CECO Environmental (CECO) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 and full-year 2025 results, with revenue, adjusted EBITDA, orders, and backlog all reaching new highs; 2026 outlook raised.

• Announced a transformational $2.2 billion cash and stock merger with Thermon Group, expected to close mid-2026, creating a global leader in industrial, environmental, and thermal solutions.

• The combined company will be led by Todd Gleason as CEO and is expected to deliver significant scale, growth, and financial enhancement.

Financial highlights

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

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

• Year-end backlog reached $793 million, up 47% year-over-year; 2025 orders totaled $1.064 billion, up 59% year-over-year, with a book-to-bill ratio of 1.37x.

• Free cash flow for 2025 was $9.6 million, up 30% year-over-year; leverage ratio improved to 2.2x, with liquidity at $124 million.

• Q4 gross margin was 35.1%, and full-year gross margin was 34.8%.

Outlook and guidance

• 2026 standalone revenue guidance raised to $925–$975 million and adjusted EBITDA to $115–$135 million; orders expected to exceed $1.2 billion.

• 2026 outlook reflects 23% revenue growth and 38% adjusted EBITDA growth at the midpoint; guidance excludes Thermon merger impact.

• Over 65% of year-end 2025 backlog expected to convert in 2026, with a record pipeline of $6.5 billion.