Latest news with #CECO
Yahoo
28-05-2025
- Business
- Yahoo
Q1 Industrial & Environmental Services Earnings: CECO Environmental (NASDAQ:CECO) Impresses
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how CECO Environmental (NASDAQ:CECO) and the rest of the industrial & environmental services stocks fared in Q1. Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems. The 7 industrial & environmental services stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3.1% while next quarter's revenue guidance was 1% above. Luckily, industrial & environmental services stocks have performed well with share prices up 12.4% on average since the latest earnings results. With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. CECO Environmental reported revenues of $176.7 million, up 39.9% year on year. This print exceeded analysts' expectations by 17%. Overall, it was a stunning quarter for the company with an impressive beat of analysts' EPS estimates and full-year revenue guidance beating analysts' expectations. Todd Gleason, CECO's Chief Executive Officer commented, 'We started 2025 with outstanding first quarter record orders of $228 million, which helped drive new record levels of backlog and revenue for the company. This is a powerful statement on the strength of our well-positioned portfolio, which is closely aligned to key long-term growth themes of industrial manufacturing reshoring, electrification, power generation, natural gas infrastructure, and industrial water investments. This marks the second consecutive quarter with bookings greater than $200 million, which has enabled our backlog to exceed $600 million for the first time in Company history. With our order pursuit pipeline now over $5 billion, we remain highly confident in our continued growth outlook.' CECO Environmental achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 55.7% since reporting and currently trades at $29.90. We think CECO Environmental is a good business, but is it a buy today? Read our full report here, it's free. With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE:UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries. UniFirst reported revenues of $602.2 million, up 1.9% year on year, in line with analysts' expectations. The business had a strong quarter with an impressive beat of analysts' full-year EPS guidance estimates. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $188.95. Is now the time to buy UniFirst? Access our full analysis of the earnings results here, it's free. Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada. Vestis reported revenues of $665.2 million, down 5.7% year on year, falling short of analysts' expectations by 4%. It was a softer quarter as it posted a significant miss of analysts' EPS estimates. Vestis delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29.7% since the results and currently trades at $6.12. Read our full analysis of Vestis's results here. With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE:PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes. Pitney Bowes reported revenues of $493.4 million, down 40.6% year on year. This print came in 0.9% below analysts' expectations. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts' EPS estimates. Pitney Bowes had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 16.1% since reporting and currently trades at $10.40. Read our full, actionable report on Pitney Bowes here, it's free. With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. Tetra Tech reported revenues of $1.10 billion, up 4.9% year on year. This number beat analysts' expectations by 6.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts' EPS guidance for next quarter estimates and full-year revenue guidance exceeding analysts' expectations. Tetra Tech delivered the highest full-year guidance raise among its peers. The stock is up 17.8% since reporting and currently trades at $36.39. Read our full, actionable report on Tetra Tech here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
CECO Q1 Earnings Call: Bookings Surge, Power Pipeline Grows Amid Tariff Uncertainty
Environmental solutions provider CECO Environmental (NASDAQ:CECO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 39.9% year on year to $176.7 million. The company's full-year revenue guidance of $725 million at the midpoint came in 3.5% above analysts' estimates. Its non-GAAP profit of $0.10 per share was 12.2% above analysts' consensus estimates. Is now the time to buy CECO? Find out in our full research report (it's free). Revenue: $176.7 million vs analyst estimates of $151.1 million (39.9% year-on-year growth, 17% beat) Adjusted EPS: $0.10 vs analyst estimates of $0.09 (12.2% beat) Adjusted EBITDA: $14 million vs analyst estimates of $13.35 million (7.9% margin, 4.9% beat) The company reconfirmed its revenue guidance for the full year of $725 million at the midpoint EBITDA guidance for the full year is $95 million at the midpoint, above analyst estimates of $91.51 million Operating Margin: 35%, up from 6.1% in the same quarter last year Free Cash Flow was -$15.1 million compared to -$1.9 million in the same quarter last year Market Capitalization: $905.3 million CECO Environmental's first quarter performance was driven by record order bookings and continued expansion of its diversified sales pipeline. Management highlighted that bookings reached approximately $228 million, up 57% year over year, with the sales pipeline surpassing $5 billion for the first time. CEO Todd Gleason attributed these results to strong demand across industrial air, water, and energy transition markets, as well as the successful integration of recent acquisitions like Profire Energy. Gleason emphasized, 'The same themes that have been driving CECO's growth over the past year are only reinforced by the stated goals of the current administration.' Looking ahead, management reconfirmed full-year guidance, pointing to resilient end-market demand and a robust backlog. The leadership team acknowledged external risks, particularly from evolving tariffs and potential inflationary pressures, but outlined measures to mitigate these impacts, such as localized supply chains and contractual pass-through clauses. CFO Peter Johansson noted, 'We have taken early action to address our preliminary assessment of tariff-related inflation and