Evertz Technologies Reports Record Q3 Earnings Driven by Software Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ET?
Source: Yahoo Finance
- Record Sales Performance: Evertz Technologies reported a record sales figure of CAD 139.3 million for Q3 FY2026, reflecting a 5% sequential increase and a 2% year-over-year rise, indicating strong performance in software and international markets despite softer results in North America.
- Software Services Growth: The company’s software and services revenue rose 12.3% year-over-year to CAD 62.5 million, representing approximately 45% of total quarterly revenue, highlighting the ongoing expansion in the software segment that supports future growth prospects.
- International Market Strength: International revenue increased by 15% to CAD 43.7 million, accounting for 31% of total sales, primarily driven by several projects in Europe, showcasing the company’s competitive edge and project execution capabilities in global markets.
- Cash Flow and Dividends: As of January 31, Evertz reported a cash balance of CAD 24.8 million, down from CAD 111.7 million in April 2025, largely due to dividend distributions, reflecting the challenges in balancing shareholder returns with cash flow management.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.740
Low
17.00
Averages
20.65
High
23.00
Current: 18.740
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Expansion Projects Support: The company has a backlog of major expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to enter commercial service by 2030, providing strong support for future revenue growth.
- Enhanced Financial Flexibility: Energy Transfer has ample financial flexibility to fund its secured growth projects and pursue acquisitions when the right opportunities arise, thereby strengthening its competitive position, especially amid accelerating demand for natural gas.
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- Dividend Yield Advantage: Kinetik currently boasts a 7.1% dividend yield, surpassing most peers, with expectations for a 3% to 5% increase this year, which will enhance investor appeal, particularly against the backdrop of rising energy prices.
- Strong Market Performance: The stock has surged 26% year-to-date due to soaring oil and gas prices driven by the Iran conflict, indicating increasing investor interest in energy stocks, which may propel future growth for the company.
- Acquisition Potential: Analysts are turning bullish on Kinetik, with Raymond James upgrading its rating to outperform in January, suggesting the company could become a takeover target for several midstream players, thereby increasing market attention.
- Improving Profitability: Kinetik's current dividend coverage ratio stands at 1.2, expected to rise to 1.5 by year-end, and with increasing cash flows, the dividend growth plan will be strengthened, potentially achieving a 7% growth by 2027.
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High-Yield Dividend Stocks: Companies like Chevron, Clorox, Energy Transfer, Global Net Lease, and Altria are highlighted as strong defensive plays due to their high dividend yields and stable demand, making them attractive options for investors seeking income amidst market volatility.
Chevron's Strong Performance: Chevron has significantly outperformed the broader market, with shares rising 24.6% year-to-date, benefiting from high oil prices and geopolitical tensions, positioning itself as a reliable dividend payer with a history of consistent increases.
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- Electricity Consumption Surge: Goldman Sachs forecasts U.S. data center electricity consumption will soar from 4% in 2023 to 10% by 2030, translating to a jump from approximately 200 TWh to 500 TWh, creating a reliability gap that only a few companies can bridge.
- Midstream Infrastructure Opportunities: Energy Transfer (ET) is aggressively capitalizing on this trend, having signed long-term contracts for over 6 billion cubic feet per day of pipeline capacity in the past year, with over 40 data center connection requests, and is expected to achieve a 1.8x coverage ratio by 2025, offering a secure 7.2% yield.
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See More
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- Accelerated Earnings Growth: Energy Transfer expects its adjusted EBITDA to rise over 10% this year, contrasting sharply with last year's 3.2% growth, indicating a significant enhancement in profitability following the completion of several major expansion projects, which boosts market confidence in its future performance.
- Project Backlog: The company has a substantial backlog of expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to enter commercial service by 2030, further driving revenue growth and meeting the increasing demand for natural gas.
- Financial Flexibility: Energy Transfer possesses ample financial flexibility to fund both secured growth projects and potential acquisitions, providing it with additional growth opportunities, particularly in the context of accelerating natural gas demand.
- Price Target Outlook: Should Energy Transfer maintain a 10% annual growth rate, its unit price could reach $30 within five years, and if its valuation multiple expands, this target could be achieved even sooner, highlighting the potential for upward movement given its current low valuation relative to peers.
See More
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- Growth Acceleration Expected: Energy Transfer anticipates its adjusted EBITDA will rise by over 10% this year, contrasting sharply with last year's 3.2% growth, indicating a significant improvement in financial performance following the completion of several major expansion projects.
- Project Backlog: The company has a substantial backlog of expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to enter commercial service by 2030, providing robust support for future revenue growth.
- Profitability Enhancement: With rising oil prices and the completion of acquisitions by its affiliated MLPs, Energy Transfer's bottom line is set to improve, and it is expected to continue growing at a double-digit annual rate over the coming years, further solidifying its market position.
- Price Target Analysis: If Energy Transfer can maintain a 10% annual growth rate, its unit price is projected to reach $30 within five years, and given its current valuation multiple is lower than the industry average, there is significant potential for price appreciation.
See More
