Enerflex Q2 revenue steady at $615 mln, record EBITDA

Overview

• Enerflex reports Q2 revenue of at $615 mln, up from $614 mln in Q2/24

• Record adjusted EBITDA of $130 mln, driven by cost-saving initiatives

• Net earnings rose to $60 mln, benefiting from improved operational efficiencies

Outlook

• Enerflex expects 2025 capital expenditures of $120 mln

• Company anticipates ES revenue to remain steady, supported by $1.2 bln backlog

• Enerflex sees North American compression fleet growing to 475,000 horsepower

• Company expects EI product line to generate $1.5 bln revenue over remaining terms

Result Drivers

• COST-SAVING INITIATIVES - Enerflex's record adjusted EBITDA of $130 mln was driven by cost-saving initiatives and improved operational efficiencies

• PRODUCT MIX - Engineered Systems gross margin decreased due to product mix changes

• NATURAL GAS PRODUCTION - U.S. contract compression business benefited from increased natural gas production in the Permian Basin

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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$15.00, about 26.1% above its August 6 closing price of C$11.08

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX4KRVtz