CECO Environmental (CECO)
Market Price (7/5/2026): $82.14 | Market Cap: $2.9 BilSector: Industrials | Industry: Environmental & Facilities Services
CECO Environmental (CECO)
Market Price (7/5/2026): $82.14Market Cap: $2.9 BilSector: IndustrialsIndustry: Environmental & Facilities Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% Megatrend and thematic driversMegatrends include Water Infrastructure, Sustainable Resource Management, and Sustainable Infrastructure. Themes include Wastewater Management, Show more. | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 68x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 658x, P/EPrice/Earnings or Price/(Net Income) is 214x Stock price has recently run up significantly12M Rtn12 month market price return is 182% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% Key risksCECO key risks include [1] potential cost overruns from its reliance on fixed-price contracts and [2] high financial leverage that could negatively impact shareholder returns. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% |
| Megatrend and thematic driversMegatrends include Water Infrastructure, Sustainable Resource Management, and Sustainable Infrastructure. Themes include Wastewater Management, Show more. |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 68x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 658x, P/EPrice/Earnings or Price/(Net Income) is 214x |
| Stock price has recently run up significantly12M Rtn12 month market price return is 182% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% |
| Key risksCECO key risks include [1] potential cost overruns from its reliance on fixed-price contracts and [2] high financial leverage that could negatively impact shareholder returns. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 7/2/2026
CECO Environmental (CECO) stock has gained about 40% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2026 Financial Performance: CECO Environmental reported robust results for fiscal Q1 2026 (announced on April 28, 2026), with Earnings Per Share (EPS) of $0.36, significantly surpassing the consensus estimate of $0.12 to $0.15 by approximately 139% to 140%. Quarterly revenue increased by 16.5% to 17.0% year-over-year to $205.92 million, exceeding analyst expectations of $198.88 million. Furthermore, Q1 2026 orders surged 97% year-over-year to $449.5 million, and the backlog reached over $1.0 billion, a 72% increase year-over-year.
2. Transformative Acquisition of Thermon Group Holdings and Enhanced 2026 Guidance: The completion of the strategic acquisition of Thermon Group Holdings on June 1, 2026 (fiscal Q2 2026), significantly broadened CECO's market position. Following this, CECO substantially raised its full-year 2026 financial guidance. The company now projects full-year revenue between $1.275 billion and $1.375 billion, representing approximately 20% year-over-year growth at the midpoint, and adjusted EBITDA between $195 million and $225 million, an approximate 25% increase at the midpoint. These updated projections include seven months of Thermon's contribution and anticipate over $40 million in cost synergies from the integration.
Show more
CECO Environmental (CECO) stock has gained about 40% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2026 Financial Performance: CECO Environmental reported robust results for fiscal Q1 2026 (announced on April 28, 2026), with Earnings Per Share (EPS) of $0.36, significantly surpassing the consensus estimate of $0.12 to $0.15 by approximately 139% to 140%. Quarterly revenue increased by 16.5% to 17.0% year-over-year to $205.92 million, exceeding analyst expectations of $198.88 million. Furthermore, Q1 2026 orders surged 97% year-over-year to $449.5 million, and the backlog reached over $1.0 billion, a 72% increase year-over-year.
2. Transformative Acquisition of Thermon Group Holdings and Enhanced 2026 Guidance: The completion of the strategic acquisition of Thermon Group Holdings on June 1, 2026 (fiscal Q2 2026), significantly broadened CECO's market position. Following this, CECO substantially raised its full-year 2026 financial guidance. The company now projects full-year revenue between $1.275 billion and $1.375 billion, representing approximately 20% year-over-year growth at the midpoint, and adjusted EBITDA between $195 million and $225 million, an approximate 25% increase at the midpoint. These updated projections include seven months of Thermon's contribution and anticipate over $40 million in cost synergies from the integration.
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Updated on 7/2/2026
CECO Environmental (CECO) stock has gained about 40% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2026 Financial Performance: CECO Environmental reported robust results for fiscal Q1 2026 (announced on April 28, 2026), with Earnings Per Share (EPS) of $0.36, significantly surpassing the consensus estimate of $0.12 to $0.15 by approximately 139% to 140%. Quarterly revenue increased by 16.5% to 17.0% year-over-year to $205.92 million, exceeding analyst expectations of $198.88 million. Furthermore, Q1 2026 orders surged 97% year-over-year to $449.5 million, and the backlog reached over $1.0 billion, a 72% increase year-over-year.
2. Transformative Acquisition of Thermon Group Holdings and Enhanced 2026 Guidance: The completion of the strategic acquisition of Thermon Group Holdings on June 1, 2026 (fiscal Q2 2026), significantly broadened CECO's market position. Following this, CECO substantially raised its full-year 2026 financial guidance. The company now projects full-year revenue between $1.275 billion and $1.375 billion, representing approximately 20% year-over-year growth at the midpoint, and adjusted EBITDA between $195 million and $225 million, an approximate 25% increase at the midpoint. These updated projections include seven months of Thermon's contribution and anticipate over $40 million in cost synergies from the integration.
