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Sep 30
CECO Q3 2025 Earnings Report
CECO Environmental reported strong third quarter 2025 results with significant growth in orders, revenue, and adjusted EBITDA.
Key Takeaways
CECO Environmental delivered an outstanding third quarter in 2025, achieving record-breaking revenues and backlog. The company reported a 46% increase in revenue to $197.6 million and a 62% rise in Adjusted EBITDA to $23.2 million, driven by strong order growth and strategic acquisitions. Net income was $1.5 million, with non-GAAP net income at $9.3 million, reflecting continued operational excellence and portfolio transformation.
Orders surged by 44% to $232.9 million, contributing to a record backlog of $719.6 million, up 64%.
Revenue increased by 46% to $197.6 million, marking the highest quarterly revenue ever achieved by the company.
Adjusted EBITDA grew by 62% to $23.2 million, with an adjusted EBITDA margin of 11.7%.
GAAP diluted EPS was $0.04, while non-GAAP diluted EPS reached $0.26, demonstrating strong underlying profitability.
CECO
CECO
Forward Guidance
CECO Environmental reaffirmed its full-year 2025 outlook and introduced a strong 2026 outlook, anticipating continued growth in revenue and adjusted EBITDA, driven by a robust sales pipeline and strategic initiatives.
Positive Outlook
- Maintains 2025 full-year revenue outlook of $725 million to $775 million, representing approximately 35% growth at the midpoint.
- Reaffirms 2025 adjusted EBITDA outlook between $90 million to $100 million, indicating approximately 50% growth at the midpoint.
- Expects 2025 free cash flow conversion of greater than 60% of adjusted EBITDA.
- Introduced 2026 full-year revenue outlook of $850 million to $950 million, projecting approximately 20% growth at the midpoint.
- Introduced 2026 adjusted EBITDA outlook of $110 million to $130 million, anticipating approximately 30% growth at the midpoint.
Challenges Ahead
- Potential for timing of significant large orders in Q4 2025 to impact booking levels.
- Uncertainty regarding the type and extent of certain items that would impact GAAP measures for forward-looking periods, making reconciliation difficult.
- Risks associated with successfully integrating acquired businesses and realizing synergies.
- Dependence on fixed price contracts and the associated risks of actual costs exceeding estimates.
- Potential for fluctuations in prices for manufactured components and raw materials, and rising energy costs.