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CECO Environmental Reports Fourth Quarter and Full Year 2023 Results

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CECO Environmental Corp. (CECO) reports Q4 and full-year 2023 earnings with multiple financial records, raising full-year 2024 guidance. The company achieved significant growth in revenue, orders, and backlog. Despite a decline in net income, non-GAAP figures showed improvement. CECO's CEO, Todd Gleason, highlighted balanced portfolio contributions, strong organic sales growth, and successful M&A execution. The company's financial outlook for 2024 includes increased revenue and Adjusted EBITDA guidance, reflecting expectations of robust organic growth and operational excellence.
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Insights

The reported financial results from CECO Environmental Corp. demonstrate a mixed performance, with record-breaking revenues and adjusted EBITDA juxtaposed against a decline in GAAP net income. The increase in revenue by 32% and adjusted EBITDA by 49% for the quarter, as well as the upward revision of the 2024 full year guidance, indicate a strong operational performance and suggest confidence from the management in continued growth. However, the 53% decrease in GAAP net income raises questions about the costs and expenses that may be outpacing revenue growth, potentially impacting profit margins.

Investors may view the raised guidance and strong backlog as positive signs for future performance. The focus on organic sales growth and strategic mergers and acquisitions (M&A) could be indicative of a proactive approach to scaling operations and entering new markets. However, the reliance on non-GAAP measures, such as adjusted EBITDA and non-GAAP net income, to portray financial health requires careful analysis as these measures exclude certain expenses that are realized in GAAP measures.

The company's commitment to maintaining a healthy balance sheet and the potential for accretive M&A opportunities are important for stakeholders, as these factors contribute to the company's ability to invest in growth while also managing risks. The projected free cash flow of 50% to 70% of adjusted EBITDA is a strong indicator of financial health, as it suggests the company will have sufficient liquidity to fund operations and strategic initiatives.

CECO's performance can be contextualized within the broader environmental and industrial sectors, where there is increasing demand for solutions that protect the environment and industrial equipment. The company's record-breaking order intake and backlog growth reflect a robust demand for its diversified offerings. The strategic focus on industrial air, water and energy transition markets aligns with global trends towards sustainability and could position CECO favorably for long-term growth.

The company's international expansion and the acquisitions completed in 2023 are pivotal for understanding its market positioning. By improving its international sales mix and entering new geographic markets, CECO is diversifying its revenue streams and reducing its dependency on any single market, which is a wise strategy in today's globalized economy. The double-digit organic sales increases underscore the company's ability to grow without solely relying on acquisitions, a sign of underlying strength in its core business.

CECO's raised guidance for 2024 suggests that the management has a positive outlook on the company's ability to capitalize on these market opportunities. However, it's important for stakeholders to monitor the company's execution of its commercial and operational excellence programs to ensure that the anticipated growth materializes into tangible financial results.

Within the environmental sector, CECO's emphasis on solutions for industrial air and water treatment is increasingly relevant due to stricter environmental regulations and corporate sustainability goals. The company's strategic acquisitions in 2023 have likely expanded its technological capabilities and market reach in these areas, which could contribute to its competitive edge.

The energy transition is another area of strategic importance for CECO, as industries seek to reduce their carbon footprint and adapt to renewable energy sources. CECO's focus on this transition not only aligns with environmental trends but also opens up new revenue streams as the demand for related services and technologies grows.

CECO's strong backlog indicates a healthy pipeline of future projects, which is critical for sustaining growth in the environmental industry. This backlog, coupled with the company's raised guidance, suggests that CECO is well-positioned to benefit from the ongoing global push towards environmental sustainability.

Reports Q4 and Full Year Earnings with Multiple Financial Records
Company Raises Full Year 2024 Guidance
 

DALLAS, March 05, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO) ("CECO"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today reported its financial results for the fourth quarter and full year results of 2023.

Highlights for the Quarter(1)

  • Orders of $128.3 million
  • Backlog of $370.9 million, up 19 percent
  • Revenue of $153.7 million, up 32 percent
  • Net income of $3.9 million, down 53 percent; non-GAAP net income of $10.1 million, up 36 percent
  • GAAP EPS (diluted) of $0.11; non-GAAP EPS (diluted) of $0.28
  • Adjusted EBITDA of $19.4 million, up 49 percent
  • Free cash flow of $12.2 million, up 36 percent

Highlights for the Year(1)

  • Orders of $582.8 million, up 11 percent
  • Revenue of $544.8 million, up 29 percent
  • Net income of $12.9 million, down 26 percent; non-GAAP net income of $26.6 million, up 3 percent
  • GAAP EPS (diluted) of $0.37; non-GAAP EPS (diluted) of $0.75
  • Adjusted EBITDA of $57.7 million, up 37 percent
  • Free cash flow of $36.2 million, up 33 percent

(1) All comparisons are versus the comparable prior year period, unless otherwise stated.
Reconciliations of GAAP (reported) to non-GAAP measures are in the attached financial tables.

