CECO Environmental Corp. (NASDAQ:CECO) reported an EPS of $0.26, slightly below expectations but showing improvement year-over-year.The company's revenue for Q3 2025 was $197.6 million, surpassing estimates and indicating strong market position.CECO's financial health is robust, with a significant increase in orders and backlog, and solid liquidity ratios.In its recent Q3 2025 earnings call, CECO reported an EPS of $0.26, slightly below the Zacks Consensus Estimate of $0.27, resulting in a negative surprise ...

Financial Performance - Net sales for Q3 2025 increased by $62.1 million, or 45.8%, to $197.6 million compared to Q3 2024, with organic growth of 35%[122] - Net sales for the nine months ended September 30, 2025 increased by $160.3 million, or 40.1%, to $559.7 million compared to the same period in 2024, with organic growth of 24%[123] - Orders booked increased by $70.6 million, or 44%, to $232.9 million in Q3 2025 compared to Q3 2024, with organic growth of 33%[120] - Gross profit for Q3 2025 increased by $19.3 million, or 42.6%, to $64.6 million, with a gross profit margin of 32.7%[124] - Operating income for Q3 2025 increased by $2.2 million to $9.4 million compared to Q3 2024, with an operating margin of 4.8%[130] - Non-GAAP operating income for Q3 2025 was $17.5 million, with a non-GAAP operating margin of 8.9%[132] - Total net sales for the three months ended September 30, 2025, were $197.6 million, a 46% increase from $135.5 million in 2024, and for the nine months ended September 30, 2025, net sales were $559.7 million, up 40% from $399.4 million in 2024[137] Expenses and Costs - Selling and administrative expenses for Q3 2025 were $47.0 million, up from $34.3 million in Q3 2024[126] - Amortization expense for Q3 2025 was $6.1 million, compared to $2.5 million in Q3 2024, due to increased intangible assets from acquisitions[128] - Interest expense increased to $5.1 million in Q3 2025 from $2.6 million in Q3 2024, primarily due to increased debt balances[134] - Interest expense increased to $16.2 million for the nine months ended September 30, 2025, compared to $9.3 million for the same period in 2024, primarily due to increased debt balances[135] - Income tax expense for the nine months ended September 30, 2025, was $23.6 million, up from $2.7 million in the same period in 2024, with an effective tax rate of 32.8% compared to 21.8% in 2024[136] Orders and Backlog - Engineered Systems segment orders booked increased by $239.9 million, or 74%, to $562.6 million for the nine months ended September 30, 2025, with organic growth of 73%[140] - Industrial Process Solutions segment orders booked increased by $46.7 million, or 37%, to $172.3 million for the nine months ended September 30, 2025, with organic growth of 7%[146] - Backlog increased to $719.6 million as of September 30, 2025, from $540.9 million as of December 31, 2024[151] Cash Flow and Debt - Cash and cash equivalents totaled $32.8 million as of September 30, 2025, down from $37.8 million at December 31, 2024[155] - Total outstanding borrowings increased to $220.9 million as of September 30, 2025, compared to $218.9 million at December 31, 2024[156] - Net cash used in operating activities was $4.1 million for the nine months ended September 30, 2025, compared to $23.0 million provided in the prior year period[162] - Net cash provided by investing activities was $1.5 million for the nine months ended September 30, 2025, compared to $26.2 million used in the prior year period, primarily due to the sale of the Global Pump Solutions business[163] - The carrying value of the Company's total long-term debt and current maturities of long-term debt at September 30, 2025, was $222.4 million[169] Market and Operational Risks - The company experienced shortages of raw materials and inflationary pressures, which could adversely affect future business results[115] - Market risk is primarily related to changes in interest rates, with no derivatives held for trading or speculative purposes[168] - The Company is exposed to risks associated with fixed price contracts, including actual costs exceeding estimates[169] - Future changes in foreign exchange rates may impact revenues, operating expenses, and earnings[171] - The Company faces potential challenges in expanding operations in new and existing markets due to supply chain issues[169] - The Company has incurred substantial debt related to strategic transactions, impacting its ability to repay or refinance[169] Transaction Gains and Losses - Transaction gains and losses included in "Other expense, net" were $2.0 million for the three months ended September 30, 2025, compared to $0.3 million for the same period in 2024[171] - For the nine months ended September 30, 2025, transaction gains and losses were $1.1 million, down from $1.9 million in the same period in 2024[171] Subsidiaries - The Company has wholly-owned subsidiaries in several countries, including the Netherlands, Canada, China, and the United Kingdom[171]

