Group 1 - CECO Environmental (NASDAQ: CECO) is experiencing increased expectations and momentum due to a recalibrated strategy [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes [1] - The group covers 10 major events monthly to find the best investment opportunities [1] Group 2 - The article does not provide specific financial data or performance metrics for CECO Environmental or any other companies mentioned [2]

Company Contact: Peter Johansson Chief Financial and Strategy Officer 888-990-6670 Investor Relations Contact: ADDISON, Texas, May 06, 2025 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announces that CECO management will participate at the following investor conferences: The presentations will be available on the Investor Relations section of the C ...

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) CECO Environmental Corp. reported Q1 2025 net sales of $176.7 million and net income of $36.0 million, significantly boosted by a divestiture gain Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $476,101 | $330,971 | | **Total assets** | $957,095 | $759,699 | | **Total current liabilities** | $278,754 | $244,662 | | **Total liabilities** | $667,044 | $507,806 | | **Total shareholders' equity** | $290,051 | $251,893 | Condensed Consolidated Statement of Income Highlights (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $176,697 | $126,332 | | Gross profit | $62,162 | $45,132 | | Income from operations | $61,870 | $7,686 | | Gain on sale of Global Pump Solutions business | $64,502 | $— | | Net income attributable to CECO | $35,984 | $1,508 | | Diluted EPS | $0.98 | $0.04 | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(11,696) | $1,224 | | Net cash provided by (used in) investing activities | $4,829 | $(2,694) | | Net cash provided by (used in) financing activities | $115,756 | $(6,528) | | **Net increase (decrease) in cash** | **$108,475** | **$(8,420)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Q1 2025 notes detail Profire Energy acquisition, Global Pump Solutions divestiture gain, increased debt, and litigation - On January 3, 2025, the Company acquired all outstanding shares of Profire Energy, Inc. for **$122.7 million** in cash, financed through cash on hand and a draw on the revolving credit facility[72](index=72&type=chunk) - On March 31, 2025, the Company finalized the sale of its Global Pump Solutions business for a purchase price of **$109.5 million**, recognizing a pre-tax gain on the sale of **$64.5 million**[86](index=86&type=chunk) Debt Composition (in thousands) | Debt Component | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving credit facility | $334,700 | $214,200 | | Joint venture term debt | $6,885 | $7,297 | | **Total outstanding borrowings** | **$339,710** | **$218,880** | Segment Operating Income (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Engineered Systems | $18,740 | $16,277 | | Industrial Process Solutions | $69,650 | $7,100 | | **Total Segment Operating Income** | **$88,390** | **$23,377** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 orders and net sales increased, with GAAP operating income boosted by divestiture, non-GAAP income declined - Orders booked increased **57.0%** to **$227.9 million** in Q1 2025 from **$145.3 million** in Q1 2024, with organic bookings contributing approximately **81%** of the total[111](index=111&type=chunk) - Backlog increased to **$602.0 million** as of March 31, 2025, from **$540.9 million** as of December 31, 2024. Substantially all backlog is expected to be delivered within 18 to 24 months[129](index=129&type=chunk) Reconciliation of GAAP to Non-GAAP Operating Income (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating income (GAAP)** | **$61.9** | **$7.7** | | Amortization expenses | $3.1 | $2.2 | | Acquisition and integration expenses | $8.1 | $0.2 | | Gain on sale of Global Pump Solutions business | $(64.5) | $— | | Other expenses | $— | $0.1 | | **Non-GAAP operating income** | **$8.6** | **$10.2** | | **Non-GAAP operating margin** | **4.9%** | **8.1%** | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 net sales rose **39.9%** to **$176.7 million**, with GAAP operating income heavily influenced by a **$64.5 million** divestiture gain - Net sales increased **$50.4 million (39.9%)** to **$176.7 million**, with organic revenue contributing **$142.4 million (81% of