Enerflex (EFX) AI Stock Analysis

• Market Cap: C$3.73B
• Dividend Yield: 0.74%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): 42.1
• Beta (1Y): 1.07
• Revenue Growth: 5.92%
• EPS Growth: N/A
• Country: CA
• Employees: 4,600
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.64
• Shares Outstanding: 121,801,780
• 10 Day Avg. Volume: 399,228
• 30 Day Avg. Volume: 427,946
• PEG Ratio: 0.16
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 8.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$33.26
• Price Target Upside: 8.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.21
• Revenue Forecast (FY): C$2.54B

• Rating: 75 Outperform
• Price Target: C$36.00 ▲(17.61% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improved financial performance (return to profitability and strong recent free cash flow) and strong technical momentum (price above all key moving averages with positive MACD). The latest earnings call reinforces operational momentum and balance-sheet improvement, while valuation is only modestly supportive due to the low dividend yield and moderate P/E.

Positive Factors

Recurring revenue & contracted assets

A large share of gross margin derives from Energy Infrastructure and aftermarket services backed by long-term contracts and a substantial installed base. This mix produces steadier, repeatable cash flows and margins versus one-off equipment sales, reducing revenue cyclicality and supporting durable service demand.

Deleveraging and stronger liquidity

Material deleveraging and a lower adjusted net debt/EBITDA provide financial flexibility to fund growth capex, return capital, and withstand cyclical downturns. The refinancing to lower coupon paper and available revolver reduce interest and maturity risk, improving long-term balance sheet resilience.

Improved free cash flow generation

A significant recent step-up in free cash flow enabled de‑levering and shareholder returns while funding growth capex. Sustained strong FCF supports reinvestment and buybacks; even if cyclical, improved cash conversion signals operational improvements that can persist through the cycle.

Negative Factors

Cash flow and cycle variability

Enerflex's cash flow has shown material quarter-to-quarter and multi-year variability tied to project timing and working capital swings. This unevenness increases financing and execution risk, complicates consistent reinvestment and returns, and leaves the company exposed if project cadence deteriorates.

Supply chain / engine lead times

Extended lead times for critical high‑horsepower engines constrain the firm's ability to convert backlog into revenue on schedule. This structural bottleneck can delay projects, inflate costs, reduce responsiveness to large opportunities, and compress margins if subcontracting or premium logistics are needed.

Margin sensitivity and mix pressure

A multi‑hundred basis point YoY margin decline highlights sensitivity to project mix, timing and cost pressure. With net margins still relatively thin, sustained margin erosion would meaningfully impair returns on capital and reduce buffer against cyclical downturns despite higher revenue.

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 compression packages for reciprocating and screw compressor applications; and designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, refrigeration systems, and electric power solutions, as well as engages in re-engineering, re-configuration, and re-packaging of compressors for various field applications; and modular processing equipment and waste gas systems for natural gas facilities. It also offers after-market services, parts distribution, operations and maintenance solutions, equipment optimization and maintenance programs, manufacturer warranties, exchange components, long-term service agreements, and technical services. In addition, the company rents natural gas compressors totaling approximately 800,000 horsepower. It serves small to large independent producers, integrated oil and natural gas companies, midstream and petrochemical companies, power generation companies, users of natural gas-fired electric power, and carbon capture players in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, the United Kingdom, Bahrain Kuwait, Oman, the United Arab Emirates, Australia, New Zealand, Indonesia, Malaysia, and Thailand. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

How the Company Makes Money

Enerflex generates revenue through several key streams, primarily from the design, manufacture, and installation of natural gas processing and compression equipment. The company also earns money through service contracts related to the operation and maintenance of its systems, which provide ongoing support to clients. Additionally, Enerflex engages in project development and engineering services that contribute to its revenue. Significant partnerships with major energy companies and a focus on long-term contracts help stabilize its income. The demand for cleaner energy solutions and the growing natural gas sector further enhance its financial performance.

Enerflex Financial Statement Overview

Summary

Financials have improved materially: profitability recovered in 2024–2025 after 2022–2023 losses, revenue accelerated in 2025, and cash generation is strong (notably higher free cash flow). Offsetting this, margins/returns remain mid-level and cash flow has been uneven over the cycle, keeping cyclicality risk relevant.

Income Statement

Profitability and growth have improved meaningfully. Revenue accelerated sharply in 2025 (annual report) after a soft 2024, and margins expanded with a stronger gross margin and higher operating profitability. Net income turned solidly positive in 2024–2025 after losses in 2022–2023, but net margin remains relatively thin, indicating earnings are still somewhat sensitive to cost pressure and cycle volatility.

Balance Sheet

Leverage has been trending down, with debt-to-equity improving from ~0.96 in 2022 to ~0.64 in 2025 (annual report), which strengthens financial flexibility. Equity has remained relatively stable, and return on equity has recovered into positive territory in 2024–2025 after negative results in 2022–2023. Still, absolute debt remains sizeable and returns are moderate, leaving the balance sheet somewhat exposed if industry conditions weaken.

