Enerflex is a Calgary-headquartered energy infrastructure services company that owns and operates gas compression and processing assets, sells modular engineered systems, and provides after-market services across North America, Latin America, and the Eastern Hemisphere. The second quarter of 2026 produced revenue of $582 million. Adjusted EBITDA came in at $128 million for the same period, and the engineered systems backlog reached a record $1.5 billion. Free cash flow for the quarter stood at $32 million.
The investment rests on four moving parts. The first is the pace at which the U.S. contract compression fleet grows, a target of double-digit expansion for 2026. The second is the conversion of the record backlog into revenue, most of which is slated to flow through within twelve months. The third is the Asia Pacific divestiture to INNIO Group, which reshapes the geographic mix in the second half. The fourth is the valuation multiple, which sits near 8.7x trailing twelve-month adjusted EBITDA on an enterprise basis and already assigns meaningful value to a data center power pipeline that has built up beyond seven gigawatts of opportunities.
The case against the stock rests on earnings volatility and accounting noise. Reported net earnings of $30 million for the second quarter compare with $60 million a year earlier, and the gap is driven by share-based compensation that scales with the share price and an unrealized gain on redemption options that flattered the prior-year print. The trailing earnings multiple of over 50x is a mirage created by a fourth-quarter 2025 redemption charge, but it keeps the stock looking expensive to screeners that do not look under the hood.