Canada's Enerflex Q1 revenue rises 6% on engineered systems strength

Enerflex

07/05/2026 11:17

Overview

Canada modular natural gas solutions firm's Q1 revenue grew 6% yr/yr on Engineered Systems strength

Adjusted EBITDA for Q1 rose to $137 mln from $113 mln a year ago

Net earnings climbed to $43 mln, with record 17.3% return on capital employed

Outlook

Enerflex expects steady demand across business lines and regions in 2026

Company expects majority of $1.3 bln ES backlog to convert into revenue over next 12 months

Enerflex targets organic capital expenditures of $175 mln to $195 mln in 2026

Result Drivers

ENGINEERED SYSTEMS STRENGTH - Higher revenue year-over-year was driven by strong execution and high operational activity in the Engineered Systems product line

AFTER-MARKET SERVICES SOFTNESS - Sequential revenue decline was mainly due to lower parts sales and service utilization in After-Market Services

GROSS MARGIN GAINS - Gross margin before depreciation and amortization improved, with ES margin up due to product mix

Company press release: ID:nGNX8zpf3N

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$584 mln
$613.90 mln (1 Analyst)
Q1 Net Income
$43 mln
Q1 Adjusted EBITDA
$137 mln
Q1 Operating Income
$68 mln
Q1 ROCE
17.30%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Enerflex Ltd is C$39.50, about 7.6% above its May 6 closing price of C$36.71

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

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.)