CECO Environmental Stock Extends Rally 11% After Record Quarter as Orders Triple and Backlog Hits $2.2 Billion

ADDISON, Texas — Shares of CECO Environmental Corp. jumped more than 11% on Wednesday, extending a sharp rally that began earlier this week. The industrial company reported record third-quarter results, a surge in orders and an upbeat long-term outlook.

The stock rose $5.95, or 11.48%, to $57.78 in morning trading, giving the company a market value of about $3.45 billion. The gain builds on a surge of about 25% on Monday, Nov. 9, when CECO released its quarterly results. No new company announcement was immediately apparent on Wednesday, suggesting investors were continuing to buy into the stock following the report.

CECO reported third-quarter revenue of $404.4 million, up about 105% from a year earlier and above analyst estimates of about $398 million. The quarter included a full three months of results from Thermon, the industrial heating company CECO acquired in a deal that closed June 1. Adjusted earnings rose about 131% to 60 cents per share, slightly ahead of the 59-cent consensus estimate.

Adjusted EBITDA jumped about 202% to $70.1 million, for a margin of 17.3%. The company's legacy business, excluding Thermon, posted organic revenue growth of 30% and adjusted EBITDA growth of 64%.

Orders were the standout. Third-quarter orders soared 234% to $777.6 million. The company's backlog reached a record of about $2.2 billion, up 205% from a year earlier and 21% from the previous quarter. It was the 13th straight quarter of backlog growth. CECO said its pipeline of sales opportunities exceeds $9 billion.

Investors have linked part of the demand to the construction of data centers and power generation projects tied to artificial intelligence. Those projects require air quality, emissions control and water treatment systems.

CECO raised its outlook. It now expects 2026 sales of $1.300 billion to $1.375 billion, well above analyst forecasts of about $1.1 billion, and adjusted EBITDA of $200 million to $225 million. It also lifted its 2026 orders forecast to at least $2.5 billion, up from a prior forecast of $2 billion. The company projected 2027 revenue of up to $2.3 billion.

The company generated $154 million in adjusted free cash flow during the quarter and reduced its net leverage to about 2 times. It said it has captured $22 million in annualized cost savings from the Thermon integration, about 55% of its three-year target.

The rally reverses a difficult stretch for the stock. Despite strong earnings in the second quarter, CECO shares had declined sharply heading into the report, and they remain roughly flat over the past 52 weeks.

CECO Environmental provides industrial air, water and energy transition solutions for markets including power generation, oil and gas processing, semiconductors, battery production and wastewater treatment. Founded in 1966, the company is headquartered in Addison, Texas.

Some analysts caution that the integration of Thermon carries risks and that the stock's sharp two-day rally could invite profit-taking.