Financial Data and Key Metrics Changes - The company reported a record backlog of $720 million, up 64% year-over-year and 5% sequentially [14][15] - Quarterly revenue reached $198 million, marking a 46% increase year-over-year [15][16] - Adjusted EBITDA increased by 62% to $23.2 million, with adjusted EPS rising 86% to $0.26 [9][16] Business Line Data and Key Metrics Changes - The company achieved $233 million in new bookings, a 44% increase compared to Q3 2024, with a book-to-bill ratio of approximately 1.2 times [14][15] - The backlog has more than tripled since the end of 2021, with a year-to-date book-to-bill ratio of approximately 1.3 times [18][19] Market Data and Key Metrics Changes - The sales pipeline now exceeds $5.8 billion, indicating strong future growth potential [8][35] - The company is well-positioned in sectors such as power generation, industrial water, and natural gas infrastructure, with substantial orders expected in the coming quarters [11][12] Company Strategy and Development Direction - The company aims to exceed $1 billion in orders for 2026, with projected revenue between $850 million and $950 million, reflecting a year-over-year increase of 15% to 25% [30][31] - Continued focus on operational excellence and cost management initiatives, including the implementation of the 80/20 model, to enhance efficiency and margins [22][54] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about market dynamics, particularly in energy transition investments and industrial reshoring [28][29] - The company is closely monitoring potential challenges such as tariffs and inflation but believes it is well-prepared to navigate these issues [14][29] Other Important Information - The company has not announced any new M&A transactions since the sale of its global pump business and the acquisition of Profire Energy, but it is actively building its M&A pipeline [13][27] - Free cash flow for the quarter was approximately $19 million, with a year-to-date capital expenditure of about $8.7 million [23][24] Q&A Session Summary Question: Update on large projects in industrial water and power generation - Management indicated strong positioning for large projects, particularly in the Middle East and Asia, focusing on produced water and water reuse applications [39][40] Question: Visibility on 2026 outlook and potential for upward adjustments - Management expressed confidence in the $5.8 billion sales pipeline and noted that winning additional large projects could enhance the 2026 outlook [41][43] Question: Update on the power generation pipeline - Management reported a robust pipeline exceeding $1 billion, with ongoing positive discussions with major OEMs [47][48] Question: Confidence in targeted adjusted EBITDA margin expansion - Management outlined a three-pronged approach to margin expansion, focusing on volume growth, operational investments, and cost management initiatives [52][54] Question: Opportunities in disaggregated power solutions - Management noted limited opportunities depending on the type of power solutions being implemented, with potential for small format gas turbines [61] Question: Macroeconomic backdrop for 2026 guidance - Management indicated a stable macroeconomic environment, with no significant changes expected to impact the company's outlook [69][71] Question: Cross-selling opportunities with Profire Energy - Management highlighted ongoing discussions and initiatives to leverage Profire's offerings across a broader industrial customer base [72][75] Question: Confidence in Q4 bookings potentially being the largest ever - Management cited strong order performance and a record backlog as reasons for confidence in achieving significant bookings in Q4 [76][77]

Financial Data and Key Metrics Changes - The company reported a record backlog of $720 million, up approximately 64% year-over-year and 5% sequentially [6][14] - Quarterly revenue reached an all-time high of $198 million, representing a 46% increase year-over-year [8][15] - Adjusted EBITDA increased by 62% to $23.2 million, with adjusted EPS rising 86% to $0.26 [9][16] - Free cash flow for the quarter was approximately $19 million, showing a strong rebound from the first half of 2025 [9][23] Business Line Data and Key Metrics Changes - The company achieved new bookings of $233 million in Q3 2025, a 44% increase compared to Q3 2024, with a book-to-bill ratio of approximately 1.2x [7][14] - Approximately 30% of the year-over-year revenue increase was attributed to recent acquisitions, with the remainder from organic growth [16] - The sales pipeline now exceeds $5.8 billion, indicating strong future growth potential [8][34] Market Data and Key Metrics Changes - The company is well-positioned in sectors such as power generation, industrial water, and natural gas infrastructure, with substantial order growth expected in these areas [11][12] - The company anticipates significant orders in the next four to six quarters, particularly in international water infrastructure projects [12][28] Company Strategy and Development Direction - The company aims to maintain a strong market presence by optimizing project pricing and margin levels while expanding into new geographies [12][13] - The focus remains on building a world-class industrial company through strategic M&A activities and enhancing operational excellence [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential challenges such as tariffs and inflation while maintaining a strong growth trajectory [14][28] - The outlook for 2026 includes projected revenue