Quick Facts / Company Snapshot
| Metric | Value |
| Company Name | CECO Environmental Corp. |
| Ticker Symbol | CECO |
| Stock Exchange | The NASDAQ Stock Market LLC |
| Year Founded | Over 50 years of operating history |
| Headquarters | 5080 Spectrum Drive, Suite 800E, Addison, Texas 75001 |
| Chief Executive Officer | Todd Gleason |
| Total Revenue (Fiscal 2025) | $774.4 million |
| Net Income (Fiscal 2025) | $53.1 million |
| Net Income Attributable to CECO | $50.1 million |
| Diluted Earnings Per Share | $1.37 |
| Gross Margin | 34.8% |
| Operating Margin | 13.7% |
| Total Assets | $893.8 million |
| Total Employees | Approximately 1,540 |
| Global Footprint | 51 principal operating facilities |
| Largest Revenue Segment | Engineered Systems ($544.3 million) |
| Largest Geographic Market | United States (66.0% of sales) |
| Order Backlog | $793.1 million |
| Capital Expenditures | $11.3 million |
| Strategic Focus | Industrial air, industrial water, and energy transition |
Company Overview
CECO Environmental Corp. operates as a diversified industrial enterprise focused on environmental and equipment protection solutions. The organization serves a broad landscape of industrial air, industrial water, and energy transition markets globally. The core operational mandate is to provide innovative technology and application expertise to help companies operate safely and efficiently while meeting stringent environmental standards.
The corporate portfolio focuses on improving air and water quality, optimizing emissions management, and increasing process efficiency for engineered applications. The enterprise caters to critical infrastructure sectors, including power generation, midstream and downstream hydrocarbon processing, and chemical manufacturing. Furthermore, operations support expanding markets such as electric vehicle production, polysilicon fabrication, semiconductor manufacturing, and battery recycling.
- Clientele Diversity: The customer base encompasses natural gas processors, transmission companies, global refineries, and power generators. It also includes industrial manufacturing conglomerates and leading semiconductor producers.
- Installed Base: The organization leverages an installed base of operating systems and equipment globally, exceeding $10 billion in value.
- Global Reach: Operations span 51 principal facilities across 13 states and 10 countries, supported by a workforce of approximately 1,540 employees.
Management targets the growth of a higher share of recurring revenue generated from aftermarket products and installed base value-added services. This shift toward recurring revenue streams is designed to provide greater customer retention, embedded brand loyalty, and increased business resiliency against macroeconomic cycles.
Business Segments
The organizational architecture is aligned to generate profitable growth, featuring a technology set engineered to benefit complex customer requirements. The enterprise is organized along its product lines and the distinct end markets those product lines serve, divided into two reportable segments.
Engineered Systems Segment
Revenue: $544.3 million | % of Total Revenue: 70.3%
The Engineered Systems segment serves as the largest operational arm of the enterprise. This segment is embedded in global infrastructure sectors, serving power generation, hydrocarbon transport and processing, advanced water and wastewater treatment, marine applications, and the natural gas pipeline infrastructure.
The segment operates a suite of engineered platforms built for demanding industrial environments. Technologies encompass advanced emissions management systems, highly efficient fluid bed cyclones, thermal acoustics, separation and filtration architectures, and heavy-duty dampers and expansion joints.
- Revenue Growth Drivers: Net sales in 2025 increased by $160.3 million (41.7%) year-over-year. This growth was achieved across product families, experiencing notable expansion in filter separators, coalescers, and combustion systems.
- Acquisition Contribution: Approximately $62.7 million of the segment’s net sales in fiscal 2025 was attributable to strategic acquisitions executed during the preceding twelve-month period.
- Segment Profitability: The segment generated $111.8 million in profit for fiscal 2025, marking a 41.3% increase over the prior year.
Industrial Process Solutions Segment
Revenue: $230.1 million | % of Total Revenue: 29.7%
The Industrial Process Solutions segment focuses on serving the broad, diversified industrial manufacturing sector. The segment delivers technical solutions designed for hazardous contamination control, regulated exhaust air treatment, volatile organic compound (VOC) abatement, process filtration, and fluid handling.
The segment targets active manufacturing applications such as aluminum beverage can production, global vehicle manufacturing, food and beverage processing, and ultra-clean semiconductor fabrication. The segment also serves steel and aluminum mill processing facilities, engineered wood products manufacturing, and chemical processing plants.