3. Strong Demand and Secular Tailwinds Across Key Industrial Sectors: CECO benefited from robust and increasing demand in its core industrial sectors, including power generation, data centers, semiconductors, and industrial reshoring projects. This demand is driven by favorable secular tailwinds in environmental compliance and industrial decarbonization, contributing to significant project wins and a strong order book, with early June orders reportedly exceeding previous records.
4. Positive Analyst Sentiment and Upgraded Price Targets: The company's strong performance and strategic developments led to a wave of positive analyst revisions. Multiple firms reiterated or upgraded their ratings to "Buy" or "Strong Buy" and significantly increased their price targets. For instance, Roth/MKM raised its price target to $85 from $68, and Needham increased its target to $90 from $80 following Q1 results and order growth. Further upgrades saw targets reach as high as $118 from Northland Securities, reflecting strong confidence in the combined business's earnings power and growth prospects.
Show less
CECO Environmental (CECO) stock has gained about 40% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2026 Financial Performance: CECO Environmental reported robust results for fiscal Q1 2026 (announced on April 28, 2026), with Earnings Per Share (EPS) of $0.36, significantly surpassing the consensus estimate of $0.12 to $0.15 by approximately 139% to 140%. Quarterly revenue increased by 16.5% to 17.0% year-over-year to $205.92 million, exceeding analyst expectations of $198.88 million. Furthermore, Q1 2026 orders surged 97% year-over-year to $449.5 million, and the backlog reached over $1.0 billion, a 72% increase year-over-year.
2. Transformative Acquisition of Thermon Group Holdings and Enhanced 2026 Guidance: The completion of the strategic acquisition of Thermon Group Holdings on June 1, 2026 (fiscal Q2 2026), significantly broadened CECO's market position. Following this, CECO substantially raised its full-year 2026 financial guidance. The company now projects full-year revenue between $1.275 billion and $1.375 billion, representing approximately 20% year-over-year growth at the midpoint, and adjusted EBITDA between $195 million and $225 million, an approximate 25% increase at the midpoint. These updated projections include seven months of Thermon's contribution and anticipate over $40 million in cost synergies from the integration.
3. Strong Demand and Secular Tailwinds Across Key Industrial Sectors: CECO benefited from robust and increasing demand in its core industrial sectors, including power generation, data centers, semiconductors, and industrial reshoring projects. This demand is driven by favorable secular tailwinds in environmental compliance and industrial decarbonization, contributing to significant project wins and a strong order book, with early June orders reportedly exceeding previous records.
4. Positive Analyst Sentiment and Upgraded Price Targets: The company's strong performance and strategic developments led to a wave of positive analyst revisions. Multiple firms reiterated or upgraded their ratings to "Buy" or "Strong Buy" and significantly increased their price targets. For instance, Roth/MKM raised its price target to $85 from $68, and Needham increased its target to $90 from $80 following Q1 results and order growth. Further upgrades saw targets reach as high as $118 from Northland Securities, reflecting strong confidence in the combined business's earnings power and growth prospects.
Show less
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Stock Movement Drivers
Fundamental Drivers
The 37.9% change in CECO stock from 3/31/2026 to 7/4/2026 was primarily driven by a 405.5% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7042026 | Change |
|---|---|---|---|
| Stock Price ($) | 59.58 | 82.15 | 37.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 774 | 804 | 3.8% |
| Net Income Margin (%) | 6.5% | 1.7% | -73.7% |
| P/E Multiple | 42.4 | 214.5 | 405.5% |
| Shares Outstanding (Mil) | 36 | 36 | -0.1% |
| Cumulative Contribution | 37.9% |
Market Drivers
3/31/2026 to 7/4/2026| Return | Correlation | |
|---|---|---|
| CECO | 37.9% | |
| Market (SPY) | 14.5% | 26.0% |
| Sector (XLI) | 13.7% | 37.5% |
Fundamental Drivers
The 37.3% change in CECO stock from 12/31/2025 to 7/4/2026 was primarily driven by a 425.7% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7042026 | Change |
|---|---|---|---|
| Stock Price ($) | 59.85 | 82.15 | 37.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 718 | 804 | 11.9% |
| Net Income Margin (%) | 7.2% | 1.7% | -76.4% |
| P/E Multiple | 40.8 | 214.5 | 425.7% |
| Shares Outstanding (Mil) | 35 | 36 | -0.9% |
| Cumulative Contribution | 37.3% |
Market Drivers
12/31/2025 to 7/4/2026| Return | Correlation | |
|---|---|---|
| CECO | 37.3% | |
