| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 53.3x | 17.8x | Top tier | |
Growth | 61 | 16.8% | 7.1% | Around median | |
Quality | 62 | 10.2% | 4.5% | Around median | |
Safety | 70 | 1.2x | 2.6x | Top tier | |
Capital Return | 88 | — | 2.12% | Top tier | |
Momentum | 69 | 111.7% | 2.9% | Top tier | |
Sentiment | 47 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Enerflex Ltd. operates through an integrated platform serving natural gas and energy markets across three main business lines. The Engineered Systems business supplies gas processing equipment, refrigeration associated with liquefied natural gas exports, large compression stations, and power generation solutions, while the Energy Infrastructure business generates contractual revenue from compression and power generation assets, and the After-Market Services business provides maintenance, upgrade, installation, commissioning, and operations and maintenance services. This mix provides the company with income from project deliveries alongside more stable flows from contracts and services.
In Q2 fiscal 2026, revenue was $582 million, compared with $615 million in Q2 fiscal 2025 and $584 million in Q1 fiscal 2026. Gross margin before depreciation and amortization was 30%, or $173 million, compared with 29% a year earlier and 31% in the previous quarter, and the Energy Infrastructure and After-Market Services businesses contributed 69% of this gross profit. The company generated net income of $30 million, or $0.25 per share, and adjusted earnings before interest, taxes, depreciation, and amortization declined to $128 million from $130 million a year earlier and $137 million in the previous quarter.
The annual statements show a significant shift in the scale of the business after revenue increased from $1.8 billion in fiscal 2022 to $3.2 billion in fiscal 2023, and gross profit rose from $322.7 million to $617.1 million. However, annual net income remained negative at $110.9 million in fiscal 2023, following a loss of $100.9 million in fiscal 2022. The financial picture therefore combines annual revenue expansion and improved gross profit on one hand with the need to demonstrate sustainable net profitability on the other.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $29.75 and a target range between $27.50 and $32; the average is slightly above the peak of the 52-week range of $29.15. This valuation reflects optimism about the record backlog and debt reduction, but remains contingent on converting bookings into actual revenue and earnings growth following the decline in Q2 fiscal 2026 net income and the continued annual loss in fiscal 2023.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
The clearest driver is the Engineered Systems business, which recorded bookings of $488 million in Q2 fiscal 2026. First-half bookings reached approximately $1 billion, and backlog rose to a record $1.5 billion with a book-to-bill ratio of 1.5 times. Orders included cryogenic gas processing, refrigeration for liquefied natural gas exports, large compression stations, and industrial power generation.
The distributed power solutions opportunity pipeline exceeded 7 gigawatts as of the August 6, 2026 call, with commercial focus on prominent opportunities representing approximately 2 gigawatts. Management said its engagement with hyperscale computing operators and primary power providers had continued for several quarters. However, Q2 fiscal 2026 bookings did not include any data center activity, so this opportunity has not yet translated into announced bookings within the reported figures.
Enerflex ended Q2 fiscal 2026 with net debt of $455 million, including $74 million of cash and cash equivalents. Net debt declined by $153 million compared with Q2 fiscal 2025, and the bank-adjusted net debt-to-earnings before interest, taxes, depreciation, and amortization ratio improved from 1.3 times to approximately 0.8 times. Cash flow from operating activities was $89 million, while free cash flow reached $32 million.
Utilization of the U.S. contract compression fleet reached 93% in Q2 fiscal 2026 across a fleet with capacity of approximately 496 thousand horsepower. The company is targeting customer contract-backed growth of between 10% and 15% during fiscal 2026, with most additions concentrated in the second half. Enerflex allocated the majority of its quarterly growth capital expenditures of $35 million to expanding this fleet, benefiting from natural gas activity in the Permian Basin.
Net income was $30 million, or $0.25 per share, in Q2 fiscal 2026. These results were below $60 million and $0.49 per share in Q2 fiscal 2025, while adjusted earnings before interest, taxes, depreciation, and amortization declined to $128 million from $130 million. In contrast, gross margin before depreciation and amortization increased to 30% from 29% year over year, but remained below the 31% recorded in the previous quarter.
Risks include slowing quarterly revenue and earnings, an increase in selling, general, and administrative expenses to $81 million, and a decline in Engineered Systems margin to 18% from 19% in the previous quarter. Lead times for engine components may also reach approximately four years, while purchase commitments extend through fiscal 2029. Regionally, the company operates seventeen projects in Bahrain and Oman with installed capacity of approximately 350 thousand horsepower, although operations remained uninterrupted as of August 6, 2026.
