Enerflex (TSE:EFX)
TSX:EFX
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Enerflex
(TSX:EFX)
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Rating:72Outperform
Price Target:
C$41.00
â–²(30.70% Upside)
Action:ReiteratedDate:05/09/26
The score is driven primarily by improving financial performance (strong TTM growth, return to profitability, and reduced leverage) and supportive technical trend indicators. This is tempered by elevated/overbought momentum signals, a mid-to-full valuation with a low dividend yield, and earnings-call risks around execution constraints and quarter-to-quarter volatility.
Positive Factors
Sustained Revenue Recovery & Profitability
A large TTM revenue gain and return to net profitability indicate the company regained demand and execution traction. This improves long‑term earnings visibility, supports reinvestment and deleveraging, and reduces the risk profile versus the 2022–2023 loss periods.
Negative Factors
Gross Margin Percentage Weakness
A roughly 300bp drop in gross margin signals mix and timing pressures that can persist across project cycles. Lower margin percent reduces the company’s operating leverage, making earnings more sensitive to revenue swings and pressuring sustainable profitability levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Recovery & Profitability
A large TTM revenue gain and return to net profitability indicate the company regained demand and execution traction. This improves long‑term earnings visibility, supports reinvestment and deleveraging, and reduces the risk profile versus the 2022–2023 loss periods.
Read all positive factors
Enerflex (EFX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.52B
Dividend Yield0.74%
Average Volume (3M)427.95K
Price to Earnings (P/E)21.0
Beta (1Y)0.83
Revenue Growth11.15%
EPS Growth10.92%
CountryCA
Employees4,600
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.78
Shares Outstanding121,801,780
10 Day Avg. Volume399,228
30 Day Avg. Volume427,946
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)2.38
Price to Sales (P/S)0.99
P/FCF Ratio11.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$41.59Price Target Upside32.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.41
Revenue Forecast (FY)C$2.55B
Enerflex Business Overview & Revenue Model
Company Description
Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, and electric power generation equipment to the oil and natural gas industry. The company provides custom and standard compr...
How the Company Makes Money
Enerflex makes money through a mix of service-style recurring revenues and equipment- and project-based revenues tied to natural gas infrastructure. A major source of earnings is contract compression and related services, where Enerflex supplies c...
Enerflex Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive view: solid YoY revenue growth, a $1.1B Engineered Systems backlog with increasing bookings, record free cash flow, improved ROCE and materially lower leverage following refinancing and cash generation. Strategic moves (APAC divestiture) and disciplined capital allocation plans (growth capex guidance and share repurchases/dividends) support a focused operating footprint. Key risks include engine lead-time constraints that may limit 2027 execution, sequential softness in revenue and adjusted EBITDA due to project timing, and notable one-time redemption and tax costs that produced a reported net loss for the quarter. Overall, the positive operational momentum, balance sheet improvement and cash generation materially outweigh the transitory and execution risks disclosed on the call.Positive Updates
Revenue Growth Year-over-Year
Q4 revenue of $627M compared to $561M in Q4 2024, an increase of approximately 11.8% YoY, reflecting strong execution in the Engineered Systems product line.
Negative Updates
Sequential Revenue and Adjusted EBITDA Decline
Q4 revenue declined sequentially to $627M from $777M in Q3 2025 (-19.3% QoQ). Adjusted EBITDA was $123M in Q4 vs $145M in Q3 2025 (-15.2% QoQ), attributed to pull-forward of certain ES projects into Q3 and higher core SG&A in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth Year-over-Year
Q4 revenue of $627M compared to $561M in Q4 2024, an increase of approximately 11.8% YoY, reflecting strong execution in the Engineered Systems product line.