| Market (SPY) | 9.5% | 28.1% |
| Sector (XLI) | 18.9% | 31.8% |
Fundamental Drivers
The 190.2% change in CECO stock from 6/30/2025 to 7/4/2026 was primarily driven by a 926.0% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7042026 | Change |
|---|---|---|---|
| Stock Price ($) | 28.31 | 82.15 | 190.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 608 | 804 | 32.1% |
| Net Income Margin (%) | 7.8% | 1.7% | -78.2% |
| P/E Multiple | 20.9 | 214.5 | 926.0% |
| Shares Outstanding (Mil) | 35 | 36 | -1.9% |
| Cumulative Contribution | 190.2% |
Market Drivers
6/30/2025 to 7/4/2026| Return | Correlation | |
|---|---|---|
| CECO | 190.2% | |
| Market (SPY) | 21.6% | 27.8% |
| Sector (XLI) | 26.0% | 30.9% |
Fundamental Drivers
The 514.9% change in CECO stock from 6/30/2023 to 7/4/2026 was primarily driven by a 673.9% change in the company's P/E Multiple.| (LTM values as of) | 6302023 | 7042026 | Change |
|---|---|---|---|
| Stock Price ($) | 13.36 | 82.15 | 514.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 443 | 804 | 81.5% |
| Net Income Margin (%) | 3.7% | 1.7% | -54.6% |
| P/E Multiple | 27.7 | 214.5 | 673.9% |
| Shares Outstanding (Mil) | 34 | 36 | -3.5% |
| Cumulative Contribution | 514.9% |
Market Drivers
6/30/2023 to 7/4/2026| Return | Correlation | |
|---|---|---|
| CECO | 514.9% | |
| Market (SPY) | 74.0% | 33.2% |
| Sector (XLI) | 78.5% | 37.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CECO Return | -10% | 87% | 74% | 49% | 98% | 43% | 1129% |
| Peers Return | 2% | 5% | 1% | 49% | 1% | 12% | 84% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 99% |
Monthly Win Rates [3] | |||||||
| CECO Win Rate | 33% | 58% | 67% | 50% | 67% | 57% | |
| Peers Win Rate | 56% | 46% | 48% | 56% | 53% | 56% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| CECO Max Drawdown | -37% | -35% | -31% | -27% | -45% | -35% | |
| Peers Max Drawdown | -35% | -26% | -30% | -20% | -42% | -38% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: WM, CWST, GEO, FTEK, YDDL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/2/2026 (YTD)
How Low Can It Go
| Event | CECO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -27.9% | -18.8% |
| % Gain to Breakeven | 38.7% | 23.1% |
| Time to Breakeven | 11 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -23.8% | -6.7% |
| % Gain to Breakeven | 31.3% | 7.1% |
| Time to Breakeven | 69 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -32.4% | -24.5% |
| % Gain to Breakeven | 48.0% | 32.4% |
| Time to Breakeven | 17 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -52.1% | -33.7% |
| % Gain to Breakeven | 108.6% | 50.9% |
| Time to Breakeven | 142 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -18.5% | -19.2% |
| % Gain to Breakeven | 22.7% | 23.8% |
| Time to Breakeven | 132 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -16.7% | -3.7% |
| % Gain to Breakeven | 20.0% | 3.9% |
| Time to Breakeven | 480 days | 6 days |
In The Past
CECO Environmental's stock fell -27.9% during the 2025 US Tariff Shock. Such a loss loss requires a 38.7% gain to breakeven.
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| Event | CECO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -27.9% | -18.8% |
| % Gain to Breakeven | 38.7% | 23.1% |
| Time to Breakeven | 11 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -23.8% | -6.7% |
| % Gain to Breakeven | 31.3% | 7.1% |
| Time to Breakeven | 69 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -32.4% | -24.5% |
| % Gain to Breakeven | 48.0% | 32.4% |
| Time to Breakeven | 17 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -52.1% | -33.7% |
| % Gain to Breakeven | 108.6% | 50.9% |
| Time to Breakeven | 142 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -42.2% | -12.2% |
| % Gain to Breakeven | 73.1% | 13.9% |
| Time to Breakeven | 149 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -62.9% | -6.8% |
| % Gain to Breakeven | 169.8% | 7.3% |
| Time to Breakeven | 6 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -32.9% | -17.9% |
| % Gain to Breakeven | 49.0% | 21.8% |
| Time to Breakeven | 156 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -85.1% | -53.4% |
| % Gain to Breakeven | 570.3% | 114.4% |
| Time to Breakeven | 1516 days | 1085 days |
In The Past
CECO Environmental's stock fell -27.9% during the 2025 US Tariff Shock. Such a loss loss requires a 38.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About CECO Environmental (CECO)
CECO Environmental Corp. (CECO) specializes in providing industrial environmental solutions on a global scale. The company engineers, designs, builds, and installs sophisticated systems primarily focused on enhancing air quality and managing fluids for various industrial facilities. Its core mission involves capturing, cleaning, and safely destroying both airborne and water-borne emissions generated by industrial operations.