“We continued to deliver successful results during the fourth quarter as our operating model produced record-breaking revenues, gross profits and adjusted EBITDA as well as strong free cash flow. We exit 2023 with a strong backlog and enter 2024 with a significant sales pursuit pipeline,” said CECO Chief Executive Officer, Todd Gleason. “I am pleased our results continue to be driven by balanced contributions from across our portfolio and that our growth continues to be sustained by double-digit organic sales increases, supported by accretive, programmatic M&A execution.”

Fourth quarter operating income was $12.7 million, up $4.3 million or 51 percent when compared to $8.4 million in the fourth quarter 2022. On an adjusted basis, non-GAAP operating income was $16.3 million, up $5.3 million or 48 percent when compared to $11.0 million in the fourth quarter of 2022. Net income was $3.9 million in the quarter, compared to $8.3 million in the fourth quarter 2022. Non-GAAP net income was $10.1 million, up $2.7 million compared to $7.4 million in the fourth quarter 2022. Adjusted EBITDA of $19.4 million, reflecting a margin of 12.6 percent, was up 49 percent compared to $13.0 million in the fourth quarter 2022. Free cash flow in the quarter was $12.2 million, up $3.2 million compared to $9.0 million in the fourth quarter of 2022.

Full year operating income was $34.6 million, up $12.4 million or 56 percent when compared to $22.2 million in 2022. On an adjusted basis, non-GAAP operating income was $48.1 million, up $13.3 million or 38 percent when compared to $34.8 million in 2022. Net income was $12.9 million in the year, compared to $17.4 million in 2022. Non-GAAP net income was $26.6 million, compared to $25.9 million in 2022. Adjusted EBITDA of $57.7 million, reflecting a margin of 10.6 percent, was up 37 percent compared to $42.2 million in 2022. Free cash flow was $36.2 million, up $9.0 million or 33 percent compared to $27.2 million in 2022.

“CECO has continued to mindfully transform our portfolio into a well-positioned leader across industrial air, industrial water and the energy transition. The three acquisitions we completed in 2023 are delivering outstanding results across their strategically focused niche markets. Additionally, our sustained investment to expand our global footprint and capabilities has improved our international sales mix and opened new geographic markets. I am extremely grateful to and proud of our dedicated employees and their commitment to delivering for our customers and partners,” added Gleason.

Company Financial Outlook: Raises 2024 Full Year Guidance

The Company is raising its 2024 full year revenue guidance to $590 to $610 million, up approximately 10% year over year at the midpoint, and Adjusted EBITDA guidance to $67 to $70 million, up approximately 19% year over year at the midpoint. The updated 2024 full year guidance is compared to the previously communicated outlook of $575 to $600 million in revenue and Adjusted EBITDA of $65 to $70 million. The Company reaffirms its previously communicated 2024 full year guidance of free cash flow of 50% to 70% of Adjusted EBITDA.

“We raised our full year 2024 outlook to reflect our expectations given our tremendous backlog, coupled with our commercial and operational excellence programs, which will drive robust organic growth and further operating margin expansion opportunities. Additionally, we enter the year with a healthy balance sheet which provides added optionality to evaluate and execute on the most attractive internal growth programs as well as any potential accretive M&A opportunities to advance our leadership positions in industrial air, industrial water and the energy transition to drive long-term shareholder value,” concluded Gleason.

EARNINGS CONFERENCE CALL

A conference call is scheduled for today at 8:30 a.m. ET to discuss the fourth quarter and full year 2023 financial results. Please visit the Investor Relations portion of the website (https://investors.cecoenviro.com) to listen to the call via webcast. The conference call may also be accessed by visiting https://edge.media-server.com/mmc/p/7wfof7nx.

A replay of the conference call will be available on the Company’s website for a period of one year. The replay may also be accessed by visiting https://edge.media-server.com/mmc/p/7wfof7nx.

ABOUT CECO ENVIRONMENTAL

CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally providing innovative solutions and application expertise. CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. CECO solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly-engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals and steel production, beverage can, and water/wastewater treatment and a wide range of other industrial end markets. CECO is listed on Nasdaq under the ticker symbol "CECO." Incorporated in 1966, CECO’s global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.

