Aug 10, 2026, 7:01 AM ETIndustrials

CECO Environmental — Second Quarter 2026 Earnings Summary

CECOCECO ENVIRONMENTAL CORP

Financial Performance

Revenue for the quarter was $285.0 million, a 54% increase year-over-year.
Orders reached $798.5 million, up 191% year-over-year; backlog stood at $1,819.1 million, up 164% year-over-year.
Gross profit was $86.5 million (30.3% margin), up 29% year-over-year; non-GAAP gross profit was $96.0 million (33.7% margin), up 43% year-over-year.
Net loss was $(34.8) million compared to net income of $9.5 million in the prior year; non-GAAP net income was $21.5 million, up 147% year-over-year.
GAAP diluted EPS was $(0.80); non-GAAP diluted EPS was $0.47.
Adjusted EBITDA was $40.2 million (14.1% margin), up 73% year-over-year.
Free cash flow was $(24.3) million; adjusted free cash flow was $53.2 million, an improvement of $56.2 million compared to $(3.0) million in the prior year.
Total assets increased to $3.73 billion from $893.8 million at year-end 2025, driven by the Thermon acquisition.
Total debt (current and long-term) increased to $727.7 million from $212.4 million at year-end 2025.
Cash and cash equivalents were $61.1 million at June 30, 2026, compared to $33.1 million at December 31, 2025.

The company raised its full-year 2026 consolidated revenue guidance to $1.300 billion–$1.375 billion (previously $1.275 billion–$1.375 billion).
Full-year 2026 Adjusted EBITDA guidance was raised to $200 million–$225 million (previously $195 million–$225 million).
Full-year 2026 free cash flow conversion is guided to be at least 55% of Adjusted EBITDA.
Management expressed confidence in a long-term, double-digit growth outlook.
The sales pipeline is reported to be over $8.5 billion.

The quarter marked the first full quarter as a combined company following the June 1, 2026 acquisition of Thermon.
Integration activities with Thermon are progressing ahead of pre-acquisition integration objectives, with early synergy capture proceeding ahead of plan.
The addition of Thermon expanded the sales pipeline and added industry-leading technologies and workforce to the portfolio.

CECO serves diverse global end markets including power generation, midstream and downstream hydrocarbon processing, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals, steel production, beverage can production, and water/wastewater treatment.
Management noted that the most compelling markets are demanding and require leading partners with expertise and proven solutions.
The company benefits from organic and inorganic investments to expand into new markets and introduce new innovations.

Management is monitoring the situation in the Middle East and certain inflationary items, including rising raw material costs and labor costs.
Risks include the ability to successfully integrate the Thermon business, potential diversion of management attention, and substantial integration and transaction-related costs.
Risks exist regarding the ability to retain customers and key personnel, and the potential for contract delays or cancellations due to supply chain challenges or geopolitical conflicts.
The company faces risks associated with fixed-price contracts, including actual costs exceeding estimates.
Substantial debt incurred in connection with the Thermon acquisition and other strategic transactions presents risks regarding debt servicing, repayment, and compliance with financial covenants.

CEO Todd Gleason described the quarter as "exceptional" with "tremendous growth" in orders and backlog.
Management highlighted the power of their operating model and the growing demand for solutions across global end markets.
Gleason stated that the addition of Thermon is "simply another outstanding addition to our leading portfolio of businesses."
Management expressed confidence in the robustness of key growth markets and the positive trends from the Thermon integration.

The Thermon acquisition closed on June 1, 2026.
Cash paid for acquisitions, net of cash acquired, was $436.9 million for the six months ended June 30, 2026.
Borrowings on revolving credit lines were $384.7 million and borrowings on long-term debt were $235.0 million for the six months ended June 30, 2026.
The company reported a gain on the sale of the Global Pump Solutions business in the prior year period, but no such gain occurred in the current quarter.
Acquisition and integration expenses were $45.5 million for the quarter and $55.7 million for the six months ended June 30, 2026.
A conference call was held on August 10, 2026, at 8:30 a.m. ET to discuss results.