costs,' reinforcing management's focus on operational flexibility and cost containment. CECO Environmental's management cited diversification, operational agility, and successful M&A as key themes influencing Q1 performance, while also addressing how the company is preparing for tariff-related challenges. Record Bookings Momentum: The company achieved its highest-ever quarterly bookings, driven by balanced demand across industrial air, water, and energy transition sectors. Management reported no evidence of order pull-forward due to tariffs, with robust pipelines in both North America and international markets. Acquisition Integration Progress: The Profire Energy acquisition contributed to first quarter growth and exceeded internal expectations for bookings and integration. Management noted that Profire achieved record bookings in Q1 and that cross-selling opportunities are emerging, especially in international oil and gas markets. Expanding International Presence: CECO's non-U.S. business is approaching half of total operations, with high-growth regions like India, Southeast Asia, and the Middle East demonstrating strong demand. Management described India as having a multi-decade growth opportunity, comparing its current trajectory to China's rapid expansion in earlier decades. Tariff Mitigation Strategies: Management detailed actions to offset tariff-related costs, including contract structures allowing for cost pass-through, localized supply chains, and targeted price increases. They estimate gross tariff exposure between $3 million and $10 million in 2025 but believe most impacts can be managed without significant margin erosion. Operational Investment: Additional technical and commercial resources were added to support the enlarged backlog and accelerated sales pipeline. This investment in talent and systems, especially IT infrastructure, is expected to enable continued execution and margin expansion as the business scales. Management remains focused on executing against a large, diversified backlog and navigating potential tariff and inflationary headwinds while maintaining operational efficiency and sales growth. Backlog Conversion and Project Mix: The $602 million backlog is expected to convert to revenue over the next 18 months, with a shift toward shorter-cycle projects and a steady flow of long-term, highly engineered solutions. Management believes this mix provides revenue stability and margin visibility. International Expansion: Growth in emerging markets, particularly India and the Middle East, is anticipated to become a larger revenue contributor. Management views international diversification as a buffer against localized economic uncertainty and policy shifts. Tariff and Supply Chain Risk Management: Ongoing tariff changes and supply chain inflation are cited as key risks. Management's mitigation plan involves contractual protections, localized sourcing, and proactive pricing actions, but acknowledges that unexpected inflation could still impact profitability. Rob Brown (Lake Street Capital): Asked about the power sector pipeline and timing of large project bookings. Management responded that over $1 billion in opportunities exist, with most revenue from these bookings expected in 2026 and 2027. Bobby Brooks (Northland Capital): Inquired if order strength was influenced by customers rushing orders ahead of tariffs. CEO Todd Gleason stated there was no evidence of pull-forward, attributing steady demand to broad sectoral strength. Aaron Spychalla (Craig-Hallum): Sought clarity on capital expenditure priorities. CFO Peter Johansson said IT infrastructure remains the largest investment, with limited need for new manufacturing assets after the recent divestiture. Gerry Sweeney (Roth Capital): Asked about the risk of indirect tariff impacts on margins later in the year. Management responded that while direct impacts are manageable, broader inflation and supply chain pass-through costs remain a concern. Sameer Joshi (H.C. Wainwright): Questioned the pace of future M&A activity. Management indicated a near-term focus on integrating recent acquisitions and reducing leverage, with new deals unlikely before the second half of the year. Looking forward, the StockStory team will be monitoring (1) the timing and size of power sector contract awards, which could drive step-change revenue growth, (2) the pace of backlog conversion and potential for a quarter with sales above $200 million, and (3) progress on integrating recent acquisitions—especially Profire Energy—along with the effectiveness of tariff mitigation strategies. Shifts in international project mix and any material changes in supply chain costs will also be critical signposts. CECO Environmental currently trades at a forward P/E ratio of 19.9×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Hamilton Spectator
06-05-2025
- Business
- Hamilton Spectator
CECO Environmental Announces Upcoming Investor Conferences
ADDISON, Texas, May 06, 2025 (GLOBE NEWSWIRE) — CECO Environmental Corp. (Nasdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announces that CECO management will participate at the following investor conferences: The presentations will be available on the Investor Relations section of the Company's website . ABOUT CECO ENVIRONMENTAL CECO Environmental is a leading environmentally focused, diversified industrial company, serving a broad landscape of industrial air, industrial water, and energy transition markets globally through its key business segments: Engineered Systems and Industrial Process Solutions. Providing innovative technology 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. In regions around the world, CECO works to improve air quality, optimize the energy value chain, and provide custom solutions for applications in power generation, petrochemical processing, refining, midstream gas transport and treatment, electric vehicle and battery production, metals and mineral processing, polysilicon production, battery recycling, beverage can production, and produced and oily water/wastewater treatment along with a wide range of other industrial applications. CECO is listed on Nasdaq under the ticker symbol 'CECO.' Incorporated in 1966, CECO's global headquarters is in Addison, Texas. For more information, please visit . Company Contact: Peter Johansson Chief Financial and Strategy Officer 888-990-6670 Investor Relations Contact: Steven Hooser and Jean Marie Young Three Part Advisors 214-872-2710