CECO's product and service portfolio is extensive, including specialized equipment such as dampers and diverters, selective catalytic and non-catalytic reduction systems, cyclonic technology, and thermal oxidizers for emissions control. Additionally, it offers a range of filtration systems, scrubbers, and water and fluid handling equipment. The company complements these products with comprehensive plant engineering services and engineered design-build fabrication capabilities.
The company serves a diverse array of heavy industries and key markets. Its primary customers include natural gas processors, refineries, power generators, and industrial manufacturing companies. CECO also caters to engineering and construction firms, semiconductor manufacturers, and companies in the metals and minerals sector, extending its reach to emerging areas like electric vehicle production.
AI Analysis | Feedback
Here are a few analogies for CECO Environmental:
- A specialized Honeywell for industrial air quality and fluid handling systems.
- Like an independent environmental engineering division within a large industrial conglomerate such as Siemens or GE.
AI Analysis | Feedback
- Industrial Air Quality Systems: Comprehensive systems engineered to capture, clean, and destroy airborne emissions from various industrial facilities, including specific technologies like thermal oxidizers, scrubbers, and NOx reduction systems.
- Fluid Handling Systems: Equipment and technologies designed for the efficient management, treatment, and separation of industrial liquids and gases, encompassing water and fluid handling as well as gas separation and filtration.
- Plant Engineering Services: Specialized expert services providing engineering design and consulting for industrial facilities.
- Engineered Design Build Fabrication: Custom design, manufacturing, and installation services for complex industrial systems and equipment.
AI Analysis | Feedback
CECO Environmental (CECO) primarily sells its industrial air quality and fluid handling systems to other companies across various heavy industries. While specific names of individual customer companies are not provided in the background information, the company markets its products and services to the following major categories of business customers:
- Natural gas processors
- Natural gas transmission and distribution companies
- Refineries
- Power generators
- Industrial manufacturing companies
- Engineering and construction companies
- Semiconductor manufacturers
- Compressor manufacturers
- Beverage can manufacturers
- Metals and minerals companies
- Electric vehicle producer companies
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Todd Gleason, Chief Executive Officer
Todd Gleason joined CECO in July 2020. He is responsible for driving the company's strategic vision and aligning the organization for optimal value creation. Prior to CECO, he served as President and Chief Executive Officer and a board member at Scientific Analytics, a private equity-backed predictive analytics technologies and services company, which he joined in 2015. Before Scientific Analytics, he held executive positions at leading diversified industrial companies including Senior Vice President and Corporate Officer at Pentair, as well as roles at Trane Technologies and Honeywell International. Early in his career, he worked as a management consultant. He holds a master's degree in management and public policy from Carnegie Mellon University.
Peter Johansson, Chief Financial and Strategy Officer
Peter Johansson joined CECO as Chief Financial and Strategy Officer on August 15, 2022. He brings over 30 years of diverse industrial business experience, having worked with companies such as Accudyne Industries, IDEX Corporation, ITT Corporation, Trane Technologies, WABCO, Honeywell, and AlliedSignal. He has experience in leading complex organizations through transformational growth. Mr. Johansson holds a BS in Mechanical Engineering from SMU, an MS in Mechanical Engineering from California State University–Fullerton, and an MBA from UCLA Anderson.
Kiril Kovachev, Chief Accounting Officer
Kiril Kovachev serves as the Vice President, Chief Accounting Officer at CECO Environmental.
Lynn Watkins-Asiyanbi, Chief Administrative and Legal Officer
Lynn Watkins-Asiyanbi assumed the newly created role of Chief Administrative and Legal Officer in August 2022, overseeing legal, human resources, and corporate communication functions. She initially joined CECO in June 2022 as Senior Vice President, General Counsel and Corporate Secretary. Ms. Watkins-Asiyanbi has over 25 years of industrial business experience, including roles with global industrial companies such as John Bean Technologies, W.W. Grainger, Inc., U.S. Foods, Inc., Mars, Inc., and General Mills.
Alyson Richter, SVP, General Counsel and Corporate Secretary
Alyson Richter serves as the Senior Vice President, General Counsel and Corporate Secretary, and also as the Head of Compliance for CECO Environmental.
Todd Gleason joined CECO in July 2020. He is responsible for driving the company's strategic vision and aligning the organization for optimal value creation. Prior to CECO, he served as President and Chief Executive Officer and a board member at Scientific Analytics, a private equity-backed predictive analytics technologies and services company, which he joined in 2015. Before Scientific Analytics, he held executive positions at leading diversified industrial companies including Senior Vice President and Corporate Officer at Pentair, as well as roles at Trane Technologies and Honeywell International. Early in his career, he worked as a management consultant. He holds a master's degree in management and public policy from Carnegie Mellon University.
Peter Johansson, Chief Financial and Strategy Officer
Peter Johansson joined CECO as Chief Financial and Strategy Officer on August 15, 2022. He brings over 30 years of diverse industrial business experience, having worked with companies such as Accudyne Industries, IDEX Corporation, ITT Corporation, Trane Technologies, WABCO, Honeywell, and AlliedSignal. He has experience in leading complex organizations through transformational growth. Mr. Johansson holds a BS in Mechanical Engineering from SMU, an MS in Mechanical Engineering from California State University–Fullerton, and an MBA from UCLA Anderson.
