CECO Environmental (NASDAQ:CECO) said it has completed its acquisition of Thermon and provided an initial full-year outlook for the combined company, pointing to strong order momentum, expected cost synergies and opportunities to expand Thermon products through CECO’s larger sales pipeline.
Speaking on a post-closing update call, Chairman and Chief Executive Officer Todd Gleason said integration activities began quickly after the transaction was announced at the end of February and are now underway across multiple work streams. Gleason said the company had an “excellent day one and week one” by measures tied to employees, customers and integration execution.
CECO Lays Out Combined Company Outlook
For full-year 2026, CECO guided for revenue of $1.275 billion to $1.375 billion, which Gleason said represents approximately 20% growth at the midpoint on a similar year-over-year basis. Adjusted EBITDA is expected to range from $195 million to $225 million, up approximately 25% year over year and including about $5 million of cost synergies expected to reach the bottom line during the seven-month period.
On a pro forma basis, CECO said the combined company would show 2026 sales of $1.5 billion to $1.6 billion and adjusted EBITDA of $250 million to $280 million, including approximately $10 million of synergies on a 12-month basis.
Gleason said CECO expects to operate as a “Rule of 30 or Rule of 40 company,” with 15% to 25% top-line growth and high-teens to low-20s EBITDA margins “for years to come.”
Synergy Targets and Integration Plans
CECO said its integration management office has detailed plans to meet or exceed the previously announced $40 million of synergies. Gleason said the company’s preliminary assessment is that it is ahead of schedule.
For 2026, CECO expects $15 million of run-rate synergies, with at least $5 million reflected in earnings before the end of the year. The remaining run-rate savings are expected to be recognized in 2027, along with additional synergies created and captured during that period.
Gleason said commercial synergies are expected to add one to two points of organic growth for the legacy Thermon business and are upside to the original deal economics. In response to an analyst question, he said CECO has already begun incorporating Thermon product lines into large-scale projects where customer needs include heat tracing, immersion heaters or related process heating solutions.
“It’s early days, but we’re already seeing what we believe will be millions of dollars of growth this year,” Gleason said. He added that CECO believes commercial initiatives could add $5 million to $10 million of growth going forward for Thermon, which recently reported approximately $550 million in annual sales.
Order Momentum and Market Tailwinds
Gleason said the combined company is positioned around several major secular trends, including power generation and electrification, data centers and artificial intelligence, semiconductor activity, industrial reshoring, and industrial water and infrastructure. He said CECO has an $8 billion sales pipeline, which provides detailed visibility into potential opportunities across industrial projects.
CECO standalone has already booked a record quarter with well over $550 million in new orders before June, Gleason said, adding that there was still a month left in the quarter at the time of the call. In the question-and-answer session, he said the third- and fourth-quarter pipelines also appear “extremely strong,” with continued momentum in power generation, semiconductor and water markets.
Gleason said power generation remains the largest immediate market opportunity, driven by grid investment, electrification and demand tied to data centers and AI. He also pointed to international industrial water opportunities, where Thermon’s heat tracing capabilities could complement CECO’s water solutions and water skid offerings.
Thermon Products Seen Expanding Growth
CECO highlighted Thermon’s product momentum, including liquid load banks and medium-voltage heaters. Gleason said liquid load banks are particularly relevant as data centers and AI infrastructure move toward liquid-cooled solutions.
He said customer interest from major data center infrastructure customers has been encouraging, noting that Thermon had previously discussed orders for well over 100 liquid load banks and potential growth to several multiples of that number. Gleason described liquid load banks as a product line that could add growth points to Thermon in coming years.
Gleason also said Thermon was already moving toward mid- to high-single-digit growth before the acquisition and, with new products and potential synergies, could approach high-single-digit to low-double-digit growth.
Leadership and Organization
CECO said it expanded its board to include two former Thermon directors, Victor Richey and Marcus George. Gleason also said Candace Harris-Peterson has joined his senior team as chief human resources officer and will support talent development and culture initiatives.
Gleason emphasized that CECO does not plan to collapse Thermon’s business units into CECO operations. He said Thermon’s businesses and teams will continue to lead in their markets, while CECO looks for opportunities to coordinate commercial activity, share customer relationships and expand geographically.
“We make acquisitions, we invest in those businesses so that they grow,” Gleason said. He also said early signs of cultural fit between the companies are positive, citing shared engineering, quality and productivity priorities.
Gleason closed the call by thanking CECO employees and welcoming Thermon’s leaders and employees to the combined company, saying CECO expects to continue performing “at a very high level.”
About CECO Environmental (NASDAQ:CECO)
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.
