Ceco Environmental Corp (CECO)

Price$75.18Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkAt the recent market price, CECO looks expensive unless Thermon delivers strong growth and cash.

With about 58.6 million shares outstanding, the market values CECO's equity near $4.2 billion; adding roughly $702 million of net debt gives enterprise value, the value of the operating business including debt, near $4.9 billion. Management's 2026 adjusted EBITDA, profit before interest, taxes and major noncash charges, is $200-$225 million but includes only seven months of Thermon. A transaction presentation estimated about $256 million before synergies and $296 million with full year-three synergies. The current enterprise value is still roughly 19 times and 16 times those levels, leaving little margin for execution mistakes.

Big pictureCECO has grown fast, but reported cash generation has been much less steady than earnings.

Revenue rose from $316 million in 2020 to $774 million in 2025, while adjusted operating performance also improved. But cash has lagged accounting profit: the supplied SEC-derived figures show operating cash flow fell from $44.6 million in 2023 to $24.8 million in 2024 and $5.9 million in 2025, while 2025 capital spending was $11.3 million. Reported first-half 2026 operating cash flow was negative about $32 million. Q2 adjusted free cash flow was $53.2 million after excluding Thermon transaction payments, showing improvement but not yet durable cash generation.

Business strengthDemand is strong and backlog is huge, but booked projects are not guaranteed cash.

Q2 2026 orders were $798.5 million, up 191%, and backlog reached $1.82 billion, up 164%, while revenue grew 54%. Management raised 2026 revenue guidance to $1.30-$1.375 billion and adjusted EBITDA to $200-$225 million. These are strong demand signals, especially in power generation, data centers and semiconductors. Still, CECO says projects can be delayed or cancelled, and large orders can make backlog swing sharply. The strength is real, but it is partly acquisition-driven and does not guarantee cash arrives on schedule.

What could change the storyFaster debt paydown and proven Thermon cash gains could justify today's price; integration misses could not.

The bull case needs Thermon to convert backlog and deliver at least $40 million of cost synergies by year three. The bear case is failed integration: debt reached about $763 million, cash was only about $61 million, goodwill, the accounting premium from acquisitions, jumped to about $1.50 billion, and the latest quarterly filing still reported material weaknesses in financial controls. Sustained cash flow above guidance and rapid debt reduction would strengthen the thesis; backlog slippage, weaker margins or slower synergy capture would make the current price harder to defend.

AI: News

Thermon Acquisition CompletedCECO closed the Thermon acquisition, greatly increasing its scale while adding substantial debt and new shares.

On June 1, 2026, CECO completed the roughly $2.2 billion Thermon combination. The filing shows about 22.5 million CECO shares were issued to Thermon holders, and acquisition financing helped lift total debt to about $763 million by quarter-end. The deal also broadened CECO into industrial process heating and added a more recurring revenue base. Investors should care because most of the current valuation now depends on integrating Thermon, realizing promised synergies and paying down the enlarged debt load.

Combined Outlook RaisedManagement quickly raised the combined outlook and said Thermon cost savings were already arriving ahead of plan.

On June 9, eight days after closing, CECO guided to $1.275-$1.375 billion of 2026 revenue, $195-$225 million of adjusted EBITDA and free cash flow of at least 55% of that profit measure. Management also reiterated at least $40 million of cost synergies. This mattered because it gave investors the first concrete post-deal earnings and cash framework. The guidance only included seven months of Thermon, so it was not a full-year normalized view, but it reduced some uncertainty around near-term integration.

First Combined Quarter BeatThe first combined quarter beat expectations, lifted guidance and briefly pushed the shares sharply higher before trading normalized.

On August 10, CECO reported Q2 revenue of $285.0 million, adjusted earnings per share of $0.47 versus a $0.27 analyst estimate, orders of $798.5 million and backlog of $1.82 billion. It raised full-year revenue guidance to $1.30-$1.375 billion and the lower end of adjusted EBITDA guidance to $200 million. Investing.com reported the shares rose about 7% before the open. Because the regular session later finished slightly lower, the early move shows enthusiasm but does not prove the report caused the day's final price change.

