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Enerflex
(TSX:EFX)
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Rating:67Neutral
Price Target:
C$42.00
â–²(53.90% Upside)
Action:Reiterated
Date:10/02/26
The score is driven primarily by improved financial performance (profitability normalization, better leverage, and healthy recent free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). These positives are materially offset by expensive valuation (high P/E with a low dividend yield) and earnings-call risks around near-term revenue/earnings pressure, margin/ROCE compression, higher SG&A, and supply-chain lead-time constraints.
Positive Factors
Expanding data-center power backlog
The growing behind-the-meter power backlog adds multi-year revenue visibility and expands Enerflex’s exposure to data-center infrastructure demand. Deliveries through 2028 and planned facility investment could increase Engineered Systems capacity while strengthening its position in a structurally growing application.
Negative Factors
Earnings and return compression
The decline in net earnings, EBITDA, and ROCE indicates that improved financial performance has not yet translated into consistently expanding returns. Higher compensation and the absence of a prior-year gain contributed, but weaker earnings power could constrain internally funded growth if pressure persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanding data-center power backlog
The growing behind-the-meter power backlog adds multi-year revenue visibility and expands Enerflex’s exposure to data-center infrastructure demand. Deliveries through 2028 and planned facility investment could increase Engineered Systems capacity while strengthening its position in a structurally growing application.
Read all positive factors
Enerflex (EFX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.90B
Dividend Yield0.53%
Average Volume (3M)764.45K
Price to Earnings (P/E)42.2
Beta (1Y)0.76
Revenue Growth9.33%
EPS Growth-59.43%
CountryCA
Employees4,554
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.54
Shares Outstanding122,102,880
10 Day Avg. Volume715,584
30 Day Avg. Volume764,452
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$48.69Price Target Upside78.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.36
Revenue Forecast (FY)C$2.45B
Enerflex Business Overview & Revenue Model
Company Description
Enerflex Ltd. provides a diverse range of infrastructure and technology solutions for the global energy sector, specializing in natural gas compression, oil and gas processing, refrigeration, energy transition technologies, and electrical power ge...
How the Company Makes Money
Enerflex makes money primarily by selling and supporting equipment and by providing ongoing services tied to operating natural gas infrastructure. Key revenue streams include: (1) Equipment and systems sales: revenue from engineering, manufacturin...
Enerflex Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum in Engineered Systems (record backlog, robust bookings and a large Distributed Power pipeline), improved cash generation and materially stronger leverage/liquidity metrics. These positives are tempered by near-term revenue sequencing pressure, a significant decline in reported net earnings versus the prior year (partly due to one-time prior-period items), modest EBITDA/ROCE compression, higher SG&A, and ongoing supply-chain lead-time risk. Overall the company appears to be executing strategic initiatives (operational excellence, digitalization, fleet growth) and strengthening the balance sheet while navigating execution and timing headwinds.Positive Updates
Record Engineered Systems Bookings and Backlog
Engineered Systems bookings were $488M in Q2; ES book-to-bill was 1.6x in Q2 and 1.5x in H1 2026. First-half bookings approached ~$1B (~75% of prior full-year bookings) and ES forward revenue visibility increased to a record $1.5B, with backlog at a record $1.5B at quarter-end.
Negative Updates
Year-over-Year Revenue Decline
Revenue was $582M in Q2 2026, down from $615M in Q2 2025 (a decline of ~5.4%), driven primarily by project sequencing and resource allocation related to expansion of the U.S. contract compression fleet within Engineered Systems.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Engineered Systems Bookings and Backlog
Engineered Systems bookings were $488M in Q2; ES book-to-bill was 1.6x in Q2 and 1.5x in H1 2026. First-half bookings approached ~$1B (~75% of prior full-year bookings) and ES forward revenue visibility increased to a record $1.5B, with backlog at a record $1.5B at quarter-end.
