CECO Environmental Corp. reported its third‑quarter 2025 earnings, posting a GAAP net income of $1.5 million and diluted earnings per share of $0.04. Adjusted earnings per share reached $0.26, reflecting the company’s strong operating performance.
Revenue for the quarter was $197.6 million, up 46% year‑over‑year from $135.5 million in Q3 2024. Adjusted EBITDA climbed to $23.2 million, an 11.7% margin and a 62% increase from $14.3 million in the same period last year. Operating income rose to $9.4 million, while adjusted operating income increased to $17.5 million, a 59% jump from $11.0 million in Q3 2024.
Free cash flow for the quarter was $19.0 million, a 71% increase from $11.1 million in Q3 2024. Net income declined from $2.1 million in Q3 2024 to $1.5 million in Q3 2025, largely due to higher amortization and interest costs and integration expenses related to recent acquisitions.
CECO reaffirmed its 2025 guidance, projecting revenue of $725 million to $775 million and adjusted EBITDA of $90 million to $100 million, with free cash flow expected to exceed 60% of adjusted EBITDA. The company also unveiled a 2026 outlook of $850 million to $950 million in revenue and $110 million to $130 million in adjusted EBITDA, with free cash flow guidance of 50% to 60% of adjusted EBITDA.
CEO Todd Gleason highlighted record‑setting quarterly revenue and a backlog of $720 million. He noted that the company booked over $950 million in new orders during the trailing twelve months ending Q3 2025 and that a robust sales pipeline of $5.8 billion provides strong visibility for future revenue. The divestiture of the Global Pumps business and the integration of EnviroCare, WK Group, and Profire Energy are expected to drive continued growth and margin expansion in the coming year.
Orders for Q3 2025 totaled $232.9 million, a 44% increase over the prior year, resulting in a book‑to‑bill ratio of approximately 1.2 times for the quarter and an annualized ratio of about 1.3 times.
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