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Sep 30, 2023
CECO Q3 2023 Earnings Report
CECO Environmental reported record revenue, backlog, gross profit, and cash flow dollars.
Key Takeaways
CECO Environmental reported a strong third quarter with record revenue, gross profit, and cash flow. Revenue increased by 38% to $149.4 million, and net income rose by 74% to $3.3 million. The company also raised its full-year 2023 outlook and introduced 2024 guidance, highlighting sustainable double-digit top-line and continued bottom-line growth.
Orders increased by 43 percent, reaching $145.5 million, and backlog increased by 42 percent, reaching a record $394.0 million.
Revenue increased by 38 percent, reaching $149.4 million, while net income increased by 74 percent, reaching $3.3 million.
Gross profit increased by 33 percent, reaching $43.1 million.
Adjusted EBITDA increased by 64 percent, reaching $15.1 million.
CECO
CECO
Forward Guidance
The Company updated its full year 2023 guidance to reflect revenue between $525 and $550 million, up approximately 25% year over year, and adjusted EBITDA between $55 and $57 million, up approximately 33% year over year. The Company also introduced its full year 2024 guidance of $575 to $600 million in revenue, up 10% year over year, at the midpoint; and its expected adjusted EBITDA to be $65 to $70 million, up approximately 21% year over year, at the midpoint.
Positive Outlook
- Revenue between $525 and $550 million for full year 2023, up approximately 25% year over year.
- Adjusted EBITDA between $55 and $57 million for full year 2023, up approximately 33% year over year.
- Revenue between $575 and $600 million for full year 2024, up 10% year over year, at the midpoint.
- Adjusted EBITDA between $65 and $70 million for full year 2024, up approximately 21% year over year, at the midpoint.
- Free cash flow is expected to be 50% to 70% of the full year adjusted EBITDA guidance range.