EX-99.2

Interim Condensed Consolidated Financial Statements

Interim Condensed Consolidated Statements of Financial Position (unaudited)


($ United States millions)	Notes	June 30, 2026			December 31, 2025
Assets
Current assets
Cash and cash equivalents		$	74		$	81
Accounts receivable	2a		379			345
Unbilled revenue	2b		148			164
Energy infrastructure (“EI”) assets - finance leases receivable	3a		58			58
Inventories	4		317			280
Income taxes receivable			8			11
Derivative financial instruments			3			1
Prepayments			68			52
Assets held for sale	5		79			-
Total current assets			1,134			992
Unbilled revenue	2b		1			1
EI assets - finance leases receivable	3a		160			180
Property, plant and equipment ("PP&E")			100			102
EI assets - operating leases	3b		693			686
Lease right-of-use assets			57			61
Deferred tax assets			21			21
Intangible assets			26			29
Goodwill			413			430
Other assets			199			192
Total assets		$	2,804		$	2,694

Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities	6	$	410		$	396
Provisions			24			25
Income taxes payable			76			80
Deferred revenue			398			355
Lease liabilities			22			22
Derivative financial instruments			2			1
Liabilities held for sale	5		20			-
Total current liabilities			952			879
Deferred revenue			14			13
Long-term debt	7		529			582
Lease liabilities			46			50
Deferred tax liabilities			50			51
Other liabilities			43			26
Total liabilities		$	1,634		$	1,601

Shareholders’ equity
Share capital		$	501		$	498
Contributed surplus			663			664
Retained earnings			195			130
Accumulated other comprehensive loss			(189	)		(199	)
Total shareholders’ equity			1,170			1,093
Total liabilities and shareholders’ equity		$	2,804		$	2,694

See accompanying notes to the unaudited interim condensed consolidated financial statements, including Note 14 “Guarantees, Commitments, and Contingencies”.

Interim Condensed Consolidated Statements of Earnings and Comprehensive Income (unaudited)


		Three months ended June 30,						Six months ended June 30,
($ United States millions, except per share amounts)	Notes	2026			2025			2026			2025
Revenue	8	$	582		$	615		$	1,166		$	1,167
Cost of goods sold ("COGS")			443			476			882			900
Gross margin			139			139			284			267
Selling, general and administrative expenses ("SG&A")	9		81			61			160			118
Foreign exchange (gain) loss			-			2			(2	)		2
Operating income			58			76			126			147
Equity (loss) earnings from associates and joint ventures			(1	)		1			-			1
(Loss) on financial instruments			(1	)		-			(2	)		(2	)
Unrealized gain on redemption options			1			15			6			12
Earnings before net finance costs and income taxes (“EBIT”)			57			92			130			158
Net finance costs	11		12			18			22			41
Earnings before income taxes (“EBT”)			45			74			108			117
Current income taxes			15			14			37			36
Deferred income taxes			-			-			(2	)		(3	)
Income taxes			15			14			35			33
Net earnings		$	30		$	60		$	73		$	84

Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Change in fair value of derivatives designated as cash- flow hedges, net of income tax expense			1			-			1			-
Unrealized (loss) gain on translation of foreign- denominated debt			-			32			(1	)		32
Unrealized gain (loss) on translation of financial statements of foreign operations			3			(23	)		10			(18	)
Other comprehensive income			4			9			10			14
Total comprehensive income		$	34		$	69		$	83		$	98

Earnings per share – basic		$	0.25		$	0.49		$	0.60		$	0.68
Earnings per share – diluted		$	0.25		$	0.49		$	0.60		$	0.68

Weighted average number of shares outstanding – basic			122,086,713			123,279,297			121,980,970			123,709,917
Weighted average number of shares outstanding – diluted			122,196,008			123,401,390			122,149,018			123,926,989

See accompanying notes to the unaudited interim condensed consolidated financial statements.