Read all positive updates
Company Guidance
Enerflex guided 2026 organic capital expenditures of $175–195 million (growth capital $90–100M, maintenance $70–80M and ~ $15M for PP&E/infrastructure), with growth capex largely earmarked to expand the U.S. contract compression fleet (management noted growth capex ~60–65% higher than prior year); operational context included a marketed U.S. fleet up ~13% in 2025 to ~483,000 horsepower with ~94% utilization, 1.1 million horsepower operated internationally across 24 BOOM projects with a weighted-average remaining term of ~5 years, Engineered Systems backlog of $1.1 billion (Q4 bookings $377M, book-to-bill 1.1x, trailing 8‑quarter avg bookings $336M), Energy Infrastructure contracted revenue of ~$1.3 billion, and a focus on maximizing free cash flow and direct shareholder returns after returning $40M in 2025 (dividends $17M, buybacks $23M; NCIB authorization ~6.2M shares); the company exited Q4 with net debt $501M and a bank‑adjusted net debt/EBITDA of ~1x following refinancing $563M of 9% notes into $400M of 6.875% notes due 2031.Enerflex Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 2.62B | 2.41B | 3.16B | 1.78B | 960.16M |
| Gross Profit | 579.44M | 567.77M | 504.00M | 555.50M | 322.72M | 219.55M |
| EBITDA | 475.56M | 479.25M | 369.00M | 266.04M | 93.24M | 141.91M |
| Net Income | 95.90M | 65.12M | 32.00M | -110.92M | -100.94M | -18.45M |
Balance Sheet | ||||||
| Total Assets | 2.71B | 2.69B | 4.01B | 3.91B | 4.27B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 47.03M | 80.85M | 132.27M | 140.51M | 253.78M | 172.76M |
| Total Debt | 621.44M | 702.72M | 1.12B | 1.32B | 1.48B | 388.44M |
| Total Liabilities | 1.57B | 1.60B | 2.50B | 2.52B | 2.73B | 837.69M |
| Stockholders Equity | 1.14B | 1.09B | 1.51B | 1.39B | 1.54B | 1.35B |
Cash Flow | ||||||
| Free Cash Flow | 193.21M | 234.03M | 341.12M | 185.00M | -96.07M | 167.81M |
| Operating Cash Flow | 283.49M | 351.04M | 324.00M | 273.31M | 19.77M | 225.16M |
| Investing Cash Flow | -96.29M | -104.80M | -59.00M | -158.89M | 43.25M | -63.53M |
| Financing Cash Flow | -202.47M | -254.38M | -263.00M | -200.49M | 11.85M | -83.89M |
Enerflex Technical Analysis
Positive
31.37
Price Trends
28.57
Positive
25.07
Positive
19.72
Positive
Market Momentum
0.82
Negative
61.55
Neutral
86.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFX, the sentiment is Positive. The current price of 31.37 is above the 20-day moving average (MA) of 29.60, above the 50-day MA of 28.57, and above the 200-day MA of 19.72, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EFX.
Enerflex Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$816.20M | 5.78 | 12.57% | 2.57% | 17.42% | 28.08% | |
76 Outperform | C$1.42B | 9.85 | 19.03% | 3.57% | 11.76% | 5.84% | |
72 Outperform | C$4.52B | 20.96 | 7.72% | 0.74% | 11.15% | 10.92% | |
71 Outperform | C$3.73B | 19.25 | 26.01% | 1.29% | 6.08% | 24.69% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | C$2.78B | 26.86 | 14.09% | 0.43% | 68.23% | 10.87% |
* Energy Sector Average
TSE:EFX
Enerflex
36.54
26.60
267.75%
TSE:CEU
CES Energy Solutions
17.81
11.73
192.83%
TSE:TOT
Total Energy Services
23.14
13.53
140.87%
TSE:TVK
TerraVest
128.34
-37.83
-22.76%
TSE:TCW
Trican Well Service
7.17
3.08
75.22%
Enerflex Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Enerflex Lifts Free Cash Flow, Cuts Debt and Sheds APAC Assets in Portfolio Shakeup
Positive
Feb 26, 2026
Enerflex reported fourth-quarter 2025 revenue of $627 million, adjusted EBITDA of $123 million, and a record $141 million in free cash flow, while reducing net debt to $501 million, or about 1.0 times trailing 12-month adjusted EBITDA. Despite a r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.