- Platform Operations: The segment assists customers in maintaining clean, compliant operations while reducing energy consumption and minimizing waste. Core platforms include duct fabrication, industrial air purification, and fluid handling.
- Revenue Growth Drivers: Segment net sales increased by $56.2 million (32.3%) year-over-year. This expansion was primarily attributable to the strategic acquisitions of Verantis and WK Group in late 2024.
- Segment Profitability: The segment achieved $101.1 million in profit for fiscal 2025, an increase from $32.3 million in the prior year.
History and Evolution
The enterprise possesses an established operating history, having serviced the demanding needs of its global target markets for over 50 years. Over the past half-century, the organization has evolved from a localized supplier of industrial components into a globally integrated provider of environmental and energy transition solutions.
The historical evolution has been characterized by a disciplined operating strategy that involves expanding or contracting the corporate scope through selective acquisitions and divestitures.
- Strategic Realignment (2025): On March 31, 2025, the enterprise successfully finalized the divestiture of its Global Pump Solutions business to a third party. The transaction generated cash proceeds of $107.9 million and resulted in a pre-tax gain of $63.7 million.
- Acquisition Execution (2024-2025): The organization executed an active acquisition pipeline. This included the acquisition of Profire Energy in early 2025, and the late 2024 acquisitions of the Verantis Environmental Solutions Group, the WK Group, and EnviroCare International LLC.
- Transformational Merger (2026): On February 23, 2026, the enterprise entered into an Agreement and Plan of Merger with Thermon Group Holdings, Inc., executing a cash and stock transaction designed to redefine the global scale of the company.
Products and Services
The corporate enterprise provides a wide range of engineered and configured products alongside complete solutions. These offerings are predominantly custom-tailored to the severe specifications of a unique customer or harsh industrial application.
Engineered Dampers and Expansion Joints
Heavy-duty components designed to control gas flows and thermal expansion within power generation and heavy industrial exhaust networks. These products protect equipment from extreme temperature variations.
Selective Catalytic Reduction (SCR) Systems
Complex chemical emission control systems engineered to reduce toxic nitrogen oxide (NOx) emissions from heavy natural gas-fired power plants and industrial boilers. These systems ensure clients remain compliant with environmental regulations.
Fluid Bed and Severe-Service Cyclones
Engineered industrial separators utilizing centrifugal force to efficiently remove particulate matter from volatile gas streams. These are heavily deployed in refineries and petrochemical plants.
Thermal Oxidizers
High-temperature environmental control technologies designed to physically destroy hazardous air pollutants and toxic VOCs emitted from complex manufacturing processes.
Filtration Systems
Advanced gas separation and liquid filtration architectures engineered to protect downstream compressors, turbines, and municipal water supplies from destructive contamination.
Water Treatment Packages
Comprehensive, self-contained purification systems designed for industrial wastewater treatment, specialized produced water treatment, and desalinating oily water aboard marine vessels.
Industrial Silencers
Thermal acoustic engineering solutions designed to suppress dangerous noise pollution generated by datacenter operations, power plant exhausts, and heavy industrial blowers.
Brand Portfolio
The enterprise utilizes a respected portfolio of registered trade names, recognized brand names, and registered trademarks. While exact revenue breakdowns per brand are not independently disclosed, these brands are foundational to the segment revenue streams.
- Profire: Acquired in January 2025, this brand is embedded within the Engineered Systems segment, specializing in automated combustion management technologies serving the energy transition markets.
- Verantis: A global provider of engineering services and severe environmental systems focused on process improvement within high-technology processes, including semiconductor fabrication.
- WK Group: A German-based engineering brand specializing in customized industrial exhaust air treatment utilizing thermal oxidizers and heat recovery boiler technologies.
- EnviroCare: An international designer of customized industrial exhaust air contamination treatment and control systems utilized across global industrial applications.
- Kemco: A technical brand recognized for advanced industrial water treatment and thermal energy recovery systems designed to reduce energy consumption in commercial facilities.
- Aarding: A recognized brand specialized in thermal acoustics and gas turbine exhaust systems designed for global power generation facilities.
- Peerless: A global brand focused on separation and filtration systems utilized within the midstream and downstream global oil and gas infrastructure.
Geographical Presence
The enterprise operates within many countries globally, maintaining a physical and commercial footprint across 13 U.S. states and 10 separate sovereign countries.
