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Ceco Environmental
(NASDAQ:CECO)
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Rating:56Neutral
Price Target:
$68.00
▼(-3.23% Downside)
Action:Reiterated
Date:10/09/26
The score is held back primarily by weak recent financial execution—TTM losses and negative free cash flow—despite strong longer-term growth and improved balance-sheet leverage. Offsetting this, the latest earnings call was notably strong with raised guidance, record orders, and expanding backlog, but current technicals remain bearish and valuation is constrained by negative earnings.
Positive Factors
Strong revenue growth and backlog
CECO combines substantial historical revenue growth with a rapidly expanding backlog, providing stronger visibility into future sales than a standalone quarterly result. This supports continued scale benefits, reinforces customer demand, and creates a durable foundation for growth over the next several quarters.
Negative Factors
Recent profitability reversal
The sharp move from solid 2025 earnings to a TTM net loss and negative EBITDA shows that recent growth has not translated consistently into bottom-line profitability. Until earnings recover, CECO has less internal capacity to fund expansion and remains more exposed to execution variability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and backlog
CECO combines substantial historical revenue growth with a rapidly expanding backlog, providing stronger visibility into future sales than a standalone quarterly result. This supports continued scale benefits, reinforces customer demand, and creates a durable foundation for growth over the next several quarters.
Read all positive factors
Ceco Environmental (CECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.86B
Dividend Yield2.96%
Average Volume (3M)714.79K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth37.64%
EPS Growth-145.85%
CountryUS
Employees1,540
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.58
Shares Outstanding58,569,830
10 Day Avg. Volume724,429
30 Day Avg. Volume714,791
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)6.66
Price to Sales (P/S)2.73
P/FCF Ratio-385.73
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue5.09
Enterprise Value/Gross Profit15.59
Enterprise Value/Ebitda148.76
Forecast
1Y Price Target
$107.00Price Target Upside52.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.25
Revenue Forecast (FY)$1.34B
Ceco Environmental Business Overview & Revenue Model
Company Description
CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions in the United States, the United Kingdom, the Netherlands, China, and internationally. It operates through ...
How the Company Makes Money
CECO makes money primarily by selling engineered environmental equipment and complete systems to industrial customers, with revenue typically recognized from (1) product and system sales and (2) project-based engineering and integration work. A me...
Ceco Environmental Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operating momentum: record orders, a rapidly growing backlog, robust pipeline, meaningful quarter-over-quarter and year-over-year revenue and EBITDA growth, early Thermon integration synergies, raised guidance, and strong cash generation. Key near-term challenges include acquisition-related one-time costs, a sizable increase in debt and leverage from the Thermon purchase (though management is actively de-levering and has available liquidity), partial rather than complete synergy realization to date, and timing uncertainty for some large industrial water projects due to geopolitical delays. On balance, the positives dominate with high-confidence revenue visibility and integration progress.Positive Updates
Record Orders and Backlog
Orders of $799 million in Q2 2026 (company record); quarter-end backlog of $1.82 billion, up 164% year-over-year and up 76% sequentially; backlog has increased 12 consecutive quarters and ~8.5x since end of 2021.
Negative Updates
Acquisition-Related Cash and One-Time Costs
Incurred approximately $21 million of year-to-date costs related to Thermon acquisition (change-in-control payments and accelerated equity vesting); these costs were necessary to capture early synergies and reduce future operating expense base.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Orders and Backlog
Orders of $799 million in Q2 2026 (company record); quarter-end backlog of $1.82 billion, up 164% year-over-year and up 76% sequentially; backlog has increased 12 consecutive quarters and ~8.5x since end of 2021.