Cash Flow

Cash generation is a clear strength recently. Operating cash flow and free cash flow were strong in 2024–2025 (annual report), with a large step-up in free cash flow growth in 2025, supporting de-levering and reinvestment capacity. A key watch-out is that cash flow performance has been uneven over the cycle (notably negative free cash flow in 2022), and free cash flow has not consistently exceeded earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.59B	2.41B	3.16B	1.78B	960.16M
Gross Profit	779.69M	504.00M	555.50M	322.72M	219.55M
EBITDA	658.12M	369.00M	266.04M	93.24M	141.91M
Net Income	89.43M	32.00M	-110.92M	-100.94M	-18.45M
Balance Sheet
Total Assets	3.69B	4.01B	3.91B	4.27B	2.19B
Cash, Cash Equivalents and Short-Term Investments	111.03M	132.27M	140.51M	253.78M	172.76M
Total Debt	965.01M	1.12B	1.32B	1.48B	388.44M
Total Liabilities	2.19B	2.50B	2.52B	2.73B	837.69M
Stockholders Equity	1.50B	1.51B	1.39B	1.54B	1.35B
Cash Flow
Free Cash Flow	321.38M	341.12M	185.00M	-96.07M	167.81M
Operating Cash Flow	482.06M	324.00M	273.31M	19.77M	225.16M
Investing Cash Flow	-143.92M	-59.00M	-158.89M	43.25M	-63.53M
Financing Cash Flow	-349.32M	-263.00M	-200.49M	11.85M	-83.89M

Enerflex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 30.61 is above the 20-day moving average (MA) of 26.13, above the 50-day MA of 23.60, and above the 200-day MA of 16.47, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 71.23 is Negative, neither overbought nor oversold. The STOCH value of 85.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	78 Outperform	C$673.07M	11.22	10.51%	2.57%	15.58%	47.55%
EFX	75 Outperform	C$3.73B	42.06	12.48%	0.74%	5.92%	―
CEU	75 Outperform	C$3.53B	21.04	22.50%	1.29%	5.79%	-5.08%
TCW	75 Outperform	C$1.37B	11.22	18.06%	3.57%	9.24%	6.35%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	54 Neutral	C$3.19B	33.58	15.90%	0.43%	50.38%	25.63%

Enerflex Corporate Events

Enerflex Lifts Free Cash Flow, Cuts Debt and Sheds APAC Assets in Portfolio Shakeup

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 reported net loss driven by costs tied to redeeming 2027 senior secured notes, normalized net income reached $24 million, supported by a 16.9% return on capital employed and robust contributions from energy infrastructure and after-market services.

The company signed a definitive agreement to divest most of its Asia-Pacific operations, primarily focused on after-market services, as part of an effort to streamline and optimize its portfolio while retaining engineered systems sales in the region via North American manufacturing. With an engineered systems backlog of $1.1 billion and targeted 2026 capital expenditures of $175 million to $195 million, including up to $100 million for growth, Enerflex is positioning for continued operational visibility and balance sheet strength.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Sets February 26 Date for 2025 Year-End Results and Investor Call

Enerflex Ltd. has scheduled the release of its financial results and operating highlights for the year ended December 31, 2025, on February 26, 2026, before markets open, with the documents to be made available through its website and customary regulatory platforms. The company will host a conference call and audio webcast that same morning, where senior management will review the results and take questions, underscoring Enerflex’s effort to maintain active engagement with investors, analysts, and other stakeholders as it navigates its role in energy infrastructure and transition markets.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Strengthens Financial Position with Note Redemption

Enerflex Ltd. has successfully redeemed its 9.00% Senior Secured Notes due 2027 using funds from a new private offering of $400 million in 6.875% senior notes due 2031 and its secured revolving credit facility. This strategic financial maneuver is expected to improve Enerflex’s debt profile and financial flexibility, potentially enhancing its competitive positioning in the energy sector.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Announces $400 Million Senior Notes Offering to Optimize Financial Structure

Enerflex Ltd. has announced the pricing of a $400 million senior unsecured notes offering, with the notes due in 2031. This financial move is aimed at redeeming the company’s outstanding 9.000% Senior Secured Notes due 2027, which will be replaced by the new 6.875% notes. The offering is expected to close on December 11, 2025, and is part of Enerflex’s strategy to optimize its financial structure, potentially impacting its market positioning and stakeholder interests by reducing interest expenses and extending debt maturity.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$22.50 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Announces $400 Million Senior Notes Offering to Optimize Debt Structure

Enerflex Ltd. has announced a $400 million private offering of senior unsecured notes due 2031, which will be used to redeem its existing 9.000% Senior Secured Notes due 2027. This strategic financial move aims to optimize the company’s debt structure, potentially enhancing its financial flexibility and market positioning.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$22.50 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.