total sales)**[112](index=112&type=chunk) - Gross profit as a percentage of sales slightly decreased to **35.2%** in Q1 2025 from **35.7%** in Q1 2024 due to project mix[113](index=113&type=chunk) - Selling and administrative expenses increased to **$53.6 million** from **$34.9 million**, primarily due to increased headcount and expenses from prior year acquisitions[114](index=114&type=chunk) - Non-GAAP operating margin decreased to **4.9%** for Q1 2025 from **8.1%** for Q1 2024[117](index=117&type=chunk) [Business Segments](index=34&type=section&id=Business%20Segments) Engineered Systems and Industrial Process Solutions segments saw increased orders and sales, with IPS operating income boosted by divestiture gain - Engineered Systems segment orders increased **62.9%** to **$163.0 million**, with organic bookings accounting for **88%** of the total[123](index=123&type=chunk) - Industrial Process Solutions segment operating income increased by **$62.6 million** to **$69.7 million**, primarily due to the gain on the sale of the Global Pump Solutions business[128](index=128&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with cash increasing to **$146.5 million**, driven by divestiture proceeds and credit facility borrowings - Working capital increased to **$197.4 million** at March 31, 2025, from **$86.3 million** at December 31, 2024[132](index=132&type=chunk) - Cash and cash equivalents totaled **$146.5 million** at March 31, 2025, a substantial increase from **$37.8 million** at December 31, 2024[133](index=133&type=chunk) - In April 2025, subsequent to the quarter end, the Company made payments of **$98.7 million** on its Credit Facility[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rate and foreign currency changes, with a **10%** rate change impacting earnings by **$2.5 million** annually - The company's primary market risks are changes in interest rates and foreign currency exchange rates[146](index=146&type=chunk) - A hypothetical **10%** change in the estimated weighted average borrowing rate at March 31, 2025, would have an estimated annual impact of **$2.5 million**[147](index=147&type=chunk) - Transaction gains included in "Other expense, net" were **$1.7 million** for the three months ended March 31, 2025, compared to **$0.8 million** in the prior year period[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls during the quarter - Based on an evaluation, management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[150](index=150&type=chunk) - No changes in the Company's internal control over financial reporting occurred during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[152](index=152&type=chunk) [Part II – Other Information](index=43&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company faces asbestos-related lawsuits through its subsidiary, but management expects no material adverse financial impact - The Company's subsidiary, Met-Pro, has been named in asbestos-related lawsuits. The Company retained these historical liabilities after the divestiture of its fluid handling business[67](index=67&type=chunk) - Management believes that none of the pending cases will have a material adverse impact upon the Company's results of operations, liquidity or financial condition[68](index=68&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors from those disclosed in the Annual Report on Form 10-K for 2024 - There have been no material changes in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[155](index=155&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no share repurchases in Q1 2025, with **$8.0 million** remaining available under the program expiring April 30, 2025 - The company did not repurchase any shares during the three months ended March 31, 2025[53](index=53&type=chunk)[156](index=156&type=chunk) - As of March 31, 2025, **$8.0 million** remained available under the share repurchase program, which expires on April 30, 2025[156](index=156&type=chunk) [Other Items (3, 4, 5, 6)](index=43&type=section&id=Other%20Items%20(3%2C%204%2C%205%2C%206)) The company reported no defaults on senior securities and no director or officer trading plan adoptions or terminations - **Item 3:** No defaults upon senior securities were reported[157](index=157&type=chunk) - **Item 5:** No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[159](index=159&type=chunk)