Interim Condensed Consolidated Statements of Cash Flows (unaudited)


		Three months ended June 30,						Six months ended June 30,
($ United States millions)	Notes	2026			2025			2026			2025
Operating Activities
Net earnings		$	30		$	60		$	73		$	84
Adjustments for:
Depreciation and amortization			37			42			74			81
Equity loss (earnings) from associates and joint ventures			1			(1	)		-			(1	)
Deferred income taxes			-			-			(2	)		(3	)
Share-based compensation expense	9		19			3			41			-
Loss on financial instruments			1			-			2			2
Unrealized (gain) on redemption options			(1	)		(15	)		(6	)		(12	)
			87			89			182			151
Net change in working capital and other	13		2			(93	)		(61	)		(59	)
Cash provided by (used in) operating activities		$	89		$	(4	)	$	121		$	92

Investing Activities
Additions to:
PP&E		$	(4	)	$	(6	)	$	(7	)	$	(8	)
EI assets - operating leases	3b		(49	)		(28	)		(62	)		(40	)
Proceeds on disposal of:
EI assets - operating leases			2			4			7			13
Net (purchases of) proceeds from financial instruments			(1	)		2			(2	)		(5	)
Net change in working capital associated with investing activities			27			18			20			4
Cash used in investing activities		$	(25	)	$	(10	)	$	(44	)	$	(36	)

Financing Activities
Net (repayment) proceeds on the revolving credit facility ("RCF")	7	$	(20	)	$	32		$	(49	)	$	(42	)
Lease liability principal repayment			(6	)		(5	)		(12	)		(11	)
Dividends			(4	)		(4	)		(8	)		(10	)
Stock option exercises			-			1			2			1
Shares repurchased - NCIB			-			(14	)		-			(14	)
Deferred transaction costs			(1	)		-			(1	)		-
Cash (used in) provided by financing activities		$	(31	)	$	10		$	(68	)	$	(76	)
Effect of exchange rate changes on cash and cash equivalents denominated in foreign currencies		$	(1	)	$	-		$	-		$	(1	)
Increase (decrease) in cash and cash equivalents			32			(4	)		9			(21	)
Cash and cash equivalents reclassified to assets held for sale	5		(5	)	-				(16	)	-
Cash and cash equivalents, beginning of period			47			75			81			92
Cash and cash equivalents, end of period		$	74		$	71		$	74		$	71

See accompanying notes to the unaudited interim condensed consolidated financial statements.

Interim Condensed Consolidated Statements of Changes in Equity (unaudited)


										Accumulated other comprehensive losses
($ United States millions)	Share capital			Contributed surplus			Retained earnings			Foreign currency translation adjustments			Hedging reserve			Total
At January 1, 2026	$	498		$	664		$	130		$	(198	)	$	(1	)	$	1,093
Net earnings		-			-			73			-			-			73
Other comprehensive income		-			-			-			9			1			10
Effect of stock option plans		3			(1	)		-			-			-			2
Dividends		-			-			(8	)		-			-			(8	)
At June 30, 2026	$	501		$	663		$	195		$	(189	)	$	-		$	1,170
At January 1, 2025	$	505		$	678		$	80		$	(214	)	$	-		$	1,049
Net earnings		-			-			84			-			-			84
Other comprehensive income		-			-			-			14			-			14
Effect of stock option plans		2			(1	)		-			-			-			1
Shares repurchased - NCIB		(6	)		(8	)		-			-			-			(14	)
Dividends		-			-			(7	)		-			-			(7	)
At June 30, 2025	$	501		$	669		$	157		$	(200	)	$	-		$	1,127

See accompanying notes to the unaudited interim condensed consolidated financial statements.

Notes to the Interim Condensed Consolidated

Financial Statements (unaudited)

(All amounts in millions of United States dollars, except per share amounts or as otherwise noted.)

Note 1. Summary of Material Accounting Policies

(a)

Statement of Compliance

These unaudited interim condensed consolidated financial statements (“Financial Statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, and were approved and authorized for issue by the Board of Directors (the “Board”) on August 5, 2026.

(b)

Basis of Presentation and Measurement

The Financial Statements for the three and six months ended June 30, 2026 and 2025 were prepared in accordance with IAS 34 “Interim Financial Reporting” and do not include all the disclosures included in the annual consolidated financial statements for the year ended December 31, 2025. Accordingly, these Financial Statements should be read in conjunction with the annual consolidated financial statements. Certain comparative figures have been reclassified to conform to the current period’s presentation.

