CECO Environmental Corp. Common Stock Q3 2026 Earnings Recap

CECO’s shares rose 19.0% after earnings as the company reported record quarterly results, strong legacy growth and introduced a 2027 outlook calling for approximately $2.2 billion in revenue and $500 million in adjusted EBITDA at the midpoint. The outlook is supported by a $2.2 billion backlog and early Thermon integration savings, though the transcript excerpt does not provide the full financial detail or assumptions behind the forecast.

Key Takeaways

• Q3 revenue was approximately $404 million, adjusted EBITDA was $70 million, and adjusted EBITDA margin was 17.3%; revenue more than doubled and adjusted EBITDA roughly tripled year over year, including Thermon.
• Legacy CECO delivered 30% organic revenue growth and 64% adjusted EBITDA growth.
• Orders totaled $778 million and quarter-end backlog was approximately $2.2 billion; management said about 20% of backlog relates to data centers and that cancellation rates remain below 0.5%.
• CECO generated approximately $154 million of adjusted free cash flow in Q3 and $192 million year to date, ending the quarter at about 2x net leverage.
• Thermon integration savings reached approximately $22 million in annualized net adjusted EBITDA, about 55% of the three-year target, within the first six months.