Overview

* Enerflex ( EFXT ) 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 ( EFXT ) expects 2025 capital expenditures of $120 mln

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

* Enerflex ( EFXT ) 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 ( EFXT ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $615 mln

Revenue

Q2 Net $60 mln

Income

Q2 $130 mln

Adjusted

EBITDA

Q2 $76 mln

Operatin

g Income

Q2 ROCE 16.4%

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 ( EFXT ) 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:

(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.)