Preparation of these Financial Statements requires Management to make judgments, estimates, and assumptions based on existing knowledge that affect the application of accounting policies and reported amounts and disclosures. Actual results could differ from these estimates and assumptions. In particular, the impact of geopolitical events, such as imposed tariffs in the North American market and ongoing conflict in the Middle East, could materially impact customer and supplier arrangements, as well as interest and inflation rates, resulting in increased volatility and near-term uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into estimates made, however actual results could differ from those estimates, and those differences could be material. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The Financial Statements are presented in United States dollars ("USD"), Enerflex Ltd. ("Enerflex" or the "Company") presentation currency, rounded to the nearest million except per share amounts or as otherwise noted. Transactions of the Company’s individual entities are recorded in their own functional currency based on the primary economic environment in which it operates. The Financial Statements are prepared on a going concern basis under the historical cost basis, with certain financial assets and financial liabilities recorded at fair value. There have been no significant changes in accounting policies compared to those described in the annual consolidated financial statements for the year-ended December 31, 2025, except for the change as per note 1(c) below.

(c)

Change in Accounting Policies

Amendment to Current Accounting Policies

IFRS 9 Financial Instruments ("IFRS 9") and IFRS 7 Financial Instruments: Disclosures ("IFRS 7")

In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to clarify that financial assets and financial liabilities are recognized and derecognized at settlement date except for regular way purchases or sales of financial assets and financial liabilities meeting conditions for new exception. The new exception permits companies to elect to derecognize certain financial liabilities settled via electronic payment systems earlier than the settlement date.

They also provide guidelines to assess contractual cash flow characteristics of financial assets, which apply to all contingent cash flows, including those arising from environmental, social, and governance (ESG)-linked features. Additionally, these amendments introduce new disclosure requirements for financial instruments with contingent cash‑flow features and equity instruments designated at fair value through other comprehensive income. The amendment, effective for annual periods beginning on or after January 1, 2026, was adopted by the Company as of January 1, 2026. There were no adjustments or additional disclosures that resulted from the adoption of this amendment.

ii.

Standards Recently Issued, but not yet Effective

IAS 28 Investments in Associates and Joint Ventures

In June 2026, the IASB issued amendments to the fair value option for investments in associates and joint ventures. The amendments clarify which entities are eligible to elect the fair value option for investments in associates and joint ventures instead of applying the equity method of accounting. Specifically, the amendments clarify that entities whose main business activity is investing in particular types of assets may qualify as “similar entities” and therefore be eligible to measure such investments at fair value through profit or loss. The amendment will be effective for years beginning on or after January 1, 2027. This amendment is not expected to have any material impact on the Company's Financial Statements.

Note 2. Accounts Receivable and Unbilled Revenue

(a) Accounts Receivable

Accounts receivable consisted of the following:


	June 30, 2026			December 31, 2025


Trade receivables	$	373		$	338

Less: allowance for doubtful accounts		(9	)		(9	)


Trade receivables, net	$	364		$	329

Other receivables		15			16


Accounts receivable	$	379		$	345

Aging of trade receivables:


	June 30, 2026		December 31, 2025


Current to 90 days	$	291	$	280

Over 90 days		82		58


Trade receivables	$	373	$	338

(b) Unbilled Revenue

Movement in Unbilled Revenue was as follows:


	Six months ended			Twelve months ended
	June 30, 2026			December 31, 2025
Opening balance	$	165		$	159
Unbilled revenue recognized		327			818
Amounts billed		(342	)		(813	)
Assets held for sale		(2	)		-
Currency translation effects		1			1
Closing balance	$	149		$	165

Current unbilled revenue	$	148		$	164
Non-current unbilled revenue		1			1
Total unbilled revenue	$	149		$	165

Note 3. Energy Infrastructure Assets

The Company’s EI assets are comprised of Build-Own-Operate-Maintain (“BOOM”) assets and contract compression assets which are leased to client partners. At the inception of a lease contract, all leases are classified as either an operating lease or a finance lease in accordance with IFRS.

(a) EI Assets - Finance Leases Receivable

Lease arrangements for certain EI assets are considered finance leases when the risks and rewards of ownership are transferred to the lessee, which generally occurs in the following circumstances; ownership of the lease is transferred to the lessee by the end of the lease term; the lessee has the option to purchase the leased asset at a price that is sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that option will be exercised; the term of the lease is for the major part of the economic life of the asset; or the present value of the lease payments amounts to substantially all of the fair value of the asset.

The majority of Enerflex's finance leases, which are primarily attributable to the EH reporting segment, have an initial term ranging from five to 10 years.

