Ceco Raises 2026 Orders Outlook After Record Quarter

The Tip Desk · November 12, 2026 · 3 min read

The industrial environmental company booked $777.6 million of third-quarter orders and lifted its full-year 2026 orders target to exceed $2.5 billion.

CECO Environmental Corp. (CECO) reported third-quarter 2026 orders of $777.6 million, up 234 percent from a year earlier, and raised its full-year 2026 orders outlook to exceed $2.5 billion from a previous target of at least $2.0 billion.

The environmentally focused industrial company said the lift followed strong year-to-date performance and near-term market opportunities. It also introduced a 2027 outlook of revenue between $2.1 billion and $2.3 billion and Adjusted EBITDA between $475 million and $525 million.

The quarter was the second as a combined company after the June 1, 2026 acquisition of Thermon. Backlog stood at $2,193.5 million, up 205 percent from the year-ago quarter. Revenue was $404.4 million, up 105 percent.

GAAP results showed a net loss of $2.0 million, versus net income of $1.5 million a year earlier, and diluted earnings of $(0.03) a share. Non-GAAP net income was $34.3 million, or $0.60 a share. Operating income was $10.5 million.

GAAP gross profit was $130.1 million, with a 32.2 percent margin. Non-GAAP gross profit was $146.8 million, or a 36.3 percent margin, after a $16.7 million purchase-accounting inventory valuation adjustment. Adjusted EBITDA was $70.1 million, a 17.3 percent margin.

Free cash flow was $148.4 million. Adjusted free cash flow was $154.4 million after cash payments relating to the Thermon transaction. Leverage was 2.0 times, down 0.7 times from the Thermon closing date.

Chairman and Chief Executive Officer Todd Gleason said the company had substantially completed key integration initiatives and remained ahead of schedule on cost and revenue synergies. He pointed to a $2.2 billion backlog, the vast majority of which he said is permitted and underway, and a $9 billion sales pipeline.

The company maintained its full-year 2026 revenue outlook of $1.300 billion to $1.375 billion and Adjusted EBITDA of $200 million to $225 million. It raised full-year free cash flow conversion to approximately 100 percent of Adjusted EBITDA from a previous outlook of at least 55 percent. Gleason said the company expects to deliver results at or above the full-year guidance it has raised multiple times, including an August increase, and that it anticipates additional orders in power markets while demand for environmental, industrial and thermal solutions remains robust.

For 2027, the company expects revenue growth of more than 60 percent at the midpoint versus the 2026 revenue outlook midpoint and Adjusted EBITDA growth of more than 130 percent at the midpoint versus the 2026 Adjusted EBITDA outlook midpoint. It expects full-year free cash flow of 50 percent to 60 percent of Adjusted EBITDA. Gleason said the 2027 outlook highlights further growth and scale.

Cash and cash equivalents were $72.1 million at September 30, 2026. Goodwill was $1.51 billion and finite-life intangible assets were $985.6 million.