United States
Revenue: $511.1 million | % of Total Revenue: 66.0%
The United States serves as the foundational market and global corporate headquarters for the enterprise.
- Corporate Hub: The primary executive corporate offices are located in Addison, Texas.
- Infrastructure Footprint: The organization operates across a vast footprint within the domestic market, encompassing 47 principal operating locations.
- Union Labor: Of the domestic workforce, 140 employees are represented by independent labor unions under negotiated contracts located within Tennessee, North Carolina, and Ohio manufacturing facilities.
International Markets (Non-U.S.)
Revenue: $263.3 million | % of Total Revenue: 34.0%
International operations represent a strategic and rapidly growing vector for the enterprise, driven by emerging market industrialization and global environmental regulations.
- Infrastructure Footprint: The enterprise maintains strategic operations across Canada, China, India, the Netherlands, the Republic of Korea, the United Arab Emirates, Germany, Singapore, and the United Kingdom.
- Financial Risk Mitigation: To mitigate foreign currency transaction losses, $26.4 million of total global cash was physically held by foreign subsidiaries as of December 31, 2025.
Profit and Loss
The global enterprise delivered notable financial performance during fiscal 2025, navigating global supply chain challenges through disciplined project management execution.
| Profit and Loss Metric (in thousands) | Fiscal 2025 | Fiscal 2024 | Change ($) |
| Net Sales | $774,381 | $557,933 | $216,448 |
| Cost of Sales | $505,155 | $361,786 | $143,369 |
| Gross Profit | $269,226 | $196,147 | $73,079 |
| Gross Margin (%) | 34.8% | 35.1% | -0.3% |
| Selling and Administrative Expenses | $200,728 | $146,698 | $54,030 |
| Amortization Expenses | $16,166 | $8,723 | $7,443 |
| Acquisition and Integration Expenses | $9,555 | $4,213 | $5,342 |
| Gain on Sale of GPS Business | $(63,701) | $0 | -$63,701 |
| Other Operating Expense | $619 | $1,110 | -$491 |
| Income from Operations | $105,859 | $35,403 | $70,456 |
| Other Expense (Income) | $2,101 | $4,692 | -$2,591 |
| Interest Expense | $20,913 | $13,020 | $7,893 |
| Income Before Income Taxes | $82,845 | $17,691 | $65,154 |
| Income Tax Expense | $29,738 | $3,270 | $26,468 |
| Net Income | $53,107 | $14,421 | $38,686 |
| Noncontrolling Interest | $3,056 | $1,464 | $1,592 |
| Net Income Attributable to CECO | $50,051 | $12,957 | $37,094 |
- Revenue Expansion: Consolidated net sales increased by 38.8%, driven by volume growth within the Engineered Systems segment and supported by $129.4 million of new net sales attributable to recent acquisitions.
- Cost Dynamics: While gross profit dollars surged by $73.1 million, the total gross margin percentage slightly decreased to 34.8%. This compression was driven by increased third-party subcontractor and raw materials costs.
- Divestiture Windfall: The strategic divestiture of the Global Pump Solutions business generated a pre-tax accounting gain totaling $63.7 million in the first quarter.
- Tax Rate Execution: The global effective corporate tax rate increased to 35.9% compared with 18.5% in the prior year, affected by the tax impact of the Global Pump Solutions sale.
Balance Sheet
The corporate balance sheet remains resilient, engineered to support strategic global acquisitions while maintaining compliance with all debt covenants.
