Enerflex (NYSE:EFXT) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Enerflex beat earnings expectations, reporting Q1 EPS of $0.35 versus analyst estimates of $0.27. However, revenue came in below expectations at $584 million versus the $607.26 million consensus.
• The company highlighted solid operating performance and balance-sheet improvement, including adjusted EBITDA of CAD 137 million, record ROCE of 17.3%, and net debt reduced to CAD 505 million.
• Management pointed to strong business momentum in Engineered Systems and After-Market Services, while also noting near-term cash flow pressure from working capital investment and rising long-lead equipment commitments.

Enerflex (NYSE:EFXT - Get Free Report) announced its earnings results on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.08, Zacks reports. Enerflex had a return on equity of 14.58% and a net margin of 3.19%.The firm had revenue of $584.00 million for the quarter, compared to analyst estimates of $607.26 million.

Here are the key takeaways from Enerflex's conference call:

• Enerflex reported a strong Q1 with revenue of CAD 584m, adjusted EBITDA of CAD 137m, net earnings of CAD 43m, a record ROCE of 17.3%, and net debt reduced to CAD 505m (bank-adjusted net debt/EBITDA ~0.9x).
• Engineered Systems showed commercial momentum with Q1 bookings of CAD 483m (book-to-bill 1.5x) and improving ES margins (19%), while After‑Market Services now has opportunity visibility exceeding 5 GW and new data center and island power awards.
• Energy Infrastructure remains durable with ~CAD 1.3bn of contracted revenue, U.S. contract compression utilization at 94%, a 13% fleet increase in 2025, and expected similar growth supported by targeted growth capex.
• Free cash flow fell to CAD 15m as Q1 included a CAD 63m working capital investment, and purchase obligations rose materially (long‑lead equipment commitments into 2027–2029), creating near‑term cash/commitment risk despite limited upfront cash outlay.
• Management is implementing an enterprise‑wide productivity program (lean, supply‑chain integration, IT/automation) and will provide strategy detail at a virtual investor update on May 27, with potential upside but uncertain timing.

Enerflex Trading Down 4.4%

NYSE:EFXT traded down $1.24 during trading hours on Friday, hitting $27.16. The company had a trading volume of 556,425 shares, compared to its average volume of 544,913. The company has a current ratio of 1.13, a quick ratio of 0.81 and a debt-to-equity ratio of 0.58. The company has a 50-day moving average of $22.54 and a 200 day moving average of $17.87. The company has a market cap of $3.31 billion, a P/E ratio of 40.53 and a beta of 1.93. Enerflex has a 1 year low of $6.74 and a 1 year high of $29.15.

Enerflex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Wednesday, May 20th will be issued a $0.0425 dividend. This represents a $0.17 annualized dividend and a yield of 0.6%. The ex-dividend date is Wednesday, May 20th. Enerflex's dividend payout ratio is presently 17.91%.

Institutional Trading of Enerflex

Several large investors have recently added to or reduced their stakes in the stock. Mackenzie Financial Corp grew its holdings in Enerflex by 4.0% in the 4th quarter. Mackenzie Financial Corp now owns 4,878,942 shares of the company's stock valued at $76,327,000 after buying an additional 186,649 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Enerflex by 51.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,203,297 shares of the company's stock valued at $17,031,000 after buying an additional 752,893 shares in the last quarter. Bank of Montreal Can grew its holdings in Enerflex by 11.8% in the 4th quarter. Bank of Montreal Can now owns 1,735,826 shares of the company's stock valued at $26,761,000 after buying an additional 182,578 shares in the last quarter. Millennium Management LLC grew its holdings in Enerflex by 351.0% in the 1st quarter. Millennium Management LLC now owns 1,131,144 shares of the company's stock valued at $8,747,000 after buying an additional 880,358 shares in the last quarter. Finally, Man Group plc grew its holdings in Enerflex by 29.7% in the 4th quarter. Man Group plc now owns 1,104,235 shares of the company's stock valued at $17,046,000 after buying an additional 252,958 shares in the last quarter. 46.47% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

EFXT has been the topic of a number of recent analyst reports. Raymond James Financial lowered Enerflex from a "strong-buy" rating to an "outperform" rating in a research report on Tuesday, February 3rd. Canadian Imperial Bank of Commerce reiterated a "neutral" rating and set a $28.00 target price on shares of Enerflex in a research report on Friday. TD Securities reissued a "buy" rating on shares of Enerflex in a research note on Friday. Zacks Research raised Enerflex from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, March 10th. Finally, National Bank Financial raised Enerflex from a "sector perform" rating to an "outperform" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.50.

About Enerflex

Enerflex Ltd is a Calgary‐headquartered energy infrastructure company specializing in the design, fabrication, installation and aftermarket support of natural gas compression, processing, refrigeration and treatment equipment. Its product portfolio includes reciprocating and centrifugal compression systems, gas treating and refrigeration packages, fuel gas conditioning and liquid separation solutions. In addition to equipment sales, Enerflex delivers field services such as commissioning, maintenance, monitoring and parts supply to optimize asset performance throughout the lifecycle.

The company supports upstream, midstream and downstream energy customers through an integrated offering that spans engineering, procurement and construction (EPC) as well as modular fabrication.

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