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Ceco Environmental
(NASDAQ:CECO)
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Rating:60Neutral
Price Target:
$63.00
▼(-16.70% Downside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by weak cash flow (negative free cash flow recently), a bearish technical setup (price below major moving averages), and an expensive P/E with no dividend support. Offsetting these, management communicated strong operating momentum with raised guidance, record backlog/orders, and the Thermon acquisition closing with an upgraded combined outlook.
Positive Factors
Record Backlog & Bookings
A record backlog and a >$7B pipeline provide durable multi-quarter revenue visibility and reduce near-term demand risk. High bookings and a 2.2x book-to-bill support sustained organic growth, enabling better capacity planning, margin recovery as projects ramp, and credibility behind raised guidance.
Negative Factors
Weak Cash Generation
Recent negative free cash flow and poor cash conversion mean earnings are not reliably converting into cash. This elevates dependence on external financing for operations and strategic moves, constrains organic reinvestment, and heightens execution risk if collections or working capital normalize slower than management expects.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Backlog & Bookings
A record backlog and a >$7B pipeline provide durable multi-quarter revenue visibility and reduce near-term demand risk. High bookings and a 2.2x book-to-bill support sustained organic growth, enabling better capacity planning, margin recovery as projects ramp, and credibility behind raised guidance.
Read all positive factors
Ceco Environmental (CECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.85B
Dividend YieldN/A
Average Volume (3M)748.21K
Price to Earnings (P/E)135.0
Beta (1Y)1.02
Revenue Growth32.11%
EPS Growth-71.47%
CountryUS
Employees1,540
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.49
Shares Outstanding58,403,030
10 Day Avg. Volume653,535
30 Day Avg. Volume748,212
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$117.20Price Target Upside54.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.85
Revenue Forecast (FY)$1.30B
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 primarily makes money by selling engineered environmental and industrial process equipment and by providing associated services over the lifecycle of that equipment. Key revenue streams generally include: (1) New equipment and engineered syst...
Ceco Environmental Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and bookings narrative: record orders, record backlog, broadened sales pipeline (> $7B), sizable April orders including a ~$300M mega‑order, double‑digit revenue growth (17% YoY) and material adjusted EBITDA expansion (46% YoY in Q1; TTM margin expansion). Management raised full‑year standalone guidance and remains confident in the Thermon acquisition and $40M of cost synergies, while noting expected margin recovery later in the year. Key negatives are near‑term margin compression from prior divestiture and project timing, seasonal Q1 cash consumption (exacerbated by a delayed ~$20M payment), modestly higher debt/leverage, and some Middle East timing risk. Overall, the positive operational momentum, record backlog and raised guidance outweigh the near‑term cash and margin headwinds.Positive Updates
Record Orders and Backlog
Orders of $449 million in Q1 2026, a company record and a 97% increase year‑over‑year. Backlog reached a record $1.035 billion, up ~72% YoY and up $242 million sequentially (31%). Book-to-bill in the quarter was ~2.2x and trailing 12-month bookings were $1.286 billion (up 71% YoY).
Negative Updates
Gross Margin Contraction in Q1
Gross profit growth was modest in Q1 (up ~3% QoQ for the quarter) while revenue jumped 17% YoY, reflecting margin compression. Management attributed contraction to the prior‑year sale of the higher‑margin Global Pump Solutions business and timing/quality mix from lower‑margin jobs booked in early 2025; target gross profit margin of 34%+ not yet achieved but expected to trend higher later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Orders and Backlog
Orders of $449 million in Q1 2026, a company record and a 97% increase year‑over‑year. Backlog reached a record $1.035 billion, up ~72% YoY and up $242 million sequentially (31%). Book-to-bill in the quarter was ~2.2x and trailing 12-month bookings were $1.286 billion (up 71% YoY).
