Enterprise Group (E) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 41% year-over-year to $7.7M, driven by favorable energy sector conditions and increased demand for natural gas power generation systems.

• Gross margin for Q2 2024 increased 98% year-over-year to $3.3M, reflecting higher customer activity and operational efficiencies.

• Adjusted EBITDA for Q2 2024 surged 138% year-over-year to $2.7M, with net income at $76K versus a net loss in the prior year.

Financial highlights

• Six-month revenue reached $20.0M, up 30% year-over-year; gross margin was $10.2M, up 51%; adjusted EBITDA was $9.0M, up 63%.

• Cash flow from operations for the first half was $10.6M, up from $8.5M in the prior year.

• Basic and diluted EPS for the six months ended June 30, 2024, were $0.07, compared to $0.05 in the prior year.

Outlook and guidance

• Continued strong demand for natural gas power generation equipment as customers shift from diesel to cleaner alternatives.

• Construction of a new facility in Fort St. John, BC, estimated at $5M, is underway and expected to complete by year-end 2024.