Kiril Kovachev, Chief Accounting Officer
Kiril Kovachev serves as the Vice President, Chief Accounting Officer at CECO Environmental.
Lynn Watkins-Asiyanbi, Chief Administrative and Legal Officer
Lynn Watkins-Asiyanbi assumed the newly created role of Chief Administrative and Legal Officer in August 2022, overseeing legal, human resources, and corporate communication functions. She initially joined CECO in June 2022 as Senior Vice President, General Counsel and Corporate Secretary. Ms. Watkins-Asiyanbi has over 25 years of industrial business experience, including roles with global industrial companies such as John Bean Technologies, W.W. Grainger, Inc., U.S. Foods, Inc., Mars, Inc., and General Mills.
Alyson Richter, SVP, General Counsel and Corporate Secretary
Alyson Richter serves as the Senior Vice President, General Counsel and Corporate Secretary, and also as the Head of Compliance for CECO Environmental.
AI Analysis | Feedback
Here are the key risks to CECO Environmental (CECO):
- Risks Related to the Pending Acquisition of Thermon Group Holdings, Inc. and Associated Debt Levels: CECO Environmental is currently in the process of acquiring Thermon Group Holdings, Inc., a significant transaction that introduces a range of risks. These include the possibility that the deal may not be completed as anticipated, potential operational disruptions during the integration process, and challenges in integrating the acquired business. Furthermore, the acquisition is expected to be funded through a combination of available cash and borrowings, which could further increase CECO's existing substantial debt levels. The transaction also carries risks of higher-than-expected legal, accounting, financial advisory, and integration costs, as well as potential litigation or regulatory proceedings.
- Supply Chain Vulnerabilities and Exposure to Fixed-Price Contracts: CECO faces ongoing and potentially worsening supply chain challenges, which can lead to delays or cancellations of contracts. This risk is amplified by the company's reliance on fixed-price contracts. Unexpected increases in raw material prices or labor costs, driven by supply chain disruptions, can result in cost overruns, negatively impacting the company's profitability. Customer-driven project delays have already affected CECO's revenue and EBITDA in 2024.
- Sensitivity to Economic and Financial Market Conditions: CECO Environmental's business performance is susceptible to fluctuations in global economic and financial market conditions. Economic downturns or instability can lead to reduced capital expenditures and investments by customers in the industrial solutions that CECO provides. This sensitivity can result in decreased demand for CECO’s products and services, affecting its revenue and overall profitability, as evidenced by customer project delays experienced in 2024.
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CECO Environmental's total addressable market (TAM) is expected to expand to approximately $30 billion globally following the acquisition of Thermon Group Holdings, Inc., which is anticipated to close in mid-2026.
The company's largest market opportunities are identified in natural gas power generation, industrial water, and industrial reshoring programs. CECO's sales pipeline currently exceeds $6.5 billion.
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CECO Environmental (symbol: CECO) is anticipated to drive future revenue growth over the next 2-3 years through several key strategic initiatives and market opportunities:
- Thermon Group Holdings Acquisition: A significant driver of future revenue growth is the transformational merger with Thermon Group Holdings, Inc., expected to close in mid-2026. This acquisition is projected to create a combined company with pro forma revenue of approximately $1.5 billion, along with an expected $40 million in run-rate synergies. This strategic combination is set to enhance CECO's global leadership and expand its market and operational capabilities.
- Robust Backlog and Sales Pipeline: CECO Environmental consistently reports a strong and growing backlog, which was approaching $800 million by the end of 2025. The company's sales pipeline also exceeds $6.5 billion and is converting quickly into orders. This substantial existing and incoming order volume provides significant visibility and forms a foundational driver for future revenue realization.
- Growth in Core End Markets: The company identifies its largest opportunities in natural gas power generation, industrial water, and industrial reshoring programs. CECO has recently secured large projects, including a record-setting approximately $135 million order for a natural gas power generation facility. Investments in these areas are expected to continue fueling revenue growth.
- Programmatic Mergers and Acquisitions (M&A): Beyond the Thermon merger, CECO has a proven track record of programmatic M&A, having completed roughly a dozen strategic deals since mid-2020. Approximately 50% of these acquisitions have doubled sales within 24 months, indicating that this ongoing strategy to expand its solution portfolio and market leadership will contribute to sustained revenue growth.
- Global Expansion and Energy Transition: CECO is focused on leveraging its global reach, with about 50% of its orders originating from outside the U.S. The company is also strategically positioned within the energy transition markets, offering solutions for areas such as electric vehicle production, polysilicon fabrication, and emissions management. Anticipated regulatory changes and a broader focus on environmental sustainability are expected to further drive demand for CECO's solutions.
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Share Repurchases
- CECO Environmental authorized a share repurchase program of up to $5 million in August 2021, active through December 31, 2021, representing approximately 2.0% of outstanding shares at that time.
