Overview

* CECO Q2 revenue up 35% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS of $0.24 beats estimates, reflecting strong operational performance

* Orders surge 95%, backlog reaches $688.1 mln

Outlook

* CECO raises 2025 revenue outlook to $725-$775 mln

* Company maintains 2025 adjusted EBITDA guidance of $90-$100 mln

* CECO expects >60% free cash flow conversion of adjusted EBITDA

* Company cites record backlog and growing sales pipeline for confidence

Result Drivers

* RECORD ORDERS - CECO's orders surged 95% year-over-year, driven by its largest-ever order for emissions management solutions in a power generation project

* BACKLOG GROWTH - The company's backlog reached an all-time high of $688 mln, up 76% from the previous year, supported by strong demand in natural gas and water infrastructure projects

* DIVERSE PORTFOLIO - CECO's environmental solutions for industrial air, water, and energy transition markets gained traction in key markets and new geographies, contributing to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $185.39 $178.70

Revenue mln mln (6

Analysts

)

Q2 Beat $0.24 $0.18 (6

Adjusted Analysts

EPS )

Q2 Beat $8.70 $7.10

Adjusted mln mln (4

Net Analysts

Income )

Q2 Beat $23.30 $20.60

Adjusted mln mln (6

EBITDA Analysts

)

Q2 $18.30

Adjusted mln

Operatin

g Income

Q2 Free -$3 mln

Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the environmental services & equipment peer group is "buy"

* Wall Street's median 12-month price target for CECO Environmental Corp ( CECO ) is $34.50, about 0.6% below its July 28 closing price of $34.71

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)