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

CECO Environmental (TXSE:CECO) posted its quarterly earnings data on Monday. The company reported $0.60 earnings per share (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%. During the same period in the prior year, the company earned $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 Trading Up 19.0%

TXSE CECO opened at $52.00 on Tuesday. CECO Environmental has a 12 month low of $37.15 and a 12 month high of $101.24. 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 of $64.40 and a 200-day moving average of $71.21. The company has a market cap of $3.05 billion, a PE ratio of -75.36 and a beta of 1.63.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 price target on shares of CECO Environmental in a research note on Tuesday, August 11th. TD Cowen began coverage on shares of CECO Environmental in a research report on Wednesday, August 5th. They issued a “buy” rating and a $85.00 target price for the company. Northland Securities set a $125.00 price target on shares of CECO Environmental in a research note on Thursday, August 13th. Weiss Ratings cut shares of CECO Environmental from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, September 16th. Finally, JPMorgan Chase & Co. cut their price target on shares of CECO Environmental from $130.00 to $110.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 13th. One investment 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. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $102.38.

Key CECO Environmental News

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

• Positive Sentiment: CECO outlined 2027 revenue of $2.1 billion–$2.3 billion and adjusted EBITDA of $475 million–$525 million, citing accelerating Thermon synergies. The forecast signals substantial scale and earnings potential, though it reflects the expanded business after the deal. Article
• Positive Sentiment: Third-quarter coverage highlighted record results and a 205% backlog increase, with the Thermon deal helping drive a major jump in orders. A larger backlog supports future revenue visibility. Article
• Positive Sentiment: CECO issued FY 2026 revenue guidance of $1.3 billion–$1.4 billion, versus analyst consensus of about $1.3 billion. The upper end offers room for results to exceed expectations. Article
• Negative Sentiment: Quarterly EPS was $0.60, one cent below the $0.61 consensus estimate; another report characterized the quarter as a loss. This modest earnings-quality concern may temper the otherwise strong growth story. Article

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.