CECO Environmental (CECO) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $198 million (up 46% year-over-year) and record backlog of $720 million (up 64% year-over-year), with strong order intake across power, water, and energy sectors.

• Adjusted EBITDA grew 62% year-over-year to $23.2 million, with margin expansion of 120 basis points.

• Adjusted EPS rose 86% year-over-year to $0.26.

• Year-to-date bookings and revenues have already surpassed the previous annual record.

• Major acquisitions (Profire Energy, Verantis, WK Group, EnviroCare) and the divestiture of Global Pump Solutions reshaped the business.

Financial highlights

• Q3 2025 revenue reached $198 million, up 46% year-over-year and 7% sequentially.

• Adjusted EBITDA for Q3 was $23.2 million, up 62% year-over-year; trailing 12-month adjusted EBITDA was $80 million.

• Gross profit margin for Q3 was 32.7%, with gross profit of $64.6 million, down 70 basis points year-over-year and 350 basis points sequentially.

• Free cash flow in Q3 was $19 million, a $22 million sequential improvement.

• Net debt at quarter end was $186 million, with a Net Debt to EBITDA leverage ratio of 2.3x.

Outlook and guidance

• Reaffirmed full-year 2025 revenue guidance of $725–$775 million (up ~35% at midpoint) and adjusted EBITDA of $90–$100 million (up ~50% at midpoint).

• 2026 outlook projects revenue of $850–$950 million (up 15–25% year-over-year) and adjusted EBITDA of $110–$130 million (up 20–40% year-over-year).

• Bookings for 2026 expected to exceed $1 billion, with a Book-to-bill ratio above 1.1x.

• Adjusted EBITDA margin expected to expand by 110–150 basis points in 2026.

• Free cash flow conversion expected at 50–60% of adjusted EBITDA in 2026.