Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 23rd:FIGS (FIGS) : This direct-to-consumer healthcare apparel and lifestyle brand, which creates technically advanced apparel and products for healthcare professionals, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 90% over the last 60 days.FIGS' shares gained 20.1% over the last three month compared with the S&P 500’s decline o ...

Group 1: Enerflex Ltd. (EFXT) - Enerflex Ltd. is an energy solutions company with a Zacks Rank 1, and its current year earnings estimate has increased by 19.5% over the last 60 days [1] - The shares of Enerflex gained 38.8% over the last three months, while the S&P 500 declined by 1.8% [1] - The company has a Momentum Score of A [1] Group 2: GigaCloud Technology Inc. (GCT) - GigaCloud Technology Inc. is a B2B logistics and e-commerce platform provider with a Zacks Rank 1, and its current year earnings estimate has increased by 17.1% over the last 60 days [2] - The shares of GigaCloud Technology gained 5.4% over the last three months, compared to the S&P 500's decline of 1.8% [2] - The company possesses a Momentum Score of A [2] Group 3: Weatherford International plc (WFRD) - Weatherford International plc is an energy services company with a Zacks Rank 1, and its current year earnings estimate has increased by 10.4% over the last 60 days [3] - The shares of Weatherford International gained 13.1% over the last three months, while the S&P 500 declined by 1.8% [5] - The company has a Momentum Score of A [5]

Core Viewpoint - Enerflex Ltd. (NYSE:EFXT) is experiencing significant gains in the energy sector, driven by strong performance in its financial results and positive analyst ratings [1][2][4]. Financial Performance - Enerflex reported adjusted earnings of $0.20 for Q4 2025, exceeding expectations by $0.24 [3]. - The company's revenue grew approximately 12% year-over-year to $627 million, surpassing estimates due to strong demand in the Energy Infrastructure and Aftermarket Services segments [3]. - Despite the revenue growth, Enerflex recorded a net loss of $57 million in the quarter, primarily due to costs associated with the redemption of the 2027 senior secured notes [3]. - Adjusted EBITDA for Q4 2025 was $123 million, slightly up from $121 million in the same period the previous year [4]. - Free cash flow reached a record $141 million during the quarter, increasing from $76 million in Q4 2024 and $43 million in Q3 2025 [4]. Analyst Ratings - On February 27, TD Securities raised its price target for Enerflex from C$28 to C$39 while maintaining a 'Buy' rating on the stock [4].

Core Viewpoint - Enerflex Ltd. shares increased by 15.66% to $22.97 following the announcement of INNIO Group's agreement to acquire its aftermarket operations in Australia, Thailand, and Indonesia [1]. Group 1 - The stock price rose by $3.11 from a previous close of $19.86, with a trading range during the session between $20.19 and $23.41 [1]. - The trading volume for Enerflex Ltd. was 0.32 million shares, compared to an average volume of 0.46 million shares [1]. - The stock has experienced a 52-week trading range of $6.18 to $23.41 [3]. Group 2 - The acquisition is expected to enhance INNIO's presence in the Asia-Pacific region and is projected to close in the second half of 2026 [2].

