CECO Environmental (NASDAQ:CECO) Announces Quarterly Earnings Results

CECO Environmental (NASDAQ:CECO) announced its earnings results on Monday. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.21, FiscalAI reports. The company had revenue of $284.96 million for the quarter, compared to analyst estimates of $282.21 million. CECO Environmental had a return on equity of 13.69% and a net margin of 1.70%.CECO Environmental’s quarterly revenue was up 53.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.26 EPS.

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

• Record quarterly performance: Q2 orders rose 191% year over year to $799 million, revenue increased 54% to $285 million, and adjusted EBITDA grew 73% to $40.2 million, with margins expanding to a record 14.1%.
• Backlog reached a record $1.82 billion, up 164% year over year, while the trailing book-to-bill ratio exceeded 2.0 and the sales pipeline grew beyond $8.5 billion, providing substantial revenue visibility.
• CECO raised its 2026 outlook to revenue of $1.3 billion-$1.375 billion and adjusted EBITDA of $200 million-$225 million, citing strong bookings, backlog conversion, margin improvement, and expected full-year orders above $2 billion.
• The Thermon integration is progressing ahead of expectations, with approximately $13 million of annualized net adjusted EBITDA savings captured in the first 60 days—about one-third of the $40 million target—and more than 100 commercial opportunities identified.
• Thermon substantially increased leverage to 2.7 times trailing bank EBITDA after the acquisition, although CECO reported $39.5 million of debt paydown through July 31 and approximately $220 million of additional liquidity capacity.

CECO Environmental Stock Down 0.8%

Shares of CECO Environmental stock opened at $70.38 on Tuesday. The company has a current ratio of 1.33, a quick ratio of 1.18 and a debt-to-equity ratio of 0.78. The business’s 50 day simple moving average is $82.56 and its 200-day simple moving average is $73.60. The stock has a market capitalization of $2.52 billion, a price-to-earnings ratio of 190.22 and a beta of 1.51. CECO Environmental has a twelve month low of $42.78 and a twelve month high of $101.24.

CECO Environmental News Summary

Here are the key news stories impacting CECO Environmental this week:

• Positive Sentiment: CECO reported second-quarter revenue of $285.0 million, up 53.7% year over year and ahead of the $282.2 million consensus estimate. Adjusted diluted EPS was $0.47, well above analyst expectations ranging from $0.24 to $0.26. CECO Environmental Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Orders nearly tripled to $798.5 million, up 191%, while backlog increased 164% to more than $1.8 billion. The figures point to strong demand and improved visibility for future revenue. CECO Environmental Reports Record Second Quarter 2026 Results
• Positive Sentiment: Adjusted EBITDA rose 73% to $40.2 million, and non-GAAP net income increased 147% to $21.5 million. Management also said the Thermon acquisition integration is producing synergies ahead of plan, reinforcing the strategic rationale for the deal.
• Positive Sentiment: CECO raised its 2026 outlook: revenue is now expected at $1.30 billion-$1.375 billion, versus a prior floor of $1.275 billion, and adjusted EBITDA at $200 million-$225 million, up from a $195 million lower bound. CECO Raises 2026 Outlook
• Neutral Sentiment: Management cited continued project demand but said it is monitoring Middle East conditions, inflation and raw-material costs. Execution and backlog conversion will remain important to the investment case.
• Negative Sentiment: GAAP results were weaker: CECO posted a $34.8 million net loss and $0.80 diluted loss per share, compared with net income of $9.5 million a year earlier. Acquisition and integration costs totaled $45.5 million, and operating income turned into a $33.2 million loss.
• Negative Sentiment: Free cash flow was negative $24.3 million for the quarter, while debt increased substantially following the Thermon acquisition. Investors may therefore focus on cash conversion, leverage and whether projected synergies offset transaction costs.

Wall Street Analyst Weigh In

CECO has been the subject of a number of recent analyst reports. Needham & Company LLC raised their price target on shares of CECO Environmental from $90.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, June 10th. TD Cowen began coverage on CECO Environmental in a research note on Wednesday, August 5th. They issued a “buy” rating and a $85.00 price target for the company. Weiss Ratings lowered CECO Environmental from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, July 29th. Craig Hallum restated a “buy” rating and set a $103.00 price objective on shares of CECO Environmental in a research note on Tuesday, April 28th. Finally, Zacks Research raised CECO Environmental from a “hold” rating to a “strong-buy” rating in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, CECO Environmental presently has an average rating of “Buy” and a consensus target price of $104.00.

Insider Buying and Selling

In related news, CFO Peter K. Johansson sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $96.49, for a total transaction of $2,894,700.00. Following the completion of the transaction, the chief financial officer owned 40,746 shares in the company, valued at $3,931,581.54. The trade was a 42.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jason Dezwirek sold 34,000 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $96.61, for a total value of $3,284,740.00. Following the transaction, the director owned 166,000 shares of the company’s stock, valued at approximately $16,037,260. The trade was a 17.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 16.90% of the company’s stock.

Institutional Trading of CECO Environmental

A number of large investors have recently modified their holdings of CECO. Royal Bank of Canada lifted its position in CECO Environmental by 15.6% in the 1st quarter. Royal Bank of Canada now owns 14,661 shares of the company’s stock valued at $335,000 after purchasing an additional 1,982 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of CECO Environmental by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,442 shares of the company’s stock valued at $398,000 after purchasing an additional 790 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of CECO Environmental by 5.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,137 shares of the company’s stock valued at $2,124,000 after buying an additional 5,000 shares during the last quarter. Jane Street Group LLC bought a new stake in shares of CECO Environmental during the first quarter valued at approximately $1,047,000. Finally, Rhumbline Advisers boosted its position in shares of CECO Environmental by 2.4% during the second quarter. Rhumbline Advisers now owns 43,137 shares of the company’s stock worth $1,221,000 after buying an additional 991 shares during the period. Institutional investors and hedge funds own 68.08% of the company’s stock.

About CECO Environmental

CECO Environmental Corp. (NASDAQ: CECO) is a global technology provider specializing in engineered solutions that help industrial and commercial customers manage air emissions, process fluids and optimize energy use. The company develops custom-engineered systems and modular packages designed to meet evolving environmental regulations and improve operational efficiency across diverse production processes.

CECO’s core offerings include air pollution control equipment—such as scrubbers, cyclones, fabric and cartridge filters—and industrial process filtration systems for applications ranging from particulate removal to oil-water separation.