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EFX — Enerflex News Story

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Canada's Enerflex Q3 revenue falls, missing estimates

Canada's Enerflex Q3 revenue falls, missing estimates


Overview

  • Canada modular natural gas provider's Q3 revenue declined, missing analyst expectations

  • Adjusted EBITDA fell year-over-year

  • Net profit rose, helped by lower finance costs and disposition of some operations

  • Company raised quarterly dividend by about 17%


Outlook

  • Enerflex targets 2026 organic capital expenditures of $185 mln to $195 mln

  • Company expects customer-supported contract compression fleet growth of 10% to 15% in 2026

  • Enerflex sees strong multi-year demand in core markets, supported by rising natural gas production


Result Drivers

  • PROJECT TIMING - Co said lower revenue and adjusted EBITDA reflected timing of project milestones and higher operational activity in ES during prior-year period

  • ASIA PACIFIC DIVESTITURE - Co said profitability benefited from gain on Asia Pacific disposition, lower net finance costs and tax expense

  • RECORD ES BOOKINGS - Co said record ES bookings and backlog provided strong visibility into future revenue and business activity


Company press release: ID:nGNX95KpvM


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$623 mln

$641.13 mln (4 Analysts)

Q3 Net Income

$55 mln

Q3 Adjusted EBITDA

$129 mln

Q3 Operating Income

$77 mln

Q3 ROCE

15.80%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Enerflex Ltd. is C$49.00, about 40.1% above its October 28 closing price of C$34.98

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 28 - Canada's Athabasca Oil Q3 production rises after turnarounds

  • Oct 28 - Canadian oil firm Whitecap Resources' Q3 revenue rises on strong production, higher prices

  • Oct 28 - Oilfield services firms lean on Middle East rebound but risks persist


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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