CECO Environmental Corp. (CECO) Earnings
CECO Environmental Corp. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $0.31. CECO has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +48.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 28, 2026 | $0.12 | $0.36 | +200.0% | $206M | +3.5% |
| Feb 24, 2026 | $0.43 | $0.30 | -30.2% | $215M | +8.5% |
| Oct 29, 2025 | $0.25 | $0.26 | +4.0% | $198M | +3.8% |
| Jul 29, 2025 | $0.20 | $0.24 | +20.0% | $185M | +1.3% |
| Apr 29, 2025 | $0.10 | $0.10 | +0.0% | $177M | +7.3% |
| Apr 30, 2024 | $0.11 | $0.11 | +0.0% | $126M | -7.0% |
| Mar 5, 2024 | $0.25 | $0.28 | +12.0% | $154M | +4.8% |
| Mar 6, 2023 | $0.16 | $0.21 | +31.2% | $116M | +10.8% |
| Mar 14, 2022 | $0.08 | $0.10 | +25.0% | $94M | — |
| May 6, 2021 | $0.09 | $0.09 | +0.0% | $72M | — |
| Mar 3, 2021 | $0.11 | $0.16 | +45.5% | $83M | — |
| Nov 4, 2020 | $0.11 | $0.11 | +0.0% | $77M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 28, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Off to a strong start in 2026 with tremendous orders increasing backlog to new levels. Revenue and EBITDA in line with expectations. Second quarter expected to set new orders record with April bookings already higher than Q1 record. - Raising full year 2026 outlook non-inclusive of Thurmond. - On track for Q2 close of Thermon transaction, with current expectation of early June. Representatives working on integration items. Confident in $40 million cost synergies and evaluating additional commercial synergies. - Continued progress in financials with record backlog, orders, revenue delivery, and accelerating earnings. Backlog increased for 11 consecutive quarters. - Orders benefited from strong activity in natural gas power generation and industrial water applications, with April bookings over $400 million including the largest ever order. - Raising full year 2026 revenue outlook to between $940 million and $1 billion, with organic sales growth expected to be approximately 25% and adjusted EBITDA outlook to $120 to $140 million. - Benefits from lower operating G&A expenses and initial benefits from Wave 1 80-20 projects. - Thermon acquisition will extend SECO's leadership in industrial, environmental, and engineered solutions, creating a world-class industrial solutions platform with strong growth trajectory and financial profile.
Guidance
- Raising full year 2026 outlook non-inclusive of Thurmond. - Updated revenue outlook expects sales to be between $940 million and $1 billion, with organic sales growth approximately 25% for the full year. - Increasing adjusted EBITDA outlook to $120 to $140 million, with midpoint expecting approximately 44% EBITDA growth and 170 basis points of margin expansion. - Expecting margins to improve in the second quarter and trend back towards the target gross profit margin level of 34% or greater as progress is made on improving volume mix dynamics on more recently booked large projects and new projects with faster revenue recognition profiles and improved cost cases.
Segment performance
The firm delivered a strong quarter with numerous financial records. Revenue grew 17% year over year, and adjusted EBITDA grew 46%. Backlog was at a record high of $1.035 billion, up 72% year over year. Orders in the quarter were $449 million, a 97% increase. Sales pipeline grew to over $7 billion. Gross profit increased on higher volumes but margins contracted in Q1. Adjusted EBITDA was $20.4 million in the quarter, up 46% versus prior year, with a trailing 12-month adjusted EBITDA of $96.7 million and a 12% margin.
Risks & headwinds
- Uncertainty related to the Iran war and modestly higher inflation. - Impact of the Middle East situation on some projects in the region, with certain large projects paused until the second half of the year. - Potential impact of inflation on costs, although efforts are made to manage through it by pre-buying or locking in rates.
Analyst Q&A
Q: Aaron Spycha with Craig Hallam Capital Group asked about drivers of the $7 billion sales pipeline, supply chain comfort, and impact of Middle East business.
A: Todd discussed that the sales pipeline growth is due to intentional expansion of markets, investments, and benefits from market trends. He also talked about supply chain visibility and investments. Regarding the Middle East, there are some impacts but guidance already accounts for them.
Q: Gerard Sweeney with Roth Capital asked about when Seco gets brought into power projects and margin impact of pricing.
A: Todd said they begin work with large gas turbine customers years before receiving orders and price is a lever to increase margins with contracts having escalators for inflation.
Q: Rob Brown with Lake Street Capital Markets asked about industrial water market and commercial synergies with Thermon.
A: Todd and Peter discussed that industrial water is more about their entrance into the market and commercial synergies with Thermon are attractive with teams starting to assess opportunities.
Q: Bobby Brooks with Northland Capital Markets asked about next biggest areas of strength and merger benefits.
A: Todd mentioned semiconductor and industrial water as big areas, and discussed how Thermon's diversification and relationships can benefit Seco.
Q: Jim Ricciutti with Needham & Company asked about standalone SECO gross margin improvement.
A: Peter explained that volume and mix, margins of recent projects, and G&A cost efficiencies contribute to margin improvement.
Q: Joseph Giordano with TD Calend asked about 80-20 early benefits and tariff impact.
A: Peter discussed the 80-20 implementation, benefits split, and no material impact from tariff changes due to operating model of sourcing in region