- In May 2022, a new share repurchase program was authorized for up to $20 million, valid through April 30, 2025, which amounted to approximately 12% of outstanding shares based on the stock price as of May 4, 2022.
- As of July 2025, the company had repurchased 1,262,352 shares for $12.02 million under the May 2022 buyback plan.
Share Issuance
- Shares outstanding experienced slight increases over the last few years, from 35.39 million in 2021 to 35.35 million in 2025, with a dip in 2022.
- Share repurchase programs were designed to "offset dilution from share issuances" and reduce share count.
Outbound Investments
- CECO Environmental made several strategic acquisitions, including UK-based Wakefield Acoustics Ltd. in January 2023, Transcend Solutions in 2023, and Kemco Systems in September 2023.
- The company acquired Profire Energy for $125 million in an all-cash transaction, expected to close in January 2025, and Verantis Environmental Solutions Group for $65.5 million in December 2024.
- In February 2026, CECO Environmental announced a definitive agreement to acquire Thermon Group Holdings, Inc. for approximately $2.2 billion in a cash-and-stock transaction, anticipated to close in mid-2026.
Capital Expenditures
- Capital expenditures were $5.15 million in 2021, $3.34 million in 2022, $2.08 million in 2023, and $3.36 million in 2024.
- The company's capital allocation strategy includes investments in organic growth, operational excellence, portfolio transformation, and mergers and acquisitions.
- For 2025, free cash flow is projected to be between 60% and 75% of Adjusted EBITDA, reflecting expected working capital timing.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 82.15 |
| Mkt Cap | 4.0 |
| Rev LTM | 1,877 |
| Op Inc LTM | 93 |
| FCF LTM | -0 |
| FCF 3Y Avg | 85 |
| CFO LTM | 158 |
| CFO 3Y Avg | 218 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 12.7% |
| Rev Chg 3Y Avg | 8.5% |
| Rev Chg Q | 9.6% |
| QoQ Delta Rev Chg LTM | 2.2% |
| Op Inc Chg LTM | 11.0% |
| Op Inc Chg 3Y Avg | -3.1% |
| Op Mgn LTM | 7.3% |
| Op Mgn 3Y Avg | 6.8% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 5.8% |
| CFO/Rev 3Y Avg | 8.8% |
| FCF/Rev LTM | -0.8% |
| FCF/Rev 3Y Avg | 4.1% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Engineered Systems | 544 | 384 | 380 | 263 | 187 |
| Industrial Process Solutions | 230 | 174 | 165 | 159 | 137 |
| Total | 774 | 558 | 545 | 423 | 324 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Engineered Systems | 112 | 79 | 60 | 36 | 26 |
| Industrial Process Solutions | 101 | 32 | 22 | 23 | 15 |
| Stock-based compensation | -13 | -8 | |||
| Amortization of intangible assets | -16 | -9 | |||
| Other corporate expenses | -78 | -60 | |||
| Corporate and Other | -47 | -37 | -31 | ||
| Total | 106 | 35 | 35 | 22 | 10 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Engineered Systems | 432 | 333 | 263 | 271 | 255 |
| Industrial Process Solutions | 148 | 150 | 142 | 135 | |
| Corporate and Other | 20 | 21 | 12 | 14 | 18 |
| Fluid Handling and Filtration Segment | 72 | ||||
| Industrial Solutions segment | 65 | ||||
| Total | 600 | 505 | 416 | 419 | 409 |
Price Behavior
Price Behavior
| Market Price | $82.15 | |
| Market Cap ($ Bil) | 2.9 | |
| First Trading Date | 01/29/1998 | |
| Distance from 52W High | -17.6% | |
| 50 Days | 200 Days | |
| DMA Price | $50.46 | $55.10 |
| DMA Trend | up | up |
| Distance from DMA | 62.8% | 49.1% |
| 3M | 1YR | |
| Volatility | 77.0% | 63.2% |
| Downside Capture | 107.05 | 78.42 |
| Upside Capture | 159.75 | 182.36 |
| Correlation (SPY) | 25.9% | 27.9% |
CECO Betas & Captures as of 6/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.95 | 1.42 | 1.37 | 1.43 | 1.36 | 1.19 |
| Up Beta | -0.96 | 0.66 | 1.58 | 1.71 | 1.49 | 1.06 |
| Down Beta | 3.71 | 2.17 | 2.02 | 1.91 | 1.71 | 1.33 |