Financial Data and Key Metrics Changes - The company reported revenue of $627 million in Q4 2025, an increase from $561 million in Q4 2024 but a decrease from $777 million in Q3 2025 [14] - Gross margin before depreciation and amortization was $177 million, or 28% of revenue, compared to $174 million, or 31% of revenue in Q4 2024, and $206 million, or 27% of revenue during Q3 2025 [14] - Free cash flow increased to a record $141 million in Q4 2025, compared to $76 million in Q4 2024 and $43 million in Q3 2025 [17] - Net loss was $57 million, or $0.47 per share in Q4 2025, compared to earnings of $15 million or $0.12 per share in Q4 2024 [17] Business Line Data and Key Metrics Changes - The Engineered Systems business line had a backlog of $1.1 billion at the end of Q4, with bookings of $377 million during Q4, compared to $301 million in Q4 2024 [9][10] - The Energy Infrastructure and Aftermarket Services business lines generated 67% of consolidated gross margin before depreciation and amortization during Q4 2025 [15] - Aftermarket services gross margin before depreciation and amortization was 22% in the quarter, benefiting from strong customer maintenance programs [15] Market Data and Key Metrics Changes - Utilization remained stable at 94% during Q4 across a fleet size of approximately 483,000 horsepower [8] - The U.S. contract compression business performed well, driven by increasing natural gas production in the Permian Basin [7] - The company is seeing broadening opportunities in the Haynesville region, where natural gas supply growth is expected to be connected with LNG export capacity expansion [7] Company Strategy and Development Direction - The company is focused on simplifying and optimizing operations while sharpening its focus on core regions of North America, Latin America, and the Middle East [6] - Strategic priorities include leveraging leading positions in core operating countries and enhancing profitability of core operations [12][22] - The company plans to invest in customer-supported growth opportunities and provide meaningful direct shareholder returns [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on its foundation and capitalize on expected increases in demand for Enerflex's solutions [24] - The company is actively exploring growth opportunities in the Middle East, although current growth capital is primarily allocated to the U.S. [40][22] - Management acknowledged the challenges posed by extended lead times for large engines but indicated that 2026 is secure and they are positioning for 2027 [29][30] Other Important Information - The company entered into a definitive agreement to divest the majority of its operations in the APAC region, expected to close in the second half of 2026 [5][6] - The refinancing of $563 million in senior secured notes is expected to reduce annual interest costs and enhance tax efficiency [19] Q&A Session Summary Question: Lead times on large engines and impact on backlog - Management acknowledged the extended lead times but stated that 2026 is secure and they are positioning for 2027 [29] Question: Growth outlook for contract compression business - Management confirmed that the capital expenditure for 2026 demonstrates commitment to further growth, with customer-specific positions secured [31] Question: Variability in lead times across product lines - Management clarified that the stated lead time of 120 weeks applies to a portion of the product line, particularly in higher horsepower ranges [34] Question: Opportunities in the Middle East - Management indicated that while current growth capital is focused on the U.S., they are actively exploring opportunities in the Middle East [40] Question: Capital allocation and NCIB - Management stated that capital allocation decisions will be made based on delivering value to shareholders, with the NCIB open until the end of March [42]

Financial Data and Key Metrics Changes - The company reported revenue of $627 million in Q4 2025, an increase from $561 million in Q4 2024 but a decrease from $777 million in Q3 2025 [14] - Gross margin before depreciation and amortization was $177 million, or 28% of revenue, compared to $174 million, or 31% of revenue in Q4 2024, and $206 million, or 27% of revenue during Q3 2025 [14] - Free cash flow increased to a record $141 million in Q4 2025, compared to $76 million in Q4 2024 and $43 million in Q3 2025 [17] - Net loss was $57 million, or $0.47 per share in Q4 2025, compared to earnings of $15 million or $0.12 per share in Q4 2024 [17] Business Line Data and Key Metrics Changes - The Engineered Systems business line had a backlog of $1.1 billion at the end of Q4, with bookings of $377 million during Q4, compared to $301 million in Q4 2024 [9][10] - The Energy Infrastructure and Aftermarket Services business lines generated 67% of consolidated gross margin before depreciation and amortization during Q4 2025 [15] - Aftermarket services gross margin before depreciation and amortization was 22% in the quarter, benefiting from strong customer maintenance programs [15] Market Data and Key Metrics Changes - Utilization remained stable at 94% across a fleet size of approximately 483,000 horsepower [8] - The company is seeing increasing demand in the Permian Basin and Haynesville regions, driven by rising natural gas production [7] Company Strategy and Development Direction - The company is focusing on simplifying and optimizing operations while sharpening its focus on core regions of North America, Latin America, and the Middle East [6] - Strategic priorities include enhancing profitability of core operations, maximizing free cash flow, and investing in customer-supported growth opportunities [12][22] - The company plans to target organic capital expenditures of $175 million-$195 million in 2026, with a focus on expanding the contract compression fleet in the U.S. [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on its foundation and capitalize on expected increases in demand for Enerflex's solutions [24] - The company is actively exploring growth opportunities in the Middle East, although current growth capital is primarily allocated to the U.S. [40][22] Other Important Information - The company has entered into a definitive agreement to divest the majority of its operations in the APAC region, expected to close in the second half of 2026 [5][6] - The refinancing of $563 million in senior secured notes is expected to reduce annual interest costs and enhance tax efficiency [19] Q&A Session Summary Question: Lead times on large engines - Management acknowledged that lead times have extended to 110 to 120 weeks for certain products, but they have secured capacity for 2026 and are positioning for 2027 [28][29] Question: Growth outlook for contract compression business - Management confirmed that they have customer-specific positions and expect a multi-year growth outlook for the contract compression business [30][31] Question: Variability in lead times across product lines - Management clarified that the stated lead time applies to a portion of the product line, particularly in higher horsepower ranges [34][35] Question: Opportunities in the Middle East - Management indicated that while current growth capital is focused on the U.S., they are actively exploring opportunities in the Middle East [39][40] Question: Capital allocation and NCIB - Management stated that capital allocation decisions will be made based on delivering value to shareholders, with the NCIB open until the end of March [42] Question: Counterparty risk in power generation contracts - Management emphasized the importance of counterparty stability and confirmed that they are working with strong counterparties in recent contracts [45] Question: Future geographic evaluations - Management is continuously evaluating all geographies and business lines for potential optimization and simplification [46][47]