Yahoo
29-04-2025
- Business
- Yahoo
Why CECO Environmental (CECO) Stock Is Trading Up Today
Shares of environmental solutions provider CECO Environmental (NASDAQ:CECO) jumped 18.3% in the afternoon session after the company reported strong first quarter 2025 results: its revenue surged past Wall Street's expectations, and adjusted EPS outpaced forecasts. The real story this quarter was a 40% jump in sales, fueled by record-breaking orders and a backlog that climbed 55%. Full-year guidance remained intact, with CECO expecting roughly 30% revenue growth and a 50% jump in adjusted EBITDA, showing confidence in its ability to execute despite macro uncertainties. Zooming out, we think this was a solid quarter. Is now the time to buy CECO Environmental? Access our full analysis report here, it's free. CECO Environmental's shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for CECO Environmental and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock gained 14.7% on the news that the company reported decent fourth-quarter results, surpassing analysts' expectations for revenue, EPS, and EBITDA. Revenue grew significantly, driven by record-high bookings and a 46% increase in backlog, signaling strong demand across its industrial and environmental businesses. On top of that, the company's full-year revenue and EBITDA guidance came in ahead of forecasts, adding to the positive momentum. Zooming out, we think this was a good quarter with some key areas of upside. CECO Environmental is down 28% since the beginning of the year, and at $22.61 per share, it is trading 34.5% below its 52-week high of $34.51 from December 2024. Investors who bought $1,000 worth of CECO Environmental's shares 5 years ago would now be looking at an investment worth $3,919. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
CECO Environmental (NASDAQ:CECO) Delivers Impressive Q1, Full-Year Sales Guidance is Optimistic
Environmental solutions provider CECO Environmental (NASDAQ:CECO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 39.9% year on year to $176.7 million. The company's full-year revenue guidance of $725 million at the midpoint came in 3.5% above analysts' estimates. Its non-GAAP profit of $0.10 per share was 17.6% above analysts' consensus estimates. Is now the time to buy CECO Environmental? Find out in our full research report. Revenue: $176.7 million vs analyst estimates of $151.1 million (39.9% year-on-year growth, 17% beat) Adjusted EPS: $0.10 vs analyst estimates of $0.09 (17.6% beat) Adjusted EBITDA: $14 million vs analyst estimates of $13.35 million (7.9% margin, 4.9% beat) The company reconfirmed its revenue guidance for the full year of $725 million at the midpoint EBITDA guidance for the full year is $95 million at the midpoint, above analyst estimates of $91.51 million Operating Margin: 35%, up from 6.1% in the same quarter last year Free Cash Flow was -$15.1 million compared to -$1.9 million in the same quarter last year Market Capitalization: $676.2 million Todd Gleason, CECO's Chief Executive Officer commented, 'We started 2025 with outstanding first quarter record orders of $228 million, which helped drive new record levels of backlog and revenue for the company. This is a powerful statement on the strength of our well-positioned portfolio, which is closely aligned to key long-term growth themes of industrial manufacturing reshoring, electrification, power generation, natural gas infrastructure, and industrial water investments. This marks the second consecutive quarter with bookings greater than $200 million, which has enabled our backlog to exceed $600 million for the first time in Company history. With our order pursuit pipeline now over $5 billion, we remain highly confident in our continued growth outlook.' With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $608.3 million in revenue over the past 12 months, CECO Environmental is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, CECO Environmental grew its sales at an excellent 12.6% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows CECO Environmental's demand was higher than many business services companies. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. CECO Environmental's annualized revenue growth of 17.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. This quarter, CECO Environmental reported wonderful year-on-year revenue growth of 39.9%, and its $176.7 million of revenue exceeded Wall Street's estimates by 17%. Looking ahead, sell-side analysts expect revenue to grow 18.2% over the next 12 months, similar to its two-year rate. This projection is eye-popping and indicates the market sees success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. CECO Environmental was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.6% was weak for a business services business. On the plus side, CECO Environmental's operating margin rose by 10.8 percentage points over the last five years, as its sales growth gave it immense operating leverage. In Q1, CECO Environmental generated an operating profit margin of 35%, up 28.9 percentage points year on year. This increase was a welcome development and shows it was more efficient. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. CECO Environmental's EPS grew at a weak 2.8% compounded annual growth rate over the last five years, lower than its 12.6% annualized revenue growth. However, its operating margin actually expanded during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. Diving into the nuances of CECO Environmental's earnings can give us a better understanding of its performance. A five-year view shows CECO Environmental has diluted its shareholders, growing its share count by 3.7%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, CECO Environmental reported EPS at $0.10, down from $0.11 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects CECO Environmental's full-year EPS of $0.72 to grow 79.6%. We were impressed by how significantly CECO Environmental blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid quarter. The stock traded up 3.1% to $19.79 immediately after reporting. Sure, CECO Environmental had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
