Strong operational momentum with improving margins and record ROCE supports a bullish view. The ES backlog provides 12-month revenue visibility. Monitor free cash flow recovery in coming quarters and the resolution of the arbitration risk. Investor update scheduled for May 27, 2026 may provide further catalysts.
Price Chart
Executive Summary
Enerflex reported strong Q1 2026 results with revenue up 5.8% YoY to $584M, net earnings nearly doubling to $43M, and record ROCE of 17.3%. Adjusted EBITDA rose 21% to $137M, driven by higher gross margins and cost savings. The ES backlog reached $1.3B with a book-to-bill ratio of 1.5x, while leverage improved to 0.9x net debt-to-EBITDA. Free cash flow fell to $15M due to working capital investment, but operating cash flow before working capital rose to $95M. The company continues to see steady demand across its core markets and is advancing power generation opportunities for data centers.
Key Facts
- Revenue $584M vs $552M in Q1/25 (+5.8%)
- Net earnings $43M vs $24M in Q1/25 (+79%)
- Adjusted EBITDA $137M vs $113M in Q1/25 (+21%)
- Gross margin before D&A $179M (30.7% of revenue) vs $161M (29.2%)
- Record ROCE of 17.3% vs 14.2% in Q1/25
- ES backlog $1.3B with bookings of $483M (book-to-bill 1.5x)
- Bank-adjusted net debt-to-EBITDA improved to 0.9x from 1.3x
- Net debt reduced to $505M; repaid ~$550M since early 2023
- Free cash flow $15M vs $85M in Q1/25 due to working capital investment
- Ongoing arbitration with a customer with $161M in assets at risk (management disputes claims)
Financial Impact
Revenue up $32M, net earnings up $19M, adjusted EBITDA up $24M, net debt down $59M YoY
Risk Factors
- Arbitration with customer could result in material loss ($161M assets at risk)
- Working capital build impacted free cash flow; may persist
- Geopolitical risks in Middle East operations
- Trade tariffs and commodity price volatility could affect ES business
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 11 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-210962 |
| Document: efxt-ex99_3.htm | 0001193125-26-210962 |
| Document: efxt-ex99_1.htm | 0001193125-26-210962 |
| Document: efxt-ex99_4.htm | 0001193125-26-210962 |
| Document: enerflex_6-k_q1_2026.htm | 0001193125-26-210962 |
| Document: efxt-ex99_5.htm | 0001193125-26-210962 |
| Document: efxt-ex99_7.htm | 0001193125-26-210962 |
| Document: efxt-ex99_6.htm | 0001193125-26-210962 |
| Document: 0001193125-26-210962-index-headers.html | 0001193125-26-210962 |
| Document: 0001193125-26-210962-index.html | 0001193125-26-210962 |
| Document: 0001193125-26-210962.txt | 0001193125-26-210962 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | 6-K | $25.77 $24.69 | ▼ −4.19% | ▼ −4.64% | $23.42 (−9.12%) |
Oct 13, 2026 13d ago | 6-K | $27.54 $24.16 | ▼ −12.27% | ▼ −11.12% | $23.42 (−14.96%) |
Oct 7, 2026 19d ago | 6-K | $23.69 $25.77 | ▲ +8.78% | ▲ +9.76% | $23.42 (−1.14%) |
Oct 1, 2026 25d ago | 6-K | $25.44 $24.01 | ▼ −5.62% | ▼ −6.92% | $23.42 (−7.94%) |
Oct 1, 2026 26d ago | Press Release | $25.44 $24.01 | ▼ −5.62% | ▼ −6.92% | $23.42 (−7.94%) |
Sep 30, 2026 26d ago | 6-K | $25.44 $24.01 | ▼ −5.62% | ▼ −6.92% | $23.42 (−7.94%) |
Sep 30, 2026 26d ago | Press Release | $25.44 $24.01 | ▲ +5.62% | ▲ +6.92% | $23.42 (+7.94%) |
Jul 6, 2026 16w ago | 6-K | $22.64 $23.86 | ▲ +5.39% | ▲ +4.90% | $23.42 (+3.45%) |
Jun 25, 2026 17w ago | 6-K | $24.95 $23.08 | ▼ −7.50% | ▼ −9.66% | $23.42 (−6.13%) |
May 27, 2026 21w ago | 6-K | $25.32 $26.24 | ▲ +3.63% | ▲ +2.43% | $23.42 (−7.50%) |
US Market Status
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