CECO Environmental (CECO) 11th Annual Waste and Environmental Symposium summary

Company Overview and Portfolio Transformation

• Evolved from a coal-focused supplier to a global provider of environmental solutions through acquisitions and new technologies.

• Portfolio shifted since 2020 from 65-67% energy to a balanced mix: 30-35% industrial air, 25% water, and the rest in energy, now focused on new energy and renewables.

• CECO is now 100% focused on providing environmental solutions for industrial markets, with diversified end markets and global reach.

• Workforce of ~1,500 employees worldwide, with ~40% of sales outside the US.

• Mission centers on protecting people, the environment, and industrial equipment through sustainable solutions.

Growth Strategy and Market Approach

• Shifted from reactive to proactive sales, transforming teams to pursue new markets and drive growth.

• Incentives and stock ownership expanded to foster a growth mindset, increasing management stockholders from 25–30 to 150.

• Expanded presence in key industrial sectors like semiconductors, metals, automotive, batteries, and solar, targeting facilities with contaminant and energy needs.

• Capital allocation prioritizes organic growth, M&A, debt management, and stock buybacks ($15M repurchased since 2021).

• Balanced revenue model: 30% aftermarket/standard products, 25% repeat/standard engineered, 45% customized solutions.

Market Conditions and Geographic Expansion

• Exposure to tariffs is modest, with most Canadian content covered by USMCA exemptions; supply chain constraints are monitored.

• Global demand for power is rising, with a surge in inquiries for nuclear and gas turbine projects and a $1.5 billion active order pipeline.

• International growth is strong, especially in India and Saudi Arabia, with direct engagement with major industrial players.

• Sales pipeline exceeds $4.5B, up from $1.5B in 2021, supporting future growth.

• Record Q4 and FY 2024 orders and backlog, with YE 2024 backlog at $541M, up 46% YoY.