Skip to main content
This section contains press releases and other materials from third parties (including paid content). The Globe and Mail has not reviewed this content. Please see disclaimer.

Enerflex Lifts Free Cash Flow, Cuts Debt and Sheds APAC Assets in Portfolio Shakeup

Tipranks - Thu Feb 26, 8:20PM CST

Claim 50% Off TipRanks Premium

An announcement from Enerflex ( (TSE:EFX) ) is now available.

Enerflex reported fourth-quarter 2025 revenue of $627 million, adjusted EBITDA of $123 million, and a record $141 million in free cash flow, while reducing net debt to $501 million, or about 1.0 times trailing 12-month adjusted EBITDA. Despite a reported net loss driven by costs tied to redeeming 2027 senior secured notes, normalized net income reached $24 million, supported by a 16.9% return on capital employed and robust contributions from energy infrastructure and after-market services.

The company signed a definitive agreement to divest most of its Asia-Pacific operations, primarily focused on after-market services, as part of an effort to streamline and optimize its portfolio while retaining engineered systems sales in the region via North American manufacturing. With an engineered systems backlog of $1.1 billion and targeted 2026 capital expenditures of $175 million to $195 million, including up to $100 million for growth, Enerflex is positioning for continued operational visibility and balance sheet strength.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Spark’s Take on TSE:EFX Stock

According to Spark, TipRanks’ AI Analyst, TSE:EFX is a Outperform.

The score is driven primarily by strong financial operating momentum (rapid revenue growth and improving margins) and supportive earnings-call fundamentals (record EBITDA and sizable backlog). The main offsets are weaker cash-flow dynamics (FCF decline tied to working capital) and stretched technical conditions (RSI/Stoch elevated), while valuation appears reasonable with a modest dividend yield.

To see Spark’s full report on TSE:EFX stock, click here.

More about Enerflex

Enerflex Ltd. is an energy infrastructure and services company that designs, engineers, and manufactures natural gas compression, processing, and electric power generation systems. The company also provides energy infrastructure and after-market services, with a strong presence in engineered systems and long-term service contracts across key global regions.

Average Trading Volume: 523,072

Technical Sentiment Signal: Buy

Current Market Cap: C$3.33B

See more insights into EFX stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.