CECO Environmental Q2 revenue slightly beats on increase in orders, backlog

CECO Environmental

10/08/2026 12:14

Overview
US industrial solutions provider's Q2 revenue grew 54% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised full-year 2026 outlook after strong orders and Thermon integration progress

Outlook
CECO raises 2026 revenue outlook to $1.3 bln-$1.375 bln, up from $1.275 bln-$1.375 bln
Company lifts 2026 adjusted EBITDA guidance to $200 mln-$225 mln, from $195 mln-$225 mln
CECO expects free cash flow conversion of at least 55% of adjusted EBITDA for 2026

Result Drivers
ORDERS AND BACKLOG - Co said Q2 orders rose 191% and backlog increased 164%, reflecting strong demand across global end markets
THERMON INTEGRATION - Co said Thermon acquisition and integration delivered synergies ahead of plan, contributing to results
SALES PIPELINE EXPANSION - Co said sales pipeline expanded to over $8.5 bln, supported by organic and inorganic investments

Company press release: ID:nGNX5mm7DZ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$284.96 mln
$282.22 mln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.47
$0.33 (6 Analysts)
Q2 Adjusted Net Income
Beat
$21.50 mln
$17.80 mln (5 Analysts)
Q2 Adjusted EBITDA
Beat
$40.20 mln
$38.73 mln (7 Analysts)
Q2 Adjusted Operating Income
 
$32.10 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for CECO Environmental Corp. is $110.00, about 55.1% above its August 7 closing price of $70.92
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 40 three months ago

Reuters Recommended Reads
Aug 10 - Ferguson Q2 sales slightly beats on acquisitions; raises 2026 outlook
Aug 7 - Specialty chemicals firm Ashland weighs sale amid activist push, sources say
Aug 7 - Construction Partners Q3 revenue beats on strong project demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)