Ceco Environmental Corp. ((CECO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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CECO Environmental Corp. recently held its second quarter 2025 earnings call, revealing a robust performance and a positive outlook for the future. The sentiment during the call was overwhelmingly optimistic, driven by significant growth in backlog, bookings, revenue, and EBITDA. Despite some concerns about modest inflation and previous project delays, the company’s strong performance and raised guidance underscore a bright future.
Record Backlog Growth
CECO Environmental Corp. reported a record backlog, closing the quarter at $688 million. This figure represents an impressive increase of nearly $300 million, or more than 75% year-over-year. This substantial growth in backlog is a testament to the company’s strong market position and ability to secure new projects.
Substantial Increase in Bookings
The second quarter of 2025 saw CECO achieve bookings of $274 million, marking a 95% increase compared to the same period last year. This quarter also marked the third consecutive quarter with bookings exceeding $200 million, highlighting the company’s consistent ability to attract new business.
Revenue and Adjusted EBITDA Growth
CECO’s revenue for the quarter reached $185 million, a 35% increase year-over-year. Additionally, the company’s adjusted EBITDA rose by 45% to over $23 million, driven by strong gross margins and improved SG&A costs. These figures reflect the company’s operational efficiency and financial health.
Raised Annual Guidance
In light of its strong performance, CECO raised its 2025 annual guidance for orders and revenue. The company now expects bookings to range between $870 million and $930 million, with revenue projected between $725 million and $775 million. This raised guidance indicates confidence in continued growth and market expansion.
Strong Performance in Diverse Markets
CECO experienced growth across various markets, including power generation, semiconductor, industrial water, and natural gas infrastructure. This diversification has been a key driver of the company’s strong performance and positions it well for future opportunities.
Modest Inflation Expected
The company anticipates some modest inflation in the second half of 2025, which could impact costs. However, CECO appears well-prepared to manage these potential challenges without significantly affecting its overall performance.
Project Delays in 2024
CECO faced project-related delays in the second half of 2024, but these issues have since been resolved. The company has taken steps to mitigate similar risks in the future, ensuring smoother project execution moving forward.
Forward-Looking Guidance
CECO Environmental Corp. provided forward-looking guidance that reflects its strong financial position and growth trajectory. With record-breaking figures in backlog and bookings, the company projects continued success in the coming quarters. The raised guidance for 2025 underscores CECO’s confidence in its strategic initiatives and market opportunities.
In summary, CECO Environmental Corp.’s second quarter 2025 earnings call painted a picture of a company on a strong upward trajectory. With record growth in backlog, bookings, and revenue, alongside a positive outlook for diverse markets, CECO is well-positioned for continued success. Despite minor challenges such as inflation and past project delays, the company’s raised guidance and strategic focus highlight a promising future.