CECO Environmental (CECO) 2026 Wells Fargo Industrials Presentation summary

Strategic transformation and growth trajectory

• Accelerated transformation since 2020, focusing on high-performance design, market-focused platforms, and a simplified structure.

• Expanded industrial leadership through organic growth, geographic expansion, and new solutions.

• Strategic M&A pipeline supports multiple transaction tiers, with proven acquisition and integration models.

• Integration methodology and continuous improvement drive operational excellence.

• The combination with Thermon creates a global engineered solutions leader, enhancing capabilities and market reach.

Financial performance and outlook

• Pro forma 2026 revenue projected at $1.5B+ and EBITDA at $250M+, with margins rising to ~20% after $40M synergies.

• Backlog exceeds $1.6B, with a sales pipeline over $8B and net leverage expected to improve to 2.3x post-synergies.

• Orders up ~60% YoY to $1.1B in 2025, with 2026 guidance raised to ~$2.0B on strong pipeline.

• Q1 2026 standalone revenue grew 17% YoY to $206M, with adjusted EBITDA up 46% to $20.4M and backlog up 72% to $1,035M.

• Book-to-bill ratio reached 2.18x in Q1 2026, supporting sustained double-digit growth.

Synergies, integration, and operational efficiency

• Integration with Thermon is on track, with detailed plans across all functions and leadership transitions underway.

• Cost synergies target $40M+ by year 3, with $15M run-rate by end of 2026 and $30M by 2027.

• Commercial synergies expected to add 1-2 points of organic growth to Thermon's base business.

• Synergy capture is upside to the deal, with no forced integration and autonomous operations preserved.

• Full synergy EBITDA projected at ~$305M by year 3.