| Up Capture | 193% | 207% | 188% | 167% | 255% | 390% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 11 | 20 | 33 | 65 | 137 | 388 |
| Down Capture | -43% | 88% | 41% | 79% | 64% | 99% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 10 | 21 | 30 | 60 | 114 | 359 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CECO | |
|---|---|---|---|---|
| CECO | 180.4% | 63.1% | 1.89 | - |
| Sector ETF (XLI) | 25.7% | 16.5% | 1.20 | 31.0% |
| Equity (SPY) | 21.7% | 12.5% | 1.29 | 28.1% |
| Gold (GLD) | 23.1% | 27.7% | 0.73 | 13.3% |
| Commodities (DBC) | 21.3% | 18.6% | 0.90 | -0.7% |
| Real Estate (VNQ) | 13.6% | 13.8% | 0.68 | 21.4% |
| Bitcoin (BTCUSD) | -42.0% | 42.7% | -1.15 | 18.9% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CECO | |
|---|---|---|---|---|
| CECO | 60.1% | 52.3% | 1.09 | - |
| Sector ETF (XLI) | 14.1% | 17.6% | 0.63 | 37.8% |
| Equity (SPY) | 13.3% | 17.1% | 0.60 | 33.6% |
| Gold (GLD) | 17.9% | 18.3% | 0.79 | 4.6% |
| Commodities (DBC) | 6.9% | 19.5% | 0.25 | 10.9% |
| Real Estate (VNQ) | 3.1% | 18.9% | 0.06 | 24.4% |
| Bitcoin (BTCUSD) | 12.2% | 53.8% | 0.41 | 15.0% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CECO | |
|---|---|---|---|---|
| CECO | 25.5% | 59.3% | 0.62 | - |
| Sector ETF (XLI) | 14.6% | 20.1% | 0.64 | 38.0% |
| Equity (SPY) | 15.4% | 18.0% | 0.73 | 33.8% |
| Gold (GLD) | 12.1% | 16.1% | 0.61 | 2.5% |
| Commodities (DBC) | 5.7% | 18.0% | 0.25 | 14.0% |
| Real Estate (VNQ) | 5.5% | 20.7% | 0.23 | 28.4% |
| Bitcoin (BTCUSD) | 59.0% | 66.2% | 0.99 | 10.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | 14.4% | 20.4% | 33.9% |
| 2/24/2026 | -22.8% | -25.6% | -20.1% |
| 10/28/2025 | -9.1% | -2.5% | -3.5% |
| 7/29/2025 | 16.2% | 29.2% | 38.5% |
| 4/29/2025 | 16.4% | 32.1% | 47.0% |
| 2/25/2025 | 8.2% | 7.4% | 6.5% |
| 10/29/2024 | -14.3% | -13.5% | 23.3% |
| 7/30/2024 | -6.3% | -12.3% | -6.4% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 14 | 15 |
| # Negative | 11 | 9 | 8 |
| Median Positive | 12.7% | 16.8% | 20.2% |
| Median Negative | -8.1% | -9.1% | -9.3% |
| Max Positive | 26.1% | 33.2% | 57.6% |
| Max Negative | -22.8% | -25.6% | -20.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | 14.4% | 20.4% | 33.9% |
| 2/24/2026 | -22.8% | -25.6% | -20.1% |
| 10/28/2025 | -9.1% | -2.5% | -3.5% |
| 7/29/2025 | 16.2% | 29.2% | 38.5% |
| 4/29/2025 | 16.4% | 32.1% | 47.0% |
| 2/25/2025 | 8.2% | 7.4% | 6.5% |
| 10/29/2024 | -14.3% | -13.5% | 23.3% |
| 7/30/2024 | -6.3% | -12.3% | -6.4% |
| 4/30/2024 | -14.8% | -9.1% | -1.0% |
| 3/5/2024 | -17.9% | -2.8% | 4.8% |
| 11/7/2023 | 10.9% | 16.2% | 17.5% |
| 8/8/2023 | 24.0% | 15.4% | 17.0% |
| 3/6/2023 | -6.5% | -5.3% | -12.3% |
| 1/10/2023 | 13.4% | 17.4% | 20.2% |
| 11/7/2022 | -3.3% | 2.9% | 1.1% |
| 8/8/2022 | 12.0% | 20.1% | 20.2% |
| 5/10/2022 | 26.1% | 33.2% | 57.6% |
| 3/14/2022 | -1.9% | 12.2% | -13.3% |
| 11/8/2021 | -7.3% | -10.8% | -15.6% |
| 8/3/2021 | 4.6% | -0.9% | 8.8% |
| 3/3/2021 | 4.2% | 10.4% | -3.1% |
| 11/4/2020 | -8.1% | 13.8% | 7.2% |
| 8/5/2020 | 8.7% | 26.9% | 25.6% |
| SUMMARY STATS | |||
| # Positive | 12 | 14 | 15 |
| # Negative | 11 | 9 | 8 |
| Median Positive | 12.7% | 16.8% | 20.2% |
| Median Negative | -8.1% | -9.1% | -9.3% |
| Max Positive | 26.1% | 33.2% | 57.6% |
| Max Negative | -22.8% | -25.6% | -20.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 03/02/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/29/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 03/05/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 03/06/2023 | 10-K |
| 09/30/2022 | 11/07/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 03/02/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/29/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 03/05/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 03/06/2023 | 10-K |
