Enerflex Ltd. EFXT has been one of the standout performers in the energy infrastructure space, with its stock surging sharply over the past year. This strong rally naturally raises a key question for investors: is there still upside left, or has most of the good news already been priced in? While the sharp run-up may seem daunting at first glance, a closer look at Enerflex’s positioning in natural gas compression and its growing exposure to data center power demand suggests that the story may be far from over.
Enerflex’s Broader Growth Appeal
EFXT’s stock performance has significantly outpaced established industry players. Over the past year, Enerflex shares have surged nearly 238%, far exceeding the gains seen by the likes of Archrock AROC and USA Compression Partners USAC. This divergence highlights how investors are increasingly rewarding companies with diversified growth avenues beyond traditional service offerings.
1-Year Price Performance
While AROC and USAC remain strong operators with stable, fee-based compression businesses, Enerflex stands apart due to its integrated model — combining engineered systems, infrastructure ownership, and aftermarket services. This integration enables stronger margins and operational flexibility. For instance, Enerflex benefits from vertical integration that improves cost efficiency and execution timelines compared to Archrock and USA Compression Partners, which rely more heavily on standalone compression services.
At the same time, the broader industry backdrop remains extremely favorable. Strong natural gas demand driven by LNG exports and power consumption is expected to drive sustained compression growth over the next several years. This tailwind benefits all players — including Archrock and USA Compression Partners — but Enerflex’s broader exposure gives it a potential edge.
Compression Strength and Stable Cash Flow Model
Enerflex’s core business remains anchored in natural gas compression and energy infrastructure, which provides stable and recurring cash flows. The company operates more than 1 million horsepower of compression assets globally and benefits from long-term contracts averaging about five years.
Like AROC and USAC, Enerflex operates in a “must-run” segment of the energy value chain — compression is essential for moving gas from production sites to end markets. This creates highly predictable revenue streams. Archrock, for example, consistently reports fleet utilization above 95%, while USA Compression Partners maintains utilization near 94-95%, underscoring the strength of demand.
However, Enerflex differentiates itself by combining this stable base with growth-oriented segments like engineered systems and power solutions. Its Energy Infrastructure segment alone carries approximately $1.2 billion in contracted revenue, providing strong visibility and downside protection.
Data Center Opportunity: A New Growth Engine for EFXT
One of the biggest reasons Enerflex has been rewarded by the market is its exposure to data center power demand. The company is actively building a pipeline of over 1.5 gigawatts of potential power generation projects tied to data centers. It has already secured initial orders, completed engineering studies, and signed multiple contracts with North American clients.
This opportunity is particularly compelling because data center demand is driving a structural increase in electricity consumption. Industry research suggests that AI and data center growth could add tens of gigawatts of incremental power demand over the next decade, much of which may be met by natural gas generation.
Enerflex is well-positioned here because it can provide modular gas-fired power solutions, bridging the gap between rising demand and limited grid capacity. Unlike AROC and USAC, which are primarily focused on compression, Enerflex can participate across the value chain, from power generation equipment to long-term service contracts.
Enerflex’s Earnings Growth and Attractive Valuation
Despite the strong stock rally, EFXT still appears attractive from a fundamental perspective. The Zacks Consensus Estimate points to earnings growth of 23% in 2026, followed by an even stronger 32% increase in 2027. This level of expected growth is uncommon in the energy infrastructure space and shows that the company is benefiting from both improving market conditions and long-term demand trends.
Valuation also remains supportive. On a forward price-to-earnings basis, Enerflex is trading at a discount compared to peers like Archrock and USA Compression Partners. This is notable given its higher growth outlook and expanding exposure to power generation and data centers.
Valuation Comparison
Additionally, Enerflex’s backlog provides strong revenue visibility. The company ended 2025 with an Engineered Systems backlog of approximately $1.1 billion, supporting near-term earnings stability while longer-term projects — especially in data centers — begin to ramp.
Final Take on EFXT Stock
Even after its massive run, Enerflex appears to have further upside potential. The company is not only benefiting from strong structural demand in natural gas compression but also stands out due to its growing presence in power generation and data center infrastructure. With solid earnings growth, a discounted valuation, and a visible project pipeline, the investment case remains compelling. Overall, EFXT stock still looks attractive at current levels and is currently a Zacks Rank #1 (Strong Buy), suggesting that the rally may be supported by fundamentals rather than fully priced in.
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USA Compression Partners, LP (USAC): Free Stock Analysis Report
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Enerflex Ltd. (EFXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).