CECO Environmental Corp
NASDAQ:CECO
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CECO Environmental Corp
CECO Environmental Corp. has carved out a significant niche for itself in the industrial sector, focusing on air quality and fluid handling solutions. Founded in the late 1960s, this Dallas-based company has grown by addressing critical environmental and safety challenges faced by various industries worldwide. CECO's core offerings revolve around systems and products that manage air pollution control and fluid handling. By leveraging its technological prowess, the company designs, installs, and maintains advanced filtration and ventilation systems that ensure cleaner air emissions and better industrial hygiene. Its product line, marked by innovation and efficiency, caters to sectors including power generation, petrochemical, refining, and manufacturing, emphasizing sustainable industrial practices.
CECO's revenue model is primarily driven by selling its proprietary equipment, alongside offering aftermarket services which provide a steady stream of ongoing income. The company thrives on its engineering expertise, allowing it to customize solutions that align with the stringent regulatory standards imposed on industries today. Not only does CECO safeguard the environment, but it also aids companies in optimizing their operations by enhancing energy efficiency and reducing wastage. This dual focus on regulatory compliance and operational efficiency has helped CECO maintain strong relationships with its clients, fueling its growth and ensuring resilience in the face of evolving industrial demands. As industries globally shift toward sustainable practices, CECO's role becomes even more crucial, positioning it as a key player in the transition towards a cleaner, more sustainable industrial framework.
CECO Environmental Corp. has carved out a significant niche for itself in the industrial sector, focusing on air quality and fluid handling solutions. Founded in the late 1960s, this Dallas-based company has grown by addressing critical environmental and safety challenges faced by various industries worldwide. CECO's core offerings revolve around systems and products that manage air pollution control and fluid handling. By leveraging its technological prowess, the company designs, installs, and maintains advanced filtration and ventilation systems that ensure cleaner air emissions and better industrial hygiene. Its product line, marked by innovation and efficiency, caters to sectors including power generation, petrochemical, refining, and manufacturing, emphasizing sustainable industrial practices.
CECO's revenue model is primarily driven by selling its proprietary equipment, alongside offering aftermarket services which provide a steady stream of ongoing income. The company thrives on its engineering expertise, allowing it to customize solutions that align with the stringent regulatory standards imposed on industries today. Not only does CECO safeguard the environment, but it also aids companies in optimizing their operations by enhancing energy efficiency and reducing wastage. This dual focus on regulatory compliance and operational efficiency has helped CECO maintain strong relationships with its clients, fueling its growth and ensuring resilience in the face of evolving industrial demands. As industries globally shift toward sustainable practices, CECO's role becomes even more crucial, positioning it as a key player in the transition towards a cleaner, more sustainable industrial framework.
Record Quarter: CECO delivered its highest ever quarterly revenue of $198 million, up 46% year-over-year, with strong growth in both orders and backlog.
Backlog & Pipeline: Backlog reached a record $720 million, up 64% YoY, supported by robust order intake and a $5.8 billion sales pipeline.
Margin Expansion: Adjusted EBITDA grew 62% to $23.2 million, with margins expanding by 120 basis points year-over-year.
Guidance Reaffirmed: 2025 outlook for revenue ($725–$775 million), adjusted EBITDA ($90–$100 million), and free cash flow (around 60% of adjusted EBITDA) reaffirmed.
2026 Initial Guidance: 2026 revenue expected at $850–$950 million (up 15–25%), adjusted EBITDA at $110–$130 million, and orders to exceed $1 billion.
Strong Market Demand: Management remains bullish on demand from power generation, energy transition, industrial water, and reshoring sectors.
Order Momentum: Q4 bookings expected to exceed $250 million and could surpass $300 million if timing aligns on larger projects.
Margin Drivers: Margin improvement expected from operating excellence, efficiency initiatives, and SG&A leverage despite some mix pressures.
