CECO Environmental (CECO) investor relations material

Transformation and strategic growth

• Focused on operational streamlining, market assessment, and expansion into new geographies and adjacent markets, driving emerging market sales from $30 million to nearly $150 million.

• Pursued a programmatic M&A strategy, completing 14 transactions in 3.5 years, with ~50% of acquisitions doubling sales within 24 months, while maintaining a healthy balance sheet.

• Built a $200–$300 million industrial water platform through organic investments and small acquisitions, targeting fragmented global markets.

• Enhanced cross-business collaboration and resource sharing, especially in India and Southeast Asia, enabling bundled solutions and improved customer relationships.

• Approximately 50% of revenue and orders are now generated outside North America, with significant growth in the Middle East, Asia, and Western Europe.

Key conference themes and strategic positioning

• Emphasized mission to protect people, the environment, and industrial equipment through innovative solutions.

• Strong positioning in power, energy infrastructure, and global industrial water/wastewater markets.

• Balanced, niche leadership in industrial air, water, and energy transition.

• Sales pipeline reached $5.8B, up $300M in the past quarter, supporting sustainable growth.

Market drivers and business performance

• Bookings have surged, driven by demand in power generation, especially from AI-related data center growth and large customers like GE.

• Investments in engineering, supply chain, and acquisitions (e.g., Transcend) positioned the company to win large-scale power projects, with recent orders of $80 million and $135 million.

• Win rates are higher for large, complex projects, while smaller projects remain competitive; pipeline visibility is at an all-time high, with a $6 billion pipeline and strong prospects in water, power, and semiconductor sectors.

• Industrial water pipeline is nearly $1 billion, with 75% outside the U.S.; industrial air pipeline is about $1 billion, with 40% international.

• Electrification, automation, and the energy supercycle are driving growth in nuclear and geothermal, with nuclear projects offering margins 15 points above average.