Company Contact:
Peter Johansson
Chief Financial and Strategy Officer
888-990-6670
investor.relations@onececo.com

Investor Relations Contact:

Steven Hooser and Jean Marie Young
Three Part Advisors, LLC
214-872-2710
investor.relations@onececo.com

 
CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
  December 31, 
(dollars in thousands, except share data) 2023  2022 
ASSETS      
Current assets:      
Cash and cash equivalents $54,779  $45,522 
Restricted cash  669   1,063 
Accounts receivable, net of allowances of $6,460 and $4,220  112,733   83,086 
Costs and estimated earnings in excess of billings on uncompleted contracts  66,574   71,016 
Inventories, net  34,089   26,526 
Prepaid expenses and other current assets  11,769   12,174 
Prepaid income taxes  824   1,271 
Total current assets  281,437   240,658 
Property, plant and equipment, net  26,237   20,828 
Right-of-use assets from operating leases  16,256   11,373 
Goodwill  211,326   183,197 
Intangible assets – finite life, net  50,461   35,251 
Intangible assets – indefinite life  9,570   9,508 
Deferred income taxes  304   829 
Deferred charges and other assets  4,700   3,077 
Total assets $600,291  $504,721 
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities:      
Current portion of debt $10,488  $3,579 
Accounts payable  87,691   73,407 
Accrued expenses  44,301   33,791 
Billings in excess of costs and estimated earnings on uncompleted contracts  56,899   32,716 
Notes payable  2,500    
Income taxes payable  1,227   3,207 
Total current liabilities  203,106   146,700 
Other liabilities  12,644   15,129 
Debt, less current portion  126,795   107,625 
Deferred income tax liability, net  8,838   8,666 
Operating lease liabilities  11,417   8,453 
Total liabilities  362,800   286,573 
Commitments and contingencies (See Note 12)      
Shareholders’ equity:      
Preferred stock, $.01 par value; 10,000 shares authorized, none issued      
Common stock, $.01 par value; 100,000,000 shares authorized, 34,835,293 and 34,381,668 shares issued and outstanding at December 31, 2023 and 2022, respectively  348   344 
Capital in excess of par value  254,956   250,174 
Accumulated loss  (6,387)  (19,298)
Accumulated other comprehensive loss  (16,274)  (17,996)
Total CECO shareholders’ equity  232,643   213,224 
Noncontrolling interest  4,848   4,924 
Total shareholders' equity  237,491   218,148 
Total liabilities and shareholders’ equity $600,291  $504,721 


CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
 
  Three months ended December 31,  Year ended December 31, 
(in thousands, except share and per share data) 2023  2022  2023  2022 
Net sales $153,711  $116,402  $544,845  $422,627 
Cost of sales  100,526   78,706   373,829   294,402 
Gross profit  53,185   37,696   171,016   128,225 
Selling and administrative expenses  36,862   26,667   122,944   93,473 
Amortization and earnout expenses  2,192   1,870   8,180   6,809 
Acquisition and integration expenses  298   721   2,508   4,546 
Executive transition expenses  48      1,465   1,161 
Restructuring expenses (income)  1,133      1,350   75 
Income from operations  12,652   8,438   34,569   22,161 
Other income (expense), net  1,042   4,193   372   6,947 
Interest expense  (3,918)  (1,930)  (13,416)  (5,419)
Income before income taxes  9,776   10,701   21,525   23,689 
Income tax expense  5,447   2,139   7,024   5,426 
Net income  4,329   8,562   14,501   18,263 
Noncontrolling interest  (450)  (267)  (1,590)  (846)
Net income attributable to CECO Environmental Corp. $3,879  $8,295  $12,911  $17,417 
Income per share:            
Basic $0.11  $0.24  $0.37  $0.50 
Diluted $0.11  $0.24  $0.37  $0.50 
Weighted average number of common shares outstanding:            
Basic  34,823,663   34,318,526   34,665,473   34,672,007 
Diluted  35,687,092   34,919,398   35,334,090   35,005,159 


CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Year ended December 31, 
(dollars in thousands) 2023  2022 
Cash flows from operating activities:      
Net income $14,501  $18,263 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  12,507   10,614 
Unrealized foreign currency (gain) loss  (1,041)  (1,284)
Impairment of intangible assets      
Fair value adjustments to earnout liabilities  296   (229)
Earnout payments     (1,007)
Loss (gain) on sale of property and equipment  110   10 
Amortization of debt discount  427   371 
Share based compensation expense  4,533   3,895 
Bad debt expense  1,593   1,340 
Inventory reserve expense  1,099   140 
Deferred income tax (benefit) expense  (118)  (39)
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable  (26,851)  (6,751)
Cost and estimated earnings of billings on uncompleted contracts  5,040   (16,851)
Inventories  (6,896)  (6,023)
Prepaid expenses and other current assets  1,196   37 
Deferred charges and other assets  (1,420)  2,478 
Accounts payable  13,852   19,843 
Accrued expenses  8,340   2,693 
Billings in excess of costs and estimated earnings on uncompleted contracts  21,575   4,405 
Income taxes payable  (1,976)  1,424 
Other liabilities  (2,120)  (3,680)
Net cash provided by operating activities  44,647   29,649 
Cash flows from investing activities:      
Acquisitions of property and equipment  (8,384)  (3,376)
Net proceeds from sale of assets     19 
Cash paid for acquisitions, net of cash acquired  (48,102)  (44,900)
Net cash used in investing activities  (56,486)  (48,257)
Cash flows from financing activities:      
Borrowings on revolving credit lines  106,600   75,200 
Repayments on revolving credit lines  (150,600)  (35,900)
Borrowings of long-term debt  75,000   11,000 
Repayments of long-term debt  (4,985)  (3,120)
Repayments of notes payable     (500)
Deferred financing fees paid  (363)  (130)
Deferred consideration paid for acquisitions  (1,247)   
Payments on capital leases and sale-leaseback financing liability  (907)  (600)
Earnout payments  (2,123)   
Proceeds from employee stock purchase plan and exercise of stock options  1,435   671 
Distributions to non-controlling interest  (1,666)  (1,425)
Common stock repurchases     (7,020)
Net cash provided by (used in) financing activities  21,144   38,176 
Effect of exchange rate changes on cash and cash equivalents  (442)  (4,978)
Net increase (decrease) in cash, cash equivalents and restricted cash  8,863   14,590 
Cash, cash equivalents and restricted cash at beginning of year  46,585   31,995 
Cash, cash equivalents and restricted cash at end of year $55,448  $46,585 
Cash paid (received) during the period for:      
Interest $12,098  $5,007 
Income taxes $9,916  $5,378 


CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
 
  Three months ended December 31,  Year ended December 31, 
(in millions, except ratios) 2023  2022  2023  2022 
Operating income as reported in accordance with GAAP $12.7  $8.4  $34.6  $22.2 
Operating margin in accordance with GAAP  8.3%  7.2%  6.4%  5.3%
Amortization and earnout expenses  2.2   1.9   8.2   6.8 
Acquisition and integration expenses  0.3   0.7   2.5   4.5 
Executive transition expenses        1.5   1.2 
Restructuring expenses  1.1      1.3   0.1 
Non-GAAP operating income $16.3  $11.0  $48.1  $34.8 
Non-GAAP operating margin  10.6%  9.5%  8.8%  8.2%


  Three months ended December 31,  Year ended December 31, 
(in millions, except share data) 2023  2022  2023  2022 
Net income as reported in accordance with GAAP $3.9  $8.3  $12.9  $17.4 
Amortization and earnout expenses  2.2   1.9   8.2   6.8 
Acquisition and integration expenses  0.3   0.7   2.5   4.5 
Executive transition expenses        1.5   1.2 
Restructuring expenses  1.1      1.3   0.1 
Foreign currency remeasurement  (1.0)  (3.8)  (1.0)  (1.3)
Tax benefit (expense) of adjustments  3.6   0.3   1.2   (2.8)
Non-GAAP net income $10.1  $7.4  $26.6  $25.9 
Depreciation  1.7   1.0   5.1   3.6 
Non-cash stock compensation  1.5   1.0   4.5   3.9 
Other (income) expense  (0.1)  (0.4)  0.8   (5.6)
Interest expense  3.9   1.9   13.4   5.4 
Income tax expense  1.8   1.8   5.7   8.2 
Noncontrolling interest  0.5   0.3   1.6   0.8 
Adjusted EBITDA $19.4  $13.0  $57.7  $42.2 
             
Earnings per share:            
Basic $0.11  $0.24  $0.37  $0.50 
Diluted $0.11  $0.24  $0.37  $0.50 
             
Adjusted earnings per share:            
Basic $0.29  $0.22  $0.77  $0.75 
Diluted $0.28  $0.21  $0.75  $0.74 


  Three months ended December 31,  Year ended December 31, 
(in millions) 2023  2022  2023  2022 
Net cash provided by operating activities $15.1  $10.0  $44.6  $29.6 
Earnout payments (within operating activities)           1.0 
Acquisitions of property and equipment  (2.9)  (1.0)  (8.4)  (3.4)
Free cash flow $12.2  $9.0  $36.2  $27.2 
                 
                 
NOTE REGARDING NON-GAAP FINANCIAL MEASURES

CECO is providing certain non-GAAP historical financial measures as presented above as we believe that these figures are helpful in allowing individuals to better assess the ongoing nature of CECO’s core operations. A "non-GAAP financial measure" is a numerical measure of a company's historical financial performance that excludes amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP.

