706,740 or 5%. Gross margin for the year ended December 31, 2025, was $14,885,431 or 41% which is $675,996 below the prior period. Adjusted EBITDA for the year ended December 31, 2025, was $11,790,275 or 32% which is $1,279,592 below the prior period. The Company continues to generate positive cashflow from operations and for the year ended December 31, 2025, generated cash flow of $16,718,711 or $0.21 per share compared to $12,132,566 or $0.15 per share in the prior year.
In the second quarter, 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. This strategic transaction set the cornerstone for Enterprise to be also known as the provider of power solutions for short-term, long-term and permanent installations. The acquisition established Enterprise as the exclusive Canadian OEM representative for FlexEnergy turbines, enabling expansion into commercial and industrial markets for primary power and combined heat and power applications. This strategic shift broadens Enterprise beyond energy-sector solutions into a diversified power-solutions platform, positioning itself for enhanced growth. The integration of this acquisition has resulted in several new power applications with customers. Post acquisition, the name of FlexEnergy Canada was changed to Evolution Power Solutions, Inc.
During the year, Enterprise refinanced its lending facility which resulted in savings of $2.4 million from lower lending costs of $916,078 and a debt settlement discount of $1,500,000. In the first quarter, the Company repaid its bank loan facility by way of a cash payment of $15,675,574 which included a negotiated settlement discount in the amount of $1,500,000. In the second quarter, the Company finalized a new lending facility to be used for acquisitions, capital expenditures, and working capital. These transactions effectively replaced the company's previous lending facility and consolidated Enterprise's debt resulting in a lower overall interest rate and lower borrowing costs, resulting in savings of $916,078 compared to the prior year. 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. Also, in the third quarter, the Company refinanced a mortgage and monetized $5,000,000 of equity on its Fort St. John property.
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 and other harmful 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:
Leonard Jaroszuk: Chairman & CEO, or
Desmond O'Kell: President & Director
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.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"). 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 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, 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. 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/288341
FAQ**
How has the increased activity levels in Alberta influenced the overall financial performance of Enterprise Group Inc ETOLF during FY2025 compared to previous years?
What specific strategic advantages does the acquisition of Flex Energy Canada provide to Enterprise Group Inc ETOLF in terms of expanding its market presence?
Given the geographical shift in work from Northeastern B.C. to Alberta, how does Enterprise Group Inc ETOLF plan to mitigate potential risks associated with reliance on specific regional markets?
How does the refinancing of the company's lending facility and the associated cost savings impact Enterprise Group Inc ETOLF's future acquisition plans and capital expenditures?
**MWN-AI FAQ is based on asking OpenAI questions about Enterprise Group Inc (OTC: ETOLF).
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