Core Insights - CECO Environmental and Thermon Group have announced a definitive agreement to combine in a transaction valued at approximately $2.2 billion, which will enhance CECO's capabilities in industrial process heating and thermal management [1][2][4] Company Overview - CECO Environmental is a diversified industrial company focused on environmentally friendly solutions, while Thermon is a leader in industrial process heating and temperature management [13][14] - The combined company will operate under the CECO Environmental name and will be led by CEO Todd Gleason, with two members from Thermon's board joining CECO's board [1][8] Strategic Benefits - The merger is expected to create a world-class industrial solutions platform, enhancing CECO's leadership in industrial environmental and thermal solutions [2][4] - The combination will provide a comprehensive platform of industrial solutions, addressing critical areas such as thermal and acoustic management, emissions control, and industrial air quality [4][5] Financial Aspects - The transaction will be funded through a mix of cash and stock, with Thermon shareholders having multiple options for consideration, including a mixed option valued at approximately $63.13 per share, representing a 26.8% premium over Thermon's closing stock price [6][7] - The combined entity is projected to generate approximately $40 million in annual cost synergies within 36 months, enhancing its financial profile and resilience [11] Market Position and Growth - The merger positions the combined company to capitalize on durable secular trends such as energy transition, decarbonization, and tightening environmental regulations, which are expected to drive long-term growth [2][11] - The integration of both companies is anticipated to accelerate growth through expanded customer relationships and global reach [2][4]

Core Viewpoint - CECO Environmental Corp. will report its fourth quarter 2025 financial results on February 24, 2026, and will host an earnings call at 8:30 a.m. Eastern Time [1] Group 1: Financial Reporting - The financial results and presentation will be available on the company's website [1] - The earnings call will be accessible via a live webcast [2] Group 2: Company Overview - CECO Environmental is a diversified industrial company focused on environmentally friendly solutions, serving various industrial air, water, and energy transition markets globally [3] - The company operates through key business segments: Engineered Systems and Industrial Process Solutions, providing innovative technology and application expertise [3] - CECO's solutions aim to improve air quality, optimize energy value chains, and offer custom applications across multiple industries, including power generation, petrochemical processing, and battery production [3]

Core Insights - The Royce Micro-Cap Trust, Inc. aims for long-term capital growth by investing primarily in equity securities of companies with market capitalizations of $1 billion or less [9] Performance Summary - As of December 31, 2025, the Net Asset Value (NAV) is $11.79, while the market price is $10.43 [1] - The average annual total return for the Fund as of December 31, 2025, is as follows: - One-Month: NAV not provided, Market: 2.00% - One-Year: NAV: 16.57%, Market: 16.13% - Three-Year: NAV: 15.55%, Market: 15.38% - Five-Year: NAV: 8.85%, Market: 9.51% - Ten-Year: NAV: 12.23%, Market: 12.75% [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $868.8 million [4] - The weighted average Price-to-Book (P/B) ratio is 2.1x [4] - The net assets of the Fund total $630.8 million, with a net leverage of 1.5% [4][7] Portfolio Composition - The top ten positions in the portfolio and their respective percentages of net assets are: - Establishment Labs Holdings: 1.4% - Sprott: 1.3% - ASA Gold and Precious Metals: 1.3% - CECO Environmental: 1.3% - Bel Fuse Cl. B: 1.3% - nLIGHT: 1.2% - NWPX Infrastructure: 1.2% - Argan: 1.2% - NPK International: 1.2% - 5N Plus: 1.2% [8] Sector Allocation - The top five sectors by percentage of net assets are: - Industrials: 26.4% - Information Technology: 21.1% - Financials: 15.7% - Health Care: 13.2% - Consumer Discretionary: 9.4% [9] Trading Information - The average weekly trading volume of the Fund is approximately 429,716 shares [10]

NEW YORK, Jan. 26, 2026 /PRNewswire/ -- Average weekly trading volume of approximately 429,716 shares Fund's adviser has more than 50 years of small- and micro-cap investment experience CLOSING PRICES AS OF 12/31/25 NAV 11.79 MKT 10.43 AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/25 NAV (%) MKT (%) One-Month* 1.69 2.00 One-Year 16.57 16.13 Three-Year 15.55 15.38 Five-Year 8.85 9.51 10-Year 12.23 12.75 *Not Annualized Important Performance and Expense Information All per ...