A summary of the gross and present value of future lease payments to be received under the Company's finance leases is shown below:


	Minimum lease payments and unguaranteed residual value						Present value of minimum lease payments and unguaranteed residual value
	June 30, 2026			December 31, 2025			June 30, 2026		December 31, 2025
Less than one year	$	61		$	60		$	58	$	58
Between one and five years		181			201			148		164
Greater than five years		21			29			12		16
	$	263		$	290		$	218	$	238
Less: Unearned interest revenue		(50	)		(57	)		-		-
Add: Unguaranteed residual value		5			5			-		-
Closing balance	$	218		$	238		$	218	$	238


	Six months ended			Twelve months ended
	June 30, 2026			December 31, 2025
Opening balance	$	238		$	238
Additions		-			38
Interest revenue		10			19
Payments (principal and interest)		(31	)		(57	)
Other		1			-
Closing balance	$	218		$	238

The average interest rates implicit in the leases are fixed at the contract date for the entire lease term. At June 30, 2026, the average interest rate was 7.6% per annum (December 31, 2025 – 7.6%). The finance leases receivable at the end of the reporting period were not impaired.

(b) EI Assets – Operating Leases

EI assets under lease arrangements that are classified and accounted for as operating leases are stated at cost less accumulated depreciation and impairment losses. The estimated useful lives of these assets are generally between five and 30 years.

Changes in the carrying amount of EI assets - operating leases were as follows:


	Six months ended
	EI assets			Assets under construction			Total EI assets
Cost
January 1, 2026	$	1,105		$	27		$	1,132
Additions		-			62			62
Reclassification		22			(22	)		-
Disposals		(9	)		-			(9	)
Assets held for sale		(1	)		-			(1	)
Currency translation effects		6			-			6
June 30, 2026	$	1,123		$	67		$	1,190
Accumulated depreciation
January 1, 2026	$	(446	)	$	-		$	(446	)
Depreciation charge		(53	)		-			(53	)
Disposals		6			-			6
Assets held for sale		1			-			1
Currency translation effects		(5	)		-			(5	)
June 30, 2026	$	(497	)	$	-		$	(497	)
Net book value – June 30, 2026	$	626		$	67		$	693


	Twelve months ended
	EI assets			Assets under construction			Total EI assets
Cost
January 1, 2025	$	1,026		$	33		$	1,059
Additions		-			96			96
Reclassification		100			(102	)		(2	)
Disposals		(31	)		-			(31	)
Currency translation effects		10			-			10
December 31, 2025	$	1,105		$	27		$	1,132
Accumulated depreciation
January 1, 2025	$	(346	)	$	-		$	(346	)
Depreciation charge		(108	)		-			(108	)
Impairment		(3	)		-			(3	)
Disposals		20			-			20
Currency translation effects		(9	)		-			(9	)
December 31, 2025	$	(446	)	$	-		$	(446	)
Net book value – December 31, 2025	$	659		$	27		$	686

Depreciation of EI assets - operating leases included in COGS for the three and six months ended June 30, 2026 was $27 million and $53 million (June 30, 2025 – $29 million and $55 million).

During the three and six months ended June 30, 2026, the Company recognized $49 million and $97 million of revenue related to operating leases in its Latin America (“LATAM”) and Eastern Hemisphere (“EH”) segments (June 30, 2025 – $50 million and $100 million), and $42 million and $82 million of revenue related to its North America (“NAM”) contract compression fleet (June 30, 2025 – $37 million and $74 million).

Summary of the carrying amount of EI assets - operating leases by reporting segment was as follows:


	June 30, 2026		December 31, 2025
NAM	$	340	$	310
LATAM		161		166
EH		192		210
EI assets - operating leases	$	693	$	686

Note 4. Inventories

Inventories consist of the following:


	June 30, 2026		December 31, 2025
Direct materials	$	157	$	127
Repair and distribution parts		81		91
Work-in-progress		69		48
Equipment		10		14
Total inventories	$	317	$	280

COGS includes inventories write-downs pertaining to obsolescence and aging, and recoveries of the past write-downs upon disposition The net change in inventory reserves charged to consolidated statement of earnings and included in COGS for the three and six months ended June 30, 2026 was $1 million and less than a million (June 30, 2025 - $1 million and $2 million).

Note 5. Assets and Liabilities Held for Sale

During the year, Enerflex entered into a definitive agreement to divest the majority of its operations in the Asia Pacific ("APAC") region to INNIO Group (“INNIO”). This business which is reported within the Eastern Hemisphere (EH) segment, operates principally in Australia, Indonesia and Thailand and is primarily focused on the AMS product line. The APAC region does not represent a significant component of the EH segment and is therefore not presented as a discontinued operation.

Completion of the transaction is subject to standard closing conditions and regulatory approvals and is expected to close during the second half of 2026.

