CECO Environmental Corp., a leading environmentally focused, diversified industrial company, has released its financial results for the fourth quarter and full year of 2025. The company, which provides solutions to protect people, the environment, and industrial equipment, has reported multiple financial records and announced a strategic transaction with Thermon Group Holdings, Inc.
Financial Highlights
CECO Environmental reported significant growth in several key financial metrics for the fourth quarter and full year of 2025:
- Fourth Quarter 2025:
- Orders: $329.3 million, up 50%
- Revenue: $214.7 million, up 35%
- Gross Profit: $75.4 million, up 33%; Gross Margin: 35.1%
- Net Income: $3.1 million, down 37%; Non-GAAP Net Income: $11.1 million, up 12%
- Adjusted EBITDA: $29.8 million, up 57%
- Free Cash Flow: $8.7 million, up $13.1 million
- Full Year 2025:
- Orders: $1,064.3 million, up 59%
- Revenue: $774.4 million, up 39%
- Gross Profit: $269.2 million, up 37%; Gross Margin: 34.8%
- Net Income: $50.1 million, up 285%; Non-GAAP Net Income: $32.6 million, up 22%
- Adjusted EBITDA: $90.3 million, up 44%
- Free Cash Flow: $9.6 million, up 30%
Business and Operational Highlights
CECO Environmental achieved record order bookings of over $300 million in the fourth quarter, driven by a large domestic gas-fired power generation project valued at approximately $135 million. This marks the fifth consecutive quarter with orders above $200 million, highlighting the company’s strong market momentum. Additionally, the company reported a backlog of $793.1 million, up 47% from the previous year.
Strategic Initiatives and Corporate Developments
CECO Environmental announced a strategic transaction to combine with Thermon Group Holdings, Inc., a global leader in industrial process heating solutions. This merger is expected to close in mid-2026 and is anticipated to enhance CECO’s market position and operational capabilities.
Management’s Perspective
Todd Gleason, CECO’s Chief Executive Officer, commented on the company’s performance, stating, “We closed the year with our strongest quarter to date, highlighted by order bookings in excess of $300 million, the first time in company history. This performance was primarily driven by a large domestic gas-fired power generation project of approximately $135 million, also a company record in project value.”
Future Outlook
CECO Environmental has raised its 2026 full year outlook, projecting revenue between $925 and $975 million and Adjusted EBITDA between $115 and $135 million. This updated guidance reflects an approximate 25% increase in revenue and a 40% increase in Adjusted EBITDA at the midpoint of the range. The outlook does not include the impact of the proposed merger with Thermon.
Original SEC Filing: CECO ENVIRONMENTAL CORP [ CECO ] – 8-K – Feb. 24, 2026
Disclaimer
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.