CECO (CECO) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

Tuesday, Feb. 24, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Todd Gleason

• Chief Financial Officer — Peter Johansson

• Vice President, Strategy and Corporate Development — Marcio Pinto

Need a punctuation from a Motley Fool analyst? Email [email protected]

Todd Gleason: Thanks, Marcio, and welcome, everyone. It is simply a pleasance to talk astir 2 highlights today. We delivered beardown 4th and afloat twelvemonth results with galore fiscal records. Importantly, we are besides announcing a transformational transaction betwixt CECO Environmental Corp. and Thermon. Please crook to descent fig four, and let's sermon each astatine a precocious level. On the near broadside of the slide, we outline the CECO Environmental Corp.–Thermon transaction. This is genuinely a operation of 2 arrogant and winning organizations. Each institution is clicking connected truthful galore of the close cylinders. Together, we expect the national volition make an adjacent stronger planetary person with enhanced fiscal agility and expanded strategical capabilities.

When we adjacent the transaction, we volition proceed to commercialized arsenic CECO Environmental Corp. I americium excited and precise overmuch looking guardant to starring the aboriginal combined institution and moving intimately with the outstanding enactment and employees astatine Thermon. More connected this transaction successful conscionable a minute. Now turning to the close broadside of the slide, we delivered different beardown 4th for CECO Environmental Corp., with afloat twelvemonth results for gross and adjusted EBITDA mostly successful enactment with our last expectations. And we are raising our afloat twelvemonth 2026 guidance, not inclusive of Thermon, arsenic we person tremendous visibility fixed our grounds backlog and increasing income pipeline.

Now delight crook to descent fig six and let's reappraisal the financials successful a small much detail. This enforcement summary descent captures the main points from today's fiscal net release. Q4 delivered galore caller records. Our backlog is astatine the highest level ever, approaching $800 cardinal and up astir 50% year-over-year. Revenue maturation of 35% and adjusted EBITDA maturation of 57% talk to our high-performance results. In the quarter, we booked our largest ever project, valued astatine astir $135 cardinal for a large-scale earthy state powerfulness procreation installation based successful Texas. For the afloat year, 2025 orders surpassed $1 cardinal for the archetypal time, which we signaled we would apt execute successful our 12/15/2025 property release.

And arsenic we shared successful today's property release, we are raising our 2026 afloat twelvemonth guidance to bespeak our tremendous visibility successful backlog and that grounds income pipeline I conscionable mentioned. Our accrued 2026 guidance reflects beardown afloat twelvemonth orders growth, arsenic good arsenic afloat twelvemonth gross outlook of betwixt $925 to $975 million, which is up from a erstwhile outlook of $850 to $950 million. Our afloat twelvemonth 2026 adjusted EBITDA outlook is present betwixt $115 cardinal to $135 million. So, again, we consciousness we are clicking connected galore of the close cylinders. Now earlier I manus it implicit to Peter, let's determination to descent fig seven.