Investing.com -- Shares of CECO Environmental Corp. (NASDAQ:CECO) fell sharply by 12% after the company announced a reduction in its full-year 2024 revenue guidance. The downward revision comes as a result of customer-driven project delays which have negatively impacted the company’s Q4 revenue and EBITDA.
CECO Environmental, in its preliminary financial results, expects to report revenues between $555 to $558 million for the full year ended 2024, a decrease from the previously projected range of $575 to $600 million. Adjusted EBITDA is also anticipated to be lower, with estimates now between $62 to $63 million compared to the initial forecast of $65 to $70 million. The company attributes the softness in its fourth-quarter and full-year financial performance primarily to delays in customer-driven projects.
Despite the setback, CECO Environmental achieved over $210 million in bookings for Q4 2024, establishing a new record for the company and resulting in the highest-ever backlog levels. CEO Todd Gleason expressed disappointment in missing the 2024 outlook but remains confident in the company’s full-year 2025 outlook, citing the roll-over of project revenues and income into 2025 and a strong sales pipeline in energy transition and general industrial markets.
The company also highlighted its strategic moves, including the acquisition of Verantis Environmental Solutions Group in late Q4 and the intent to divest its Fluid Handling business, expected to be completed in late Q1 2025. The proceeds from this divestiture are planned to be used to reduce debt and support future strategic growth investments.
CECO Environmental maintains its full-year 2025 outlook, projecting revenues of $700 to $750 million and Adjusted EBITDA of $90 to $100 million. This guidance reflects a significant year-over-year (YoY) increase and includes the impact of completed acquisitions, the anticipated sale of the Fluid Handling business, and the deferred revenue from 2024 project delays.
The company’s preliminary financial results are unaudited and subject to change following the completion of audit procedures. More detailed information on CECO Environmental’s 2024 performance and the 2025 outlook will be provided in the full earnings report scheduled for release next month.
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