The assets and liabilities of the operations held for sale as at June 30, 2026 were as follows:


	June 30, 2026
Cash and Cash equivalents	$	16
Accounts receivable		17
Unbilled revenue		2
Inventories		19
Income taxes receivable		1
Property, plant and equipment		1
Lease right-of-use assets		3
Deferred tax assets		2
Goodwill		18
Assets held for sale	$	79

Accounts payable and accrued liabilities	$	15
Provisions		1
Income taxes payable		1
Deferred revenue		1
Lease liabilities		2
Liabilities held for sale	$	20

Note 6. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:


	June 30, 2026		December 31, 2025

Trade payables and accrued liabilities	$	383	$	384
Cash-settled share-based payments		27		12
Total accounts payable and accrued liabilities	$	410	$	396

Note 7. Long-Term Debt

Long-term debt comprised of USD denominated senior unsecured notes (the "2031 Notes") and the three-year secured RCF with both USD and Canadian dollar ("CAD") components.

Composition of the borrowings was as follows:


	Maturity Date	June 30, 2026			December 31, 2025
2031 Notes	January 15, 2031	$	400		$	400
Drawings on the RCF	June 30, 2029		140			193
			540			593
Deferred transaction costs			(11	)		(11	)
Long-term debt		$	529		$	582

Non-current portion of long-term debt		$	529		$	582
Long-term debt		$	529		$	582

The 2031 Notes bear interest at 6.875% per annum payable semi-annually in arrears.

During the quarter, Enerflex entered into an agreement to extend the maturity date of its RCF by approximately one year to June 30, 2029, the availability remained unchanged at $800 million, however the RCF limit may now be increased by $200 million at the request of the Company, subject to the lenders’ consent. The maturity date of the RCF may be extended annually on or before the anniversary date with the consent of the lenders.

As part of the RCF, the Company may request issuance of up to $150 million in letters of guarantee, standby letters of credit, counter guarantees, import documentary credits, counter standby letters of credit, or similar credits to finance the day-to-day operations of the Company. As at June 30, 2026, the Company utilized $74 million of this $150 million limit. The Company has an additional $70 million unsecured credit facility (“LC Facility”) with one of the lenders in its RCF. This LC Facility allows the Company to request the same forms of credit as under the RCF. This LC Facility is supported by performance security guarantees provided by Export Development Canada. As at June 30, 2026, the Company had utilized $24 million of the $70 million available limit.

The weighted average interest rate on the RCF for the six months ended June 30, 2026 was 4.9% (Twelve months ended December 31, 2025 – 5.6%).

At June 30, 2026, without considering renewal at similar terms, the USD equivalent principal payments due over the next five years are $540 million.

The Company is required to maintain certain covenants on the RCF and the 2031 Notes. As at June 30, 2026, the Company was in compliance with its covenants, as shown below:


		Six months ended June 30
	2026				2025
	Requirement	Performance			Performance
Senior secured net funded debt to EBITDA ratio1 – Maximum	2.5x		0.1	x	0.2x
Bank-adjusted net debt to EBITDA ratio2 – Maximum	4.0x		0.8	x	1.3x
Interest coverage ratio3 – Minimum	2.5x		5.4	x	5.4x

1 Senior secured net funded debt to EBITDA is defined as borrowings under the RCF less cash and cash equivalents divided by trailing 12-months EBITDA, as defined by the Company’s lenders.

2 Bank-adjusted net debt to EBITDA is defined as borrowings under the RCF and 2031 Notes less cash and cash equivalents divided by the trailing 12-months EBITDA, as defined by the Company’s lenders.

\3 Interest coverage ratio is calculated by dividing the trailing 12-months EBITDA by interest expense over the same timeframe, as defined by the Company’s lenders.

Redemption Options

The 2031 Notes contain optional redemption features that allow the Company to redeem all or part of the Notes at prices set forth in the agreement, following certain dates specified. These redemption features constitute an embedded derivative asset that is required to be separated from the 2031 Notes and measured at fair value. The fair value of the redemption options as at June 30, 2026 was $6 million and is included in Other assets on the interim condensed consolidated statement of financial position (December 31, 2025 – nil).