Read all positive updates
Company Guidance
The company reiterated disciplined, growth-focused guidance anchored by a record Engineered Systems backlog/forward visibility of $1.5B (Q2 ES bookings $488M; H1 bookings ~ $1B) and ES book-to-bill of 1.6x in Q2 (1.5x H1), a pipeline >7 GW for distributed power, and an Engineered Systems gross margin ~18%; Energy Infrastructure and AMS contributed 69% of consolidated gross margin before D&A. Operational targets include U.S. contract compression utilization at 93% across ~496k HP with targeted fleet growth of 10–15% in 2026 (mostly H2), international installed fleet ~350k HP across 17 projects, and ~ $1.2B of contracted EI revenue remaining with a ~5-year weighted average term. Financial and capital guidance was updated to organic growth capex $185–195M (Q2 spend $53M: $35M growth, $18M maintenance), maintenance capex $70–80M, PP&E/infrastructure ~$15M, and an intent to improve adjusted EBITDA margin, cash conversion ratio and ROCE each by 200+ bps; current Q2 metrics include revenue $582M, adjusted EBITDA $128M, gross margin before D&A $173M (30%), ROCE 15.4%, free cash flow $32M, cash from operations before WC $87M, CFO $89M, net debt $455M with $74M cash, bank-adjusted net debt/EBITDA ~0.8x, an $800M RCF extended to June 30, 2029 (expandable up to +$200M) and a $70M unsecured LC facility.Enerflex Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.61B | 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 | 422.50M | 479.25M | 369.00M | 330.35M | 93.24M | 141.91M |
| Net Income | 65.90M | 65.12M | 32.00M | -110.92M | -100.94M | -18.45M |
Balance Sheet | ||||||
| Total Assets | 2.80B | 2.69B | 2.79B | 3.91B | 4.27B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 74.00M | 80.85M | 132.27M | 140.51M | 253.78M | 172.76M |
| Total Debt | 597.00M | 654.00M | 777.00M | 1.32B | 1.48B | 388.44M |
| Total Liabilities | 1.63B | 1.60B | 2.50B | 2.52B | 2.73B | 837.69M |
| Stockholders Equity | 1.17B | 1.09B | 1.05B | 1.39B | 1.54B | 1.35B |
Cash Flow | ||||||
| Free Cash Flow | 266.19M | 234.03M | 247.00M | 130.33M | -96.07M | 167.81M |
| Operating Cash Flow | 373.93M | 351.04M | 324.00M | 273.31M | 19.77M | 225.16M |
| Investing Cash Flow | -110.61M | -104.80M | -59.00M | -158.89M | 43.25M | -63.53M |
| Financing Cash Flow | -242.70M | -254.38M | -263.00M | -200.49M | 11.85M | -83.89M |
Enerflex Technical Analysis
Negative
27.29
Price Trends
31.82
Positive
32.44
Negative
31.06
Positive
Market Momentum
0.37
Positive
44.05
Neutral
8.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFX, the sentiment is Negative. The current price of 27.29 is below the 20-day moving average (MA) of 34.41, below the 50-day MA of 31.82, and below the 200-day MA of 31.06, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 8.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | C$1.39B | 15.82 | 14.51% | 1.20% | 21.71% | 40.07% | |
72 Outperform | C$4.23B | 21.55 | 23.68% | 1.03% | 10.96% | 13.96% | |
70 Outperform | C$1.38B | 15.33 | 12.81% | 3.34% | 20.43% | -20.30% | |
67 Neutral | C$3.90B | 42.16 | 5.26% | 0.53% | 9.33% | -59.43% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | C$2.33B | 25.18 | 12.40% | 0.74% | 46.42% | 4.72% |
* Energy Sector Average
TSE:EFX
Enerflex
31.90
14.19
80.13%
TSE:CEU
CES Energy Solutions
20.04
10.66
113.67%
TSE:TOT
Total Energy Services
38.29
24.62
180.06%
TSE:TVK
TerraVest
107.53
-30.44
-22.06%
TSE:TCW
Trican Well Service
6.59
0.95
16.91%
Enerflex Corporate Events
Business Operations and Strategy
Enerflex Wins Gigawatt-Scale Data Center Power Deal, Lifts Backlog Beyond 1.75 GW
Positive
Oct 13, 2026
Enerflex has secured a major Engineered Systems contract to provide over one gigawatt of low-emission, behind-the-meter natural gas-fired power generation for a large North American data center project. Together with previously announced awards, i...
Business Operations and Strategy
Enerflex Wins 450 MW Data Center Power Deal and Ramps Up Engineered Systems Investment
Positive
Oct 1, 2026
Enerflex has secured a major contract to deliver approximately 450 megawatts of behind-the-meter natural gas-fired power generation units for a North American data center developer, with manufacturing and assembly to run through its North American...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Enerflex Sheds Most Asia Pacific AMS Operations to Refocus on Core Regions
Positive
Sep 30, 2026
Enerflex Ltd. has completed the sale of most of its Asia Pacific operations, largely tied to its After-Market Services business, to INNIO Group, a move the company describes as accretive and aligned with its strategy of disciplined portfolio manag...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Enerflex Boosts Backlog and Cash Flow as It Targets U.S. Compression Growth
Positive
Aug 6, 2026
Enerflex reported second-quarter 2026 adjusted EBITDA of $128 million, free cash flow of $32 million and a return on capital employed of 15.4%, with gross margins improving even as revenue declined modestly year over year. The company highlighted ...
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.