Q1 2026 CECO Environmental Corp Earnings Call Transcript
Key Points
- CECO Environmental Corp (CECO) reported a record backlog of over $1 billion, up 72% year-over-year, indicating strong demand and future revenue potential.
- The company achieved a 97% increase in orders for the first quarter, with a book-to-bill ratio of approximately 2.2, showcasing robust market demand.
- CECO raised its full-year 2026 revenue guidance to between $940 million and $1 billion, marking the first time the company expects to reach $1 billion in sales.
- The company is confident in achieving $40 million in cost synergies from the Thermon acquisition, with additional commercial synergies being evaluated.
- CECO's adjusted EBITDA grew by 46% year-over-year, with a margin improvement of nearly 200 basis points, reflecting strong operational performance.
- Gross profit margins experienced contraction in the first quarter due to the sale of the higher-margin Global Pump business and lower-margin jobs booked in early 2025.
- The company faced cash flow challenges in the first quarter, consuming approximately $16 million, partly due to delayed customer payments.
- CECO's net debt increased by $31 million, raising concerns about leverage and financial flexibility.
- The company anticipates continued uncertainty in the Middle East, which could impact future projects and revenue.
- Inflationary pressures and supply chain challenges remain a concern, potentially affecting margins and project costs.
Good day and thank you for standing by. Welcome to the CECO Environmental first-quarter 2026 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Marcio Pinto, Vice President of Corporate Integration and Investor Relations.
Thank you, Josh, and thank you for joining us today on the CECO Environmental first-quarter 2026 earnings call. On the call with me today is Todd Gleason, Chief Executive Officer; and Peter Johansson, Chief Financial Officer.
As a reminder, we're covering CECO Environmental first-quarter 2026 earnings results on a standalone basis. This quarter's webcast, earnings release, and presentation, which include relevant disclosures and non-GAAP reconciliations, are available on our website.
Today's discussion includes forward-looking statements that are subject to risks and uncertainties,
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