Q2 2026 CECO Environmental Corp Earnings Call Transcript

Aug 10, 2026 / 12:30 PM GMT

Release Date Price: $70.38 (-0.76%)

Transcript 10-Q8-K

Key Points

Positve

Record Q2 orders of $799 million, up 191% year-over-year, and backlog of $1.8 billion, up 164%.
Revenue increased 54% year-over-year to $285 million, with adjusted EBITDA up 73% to $40.2 million.
Adjusted EBITDA margin expanded 150 basis points to 14.1%, marking the first quarter with mid-teen margins.
Thermon integration is ahead of schedule, capturing $13 million of annualized EBITDA savings in the first 60 days.
Raised full-year 2026 revenue and adjusted EBITDA guidance, reflecting strong visibility from a record backlog and $8.5 billion pipeline.

Negative

Leverage ratio at 2.7x is near the high end of the target range, though expected to decline with cash flow.
Industrial water orders in the Middle East continue to be delayed due to regional conflicts, impacting potential upside.
Integration costs of $21 million year-to-date have been incurred, primarily from change-in-control provisions and equity vesting.
Gross margin improvement was partly a rebound from a lower Q1, with sustainability dependent on execution.
SG&A rate improvement may be challenged by ongoing ERP migration and integration investments.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CECO.OQ - CECO Environmental Corp.
Q2 2026 CECO Environmental Corp Earnings Call
Aug 10, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and thank you for standing by, my name is Liza, and I will be your conference operator today.

At this time, I would like to welcome everyone to CEO Environmental second quarter 2026 earnings call.

All lines have been placed on mute to prevent any background noise after the speaker's remarks, there will be a question-and-answer session.

If you have, if you would like to ask questions during this time, simply press star followed by the number 1 on your telephone keypad.

If you would like to withdraw your question, press 1 again.

Thank you.

I would now like to turn the call over to Marcia Pinto, Vice President of Corporate Integration and investor relations, please

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