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Sep 30, 2021
CECO Q3 2021 Earnings Report
CECO Environmental's Q3 2021 results were impacted by a challenging operating environment, despite a 39 percent increase in bookings.
Key Takeaways
CECO Environmental reported a revenue increase of $80.0 million compared to $77.4 million in the same quarter last year. However, the company experienced a net loss of $(1.2) million, a decrease from the $(0.2) million loss in the prior year. Bookings increased by 39 percent.
Revenue reached $80.0 million, up from $77.4 million.
Gross profit was $22.7 million with a 28.4% margin, compared to $24.8 million with a 32.0% margin.
The company reported an operating loss of $(0.6) million, down from an operating income of $1.0 million.
Bookings increased to $92.6 million, compared to $66.8 million.
CECO
CECO
Forward Guidance
The company expects improved volumes and margins in the fourth quarter, leading to double-digit revenue growth and a more than doubling of adjusted EBITDA sequentially from the third quarter.
Positive Outlook
- Improved volumes expected.
- Improved margins expected.
- Double-digit revenue growth anticipated.
- Adjusted EBITDA expected to more than double sequentially.
- Stronger financial results expected in Q4 and throughout 2022.
Challenges Ahead
- Challenges associated with lower-margin projects booked in late 2020.
- Short-term execution issues associated with supply chain and logistics costs.
- Customer delays.
- Labor shortages.
- Uncertainties regarding the extent and duration of impacts of matters associated with the novel coronavirus (“COVID-19”)