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Jun 30, 2024
CECO Q2 2024 Earnings Report
CECO Environmental achieved record revenue, gross profits, gross margins, and EBITDA, closed a strategic industrial air acquisition, and raised its full-year outlook.
Key Takeaways
CECO Environmental reported strong Q2 2024 results, achieving record revenue, gross profit, and adjusted EBITDA. The company's backlog remains near record levels, and they completed the acquisition of EnviroCare International. They also raised their full-year revenue and adjusted EBITDA guidance.
CECO reported record revenue of $137.5 million, up 6 percent.
Gross profit increased by 23 percent to $49.0 million, with gross margins up 480 basis points to 35.6 percent.
Net income rose by 22 percent to $4.5 million, and non-GAAP net income increased by 42 percent to $7.4 million.
The company completed the acquisition of EnviroCare International (ECI) and raised its full-year outlook.
CECO
CECO
Forward Guidance
CECO Environmental raised its 2024 full-year revenue guidance to between $600 and $620 million and adjusted EBITDA to between $68 and $72 million. The company maintains its full-year outlook for free cash flow of 50% to 70% of adjusted EBITDA.
Positive Outlook
- Revenue is expected to be between $600 and $620 million, up approximately 12 percent at the midpoint of the range.
- Adjusted EBITDA is projected to be between $68 to $72 million, up approximately 21 percent year over year at the midpoint of the range.
- The acquisition of ECI is expected to be accretive to the Company’s 2024 full-year results.
- Strong backlog and record sales pipeline.
- Ongoing process improvements.
Challenges Ahead
- Delays in certain projects and customer programs have hampered bookings and sales.
- Free cash flow outlook is maintained at 50% to 70% of adjusted EBITDA.
- Potential risks and uncertainties that could cause actual results to differ materially.
- Sensitivity of the business to economic and financial market conditions.
- Dependence on fixed price contracts.