CECO Environmental (TXSE:CECO) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• CECO Environmental reported $0.60 EPS, missing the $0.61 consensus estimate by $0.01, despite record third-quarter operating results: revenue rose 105% year over year to about $404 million and adjusted EBITDA increased 201% to $70.1 million.
• Orders totaled $778 million, pushing backlog to a record $2.193 billion. Management raised its 2026 orders and adjusted free-cash-flow outlook while maintaining revenue guidance of $1.3–$1.375 billion and adjusted EBITDA guidance of $200–$225 million.
• Management flagged uncertainty from inflation, policy and geopolitical developments, including delays to some large Middle East water projects; those opportunities are not materially included in guidance.

CECO Environmental (TXSE:CECO - Get Free Report) announced its quarterly earnings results on Monday. The company reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by ($0.01), Zacks reports. CECO Environmental had a positive return on equity of 7.36% and a negative net margin of 3.39%. During the same period in the prior year, the company posted $0.04 EPS.

Here are the key takeaways from CECO Environmental's conference call:

• CECO reported record third-quarter results: revenue rose 105% year over year to about $404 million, adjusted EBITDA increased 201% to $70.1 million, and the adjusted EBITDA margin reached 17.3%. Legacy CECO revenue grew 30% and adjusted EBITDA rose 64%.
• Orders reached $778 million, with a book-to-bill ratio of about 1.92, lifting backlog to a record $2.193 billion; the opportunity pipeline exceeded $9 billion. Management expects at least 70% of year-end backlog to convert to revenue in 2027.
• The company raised its 2026 orders outlook to at least $2.5 billion and its adjusted free-cash-flow outlook to about 100% of adjusted EBITDA, while maintaining revenue guidance of $1.3–$1.375 billion and adjusted EBITDA guidance of $200–$225 million. Third-quarter adjusted free cash flow was about $154 million, and net leverage fell to approximately 2.0x.
• Thermon integration is ahead of schedule, with about $22 million in annualized net savings captured—roughly 55% of the three-year target—and management expects to reach at least 70% by the acquisition’s first anniversary. The company’s initial 2027 outlook is $2.1–$2.3 billion in revenue and $475–$525 million in adjusted EBITDA; its preliminary 2028 view calls for double-digit growth.
• Management cited inflation, policy changes, geopolitical developments, and uncertainty around AI and data-center investment as risks it considered in its outlook. Some large Middle East water projects have been delayed by regional conflicts, and those opportunities are not materially included in guidance.

CECO Environmental Stock Performance

Shares of CECO traded up $10.36 during trading hours on Monday, hitting $54.07. The company's stock had a trading volume of 929,105 shares, compared to its average volume of 799,611. The business has a 50 day simple moving average of $64.75 and a two-hundred day simple moving average of $71.28. CECO Environmental has a 52-week low of $37.15 and a 52-week high of $101.24. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.50 and a quick ratio of 1.18. The company has a market cap of $3.17 billion, a price-to-earnings ratio of -77.47 and a beta of 1.63.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. JPMorgan Chase & Co. reduced their price target on shares of CECO Environmental from $130.00 to $110.00 and set an "overweight" rating for the company in a research report on Tuesday, October 13th. Zacks Research raised shares of CECO Environmental from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 13th. Needham & Company LLC reiterated a "buy" rating and issued a $110.00 target price on shares of CECO Environmental in a research note on Tuesday, August 11th. Weiss Ratings downgraded shares of CECO Environmental from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, September 16th. Finally, TD Cowen began coverage on shares of CECO Environmental in a research report on Wednesday, August 5th. They set a "buy" rating and a $85.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $102.38.

CECO Environmental Company Profile

CECO Environmental Corp. NASDAQ: CECO is an industrial technology company that designs and supplies environmental and engineered equipment for industrial processes. Its solutions help customers control air pollution, manage industrial emissions, improve process efficiency and handle fluids in demanding operating environments.

The company’s product and service offerings include air pollution control systems, industrial ventilation and filtration equipment, scrubbers, fans, dust collection systems, thermal and heat-transfer equipment, pumps and other fluid-handling technologies.

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