Financial Data and Key Metrics Changes - The company reported revenue of $627 million in Q4 2025, an increase from $561 million in Q4 2024 but a decrease from $777 million in Q3 2025 [14] - Gross margin before depreciation and amortization was $177 million, or 28% of revenue, compared to $174 million, or 31% of revenue in Q4 2024, and $206 million, or 27% of revenue during Q3 2025 [14] - Free cash flow increased to a record $141 million in Q4 2025, compared to $76 million in Q4 2024 and $43 million in Q3 2025 [17] - The net loss was $57 million, or $0.47 per share in Q4 2025, compared to earnings of $15 million or $0.12 per share in Q4 2024 [17] Business Line Data and Key Metrics Changes - The Engineered Systems business line had a backlog of $1.1 billion at the end of Q4, with bookings of $377 million during Q4, compared to $301 million in Q4 2024 [9][10] - The Energy Infrastructure and Aftermarket Services business lines generated 67% of consolidated gross margin before depreciation and amortization during Q4 2025 [15] - Aftermarket services gross margin before depreciation and amortization was 22% in the quarter, benefiting from strong customer maintenance programs [15] Market Data and Key Metrics Changes - Utilization remained stable at 94% across a fleet size of approximately 483,000 horsepower [8] - The company is seeing increasing demand in the Permian Basin and Haynesville regions, supported by rising natural gas production [7] Company Strategy and Development Direction - The company has entered into a definitive agreement to divest the majority of its operations in the APAC region to INNIO Group, focusing on core regions of North America, Latin America, and the Middle East [5][6] - The strategic priorities for 2026 include leveraging the company's position in core operating countries and enhancing profitability while maximizing free cash flow [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on its foundation and highlighted the strong performance across global operations [25] - The company is focused on enhancing profitability and generating sustained, attractive returns for shareholders [23] Other Important Information - The company refinanced $563 million in senior secured notes, which is expected to reduce annual interest costs and enhance tax efficiency [18][19] - The company plans to invest $175 million-$195 million in organic capital expenditures for 2026, focusing on customer-supported opportunities [22] Q&A Session Summary Question: Lead times on large engines - Management acknowledged that lead times of 110 to 120 weeks for large engines are a known issue and are strategizing to secure engines for 2026 commitments [28][30] Question: Growth outlook for contract compression business - Management confirmed that the capital expenditure for 2026 reflects a commitment to growth, with customer-specific positions secured [31][32] Question: Variability in lead times across product lines - Management clarified that the stated lead time applies to a portion of the product line, particularly in higher horsepower ranges [35] Question: Counterparty risk in power generation contracts - Management emphasized the importance of counterparty stability and confirmed strong relationships with current and prospective clients [47] Question: Future geographic evaluations - Management indicated ongoing evaluations of non-core geographies to optimize operations and free up capital [49]

