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

CECO Environmental (TXSE:CECO) posted its earnings results on Monday. The company reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates 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 quarter in the prior year, the business 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 Price Performance

CECO traded up $10.36 on Monday, reaching $54.07. The company 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 200 day simple moving average of $71.28. The company has a market cap of $3.17 billion, a price-to-earnings ratio of -77.47 and a beta of 1.63. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.18 and a current ratio of 1.50. CECO Environmental has a 52-week low of $37.15 and a 52-week high of $101.24.

Wall Street Analyst Weigh In

Several brokerages have commented on CECO. Weiss Ratings downgraded shares of CECO Environmental from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, September 16th. Zacks Research raised shares of CECO Environmental from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 13th. JPMorgan Chase & Co. lowered their price objective on CECO Environmental from $130.00 to $110.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 13th. Northland Securities set a $125.00 price objective on CECO Environmental in a research note on Thursday, August 13th. Finally, Needham & Company LLC reissued a “buy” rating and set a $110.00 price objective on shares of CECO Environmental in a research note on Tuesday, August 11th. 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 stock. Based on data from MarketBeat.com, CECO Environmental 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.