Note 8. Revenue

Revenue by product line was as follows:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Energy Infrastructure ("EI")	$	148	$	147	$	297	$	300
After-Market Services ("AMS")		134		124		241		244
Engineered Systems ("ES")		300		344		628		623
Total revenue	$	582	$	615	$	1,166	$	1,167

Revenue by geographic location, which is based on destination of sale, was as follows:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
United States	$	294	$	277	$	612	$	523
Canada		56		88		112		164
Argentina		44		46		83		103
Oman		36		31		72		63
Nigeria		29		33		67		61
Mexico		24		18		39		34
Australia		18		17		36		35
Brazil		15		15		34		29
Bahrain		13		14		26		29
Iraq		12		7		18		13
Others		41		69		67		113
Total revenue	$	582	$	615	$	1,166	$	1,167

For the six months ended June 30, 2026, the Company had no individual customer which accounted for more than 10% of its revenue (June 30, 2025 – nil).

The following table outlines the Company’s unsatisfied performance obligations, by product line, as at June 30, 2026:


	Less than one year		One to two years		Greater than two years		Total
EI	$	393	$	289	$	511	$	1,193
AMS		104		28		59		191
ES		1,202		238		13		1,453
Total	$	1,699	$	555	$	583	$	2,837

Note 9. Selling, General & Administrative Expenses

SG&A expenses comprised of costs incurred by the Company to support the business operations that are not directly attributable to the production of goods or services.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Core SG&A1	$	58	$	52	$	113	$	106
Share-based compensation		19		3		41		-
Depreciation and amortization		3		6		6		12
Bad debt expense		1		-		-		-
Total SG&A	$	81	$	61	$	160	$	118

1 Core SG&A is primarily comprised of compensation, third-party services, and information technology expenses.

Note 10. Segmented Information

The Company has identified three reporting segments for external reporting:

•

NAM consists of operations in Canada and the USA.

•

LATAM consists of operations in core countries of Argentina, Brazil, and Mexico, and also includes operations within the Andean regions of Bolivia, Colombia, and Peru.

•

EH consists of operations in the Middle East, Africa, Europe, and APAC.

Each segment generates revenue from the EI, AMS, and ES product lines.

The accounting policies, determination of reportable operating segments, and allocation of corporate overheads are consistent with those disclosed in Note 3 "Summary of Material Accounting Policies" and Note 24 "Segmented Information" of the Company's annual consolidated financial statements for the year-ended December 31, 2025.

Operating results for the Company’s reportable segments for the three months ended June 30, 2026 were as follows:


	NAM						LATAM						EH				Total
Three months ended June 30,	2026			2025			2026			2025			2026		2025		2026			2025
Segment revenue	$	406		$	435		$	92		$	89		$	91	$	93	$	589		$	617
Intersegment revenue		(7	)		(2	)		-			-			-		-		(7	)		(2	)
Revenue		399			433			92			89			91		93		582			615
EI		42			38			62			69			44		40		148			147
AMS		70			64			19			15			45		45		134			124
ES		287			331			11			5			2		8		300			344
Revenue		399			433			92			89			91		93		582			615
EI		22			21			41			45			26		28		89			94
AMS		58			52			14			11			34		35		106			98
ES		237			273			10			5			1		6		248			284
COGS1		317			346			65			61			61		69		443			476
EI		20			17			21			24			18		12		59			53
AMS		12			12			5			4			11		10		28			26
ES		50			58			1			-			1		2		52			60
Gross Margin		82			87			27			28			30		24		139			139
SG&A1		49			35			12			9			20		17		81			61
Foreign exchange (gain) loss		1			2			(1	)		(1	)		-		1		-			2
Operating income	$	32		$	50		$	16		$	20		$	10	$	6	$	58		$	76

1 Depreciation and amortization for the reporting segments are recorded in COGS and SG&A. During the three months ended June 30, 2026, the amount of depreciation and amortization in NAM was $16 million (June 30, 2025 – $15 million); LATAM was $9 million (June 30, 2025 – $10 million); and EH was $12 million (June 30, 2025 – $17 million).

