CECO
CECO Environmental Corp.60.89
-0.32-0.52%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Power pipeline, Thermon cross-sell details
Q&A drilled deeper into CECO's $1-2 billion power pipeline for the next 12-24 months, aligning with turbine makers eyeing 2029-2030, and spotlighted $10-50 million industrial water projects in the Middle East for produced water treatment. Thermon adds cross-sell via shared customers, Genesis controls, and wallet-share on large jobs; its installed base drives recurring short-cycle revenue. POs are falling from the sky. 2026 guidance is purely organic, no small M&A, with slight H2 revenue skew. Management fielded synergy probes cautiously, reaffirming the deal's standalone merits amid strong demand signals investors will track.
Key Stats
Market Cap
2.17BP/E (TTM)
42.58Basic EPS (TTM)
1.43Dividend Yield
0%Recent Filings
10-K
FY2025 results
CECO Environmental crushed FY2025 ended December 31, 2025, with net sales rocketing 38.8% y/y to $774.4M, powered by Engineered Systems' 41.7% surge to $544.3M on emissions and filtration demand, while backlog ballooned 46.6% to $793.1M including a monster Q4 $135M+ natural gas power order. Q4 momentum accelerated orders 59.5% y/y to $1,064.3M, yet gross margins slipped to 34.8% from subcontractor costs; non-GAAP operating income held steady at 8.8%. Debt sits at $214.2M with $167.6M revolver availability, no buybacks or dividends. Pending Thermon merger eyes synergies. Material weaknesses in Verantis controls risk financial reporting errors.
8-K
CECO-Thermon merger announced
CECO Environmental signed a merger agreement on February 23, 2026, to acquire Thermon via dual mergers, offering Thermon shareholders $10 cash plus 0.6840 CECO shares (mixed), $63.89 all-cash, or 0.8110 all-stock per share, subject to proration. Closing awaits stockholder approvals, HSR clearance, and mid-2026 target; 15.2% CECO shares locked via voting agreements, board expands to 10 with two Thermon appointees. Deal faces antitrust risks.
8-K
Record orders, raised guidance
CECO crushed 2025 with record orders over $1 billion, up 59%, revenue of $774M up 39%, and Adjusted EBITDA $90.3M up 44%. Q4 shone: orders $329M up 50%, backlog $793M up 47%, gross margins 35%. Raised 2026 guidance to $925-975M revenue, $115-135M EBITDA—Thermon merger excluded. Deal awaits approvals.
8-K
CECO inks $700M revolver
10-Q
Q3 FY2025 results
CECO Environmental's Q3 revenue surged 45.8% year-over-year to $197.6M, fueled by 35% organic growth from robust backlog execution in energy and power sectors, while gross margin dipped slightly to 32.7% on project mix shifts. Operating income rose 30.8% to $9.4M, supported by Engineered Systems' 57.4% sales jump to $143.7M, though Industrial Process Solutions faced headwinds from the Q1 divestiture of Global Pump Solutions for $107.8M net proceeds, yielding a $63.7M gain. Diluted EPS held at $0.04, aligning with 36.4M shares and no material anti-dilution. Cash stood at $32.8M with $109.1M revolver availability under the $400M facility maturing 2029, total debt $220.9M at 7.02% average rate; free cash flow not disclosed in the 10-Q. Acquisitions like Profire in January 2025 for $120.4M cash bolstered combustion tech, recognizing $25.7M goodwill and $41.8M finite-lived intangibles over 7-10 years. Yet supply chain disruptions pose ongoing risks.
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