CECO Environmental Q4 revenue beats; plans merger with Thermon

Reuters02-24
CECO Environmental Q4 revenue beats; plans merger with Thermon

Overview

  • Industrial solutions provider's Q4 revenue rose 35%, beating analyst expectations

  • Company announced strategic merger with Thermon Group

  • Raises 2026 revenue outlook by 25% at midpoint, excluding Thermon merger impact

Outlook

  • CECO raises 2026 revenue outlook to $925-975 mln, up 25% at midpoint

  • Company expects 2026 adjusted EBITDA of $115-135 mln, up 40% at midpoint

  • CECO's 2026 outlook excludes impact of proposed Thermon merger

Result Drivers

  • ORDERS - CECO reported orders of $329.3 mln, driven by a large domestic gas-fired power generation project valued at $135 mln

  • STRONG BACKLOG - Backlog increased 47% to $793.1 mln, reflecting continued momentum in core markets

  • REVENUE GROWTH - Q4 revenue rose 35% to $214.7 mln, supported by execution against a growing backlog

Company press release: ID:nGNX8f52LL

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$214.69 mln

$203.79 mln (5 Analysts)

Q4 EPS

$0.08

Q4 Adjusted Net Income

Miss

$11.10 mln

$13.63 mln (4 Analysts)

Q4 Adjusted EBITDA

Miss

$29.80 mln

$30.34 mln (5 Analysts)

Q4 Adjusted Operating Income

$24 mln

Q4 Free Cash Flow

$8.70 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for CECO Environmental Corp is $61.50, about 20.8% below its February 23 closing price of $77.68

  • The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 36 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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