Read all positive updates
Company Guidance
CECO raised its full‑year 2026 guidance, now targeting revenue of $1.30–$1.375 billion (about 20% YoY at the midpoint) and adjusted EBITDA of $200–$225 million (management still expects mid‑teens EBITDA margins), with adjusted free cash flow conversion of at least 55% of adjusted EBITDA; the outlook includes roughly $5 million of 2026 realized Thermon cost synergies. On a pro‑forma calendar‑year basis (Thermon for the full year) management estimates revenue of ~$1.5–$1.6 billion and adjusted EBITDA of ~$255–$280 million, and continues to expect full‑year orders to easily exceed $2 billion. Management also noted integration progress—~$13 million of annualized net adjusted EBITDA savings captured in the first 60 days (≈1/3 of a $40 million synergy target), with ~$17–$20 million of annualized net adjusted EBITDA savings expected by year‑1—and pointed to supporting metrics behind the raised guidance including a quarter‑end backlog of ~$1.82 billion, a sales pipeline exceeding $8.5 billion and a trailing‑12‑month book‑to‑bill above 2.Ceco Environmental Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 911.95M | 774.38M | 557.93M | 544.85M | 422.63M | 324.14M |
| Gross Profit | 297.81M | 253.06M | 196.15M | 171.02M | 128.22M | 100.92M |
| EBITDA | 31.21M | 128.64M | 45.23M | 47.45M | 38.33M | 21.89M |
| Net Income | -27.16M | 50.05M | 12.96M | 12.91M | 17.42M | 1.43M |
Balance Sheet | ||||||
| Total Assets | 3.73B | 893.77M | 759.70M | 600.29M | 504.72M | 416.20M |
| Cash, Cash Equivalents and Short-Term Investments | 61.07M | 33.14M | 37.83M | 54.78M | 45.52M | 29.90M |
| Total Debt | 762.72M | 24.84M | 249.92M | 155.48M | 123.53M | 75.56M |
| Total Liabilities | 1.65B | 570.59M | 507.81M | 362.80M | 286.57M | 210.24M |
| Stockholders Equity | 2.08B | 317.53M | 247.69M | 232.64M | 213.22M | 204.55M |
Cash Flow | ||||||
| Free Cash Flow | -11.39M | -5.48M | 7.46M | 36.26M | 26.27M | 10.68M |
| Operating Cash Flow | 11.76M | 5.86M | 24.83M | 44.65M | 29.65M | 13.30M |
| Investing Cash Flow | -441.12M | -1.08M | -105.31M | -56.49M | -48.26M | -2.08M |
| Financing Cash Flow | 437.10M | -11.56M | 65.91M | 21.14M | 38.18M | -15.56M |
Ceco Environmental Technical Analysis
Negative
70.27
Price Trends
72.44
Negative
78.21
Negative
72.30
Negative
Market Momentum
-1.09
Positive
38.93
Neutral
19.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CECO, the sentiment is Negative. The current price of 70.27 is below the 20-day moving average (MA) of 71.27, below the 50-day MA of 72.44, and below the 200-day MA of 72.30, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CECO.
Ceco Environmental Risk Analysis
Ceco Environmental disclosed 47 risk factors in its most recent earnings report. Ceco Environmental reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ceco Environmental Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.63B | 24.29 | 32.79% | 0.54% | 6.23% | 10.77% | |
71 Outperform | $349.15M | 23.35 | 8.25% | ― | -14.95% | -31.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $3.86B | -113.13 | -3.60% | 2.96% | 37.64% | -145.85% | |
53 Neutral | $51.51M | -14.68 | -8.88% | ― | 8.89% | -6.47% | |
48 Neutral | $21.85M | -3.49 | -58.08% | ― | 82.74% | 17.79% | |
43 Neutral | $13.44M | -0.48 | -68.70% | ― | -0.17% | 37.55% |
* Industrials Sector Average
CECO
Ceco Environmental
65.82
17.30
35.66%
ERII
Energy Recovery
6.84
-8.72
-56.04%
FTEK
Fuel Tech
1.65
-1.30
-44.07%
CLIR
ClearSign Combustion
3.21
-5.99
-65.11%
LIQT
LiqTech International
0.41
-2.47
-85.83%
VLTO
Veralto Corporation
96.93
-3.94
-3.91%
Ceco Environmental Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Ceco Environmental Shifts Primary Listing to Texas Exchange
Positive
Oct 5, 2026
On October 2, 2026, CECO Environmental Corp. announced that its board had approved the voluntary transfer of the company’s primary stock exchange listing from the Nasdaq Global Select Market to the Texas Stock Exchange, with trading expected...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.