EFX Marketing Takeaways; Flexible Growth Mindset

Research evidence excerpt

EFX Marketing Takeaways; Flexible Growth Mindset

Enerflex - Block Summary Model

Income Statement 2025A 2026E 2027E

Revenue $2,571 $2,434 $2,735

Operating Expenses 1,989 1,853 2,074 Valuation

Gross Margin 582 581 661 Our $45 target price reflects ~7x 2027E EV/EBITDA.

EBITDA $511 $539 $587

Upside Scenario $50.00

EBT 163 295 377 Enerflex's results have shown continued improvement. In

Net Income 64 194 245 our view, significant upside lies in the shares as natural gas

demand accelerates. Additionally, increased exposure to

EPS (diluted) 0.52 1.59 2.01 data centers could further support earnings momentum,

Cash Flow Statement 2025A 2026E 2027E providing a path for EFX to trade up to around $50,

reflecting ~8x 2027E EV/EBITDA. Cash Flow from Ops (before ∆ WC) 326 390 429

Change in Working Capital 19 (45) (53) Downside Scenario $30.00

Cash Flow From Operations 345 346 376 Commodity price decline would negatively affect Enerflex's

operations (though natural gas demand is the largest driver

Cash Flow From Investments (103) (188) (180) of its business). International activity levels, too, would

Cash Provided From Financing (250) (49) (15) likely stumble, although recurring revenue related to rentals

and service/maintenance would likely remain somewhat Change in Cash (8) 109 180

resilient. We could see the shares fall to the $30 area if this

Cash at Beginning of Period 92 81 180 were to play out (~5x 2027E EV/EBITDA).

in CAD Cash at End of Period 81 180 361

Balance Sheet 2025A 2026E 2027E -11% +34% +49%

Total Current Assets 992 1,199 1,463

Total Assets 2,694 2,895 3,172 Downside Current Target Upside

Scenario Price Price Scenario

Total Current Liabilities 879 917 966 30.00 33.63 45.00 50.00

Total Liabilities 1,601 1,615 1,664

Key Catalysts

Share Capital 498 501 501