Canada's Enerflex Q2 revenue misses estimates, hurt by project sequencing

Enerflex

06/08/2026 11:21

Overview
Canada modular gas solutions provider's Q2 revenue declined and missed analyst expectations
Adjusted EBITDA for Q2 was slightly lower year-over-year at $128 mln
Lower revenue driven by project sequencing and U.S. contract compression fleet expansion

Outlook
Enerflex targets 2026 organic capital expenditures of $185 mln to $195 mln, up from prior guidance
Company expects majority of $1.5 bln ES backlog to convert to revenue over next 12 months
Enerflex says EI product line contracts expected to generate about $1.2 bln revenue over remaining terms

Result Drivers
PROJECT SEQUENCING - Co said lower Q2 revenue was primarily driven by project sequencing and resource allocation for expansion of U.S. contract compression fleet within ES product line
ES BACKLOG GROWTH - ES backlog increased to $1.5 bln, providing strong visibility into future revenue generation
HIGHER SG&A - SG&A expenses rose due to higher stock-based compensation and investments to support growth and operational improvements

Company press release: ID:nGNXbs3GJM

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$582 mln
$608.72 mln (5 Analysts)
Q2 Net Income
 
$30 mln
 
Q2 Adjusted EBITDA
 
$128 mln
 
Q2 Operating Income
 
$58 mln
 
Q2 ROCE
 
15.40%
 

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$44.00, about 43.2% above its August 5 closing price of C$30.73
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Aug 4 - USA Compression Q2 revenue beats on fleet expansion, higher pricing
Aug 4 - Archrock Q2 results miss estimates on cost pressures 
Aug 4 - Canada's PHX Energy Q2 revenue rises to record high on increased drilling activity

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.)