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Sep 30, 2024
CECO Q3 2024 Earnings Report
CECO's Q3 2024 results were impacted by customer-driven project delays, despite record bookings and backlog, with acquisitions of WK and Profire Energy announced.
Key Takeaways
CECO Environmental reported a decrease in revenue and net income for Q3 2024, impacted by customer-driven project delays, although orders and backlog increased. The company completed the acquisition of WK and announced the acquisition of Profire Energy.
Orders increased by 12 percent to $162.3 million.
Backlog reached $437.5 million.
Revenue decreased by 9 percent to $135.5 million.
GAAP EPS (diluted) was $0.06; non-GAAP EPS (diluted) was $0.14.
CECO
CECO
Forward Guidance
The Company updated its 2024 full year revenue guidance to reflect revenue between $575 and $600 million, up approximately 10 percent year over year at the midpoint of the range, and adjusted EBITDA between $65 to $70 million, up approximately 17 percent year over year, at the midpoint of the range. The Company introduced its 2025 full year guidance to reflect revenue between $700 and $750 million, up approximately 25 percent at the midpoint of the range, and adjusted EBITDA between $90 and $100 million, up approximately 40% at the midpoint of the range.
Positive Outlook
- Revenue between $575 and $600 million for 2024.
- Adjusted EBITDA between $65 and $70 million for 2024.
- Book to bill rate of or in excess of 1.2x for 2024.
- Revenue between $700 and $750 million for 2025.
- Adjusted EBITDA between $90 and $100 million for 2025.
Challenges Ahead
- Customer-driven delays impacted revenue.
- Reduced guidance issued mid-year.
- Project delays affecting short-term results.
- First time reduced guidance in company history.
- Impact on ability to hit raised guidance.