Read all positive updates
Company Guidance
CECO raised its full-year 2026 guidance (the second raise this year and not inclusive of Thermon) to revenue of $940 million to $1.0 billion (midpoint implying ~25% organic sales growth) and adjusted EBITDA of $120 million to $140 million (midpoint implying ~44% EBITDA growth and ~170 bps of margin expansion), driven by record backlog of $1.035 billion (up ~72% YoY), Q1 orders of $449 million (up 97%, book-to-bill ~2.2), a >$7 billion sales pipeline, and April bookings already north of $400 million (including a roughly $300 million largest-ever order); Q1 results included revenue of $206 million (up 17%), adjusted EBITDA of $20.4 million (up 46%, ~10% margin), trailing‑12‑month revenue of $804 million (up 32%) and adjusted EBITDA of $96.7 million (12% margin, with the company expecting to cross $100 million TTM adjusted EBITDA shortly), while the company reiterated Thermon closing in early June with $40 million of expected cost synergies.Ceco Environmental Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 812.38M | 774.38M | 557.93M | 544.85M | 422.63M | 324.14M |
| Gross Profit | 278.45M | 253.06M | 196.15M | 171.02M | 128.22M | 100.92M |
| EBITDA | 77.75M | 128.64M | 45.23M | 47.45M | 38.33M | 21.89M |
| Net Income | 17.12M | 50.05M | 12.96M | 12.91M | 17.42M | 1.43M |
Balance Sheet | ||||||
| Total Assets | 1.03B | 893.77M | 759.70M | 600.29M | 504.72M | 416.20M |
| Cash, Cash Equivalents and Short-Term Investments | 45.41M | 33.14M | 37.83M | 54.78M | 45.52M | 29.90M |
| Total Debt | 28.45M | 24.84M | 249.92M | 155.48M | 123.53M | 75.56M |
| Total Liabilities | 710.17M | 570.59M | 507.81M | 362.80M | 286.57M | 210.24M |
| Stockholders Equity | 312.20M | 317.53M | 247.69M | 232.64M | 213.22M | 204.55M |
Cash Flow | ||||||
| Free Cash Flow | 4.12M | -5.48M | 7.46M | 36.26M | 26.27M | 10.68M |
| Operating Cash Flow | 23.42M | 5.86M | 24.83M | 44.65M | 29.65M | 13.30M |
| Investing Cash Flow | -6.98M | -1.08M | -105.31M | -56.49M | -48.26M | -2.08M |
| Financing Cash Flow | -138.87M | -11.56M | 65.91M | 21.14M | 38.18M | -15.56M |
Ceco Environmental Technical Analysis
Negative
75.63
Price Trends
83.47
Negative
75.52
Negative
67.62
Positive
Market Momentum
-5.17
Positive
37.73
Neutral
28.77
Neutral
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 75.63 is below the 20-day moving average (MA) of 76.53, below the 50-day MA of 83.47, and above the 200-day MA of 67.62, indicating a neutral trend. The MACD of -5.17 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $445.87M | 22.13 | 10.89% | ― | -3.05% | 4.46% | |
60 Neutral | $3.85B | 134.97 | 5.54% | ― | 32.11% | -71.47% | |
50 Neutral | $43.94M | -14.89 | -7.34% | ― | -0.69% | 1.97% | |
48 Neutral | $24.35M | -3.85 | -61.23% | ― | 73.54% | 17.08% | |
47 Neutral | $1.26B | -5.05 | -408.05% | ― | 590.00% | -15.72% | |
42 Neutral | $38.14M | -1.52 | -338.76% | ― | ― | ― |
* Industrials Sector Average
CECO
Ceco Environmental
68.33
23.49
52.39%
ERII
Energy Recovery
8.91
-4.42
-33.16%
FTEK
Fuel Tech
1.50
-1.30
-46.43%
CLIR
ClearSign Combustion
3.96
-1.51
-27.62%
SCWO
374Water
2.32
0.17
7.91%
PCT
PureCycle Technologies
7.01
-6.27
-47.21%
Ceco Environmental Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
CECO Updates Outlook Following Thermon Acquisition Integration Progress
Positive
Jun 9, 2026
On June 9, 2026, CECO Environmental updated investors on its recently closed acquisition of Thermon Group Holdings, noting that the deal, completed on June 1, 2026, is integrating smoothly and already delivering early cost and growth synergies wit...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
CECO Environmental Closes Transformative Merger With Thermon Group
Positive
Jun 1, 2026
On June 1, 2026, CECO Environmental completed its previously announced strategic merger with Thermon Group Holdings, with Thermon becoming a wholly owned subsidiary through a two-step merger structure and later renamed Thermon Group Holdings, LLC....
Business Operations and StrategyM&A TransactionsShareholder Meetings
CECO Environmental Shareholders Overwhelmingly Approve Thermon Merger
Positive
May 28, 2026
On May 27, 2026, CECO Environmental stockholders approved several key proposals at their annual meeting, including the issuance of new shares to facilitate its merger with Thermon Group Holdings, the election of eight directors, an advisory endors...
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.