CECO Environmental (NasdaqGS:CECO) Q3 2025 Earnings Call October 28, 2025 08:30 AM ET Company ParticipantsTodd Gleason - CEOPeter Johansson - CFOMarcio Pinto - VP of Financial Planning and Investor RelationsConference Call ParticipantsNone - AnalystJim Ricchiuti - Managing Director and Senior Equity Research AnalystAaron Spychalla - Senior Research AnalystGerry Sweeney - Managing Director and Senior Research AnalystRob Brown - Founding Partner and Senior Equity Research AnalystBobby Brooks - VP and Senior E ...

CECO Environmental (NasdaqGS:CECO) Q3 2025 Earnings Call October 28, 2025 08:30 AM ET Company ParticipantsTodd Gleason - CEOPeter Johansson - CFOMarcio Pinto - VP of Financial Planning and Investor RelationsConference Call ParticipantsNone - AnalystJim Ricchiuti - Managing Director and Senior Equity Research AnalystAaron Spychalla - Senior Research AnalystGerry Sweeney - Managing Director and Senior Research AnalystRob Brown - Founding Partner and Senior Equity Research AnalystBobby Brooks - VP and Senior E ...

CECO Environmental (NasdaqGS:CECO) Q3 2025 Earnings Call October 28, 2025 08:30 AM ET Speaker3Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Marcio Pinto, Vice President of Financial Planning and Investor Relations. Please go ahead.Speaker2Thank you, Tanya, and thank you for joining us on the CECO Environmental Third Quarter 2025 Earnings Call. On the call with me today is Todd Gleason, Chief Executive Officer, and Peter ...

CECO Environmental (CECO) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.70%. A quarter ago, it was expected that this maker of air pollution controls and industrial ventilation systems would post earnings of $0.2 per share when it actually produced earnings of $0.24, delivering a ...

Q3 2025 Earnings Release October 28, 2025 Forward-looking statements and Non-GAAP information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify fo ...

CECO ENVIRONMENTAL REPORTS THIRD QUARTER 2025 RESULTS Continued Strong Orders and Revenue Growth Headline Multiple Performance Records Reaf irms 2025 Full Year Outlook and Introduces 2026 Outlook ADDISON, TEXAS (October 28, 2025) -- CECO Environmental Corp. (Nasdaq: CECO) ("CECO" or the "Company"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today reported its financial results for the third quarter of 2025. Thi ...

Continued Strong Orders and Revenue Growth Headline Multiple Performance Records Reaffirms 2025 Full Year Outlook and Introduces 2026 Outlook ADDISON, Texas, Oct. 28, 2025 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO) ("CECO" or the "Company"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today reported its financial results for the third quarter of 2025. Third Quarter Summary(1) Orders of $232.9 mi ...

Core Viewpoint - The market anticipates CECO Environmental (CECO) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - CECO is expected to post quarterly earnings of $0.27 per share, reflecting a year-over-year increase of +92.9% [3]. - Revenues are projected to reach $189.52 million, representing a 39.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 20.62% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - CECO currently holds a Zacks Rank of 5, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, CECO exceeded the expected earnings of $0.20 per share, achieving $0.24, which was a +20.00% surprise [13]. - Over the past four quarters, CECO has beaten consensus EPS estimates twice [14]. Conclusion - CECO does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [17].