CECO Environmental FY Conference Summary Company Overview - **Company**: CECO Environmental (NasdaqGS:CECO) - **Date of Conference**: January 14, 2026 - **Key Speakers**: Todd Gleason (CEO), Marcio Pinto (VP of P&A and Investor Relations) Key Themes and Transformations - **Transformation Journey**: CECO has undergone significant transformation since mid-2020, focusing on operational efficiency and market expansion. The initial step involved delayering the organization to enhance focus on individual markets [9][10]. - **Market Expansion**: Sales in emerging markets have increased from $30 million to nearly $150 million, with a notable expansion in the number of vertical markets pursued [10]. - **M&A Strategy**: CECO has engaged in approximately 14 acquisitions over the last three and a half years, maintaining a healthy balance sheet with an average acquisition multiple of 7-8 times [16]. Financial Performance - **Revenue Growth**: CECO reported a revenue of over $1 billion, with a strong pipeline of $6 billion, indicating significant growth potential in the next 18 months [44][66]. - **Bookings**: The company achieved $300 million in order intake for the quarter, with expectations for large projects in power and industrial water sectors [37][44]. Industry Dynamics - **Power Generation**: CECO has positioned itself to benefit from the resurgence in power generation, particularly in natural gas infrastructure and emissions management solutions [21][24]. - **Industrial Water Market**: The industrial water sector is highly fragmented, and CECO aims to build a $200 million to $300 million platform through organic growth and acquisitions [15][56]. Strategic Focus Areas - **AI and Electrification**: CECO recognizes the importance of AI and electrification trends, particularly in power generation and data centers, and is preparing to capitalize on these opportunities [49][50]. - **Global Presence**: Approximately 50% of CECO's revenue is generated outside North America, with significant growth expected in international markets, particularly in industrial water [57][58]. Challenges and Opportunities - **Margin Management**: CECO is focused on improving EBITDA margins, which have been impacted by investments in growth and lower-margin projects. The company aims for mid- to high-teens EBITDA margins in the future [59][61]. - **Visibility and Guidance**: The company has strong visibility into its pipeline, with a commitment to providing annual guidance based on its robust order book and market knowledge [66][68]. Conclusion CECO Environmental is on a transformative path, leveraging its strengths in industrial air and water solutions while expanding its market presence through strategic acquisitions and investments. The company is well-positioned to capitalize on emerging trends in power generation and industrial water, with a strong focus on maintaining financial health and improving margins.

Core Viewpoint - CECO Environmental Corp. is actively participating in the 28th Annual Needham Growth Conference on January 14, 2026, showcasing its commitment to investor engagement and transparency [1]. Group 1: Company Overview - CECO Environmental is a diversified industrial company focused on environmentally friendly solutions, serving various industrial air, water, and energy transition markets globally [2]. - The company operates through key business segments: Engineered Systems and Industrial Process Solutions, providing innovative technology and application expertise [2]. - CECO's solutions aim to protect people, the environment, and industrial equipment, contributing to improved air quality and optimized energy value chains [2]. Group 2: Market Applications - CECO provides custom solutions for a wide range of applications, including power generation, petrochemical processing, refining, midstream gas transport and treatment, electric vehicle and battery production, and battery recycling [2]. - The company also addresses needs in metals and mineral processing, polysilicon production, beverage can production, and produced and oily water/wastewater treatment [2]. Group 3: Corporate Information - CECO Environmental is listed on Nasdaq under the ticker symbol "CECO" and was incorporated in 1966, with its global headquarters located in Addison, Texas [2].

Core Insights - The Royce Micro-Cap Trust, Inc. aims for long-term capital growth by investing primarily in equity securities of companies with market capitalizations of $1 billion or less [9] Performance Summary - As of November 30, 2025, the Net Asset Value (NAV) is $11.86, while the market price (MKT) is $10.46 [1] - Year-to-date performance shows a NAV return of 14.63% and a market return of 13.85% [1] - Over the past year, the NAV return is 9.03% compared to a market return of 9.95% [1] - The three-year annualized return for NAV is 13.78% and for MKT is 12.97% [1] - The five-year annualized return for NAV is 10.21% and for MKT is 11.03% [1] - The ten-year annualized return for NAV is 11.67% and for MKT is 12.28% [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $871.4 million [4] - The weighted average Price-to-Book (P/B) ratio is 2.0x [4] - The net assets of the fund total $628.6 million [4] - The net leverage stands at 1.2% [4] Portfolio Composition - The top three positions in the portfolio are Argan (1.7%), Establishment Labs Holdings (1.4%), and 5N Plus (1.3%) [6] - The top five sectors by net assets are Industrials (26.3%), Information Technology (20.0%), Financials (15.7%), Health Care (13.9%), and Consumer Discretionary (9.4%) [8] Trading Information - The average weekly trading volume of the fund is approximately 556,750 shares [7] - The fund's adviser has over 50 years of experience in small- and micro-cap investments [7]