Operating results for the Company’s reportable segments for the six months ended June 30, 2026 were as follows:


	NAM						LATAM						EH						Total
Six months ended June 30,	2026			2025			2026			2025			2026			2025			2026			2025
Segment revenue	$	825		$	803		$	170		$	191		$	180		$	182		$	1,175		$	1,176
Intersegment revenue		(8	)		(8	)		-			-			(1	)		(1	)		(9	)		(9	)
Revenue		817			795			170			191			179			181			1,166			1,167
EI		82			74			125			143			90			83			297			300
AMS		125			124			32			35			84			85			241			244
ES		610			597			13			13			5			13			628			623
Revenue		817			795			170			191			179			181			1,166			1,167
EI		43			39			80			96			50			55			173			190
AMS		105			104			23			25			65			65			193			194
ES		501			495			12			11			3			10			516			516
COGS1		649			638			115			132			118			130			882			900
EI		39			35			45			47			40			28			124			110
AMS		20			20			9			10			19			20			48			50
ES		109			102			1			2			2			3			112			107
Gross Margin		168			157			55			59			61			51			284			267
SG&A1		98			67			23			19			39			32			160			118
FX (gain) loss		-			2			(2	)		(1	)		-			1			(2	)		2
Operating income	$	70		$	88		$	34		$	41		$	22		$	18		$	126		$	147

1 Depreciation and amortization for the reporting segments are recorded in COGS and SG&A. During the six months ended June 30, 2026, the amount of depreciation and amortization in NAM was $31 million (June 30, 2025 – $31 million); LATAM was $19 million (June 30, 2025 – $21 million); and EH was $24 million (June 30, 2025 – $29 million).

Note 11. Finance Costs and Income

Net finance costs comprised of the following:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Interest on debt	$	11	$	16	$	20	$	32
Accretion of Notes discount and deferred transaction costs		-		2		1		4
Lease interest expense		1		1		2		2
Other interest expense		-		-		-		5
Total finance costs	$	12	$	19	$	23	$	43

Finance Income
Interest income	$	-		1		1		2
Net finance costs	$	12	$	18	$	22	$	41

Note 12. Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, accounts receivable, unbilled revenue, project asset, derivatives, redemption options, accounts payable and accrued liabilities, and long-term debt.

Designation and Fair Value of Financial Instruments

The Company's financial instruments at June 30, 2026 were designated and valued in the same manner as they were at December 31, 2025. Accordingly, with the exception of borrowings under the long-term debt, the estimated fair values of the Company's financial instruments approximated their carrying values at June 30, 2026.

The carrying value and estimated fair value of borrowings under the long-term debt as at June 30, 2026, was $529 million and $571 million, respectively (December 31, 2025 – $582 million and $607 million, respectively). The fair value of the 2031 Notes at June 30, 2026, was determined on a discounted cash flow basis with a weighted average discount rate of 6.0% (December 31, 2025 – 6.2%), while the fair value of the RCF approximates the amount outstanding under the RCF.

The Company’s embedded derivative asset related to its redemption options of its 2031 Notes was measured at fair value determined using a valuation model based on inputs from observable market data, including independent price publications and third-party pricing services; accordingly, the measurement is classified as level 2 within the fair value hierarchy. Changes in fair value are recorded as gains or losses on the consolidated statements of earnings.

Derivative Financial Instruments and Hedge Accounting

Foreign exchange contracts are transacted with financial institutions to hedge foreign currency denominated obligations and cash receipts related to purchases of inventory and sales of products.

The following table summarizes the Company’s commitments to buy and sell foreign currencies at June 30, 2026:


		Notional amount			Maturity
Canadian Dollar Denominated Contracts
Purchase contracts	USD	$	89		July 2026 - June 2028
Purchase contracts	EUR	$	24		July 2026 - February 2028
Sales contracts	USD	$	(85	)	July 2026 - September 2027

At June 30, 2026, the fair value of derivative financial instruments classified as financial assets was approximately $3 million and as financial liabilities was approximately $2 million (December 31, 2025 – $1 million and $1 million).

Foreign Currency Exposure

In the normal course of operations, the Company is exposed to movements in the CAD, USD, the Australian dollar, the Brazilian real, and the Argentine peso (“ARS”).

The types of foreign exchange risk and the Company’s related risk management strategies are as follows:

Transaction Exposure

The functional currency of Enerflex Ltd. on a stand-alone basis (the "Parent Company") and Canadian operations is CAD. The operations are primarily exposed to changes in exchange rates on financial instruments denominated in USD.

The Parent Company has intercompany receivables and payables denominated in the USD. The Canadian operations of the Company sources the majority of its products and major components from the USA; consequently, reported inventory costs and the transaction prices charged to customers for equipment are impacted by the relative strength of the CAD. The Canadian operations also sell compression and processing packages in foreign currencies, primarily the USD. Most of Enerflex’s international orders are manufactured in the USA if the contract is denominated in USD, which minimizes the Company’s foreign currency exposure on these contracts. The Company identifies and hedges all significant transactional currency risks and has implemented a hedging policy applicable primarily to the Canadian operations, with the objective of securing the margins earned on awarded contracts denominated in currencies other than the CAD. In addition, the Company may hedge input costs that are paid in a currency other than the home currency of the subsidiary executing the contract. If the CAD weakens by five percent, the Company could experience foreign exchange loss recorded in the consolidated statements of earnings of $1 million on its USD denominated financial instruments.