CECO Environmental Corp. (NASDAQ:CECO) Q1 2025 Earnings Conference Call April 29, 2025 8:30 AM ET Company Participants Steven Hooser - IR Todd Gleason - CEO Peter Johansson - Chief Financial and Strategy Officer Conference Call Participants Rob Brown - Lake Street Capital Markets Bobby Brooks - Northland Capital Markets Aaron Spychalla - Craig-Hallum Capital Group Gerry Sweeney - Roth Capital Jim Ricchiuti - Needham & Company Sameer Joshi - H.C. Wainwright Operator Good day, and thank you for standing by. W ...

CECO Environmental (CECO) Q1 2025 Earnings Call April 29, 2025 02:13 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the CECO Environmental First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Steven Hoosier, Investor Relations. Please go ahead. Speake ...

Financial Highlights - The company's backlog reached a record of $602 million[7], a 55% increase year-over-year[24] - Orders also hit a record of $228 million[7], representing a 57% increase year-over-year[6, 24] - Revenue was $177 million[7], above consensus estimates[7], and up 40% year-over-year[24] - Adjusted EBITDA was $14 million[7], above consensus estimates[7], but up only 6% year-over-year[24] - Adjusted EPS was $0.10[7], above consensus estimates[7], but down $0.01 year-over-year[24] Strategic Actions and Outlook - The company completed the acquisition of Profire Energy and the divestiture of the Global Pump Solutions business in Q1[7] - The sales pipeline is strong and growing, now over $5 billion[6, 11, 14] - The company is maintaining its FY2025 outlook, with revenue guidance of $700-$750 million and adjusted EBITDA of $90-$100 million[6, 22] Tariff and Inflation Management - The company is taking price and cost actions to address tariffs and expected inflation impacts[6] - The estimated gross impact of tariffs is $3-$10 million, with mitigation actions identified to offset $3-$6 million[21]

Financial Data and Key Metrics Changes - CECO Environmental reported record bookings of approximately $228 million, up 57% year-over-year, with a sales pipeline exceeding $5 billion for the first time [7][8][12] - Revenue for Q1 2025 was $177 million, representing a 40% increase year-over-year, with adjusted EBITDA at $14 million, slightly above expectations [12][39] - The company exited the quarter with a backlog of $602 million, up 55% year-over-year, marking the first time the backlog exceeded $600 million [11][37] Business Line Data and Key Metrics Changes - The recent acquisitions contributed approximately 28% of the revenue growth, while organic growth was driven by project execution against the record backlog [12][39] - The company divested its Global Pump Solutions business, which contributed about $10 million to revenue in the quarter [39][34] Market Data and Key Metrics Changes - CECO's sales pipeline has grown significantly, with nearly a dozen opportunities each valued over $50 million, indicating strong future potential [8][12] - The company noted continued strength in various sectors, including gas infrastructure and nuclear, despite not booking large orders in the power generation market [71][76] Company Strategy and Development Direction - CECO is maintaining its full-year 2025 guidance, focusing on price and productivity measures to offset tariff impacts [10][33] - The company is committed to expanding its portfolio with a focus on reshoring, power generation, and water infrastructure, aligning with macroeconomic trends [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid market uncertainties, emphasizing the importance of geographic and vertical market positioning [17][20] - The company remains optimistic about future order bookings in the power sector, anticipating significant contract awards in the coming quarters [56][57] Other Important Information - CECO's gross profit margin for Q1 2025 was approximately 35.2%, consistent with recent quarters, attributed to operational excellence and improved project execution [43][42] - The company is focused on IT infrastructure investments, particularly in a unified ERP system, while maintaining a capital-light approach [85][86] Q&A Session Summary Question: How does the power-related pipeline look at this point? - Management indicated a strong pipeline exceeding $1 billion, with various solutions including emissions and gas infrastructure, and expects large contract awards in the power sector soon [56][57] Question: How does the company handle cost changes and tariff impacts after booking a contract? - Most contracts allow for pass-through of tariff-related increases, and the company is actively working with suppliers to manage costs and maintain visibility [59][60] Question: Can you discuss the mix of the $228 million in orders? - The orders were balanced across various platforms, with notable strength in gas infrastructure and nuclear projects, despite no large orders from the power sector [70][71] Question: What areas of investment are planned for the rest of 2025? - The primary investment focus is on IT infrastructure, specifically a unified ERP system, with modest capital expenditures expected for traditional equipment [85][86] Question: What impact might defense spending have on the business? - While not a direct defense contractor, CECO expects indirect benefits from increased factory construction and power infrastructure investments in response to geopolitical situations [87][89]

Group 1: Earnings Performance - CECO Environmental reported quarterly earnings of $0.10 per share, matching the Zacks Consensus Estimate, but down from $0.11 per share a year ago [1] - The company posted revenues of $176.7 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 16.81% and up from $126.33 million year-over-year [2] - Over the last four quarters, CECO has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - CECO shares have declined approximately 36.5% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $165.98 million, and for the current fiscal year, it is $1.20 on revenues of $701.16 million [7] Group 3: Industry Context - The Pollution Control industry, to which CECO belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for CECO is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