Loading local price history

Revenue

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$774.4M	$557.9M	$544.8M	$422.6M	$324.1M	$316.0M	$341.9M	$337.3M	$345.1M	$417.0M	$367.4M	$263.2M	$197.3M	$135.1M	$139.2M	$140.6M
Gross profit	$269.2M	$196.1M	$171.0M	$128.2M	$100.9M	$105.1M	$114.1M	$111.5M	$113.2M	$134.9M	$109.2M	$84.8M	$61.6M	$42.4M	$38.2M	$32.7M
Gross margin	34.77%	35.16%	31.39%	30.34%	31.14%	33.27%	33.38%	33.06%	32.81%	32.34%	29.71%	32.23%	31.20%	31.43%	27.42%	23.22%
Operating expenses	$163.4M	$160.7M	$136.4M	$106.1M	$91.1M	$91.8M	$96.1M	$101.5M	$105.2M	$160.4M	$104.2M	$63.2M	$54.6M	$25.8M	$25.8M	$27.6M
Operating income	$105.9M	$35.4M	$34.6M	$22.2M	$9.9M	$13.3M	$18.0M	$10.0M	$8.0M	−$25.6M	$4.9M	$21.7M	$7.0M	$16.7M	$12.4M	$5.0M
Operating margin	13.67%	6.35%	6.34%	5.24%	3.04%	4.22%	5.26%	2.96%	2.33%	−6.13%	1.35%	8.23%	3.53%	12.35%	8.89%	3.58%
EBITDA	$130.7M	$49.9M	$47.1M	$32.8M	$19.7M	$23.3M	$28.6M	$23.3M	$24.1M	−$6.7M	$21.5M	$32.9M	$13.6M	$17.9M	$13.8M	$6.8M
EBITDA margin	16.88%	8.95%	8.64%	7.76%	6.08%	7.36%	8.37%	6.90%	6.99%	−1.60%	5.84%	12.51%	6.90%	13.28%	9.89%	4.83%
Net income	$50.1M	$13.0M	$12.9M	$17.4M	$1.4M	$8.2M	$17.7M	−$7.1M	−$3.0M	−$38.2M	−$5.6M	$13.1M	$6.6M	$10.8M	$8.3M	$2.1M
Net profit margin	6.46%	2.32%	2.37%	4.12%	0.44%	2.60%	5.18%	−2.11%	−0.88%	−9.16%	−1.52%	4.97%	3.32%	8.03%	5.94%	1.50%
Basic EPSper basic share	$1.42	$0.37	$0.37	$0.50	$0.04	$0.23	-$0.51	-$0.21	-$0.09	-$1.12	-$0.19	$0.51	$0.33	$0.73	$0.58	$0.15
Diluted EPSper diluted share	$1.37	$0.36	$0.37	$0.50	$0.04	$0.23	-$0.50	-$0.21	-$0.09	-$1.12	-$0.19	$0.50	$0.32	$0.65	$0.51	$0.15

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

7.74%of listed shares

FMR LLC4.52M shares · Jun 30, 2026

View holders

Top 20 reported holders of CECO
Holder	% owned
FMR LLC	7.74%4.52M shares
BlackRock, Inc.	7.40%4.32M shares
DEZWIREK JASON	≈7.08%4.14M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.00%2.34M shares
DIMENSIONAL FUND ADVISORS LP	3.74%2.19M shares
T. Rowe Price Investment Management, Inc.	3.69%2.15M shares
AMERICAN CENTURY COMPANIES INC	3.57%2.09M shares
Driehaus Capital Management LLC	2.67%1.56M shares
GEODE CAPITAL MANAGEMENT, LLC	2.50%1.46M shares
Divisadero Street Capital Management, LP	2.28%1.33M shares
STATE STREET CORP	2.16%1.26M shares
Capital World Investors	1.98%1.16M shares
TWO SIGMA INVESTMENTS, LP	1.73%1.01M shares
NEEDHAM INVESTMENT MANAGEMENT LLC	1.64%957.5K shares
Jupiter Topco LLC	1.63%949.9K shares
ROYCE & ASSOCIATES LP	1.44%842.32K shares
PRICE T ROWE ASSOCIATES INC /MD/	1.43%835.69K shares
EMERALD ADVISERS, LLC	1.26%736.78K shares
KING LUTHER CAPITAL MANAGEMENT CORP	1.23%716.93K shares
Invesco Ltd.	1.14%667.93K shares

Percentages use 58.44M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$3.64M disclosed value

Sells (SEC code S)19$31.20M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 25, 2026Form 4	DEZWIREK JASONDirector	SellCommon Stock · indirect	34.0K	$97.28	$3.31M	132.0K
Jun 24, 2026Form 4	DEZWIREK JASONDirector	SellCommon Stock · indirect	34.0K	$96.61	$3.28M	166.0K
Jun 24, 2026Form 4	Johansson Peter K.SVP, Chief Financial Officer	SellCommon Stock	30.0K	$96.49	$2.89M	40.7K
Jun 1, 2026Form 4	WALLMAN RICHARD FDirector	BuyCommon Stock · indirect	20.0K	$76.85	$1.54M	105.5K
May 1, 2026Form 4	Nanda MunishDirector	SellCommon Stock	11.2K	$74.00	$830.1K	62.0K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about CECO yet. Start the conversation.

Write the first post

Ceco Environmental Corp (CECO)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.