CECO Environmental soars 15% after beating Q2 estimates

Published 29/07/2025, 13:48
CECO Environmental soars 15% after beating Q2 estimates

Investing.com -- CECO Environmental Corp. (NASDAQ:CECO) reported second-quarter earnings that significantly exceeded analyst expectations, sending shares soaring 14.8% premarket as investors cheered both the strong results and raised guidance.

The environmental solutions provider reported adjusted earnings per share of $0.24 for the second quarter, beating analyst estimates of $0.18 by 33%. Revenue jumped to $185.4 million, surpassing the consensus estimate of $178.66 million and representing a 35% increase YoY.

CECO’s performance was fueled by record orders of $274.1 million, up 95% from the same period last year, which helped push backlog to an all-time high of $688.1 million, a 76% increase YoY. The company’s gross profit margin reached 36.2%, with gross margin dollars increasing 37% to $67.1 million.

"We delivered another record quarter, led by tremendous orders, which were up 95% year-over-year," said Todd Gleason, CECO’s Chief Executive Officer. "Our diverse and well-positioned portfolio of leading environmental solutions for industrial air, industrial water and energy transition markets continue to gain traction in key markets and new geographies."

The company secured its largest-ever order during the quarter for emissions management solutions for a large power generation project, contributing to the record performance.

Based on the strong results, CECO raised its full-year 2025 revenue guidance to $725-775 million from its previous outlook of $700-750 million, well above the analyst consensus of $727 million. The company maintained its adjusted EBITDA forecast of $90-100 million.

Free cash flow was -$3.0 million for the quarter, down $5.6 million compared to $2.6 million in the second quarter of 2024, while adjusted EBITDA increased 45% to $23.3 million.

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