[CECO Environmental Q1 2025 Results](index=1&type=section&id=CECO%20ENVIRONMENTAL%20REPORTS%20FIRST%20QUARTER%202025%20RESULTS) [Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%20Summary) CECO achieved record orders, backlog, and revenue in Q1 2025, demonstrating strong market demand despite a decline in non-GAAP profitability and negative free cash flow - The company achieved record orders of **$228 million** and a record backlog exceeding **$600 million** for the first time, driven by strong demand in industrial reshoring, electrification, and power generation[4](index=4&type=chunk) Q1 2025 Key Performance Indicators (vs. Q1 2024) | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Orders | $227.9 million | +57% | | Backlog | $602.0 million | +55% | | Revenue | $176.7 million | +40% | | Gross Profit | $68.0 million | +28% | | GAAP Net Income | $36.0 million | +$34.5M | | Non-GAAP Net Income | $3.5 million | -$0.5M | | GAAP EPS (diluted) | $0.98 | +$0.94 | | Non-GAAP EPS (diluted) | $0.10 | -$0.01 | | Adjusted EBITDA | $14.0 million | +6% | | Free Cash Flow | $(15.1) million | -$13.2M | [Management Commentary & Strategy](index=1&type=section&id=Management%20Commentary%20%26%20Strategy) Management expressed confidence in growth, attributing Q1 Adjusted EBITDA decline to strategic investments and planning Q2 cost-saving initiatives for margin expansion - Strategic actions in Q1, such as price increases for tariffs, pulling in inventory purchases, and adding key personnel, negatively impacted short-term Adjusted EBITDA but were deemed necessary to manage the record backlog[5](index=5&type=chunk) - The company plans strategic cost actions starting in Q2 2025, focusing on eliminating redundant G&A expenses and expanding productivity initiatives, which are expected to support operating margin expansion[5](index=5&type=chunk) - Management believes the company is well-positioned to handle potential tariff impacts because it manufactures a majority of its products in the same regions where they are sold[8](index=8&type=chunk) [2025 Full Year Guidance](index=1&type=section&id=2025%20Full%20Year%20Guidance) CECO maintained its full-year 2025 guidance, anticipating significant year-over-year growth in revenue and Adjusted EBITDA despite Q1's mixed profitability Full Year 2025 Guidance | Metric | Guidance Range | Midpoint YoY Growth | | :--- | :--- | :--- | | Revenue | $700 - $750 million | ~30% | | Adjusted EBITDA | $90 - $100 million | ~50% | - The company expects its 2025 adjusted free cash flow to be between **60% and 75%** of Adjusted EBITDA[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=CECO%20ENVIRONMENTAL%20CORP.%20CONSOLIDATED%20BALANCE%20SHEETS) CECO's balance sheet expanded significantly as of March 31, 2025, with total assets and liabilities increasing, driven by higher cash and long-term debt Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $146,471 | $37,832 | | Total current assets | $476,101 | $330,971 | | Total assets | $957,095 | $759,699 | | Debt, less current portion | $338,037 | $217,230 | | Total liabilities | $667,044 | $507,806 | | Total shareholders' equity | $290,051 | $251,893 | [Consolidated Statements of Income](index=6&type=section&id=CECO%20ENVIRONMENTAL%20CORP.%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) CECO reported a 40% increase in Q1 2025 net sales, with GAAP net income surging to $36.0 million primarily due to a significant gain on a business sale Q1 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $176,697 | $126,332 | | Gross profit | $62,162 | $45,132 | | Income from operations | $61,870 | $7,686 | | Gain on sale of business | $64,502 | $0 | | Net income attributable to CECO | $35,984 | $1,508 | | Diluted EPS | $0.98 | $0.04 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CECO%20ENVIRONMENTAL%20CORP.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2025 operating cash flow was negative, while investing activities were positive from a business sale, and financing activities provided significant cash from new borrowings Q1 Statement of Cash Flows (in thousands) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(11,696) | $1,224 | | Net cash provided by (used in) investing activities | $4,829 | $(2,694) | | Net cash provided by (used in) financing activities | $115,756 | $(6,528) | | Net increase (decrease) in cash | $108,475 | $(8,420) | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=CECO%20ENVIRONMENTAL%20CORP.%20RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES) After adjustments, CECO's non-GAAP operating and net income declined year-over-year, though Adjusted EBITDA increased by 6% to $14.0 million GAAP to Non-GAAP Reconciliation Highlights (in millions) | Metric | Q1 2025 GAAP | Q1 2025 Non-GAAP / Adjusted | Q1 2024 Non-GAAP / Adjusted | | :--- | :--- | :--- | :--- | | Operating Income | $61.9 | $8.6 | $10.2 | | Net Income | $36.0 | $3.5 | $4.0 | | Adjusted EBITDA | N/A | $14.0 | $13.2 | | Free Cash Flow | N/A | $(15.1) | $(1.9) | - The largest adjustment from GAAP to Non-GAAP operating income was the exclusion of a **$64.5 million** gain on the sale of the Global Pump Solutions business[22](index=22&type=chunk) [Note Regarding Non-GAAP Financial Measures](index=9&type=section&id=NOTE%20REGARDING%20NON-GAAP%20FINANCIAL%20MEASURES) CECO uses non-GAAP measures to assess core operational performance by excluding non-recurring items, emphasizing they are supplemental and not comparable across all companies - Non-GAAP measures are used by management to better compare results over multiple periods by excluding items not considered indicative of ongoing operations[25](index=25&type=chunk) - Forward-looking non-GAAP measures are not reconciled to GAAP because the company cannot reasonably predict certain excluded items, such as acquisition expenses or restructuring costs[28](index=28&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) [Earnings Conference Call](index=4&type=section&id=EARNINGS%20CONFERENCE%20CALL) A conference call and webcast were held to discuss Q1 2025 results, with a replay available on the company's investor relations website for one year - A conference call was held at **8:30 a.m. ET** on **April 29, 2025**, to discuss the financial results[10](index=10&type=chunk) - A replay of the conference call will be available for one year on the company's website[11](index=11&type=chunk) [Safe Harbor Statement](index=10&type=section&id=SAFE%20HARBOR) This legal disclaimer identifies forward-looking statements, cautioning investors about risks and uncertainties that may cause actual results to differ materially - The press release contains forward-looking statements based on management's current views and assumptions, which are subject to risks and uncertainties[30](index=30&type=chunk) - Key risks include economic conditions, inflation, supply chain challenges, integration of acquisitions, and the ability to realize synergies from transactions[30](index=30&type=chunk)

