CECO Environmental Reports Record Q3 2026 Results Following Thermon Acquisition

CECO Environmental Corp. reported its financial results for the third quarter of 2026, highlighting a period of significant growth following the June 1, 2026, acquisition of Thermon. The company reported orders of $777.6 million for the quarter, representing a 234 percent increase compared to the prior year period. This surge in orders contributed to a total backlog of $2,193.5 million, which is up 205 percent year-over-year.

Revenue for the quarter was $404.4 million, a 105 percent increase from the same period in 2025. The company achieved a gross profit of $130.1 million, with a gross margin of 32.2 percent. On a non-GAAP basis, gross profit was $146.8 million, with a margin of 36.3 percent. Net loss for the quarter was $(2.0) million, compared to net income of $1.5 million in the prior year. Non-GAAP net income was reported at $34.3 million, an increase of 269 percent from the prior year.

Adjusted EBITDA for the third quarter was $70.1 million, reflecting a margin of 17.3 percent, which is up 202 percent compared to $23.2 million in the prior year. Free cash flow for the quarter was $148.4 million, a substantial improvement of $137.3 million compared to the prior year. The company also reported a reduction in leverage to 2.0x from the closing date of the Thermon acquisition.

In terms of guidance, CECO updated its full-year 2026 outlook. The company now expects full-year orders to exceed $2.5 billion, up from the previous outlook of at least $2.0 billion. Full-year free cash flow conversion is now expected to be approximately 100 percent of Adjusted EBITDA, compared to the previous outlook of at least 55 percent. The company maintained its full-year revenue outlook between $1.300 billion and $1.375 billion and its Adjusted EBITDA outlook between $200 million and $225 million.

Additionally, CECO introduced a full-year 2027 outlook. The company expects 2027 revenue to be between $2.1 billion and $2.3 billion, representing growth of more than 60 percent at the midpoint compared to the 2026 revenue outlook. Adjusted EBITDA for 2027 is expected to be between $475 million and $525 million, representing growth of more than 130 percent at the midpoint compared to the 2026 Adjusted EBITDA outlook. The company also expects full-year free cash flow of between 50 percent and 60 percent of Adjusted EBITDA for 2027.