CECO Environmental (CECO) Q4 2025 earnings summary

Executive summary

• Announced a transformational merger with Thermon Group, creating a global leader in industrial, environmental, and thermal solutions, with a combined revenue of $1.5 billion and adjusted EBITDA of $296 million, including $40 million in identified synergies, expected to close mid-2026.

• Delivered record financial results for Q4 and full-year 2025, with revenue up 39% year-over-year and adjusted EBITDA up 44%.

• Raised 2026 guidance for both revenue and adjusted EBITDA, reflecting strong backlog and pipeline visibility.

• Achieved record full-year orders exceeding $1 billion, with Q4 orders up 50% year-over-year to $329.3 million.

• Strong performance in power generation, semiconductor, industrial water, and diversified industrial air markets.

Financial highlights

• Q4 2025 revenue reached $215 million, up 35% year-over-year; full-year revenue was $774 million, up 39%.

• Q4 adjusted EBITDA was $29.8 million (13.9% margin), up 57% year-over-year; full-year adjusted EBITDA was $90.3 million, up 44%.

• Backlog at year-end was $793 million, up 47% year-over-year.

• Bookings for 2025 totaled $1.064 billion, a 60% increase over 2024, with a book-to-bill ratio of nearly 1.4x.

• Free cash flow for 2025 was $9.6 million, up 30% year-over-year.

Outlook and guidance

• 2026 revenue guidance raised to $925–$975 million, and adjusted EBITDA guidance to $115–$135 million, both excluding Thermon.

• 2026 outlook projects 23% revenue growth and 38% adjusted EBITDA growth at the midpoint.

• Over 65% of year-end 2025 backlog expected to convert in 2026.

• Free cash flow expected to be at least 50% of adjusted EBITDA.

• Expect more than 55% of 2026 revenue in the second half due to project timing.