| 09/30/2022 | 11/07/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/10/2022 | 10-Q |
| 12/31/2021 | 03/14/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 08/03/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 03/03/2021 | 10-K |
| 09/30/2020 | 11/04/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/06/2020 | 10-Q |
| 12/31/2019 | 03/04/2020 | 10-K |
| 09/30/2019 | 11/06/2019 | 10-Q |
| 06/30/2019 | 08/06/2019 | 10-Q |
Recent Forward Guidance
Updated 5/31/2026Latest: Q1 2026 Earnings Reported 4/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 940.00 Mil | 970.00 Mil | 1.00 Bil | 2.1% | Raised | Guidance: 950.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | 120.00 Mil | 130.00 Mil | 140.00 Mil | 4.0% | Raised | Guidance: 125.00 Mil for 2026 | |
| 2026 Revenue Growth | 25.0% | Higher New | |||||
| 2026 Adjusted EBITDA Growth | 45.0% | Higher New | |||||
| 2026 Free Cash Flow | 65.00 Mil | 4.0% | Raised | Guidance: 62.50 Mil for 2026 | |||
Prior: Q4 2025 Earnings Reported 2/24/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 925.00 Mil | 950.00 Mil | 975.00 Mil | 5.6% | Raised | Guidance: 900.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | 115.00 Mil | 125.00 Mil | 135.00 Mil | 4.2% | Raised | Guidance: 120.00 Mil for 2026 | |
| 2026 Free Cash Flow | 0.5 | ||||||
Insider Activity
Updated 6/27/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Dezwirek, Jason | 0to100 Inc. | Sell | 6262026 | 97.28 | 34,000 | 3,307,493 | 12,840,854 | Form | |
| 2 | Dezwirek, Jason | 0to100 Inc. | Sell | 6262026 | 96.61 | 34,000 | 3,284,706 | 16,037,094 | Form | |
| 3 | Johansson, Peter K | SVP, Chief Financial Officer | Direct | Sell | 6262026 | 96.49 | 30,000 | 2,894,802 | 3,931,720 | Form |
| 4 | Wallman, Richard F | spouse | Buy | 6032026 | 76.85 | 20,000 | 1,536,938 | 8,107,348 | Form | |
| 5 | Nanda, Munish | Direct | Sell | 5042026 | 74.00 | 11,218 | 830,145 | 4,590,368 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Dezwirek, Jason | 0to100 Inc. | Sell | 6262026 | 97.28 | 34,000 | 3,307,493 | 12,840,854 | Form | |
| 2 | Dezwirek, Jason | 0to100 Inc. | Sell | 6262026 | 96.61 | 34,000 | 3,284,706 | 16,037,094 | Form | |
| 3 | Johansson, Peter K | SVP, Chief Financial Officer | Direct | Sell | 6262026 | 96.49 | 30,000 | 2,894,802 | 3,931,720 | Form |
| 4 | Wallman, Richard F | spouse | Buy | 6032026 | 76.85 | 20,000 | 1,536,938 | 8,107,348 | Form | |
| 5 | Nanda, Munish | Direct | Sell | 5042026 | 74.00 | 11,218 | 830,145 | 4,590,368 | Form | |
| 6 | Wallman, Richard F | Direct | Buy | 5012026 | 73.25 | 10,000 | 732,500 | 16,840,834 | Form | |
| 7 | Wallman, Richard F | spouse | Buy | 5012026 | 73.80 | 5,000 | 368,990 | 6,309,729 | Form | |
| 8 | Gleason, Todd R | Chief Executive Officer | Direct | Sell | 9222025 | 50.45 | 98,101 | 4,949,127 | 20,726,338 | Form |
| 9 | Gleason, Todd R | Chief Executive Officer | Direct | Sell | 9222025 | 49.32 | 101,899 | 5,025,669 | 20,262,424 | Form |
| 10 | Gleason, Todd R | Chief Executive Officer | Direct | Sell | 9222025 | 51.30 | 100,000 | 5,130,140 | 21,076,411 | Form |
| 11 | Wallman, Richard F | spouse | Buy | 9092025 | 46.93 | 3,000 | 140,800 | 3,778,131 | Form | |
| 12 | Wallman, Richard F | Direct | Buy | 9032025 | 44.25 | 3,000 | 132,750 | 9,730,973 | Form | |
| 13 | Wallman, Richard F | spouse | Buy | 9032025 | 44.25 | 1,500 | 66,375 | 3,429,375 | Form | |
| 14 | Dezwirek, Jason | 0to100 Inc. | Sell | 8012025 | 43.54 | 30,000 | 1,306,170 | 8,707,797 | Form | |
| 15 | Dezwirek, Jason | 0to100 Inc. | Sell | 8012025 | 42.75 | 70,000 | 2,992,157 | 9,831,373 | Form | |
| 16 | Mannarino, Claudio A | Direct | Sell | 8012025 | 41.51 | 20,000 | 830,247 | 3,220,900 | Form |
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