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

CECO Environmental (TXSE:CECO) issued its quarterly earnings results on Monday. The company reported $0.60 EPS 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%. The business had revenue of $404.43 million for the quarter, compared to analyst estimates of $397.96 million. During the same quarter last year, the firm 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

CECO stock opened at $51.83 on Wednesday. The firm has a market cap of $3.04 billion, a PE ratio of -75.12 and a beta of 1.63. The company has a current ratio of 1.50, a quick ratio of 1.18 and a debt-to-equity ratio of 0.34. The stock has a 50-day moving average price of $64.01 and a 200-day moving average price of $71.13. CECO Environmental has a 1-year low of $37.15 and a 1-year high of $101.24.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. TD Cowen assumed coverage on CECO Environmental in a report on Wednesday, August 5th. They issued a “buy” rating and a $85.00 target price on the stock. Northland Securities set a $125.00 price target on shares of CECO Environmental in a report on Thursday, August 13th. Weiss Ratings lowered shares of CECO Environmental from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, September 16th. Zacks Research upgraded shares of CECO Environmental from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 13th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $110.00 price objective on shares of CECO Environmental in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $103.62.

CECO Environmental News Roundup

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

• Positive Sentiment: CECO forecast 2027 revenue of $2.1 billion to $2.3 billion and adjusted EBITDA of $475 million to $525 million, citing accelerating synergies from its Thermon acquisition. The outlook points to substantial expected scale and earnings growth. Read More..
• Positive Sentiment: JPMorgan raised its price target to $120 from $110 and maintained an Overweight rating, signaling continued analyst confidence in the company’s prospects. Read More..
• Positive Sentiment: Third-quarter revenue of $404.4 million topped analysts’ expectations, while coverage highlighted a sharp increase in backlog supported by the Thermon deal. CECO also raised its 2026 revenue outlook to $1.3 billion–$1.4 billion, versus consensus of about $1.3 billion. Read More..
• Negative Sentiment: Quarterly EPS was $0.60, slightly below the $0.61 consensus estimate. The small miss, alongside the reported negative net margin, may temper the otherwise upbeat outlook. Read More..

About CECO Environmental

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.