CECO Environmental Corp. reported fourth‑quarter 2025 revenue of $214.7 million, a 35.4% year‑over‑year increase from $158.6 million in Q4 2024, and full‑year revenue of $774.4 million, up 39% from the prior year. The company’s adjusted earnings per share were $0.30, falling $0.10 short of the consensus estimate of $0.40, while GAAP EPS stood at $0.08.
The earnings miss was largely driven by a one‑time restructuring charge and a lower gross‑margin mix, offsetting the strong demand that pushed revenue higher. Management highlighted robust activity in the power‑generation and industrial‑water segments, noting that the company booked record order intake exceeding $1 billion and maintained a backlog of $793.1 million.
CECO raised its 2026 outlook, projecting revenue of $925 million to $975 million and adjusted EBITDA of $115 million to $135 million. The guidance excludes any impact from the pending merger with Thermon Group Holdings and signals confidence in continued organic growth.
The company entered into a definitive agreement to combine with Thermon Group Holdings in a $2.2 billion stock‑and‑cash transaction expected to close in mid‑2026. The deal is projected to deliver approximately $40 million in annual cost synergies within three years, broadening CECO’s product portfolio and enhancing its competitive standing.
"We closed the year with our strongest quarter to date, highlighted by order bookings in excess of $300 million, the first time in company history," said CEO Todd Gleason. "The sales pipeline is converting rapidly, supporting the projection for 20% plus top‑line growth in 2026," added CFO Peter Johansson.
Investors reacted cautiously, focusing on the EPS miss and the integration risks associated with the Thermon merger, while also weighing the company’s strong revenue performance and raised guidance.
Overall, CECO’s earnings miss is offset by a solid revenue beat and a forward‑looking outlook that underscores management’s confidence in the company’s growth trajectory and the strategic value of the Thermon acquisition.
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