between $850 million and $950 million, reflecting a year-over-year increase of 15%-25% [29][30] Other Important Information - The company has not announced any new M&A transactions since the sale of its global pump business and the acquisition of Profire Energy, but remains active in building its M&A pipeline [13][26] - The company expects to achieve a net debt to EBITDA leverage ratio of approximately 2.3x, improving its financial flexibility [25] Q&A Session Summary Question: Update on project pipeline in industrial water and power generation - Management highlighted strong positioning in large projects, particularly in the Middle East and Asia, focusing on produced water and water reuse applications [38][39] Question: 2026 outlook and potential for upward adjustments - Management indicated that the $5.8 billion sales pipeline provides high confidence for future bookings, with potential for exceeding current guidance based on project wins [40][42] Question: Activity levels in power generation and data center connections - Management noted robust activity in the power generation sector, with a well over $1 billion pipeline, but cautioned against over-expectation due to the multi-year nature of these projects [46][48] Question: Confidence in adjusted EBITDA margin expansion - Management expressed confidence in achieving 100-150 basis points of margin expansion through volume growth, operational excellence initiatives, and cost management [51][53] Question: Opportunities in disaggregated power solutions - Management acknowledged potential opportunities depending on the type of power solutions chosen, with a focus on small format gas turbines [60] Question: Macroeconomic backdrop for 2026 guidance - Management indicated a stable macroeconomic environment is assumed, with no significant positive or negative changes expected [68][70] Question: Cross-selling opportunities with Profire - Management confirmed ongoing discussions and initiatives to leverage Profire's offerings across CECO's broader industrial customer base [71][74] Question: Confidence in Q4 bookings potentially being the largest ever - Management cited strong order performance and ongoing dialogues with customers as reasons for confidence in achieving record bookings in Q4 [75][77]

Financial Data and Key Metrics Changes - The company reported a record backlog of $720 million, up 64% year-over-year and 5% sequentially [15][19] - Quarterly revenue reached $198 million, marking a 46% increase year-over-year [16][17] - Adjusted EBITDA increased by 62% to $23.2 million, with adjusted EPS rising 86% to $0.26 [9][17] Business Line Data and Key Metrics Changes - The company achieved $233 million in new bookings, a 44% increase compared to Q3 2024, with a book-to-bill ratio of approximately 1.2 [6][15] - The backlog growth was driven by strong demand in power generation, natural gas infrastructure, and industrial water applications [16][19] Market Data and Key Metrics Changes - The sales pipeline now exceeds $5.8 billion, indicating strong future growth potential [8][35] - The company is well-positioned to benefit from market dynamics in power, industrial reshoring, and water infrastructure sectors [11][12] Company Strategy and Development Direction - The company is focused on expanding its capabilities in industrial air and energy applications while optimizing project pricing and margins [12][50] - There is an ongoing emphasis on M&A opportunities to enhance the sustainability of the company's portfolio [13][27] Management's Comments on Operating Environment and Future Outlook - Management remains bullish about the market dynamics and has reaffirmed the full-year 2025 outlook while providing an optimistic initial outlook for 2026 [5][31] - The company is monitoring potential challenges such as tariffs and inflation but believes it is well-prepared to navigate these issues [14][30] Other Important Information - The company expects Q4 bookings to exceed $250 million, with the potential for a record quarter above $300 million depending on project timing [10][68] - The company has made significant investments in operational excellence and cost management initiatives to drive future profitability [23][50] Q&A Session Summary Question: Update on project pipeline in industrial water and power generation - Management indicated strong positioning in large projects, particularly in the Middle East and Asia, focusing on produced water and water reuse applications [38] Question: Visibility on 2026 outlook and potential for upward adjustments - Management expressed confidence in the $5.8 billion sales pipeline and noted that winning additional large projects could enhance the 2026 outlook [39][40] Question: Update on power generation pipeline and activity levels - Management noted robust activity in the power generation sector, with a pipeline exceeding $1 billion, and emphasized the multi-year nature of these projects [44][46] Question: Confidence in targeted adjusted EBITDA margin expansion - Management outlined a three-pronged approach to margin expansion, focusing on volume growth, operational efficiencies, and cost management initiatives [48][50] Question: Cross-selling opportunities with Profire Energy - Management highlighted ongoing discussions and initiatives to leverage Profire's offerings across CECO's broader industrial customer base [63][66] Question: Macroeconomic backdrop for 2026 guidance - Management indicated a stable macroeconomic environment, with no significant changes expected to impact the company's outlook [60][62]