Translation Exposure

The Company and its subsidiaries are exposed to translation risk of monetary items denominated in a currency different from their functional currency. The currencies with the most significant impact are the CAD, USD, and ARS.

The functional currency of the Parent Company is CAD while the functional currency of the majority of the Company's subsidiaries is USD. The Parent Company is therefore exposed to fluctuations of the CAD against the USD on its net investment in USD functional subsidiaries. The Company hedges this exposure via a net investment hedge by designating a portion of the Company's USD borrowings in the Parent Company as a hedging instrument. During the six months ended June 30, 2026, the Company recognized foreign exchange loss of $1 million on translation of the designated USD borrowings in the Parent Company in other comprehensive income. As at June 30, 2026, $32 million of USD borrowings in the Parent Company was designated as a hedging instrument. Management has determined that the Company's hedging relationships remain effective.

If the CAD were to weaken by five percent, the Company could experience additional foreign exchange losses on its USD borrowings in the Parent Company of approximately $2 million, which would be recorded in the consolidated statement of comprehensive income.

The functional currency of the Argentinian operation is the USD. The operation has cash and cash equivalents, and certain financial instruments denominated in its local currency ARS. With the expected devaluation of the ARS, caused by high inflation, the Company is at risk of foreign exchange losses on its financial instruments denominated in ARS. During the six months ended June 30, 2026, the Company had foreign exchange gains in Argentina of $1 million. The Company continues to utilize cash management strategies to mitigate foreign exchange losses, primarily by minimizing cash available to sustain operations. If the ARS weakens by five percent, the Company could experience foreign exchange losses of $1 million on its ARS denominated financial instruments.

Note 13. Supplemental Cash Flow Information

Changes in working capital and other during the period:


	Three months ended June 30,						Six months ended June 30,
	20261			2025			20261			2025
Accounts receivable	$	4		$	(37	)	$	(51	)	$	(17	)
Unbilled revenue		(4	)		(11	)		14			(17	)
EI assets - finance leases receivable		11			8			20			16
Inventories		(36	)		(35	)		(56	)		(46	)
Inventories - WIP related to EI assets - finance leases receivable		-			(37	)		-			(56	)
Income taxes receivable		(4	)		(1	)		2			(2	)
Prepayments		(9	)		4			(16	)		14
Accounts payable and accrued liabilities and provisions2		12			40			(10	)		53
Income taxes payable		(15	)		(19	)		(3	)		(25	)
Deferred revenue		45			(6	)		45			20
Foreign currency and other		(2	)		1			(6	)		1
Net change in working capital and other	$	2		$	(93	)	$	(61	)	$	(59	)

1 Includes working capital changes associated with the APAC divestiture. Refer to Note 5 - "Assets and liabilities held for sale".

2 Change in accounts payable and accrued liabilities and provisions represent only the portion relating to operating activities.

Cash interest and taxes paid and received during the period:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Interest paid – long-term borrowings	$	4	$	29	$	7	$	33
Interest paid – lease liabilities		1		1		2		2
Total interest paid	$	5	$	30	$	9	$	35
Interest received		-		1		1		2

Income taxes paid		33		35		36		63

Note 14. Guarantees, Commitments, and Contingencies

Guarantees

At June 30, 2026, the Company had outstanding letters of credit of $98 million (December 31, 2025 – $103 million). Of the total outstanding letters of credit, $74 million (December 31, 2025 – $77 million) are funded from the RCF and $24 million (December 31, 2025 – $26 million) are funded from the $70 million LC Facility.

Commitments

The Company has purchase obligations over the next four years as follows:


2026	$	521
2027		357
2028		191
2029		53


F-6 Notes to the Interim Condensed Consolidated Financial Statements


F-8 Notes to the Interim Condensed Consolidated Financial Statements


F-10 Notes to the Interim Condensed Consolidated Financial Statements


F-12 Notes to the Interim Condensed Consolidated Financial Statements


F-14 Notes to the Interim Condensed Consolidated Financial Statements


F-16 Notes to the Interim Condensed Consolidated Financial Statements


	F-1


	F-3


	F-5


	F-7