Core Insights - CECO Environmental Corp. reported record orders of $228 million in Q1 2025, leading to a backlog exceeding $600 million for the first time in company history, indicating strong demand and growth potential [4][6][8] - The company achieved an operating income of $61.9 million, significantly up from $7.7 million in Q1 2024, while net income rose to $36.0 million from $1.5 million in the same period [4][6][20] - CECO maintains a full-year revenue guidance of $700 to $750 million, representing a 30% increase at the midpoint, alongside a backlog growth of 55% [6][8] Financial Performance - First quarter revenue was $176.7 million, up 40% from $126.3 million in Q1 2024, with gross profit margin at 35.2% [6][16] - Non-GAAP operating income for Q1 was $8.6 million, down 16% from $10.2 million in Q1 2024, while adjusted EBITDA increased by 6% to $14.0 million [4][20] - Free cash flow for the quarter was $(15.1) million, a decline of $13.2 million compared to $(1.9) million in Q1 2024 [4][6][20] Strategic Actions - The company implemented strategic price actions to mitigate tariff impacts and proactively managed its backlog by adjusting inventory purchases and hiring key personnel [5][8] - CECO plans to take cost actions in Q2 2025 to eliminate redundant roles and enhance productivity, expecting these measures to support operating margin expansion [5][8] - The company is monitoring economic conditions and supply chain dynamics to manage potential cost increases effectively [8][29] Market Position and Outlook - CECO's portfolio is aligned with long-term growth themes such as industrial manufacturing reshoring, electrification, and energy transition, positioning the company favorably for future growth [4][8] - The order pursuit pipeline exceeds $5 billion, reflecting strong confidence in continued growth [4][6] - The company recognizes the dynamic economic environment but believes its operational model mitigates direct exposure to tariff-related imports [8][29]