CECO Environmental tops Q1 estimates, hikes FY forecast on strong orders

ReutersApr 28, 2026 11:13 AM

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Overview

US environmental solutions provider's Q1 revenue rose 17%, beating analyst expectations
Adjusted EPS and adjusted net income for Q1 beat analyst expectations
Company raised full-year 2026 revenue and adjusted EBITDA guidance after record orders and backlog

Outlook

CECO raises 2026 revenue outlook to $940 mln-$1 bln, up from $925 mln-$975 mln
Company lifts 2026 adjusted EBITDA forecast to $120 mln-$140 mln from $115 mln-$135 mln
CECO expects higher gross margins in Q2 and through the rest of 2026

Result Drivers

RECORD ORDERS AND BACKLOG - Co said Q1 orders nearly doubled and backlog surpassed $1 bln, driven by large-scale projects in natural gas power generation and industrial markets
EFFICIENCY INITIATIVES - Adjusted EBITDA margin expanded due to improved volume conversion and early results from operational simplification programs, per CEO Todd Gleason
GROSS MARGIN CONTRACTION - Co said lower Q1 gross margin was anticipated due to sale of higher-margin business last year and timing of lower-margin jobs booked in early 2025

Company press release: ID:nGNX2smRL6

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$205.92 mln	$198.88 mln (6 Analysts)
Q1 Adjusted EPS	Beat	$0.36	$0.15 (6 Analysts)
Q1 Adjusted Net Income	Beat	$13.90 mln	$5.32 mln (5 Analysts)
Q1 Adjusted EBITDA	Beat	$20.40 mln	$18.54 mln (6 Analysts)
Q1 Adjusted Operating Income		$17.90 mln
Q1 Free Cash Flow		-$15.70 mln

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for CECO Environmental Corp is $79.50, about 22.5% above its April 27 closing price of $64.92
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 41 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

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