Enerflex Ltd. (EFX) Posts Q3 Adj. EBITDA $129M, Hikes Dividend 17%

TD Cowen downgraded Enerflex (EFX, EFXT) to Hold, lowering its price target to C$30.00 from C$44.00 due to Texas permitting concerns. The firm expects a pause in U.S. reciprocating engine orders until policy clarity. Enerflex's share price has risen 230% over 18 months. RBC Capital raised its target to $35.00, citing strong execution in power generation.

Enerflex reported Q3 gross margin of $176M (28% of revenue) and adjusted EBITDA of $129M. Net earnings were $55M ($0.45 per share). The company identified 1.5-2GW of new opportunities and expects accretive margins from power-generation projects. Free cash flow rose to $102M, and net debt decreased to $312M. Enerflex increased its dividend by 17% and plans facility investments.

Enerflex Ltd reported record $1 billion in Q3 2026 bookings, driven by broad-based strength. CEO Paul Mahoney expressed confidence in 1.8 GW of backlog, citing strong counterparties. CFO Preet Dhindsa attributed lower Engineered Systems margins to project mix and sequencing. The company plans to pull forward $85 million of 2027 PP&E spend into 2026, increasing capacity beyond prior expectations.

Enerflex (EFXT) reported Q3 2026 earnings, highlighting record bookings of $1 billion in Engineered Systems, with 2026 bookings on track to exceed $3 billion. The company's backlog grew to $2.1 billion, driven by strong demand in compression, gas processing, and power generation. Enerflex is expanding its power generation capabilities and expects long-term value creation from aftermarket services and energy infrastructure.

Enerflex Ltd. (EFXT) furnished an SEC Form 6-K — earnings release. ENERFLEX LTD. ANNOUNCES THIRD QUARTER 2026 FINANCIAL AND OPERATIONAL RESULTS AND INCREASED DIVIDEND ADJUSTED EBITDA OF $129 MILLION, FREE CASH FLOW OF $102 MILLION AND RETURN ON CAPITAL EMPLOYED OF 15.8% RECORD ES BOOKINGS AND BACKLOG OF $1.0 BILLION AND $2.1 BILLION, RESPECTIVEL

Enerflex Ltd. (TSX:EFX) reported Q3 2026 revenue of $623M, missing forecasts by 2.29%, but beat earnings estimates with adjusted EPS of $0.45. Adjusted EBITDA fell to $129M from $145M YoY, while free cash flow doubled to $102M. The company targets margin expansion and focuses on power generation, with a $1.75GW backlog. Management aims to improve EBITDA margin, cash conversion, and return on capital by 200+ basis points by 2030.