Non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow, as we present them in the financial data included in this press release, have been adjusted to exclude the effects of amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses primarily relating to severance and legal expenses, acquisition and integration expenses which include retention, legal, accounting, banking, and other expenses, foreign currency remeasurement and other nonrecurring or infrequent items and the associated tax benefit of these items. Management believes that these items are not necessarily indicative of the Company’s ongoing operations and their exclusion provides individuals with additional information to better compare the Company's results over multiple periods. Management utilizes this information to evaluate its ongoing financial performance. Our financial statements may continue to be affected by items similar to those excluded in the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP financial measures should not be construed as an inference that all such costs are unusual or infrequent.

Non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of CECO’s results as reported under GAAP. Additionally, CECO cautions investors that non-GAAP financial measures used by the Company may not be comparable to similarly titled measures of other companies.

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow stated in the tables above are reconciled to the most directly comparable GAAP financial measures.

Non-GAAP measures presented on a forward-looking basis were not reconciled to the comparable GAAP financial measures because the reconciliation could not be performed without unreasonable efforts. The GAAP measures are not accessible on a forward-looking basis because we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses primarily relating to severance and legal expenses, acquisition and integration expenses which include retention, legal, accounting, banking, and other expenses, foreign currency remeasurement and other nonrecurring or infrequent items and the associated tax benefit of these items. The unavailable information could have a significant impact on our GAAP financial results.

SAFE HARBOR

Any statements contained in this Press Release, other than statements of historical fact, including statements about management’s beliefs and expectations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. We use words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “plan,” “should” and similar expressions to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties, among others, that could cause actual results to differ materially are discussed under “Part I – Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and may be included in subsequently filed Quarterly Reports on Form 10-Q, and include, but are not limited to: the sensitivity of our business to economic and financial market conditions generally and economic conditions in our service areas; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for revenue; the effect of growth on our infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges; liabilities arising from faulty services or products that could result in significant professional or product liability, warranty, or other claims; changes in or developments with respect to any litigation or investigation; failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects; the potential for fluctuations in prices for manufactured components and raw materials, including as a result of tariffs and surcharges, and rising energy costs; inflationary pressures relating to rising raw material costs and the cost of labor; the substantial amount of debt incurred in connection with our strategic transactions and our ability to repay or refinance it or incur additional debt in the future; the impact of federal, state or local government regulations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; our ability to successfully realize the expected benefits of our restructuring program; our ability to successfully integrate acquired businesses and realize the synergies from strategic transactions; and the unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises, as well as management’s response to any of the aforementioned factors. Many of these risks are beyond management’s ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.


FAQ

What are CECO Environmental Corp.'s (CECO) Q4 2023 financial highlights?

CECO reported orders of $128.3 million, backlog of $370.9 million (up 19%), revenue of $153.7 million (up 32%), net income of $3.9 million (down 53%), and non-GAAP net income of $10.1 million (up 36%).

What were the financial highlights for CECO in the full year 2023?

CECO achieved orders of $582.8 million (up 11%), revenue of $544.8 million (up 29%), net income of $12.9 million (down 26%), and non-GAAP net income of $26.6 million (up 3%).

What is CECO's CEO, Todd Gleason's statement regarding the financial results?

Todd Gleason mentioned successful results in Q4, record-breaking revenues, gross profits, and adjusted EBITDA. He highlighted balanced portfolio contributions and sustained growth supported by organic sales increases and M&A execution.

What is CECO's financial outlook for 2024?

CECO raised its 2024 full year revenue guidance to $590 to $610 million, with Adjusted EBITDA guidance of $67 to $70 million. The company expects robust organic growth and operational excellence to drive further operating margin expansion.

When is the earnings conference call scheduled for CECO?

The earnings conference call is scheduled for today at 8:30 a.m. ET. It can be accessed via webcast on the Investor Relations portion of CECO's website.

Ceco Environmental Corp

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United States of America
ADDISON