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Dec 31, 2023
CECO Q4 2023 Earnings Report
Reported Q4 earnings with multiple financial records and raised full year 2024 guidance.
Key Takeaways
CECO Environmental Corp. reported a strong fourth quarter with a 32% increase in revenue to $153.7 million and a 49% increase in adjusted EBITDA to $19.4 million. The company's backlog increased by 19% to $370.9 million. They also raised their full year 2024 revenue and Adjusted EBITDA guidance.
Orders reached $128.3 million.
Backlog increased to $370.9 million, a 19% rise.
Revenue increased by 32% to $153.7 million.
Adjusted EBITDA grew by 49% to $19.4 million.
CECO
CECO
Forward Guidance
CECO raised its full year 2024 revenue guidance to $590 to $610 million and Adjusted EBITDA guidance to $67 to $70 million. Free cash flow is expected to be 50% to 70% of Adjusted EBITDA.
Positive Outlook
- Tremendous backlog
- Commercial and operational excellence programs
- Robust organic growth
- Further operating margin expansion opportunities
- Healthy balance sheet provides added optionality to evaluate and execute on the most attractive internal growth programs
Challenges Ahead
- Unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises
- Sensitivity of CECO's business to economic and financial market conditions
- Dependence on fixed price contracts and the risks associated therewith
- Potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges.
- Potential for fluctuations in prices for manufactured components and raw materials