Core Insights - CECO Environmental Corp. has announced its largest order to date, exceeding $135 million, which includes a comprehensive emissions management solution for a Texas-based natural gas power generation facility [1] - The company expects full-year 2025 bookings to surpass $1 billion, with a record backlog approaching or exceeding $800 million [1] - CECO's sales pipeline is projected to exceed $6 billion by the end of 2025, indicating strong future growth potential [2] Company Performance - CECO has been recognized in Newsweek's America's Greatest Companies 2025 list and Forbes' 2026 America's Most Successful Small-Cap Companies, highlighting its commitment to delivering world-class solutions and sustainable growth [3] - The CEO emphasized the company's strong performance in the energy transition and power generation sectors, as well as its emerging leadership in international industrial water treatment markets [2] Market Position - CECO operates in various industrial sectors, including air and water quality improvement, emissions management, and energy efficiency, serving markets such as power generation, semiconductor production, and electric vehicle manufacturing [5] - The company is well-positioned to benefit from ongoing trends in natural gas infrastructure expansions, industrial reshoring, and electrification [2]

CECO Environmental FY Conference Summary Company Overview - **Company**: CECO Environmental (NasdaqGS:CECO) - **Industry**: Environmental solutions focusing on air, water, and energy transition - **CEO**: Todd Gleason, who has been in position since 2020 and has driven growth through organic means and acquisitions [1][3][5] Key Points and Arguments Business Model and Strategy - CECO's products address environmental challenges, focusing on employee safety, industrial equipment protection, and environmental conservation [5][6][7] - The company emphasizes its commitment to creating value for customers, employees, and shareholders, with a long-term vision towards 2030 [10][11] - CECO has a diverse product offering and geographical presence, with approximately 45% of sales outside the U.S. [12][13] Financial Performance and Growth - CECO has achieved a significant increase in its sales pipeline, growing from $1.5 billion to nearly $6 billion over the past few years [25][26] - The company anticipates a book-to-bill ratio of 1.2 for the current year, indicating a growth in orders exceeding sales by 20-30% [27][28] - Revenue guidance for the upcoming year is projected between $7.25 billion and $7.75 billion, with adjusted EBITDA expected to be between $90 million and $100 million [28][29] Market Position and Opportunities - CECO is positioned to capitalize on strong market demand in power, natural gas, and industrial water sectors, with significant growth expected in nuclear applications [31][32][33] - The company has made strategic acquisitions to enhance its capabilities in industrial water, projecting $100 million in sales for the upcoming year [33][34] - CECO's industrial air segment has shown steady double-digit growth due to its ability to pivot resources to various industries based on market demand [35][36] M&A Strategy - CECO has a history of making accretive acquisitions, with over a dozen completed since Todd Gleason's tenure began [14][23][54] - The company focuses on acquiring businesses that can achieve 20-30% growth in their first few years post-acquisition [14][15] - Recent acquisitions include Transcend, which enhances CECO's capabilities in separation filtration [54][56] Financial Health and Cash Flow - CECO maintains a healthy balance sheet and aims for free cash flow to be around 50-60% of adjusted EBITDA [60] - The company is opportunistic in its use of cash, prioritizing acquisitions and debt repayment over stock buybacks [61][63] Market Dynamics - CECO operates in a diverse industrial landscape, with varying performance across sectors; however, the overall outlook remains positive due to strong demand in energy and industrial markets [66][68] - The company has not observed significant project cancellations, indicating a stable pipeline despite economic fluctuations [69][70] Additional Insights - CECO's leadership emphasizes a long-term growth strategy, focusing on sustainable value creation and market leadership in niche industrial sectors [48][49] - The company is exploring potential rebranding to better align with its market positioning in power [20] This summary encapsulates the key insights from CECO Environmental's FY conference, highlighting the company's strategic direction, financial performance, market opportunities, and operational strategies.

Financial Performance & Outlook - CECO's Market Cap has increased by approximately 860% since 2021[9] - The company anticipates revenue between $850 million and $950 million in 2026, representing a 15% to 25% year-over-year increase[32] - Adjusted EBITDA is projected to be between $110 million and $130 million in 2026, a 20% to 40% year-over-year increase[32] - The company expects adjusted free cash flow to be 50%-60% of adjusted EBITDA in 2026[32] - CECO's Q3 2025 backlog reached $720 million, a 64% increase year-over-year[48] Growth & Strategy - CECO has averaged over 10% organic growth since 2021[13] - Approximately 50% of CECO's orders originate outside the U S[17] - The company's sales pipeline is approximately $5 8 billion[32] - CECO has deployed $15 million in stock buybacks since 2021, with an average price of approximately $8 20 per share[47] Market Positioning - Approximately 40% of CECO's business is in Industrial Air, 35% in Industrial Water, and 25% in Energy Transition[22]