CECO Environmental Stock Soars 33% After Record Quarter as Thermon Deal Helps Triple Orders and Backlog

Shares of CECO Environmental Corp. jumped 33% on Monday after the industrial air and water treatment company reported record third-quarter results, raised its full-year order forecast and gave its first outlook for 2027.

CECO shares rose $14.51 to $57.76, lifting the company's market value to about $3.4 billion. The gain added significantly to a stock that had been trading near its lows; CECO's 52-week range runs from $37.15 to $101.24.

Before Monday, the stock was still down about 19% over the past year.

Record results

The quarter was CECO's strongest on record. The company reported record third-quarter results, with orders, backlog and adjusted EBITDA each up more than 200%, and it raised its full-year orders and free cash flow forecasts while introducing a full-year 2027 outlook.

The numbers beat Wall Street's expectations. CECO reported non-GAAP earnings of 60 cents a share, beating the 59-cent consensus of seven analysts, and revenue of $404.4 million, topping the $399.6 million consensus.

Revenue more than doubled, up 105% from $197.6 million a year earlier, and backlog stood at $2.19 billion, providing visibility into future projects.

Profitability improved sharply on an adjusted basis. Gross profit rose 101% to $130.1 million, and non-GAAP net income climbed 269% to $34.3 million. On a GAAP basis, however, CECO reported a net loss of $2.0 million, compared with net income of $1.5 million a year earlier.

Raised outlook

The forward guidance drew the most attention. CECO now expects fiscal 2026 adjusted EBITDA of $200 million to $225 million and total orders of more than $2.5 billion, up from a prior forecast of at least $2 billion.

Management set full-year revenue guidance at $1.30 billion to $1.38 billion.

Thermon acquisition

The surge in orders and revenue largely reflects a major acquisition. The guidance upgrade underscores the company's accelerating momentum following its June acquisition of Thermon.

The deal reshaped CECO's business mix. Analysts raised their blended price target for CECO to $93.60 from $78.83 to reflect expectations of higher revenue growth and wider profit margins tied to the Thermon acquisition.

About CECO

The Texas-based company serves several markets. CECO serves industrial air, industrial water and energy transition markets globally, and its stock is listed on the Texas Stock Exchange under the ticker CECO. The company was incorporated in 1966 and is headquartered in Addison, Texas.

Analyst sentiment

Wall Street remains largely positive. Analyst consensus stands at nine buy ratings, one hold and no sells.

Not every signal is bullish. Insider activity over the past 12 months shows net selling of about $7.7 million.

Outlook

Monday's jump suggests investors are gaining confidence that the Thermon deal can deliver strong growth and margins. Investors will watch whether CECO can convert its record backlog into revenue on schedule and deliver on its newly issued 2027 targets.