February 2026 Enerflex Ltd. Corporate Presentation All amounts presented in US Dollars unless otherwise stated Enerflex at a Glance TSX / NYSE EFX / EFXT Annual dividend CAD$0.17/sh Market Cap (1) US$2.4 B Dividend Yield (1) ~0.6% Operating Years 45 Employees ~4,400 Transforming Energy for a Sustainable Future North America Latin America Eastern Hemisphere Enerflex Geographies Enerflex Key Offices Enerflex Manufacturing Facility 1) Based on an EFXT closing share price of $19.82 as of February 25, 2026. 2) C ...

Core Insights - INNIO Group has signed a definitive agreement to acquire Enerflex Ltd.'s aftermarket business operations in Australia, Thailand, and Indonesia, aiming to strengthen its presence in the Asia-Pacific (APAC) region and enhance customer proximity [1][2]. Group 1: Acquisition Details - The acquisition is subject to customary closing conditions and regulatory approvals, with closing expected in the second half of 2026 [1]. - Enerflex's APAC aftermarket business operates in three countries and eight locations, supported by long-term service agreements with major oil and gas companies [2]. Group 2: Strategic Implications - The integration of Enerflex's expertise is expected to strengthen INNIO's service portfolio, deliver greater customer value, and accelerate growth in the APAC region [3]. - This acquisition complements INNIO's existing portfolio in APAC and reinforces its commitment to customer-centric solutions, providing a solid platform for future growth [3]. Group 3: Company Overview - INNIO Group is a leading energy solution and service provider, offering innovative solutions for data center power infrastructure, distributed power generation, and compression applications [5]. - The company’s Waukesha engines provide reliable energy solutions for distributed gas compression and power generation, setting industry standards for low emissions and high reliability [4].

Financial Performance - Free cash flow for Q4 2025 was $141 million, compared to $76 million in Q4 2024, with a dividend payout ratio of 2.8%[37] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $511 million, up from $432 million in 2024[31] - Enerflex's ability to maintain sufficient cash flow and profitability is crucial for ongoing payment of a sustainable quarterly cash dividend[44] Revenue Outlook - Enerflex's preliminary outlook for 2026 indicates steady demand, with the Energy Infrastructure product line expected to generate approximately $1.3 billion in revenue from existing contracts[16] - Enerflex expects customer contracts within its EI product line to generate approximately $1.3 billion in revenue over their remaining terms[41] - The backlog for Enerflex's ES product line is approximately $1.1 billion as of December 31, 2025, with expectations for conversion into revenue over the next 12 months[41] Capital Expenditures - Capital expenditures for 2026 are targeted between $175 million and $195 million, including $90 million to $100 million for organic growth[18] - Targeted total capital expenditures for 2026 are approximately $175 million to $195 million, including organic growth capital expenditures of $90 million to $100 million[41] - The company anticipates growth capital expenditures will deliver at least 13% growth during 2026[41] Shareholder Returns - During 2025, Enerflex returned $40 million to shareholders through dividends ($17 million) and share repurchases ($23 million)[20] - A quarterly dividend of CAD$0.0425 per share has been declared, payable on March 25, 2026[21] - Enerflex aims to enhance profitability and maximize free cash flow to support shareholder returns and growth investments[22] - Enerflex aims to enhance profitability and generate sustained returns for shareholders while considering further debt reduction to strengthen its balance sheet[41] Growth Strategy - The Engineered Systems product line has a backlog of approximately $1.1 billion, with most expected to convert into revenue within the next 12 months[17] - The company is focusing on organic growth opportunities, particularly in the U.S. contract compression market, driven by increased natural gas production[19] - The company plans to continue selective customer-supported growth investments in the U.S. contract compression business[41] - The company is evaluating opportunities for organic expansion in the Middle East, although not included in the 2026 capital spending plan[19] Market Demand - The company expects continued steady demand across its business lines and geographic regions throughout 2026[41] - The anticipated completion of the APAC Divestiture is expected to allow Enerflex to continue delivering ES solutions in the region[40]