| Balance Sheet Metric (in thousands) | December 31, 2025 | December 31, 2024 |
| Cash and Cash Equivalents | $33,144 | $37,832 |
| Restricted Cash | $83 | $369 |
| Accounts Receivable, net | $172,909 | $159,572 |
| Costs and Est. Earnings in Excess of Billings | $115,614 | $69,889 |
| Inventories | $53,996 | $42,624 |
| Prepaid Expenses and Other Current Assets | $29,450 | $16,859 |
| Total Current Assets | $410,182 | $330,971 |
| Property, Plant and Equipment, net | $47,808 | $33,810 |
| Right-of-use Assets from Operating Leases | $28,251 | $25,102 |
| Goodwill | $288,163 | $269,747 |
| Intangible Assets – Finite Life, net | $96,966 | $74,050 |
| Intangible Assets – Indefinite Life | $9,705 | $9,466 |
| Total Assets | $893,769 | $759,699 |
| Current Portion of Debt | $1,879 | $1,650 |
| Accounts Payable | $117,848 | $109,671 |
| Accrued Expenses | $57,639 | $47,528 |
| Billings in Excess of Costs and Est. Earnings | $123,726 | $81,501 |
| Income Taxes Payable | $4,738 | $2,612 |
| Total Current Liabilities | $305,830 | $244,662 |
| Debt, Less Current Portion | $210,559 | $217,230 |
| Deferred Income Tax Liability, net | $27,920 | $11,322 |
| Operating Lease Liabilities | $22,961 | $20,230 |
| Total Liabilities | $570,587 | $507,806 |
| Total CECO Shareholders’ Equity | $317,528 | $247,689 |
| Noncontrolling Interest | $5,654 | $4,204 |
| Total Shareholders’ Equity | $323,182 | $251,893 |
- Working Capital Resilience: The organization maintains working capital of $104.4 million. The ratio of total current assets to total current liabilities remains a highly stable 1.34 to 1.00.
- Contract Asset Expansion: Costs and estimated earnings in excess of billings on uncompleted contracts surged to $115.6 million. This increase represents the estimated value of unbilled work for fixed-price contracts currently recognized over time.
- Goodwill and Intangibles: As a consequence of the M&A pipeline, goodwill and unamortized intangible assets mathematically combine to represent 44.2% of the total consolidated asset base.
Cash Flow
Cash flow management allows the enterprise to fund operations while continuing a capital-intensive acquisition pipeline.
| Cash Flow Metric (in thousands) | Fiscal 2025 | Fiscal 2024 | Change ($) |
| Net Cash Provided by Operating Activities | $5,861 | $24,828 | -$18,967 |
| Net Cash Used in Investing Activities | $(1,076) | $(105,312) | $104,236 |
| Net Cash (Used in) / Provided by Financing | $(11,558) | $65,910 | -$77,468 |
| Effect of Exchange Rate Changes | $(2,673) | $1,798 | -$4,471 |
| Net Decrease in Cash and Cash Equivalents | $(4,974) | $(17,247) | $12,273 |
- Operating Dynamics: Operating cash flow decreased to $5.9 million. This reduction was primarily driven by unfavorable changes in net working capital, particularly increased costs on uncompleted contracts and higher prepaid expenses.
- Investing Velocity: Total investing cash outflows were offset by cash proceeds totaling $107.8 million from the sale of the Global Pump Solutions business. This capital allowed the company to fund $97.6 million in cash payments for acquisitions without drawing new debt.
- Financing Deleveraging: The enterprise utilized the remaining divestiture cash proceeds to execute $7.8 million in net debt repayments against the revolving credit facility.
Board of Directors and Leadership Team
The enterprise is guided by an experienced technical executive leadership team and overseen by an independent Board of Directors composed of global industrial executives.
Executive Officers
- Todd Gleason (Chief Executive Officer and Director): Has served as Chief Executive Officer since July 2020. Gleason is responsible for driving the corporate strategic vision and aligning the organization for shareholder value creation.
- Peter Johansson (SVP, Chief Financial Officer): Has successfully served as CFO since August 2022. Johansson possesses deep strategy and M&A experience in the industrial sector.
- Alyson Gregory Richter (General Counsel and Corporate Secretary): Promoted to the top global legal role in January 2026. Richter has been with the company since 2020.
- Kiril Kovachev (Chief Accounting Officer): Serves as the Principal Accounting Officer, managing compliance with financial reporting standards.
Board of Directors
- Jason DeZwirek: Chairman of the Board.
- Robert E. Knowling Jr.: Independent Director.
- Claudio A. Mannarino: Independent Director.
- Munish Nanda: Independent Director.
- Valerie Gentile Sachs: Independent Director.
- Laurie A. Siegel: Independent Director.
- Richard F. Wallman: Independent Director.
Subsidiaries, Associates, Joint Ventures
The enterprise utilizes targeted subsidiaries and joint ventures to amplify its global market reach and expand localized manufacturing capabilities.
- Pinnacle Processes Inc. (PPI JV): Formerly known as Effox-Flextor-Mader, Inc., this joint venture accounted for $54.6 million in consolidated revenue and $7.8 million in net income for fiscal 2025. This entity holds assets valued at $45.1 million and maintains a separate $5.6 million localized term loan.
- Global Subsidiary Network: The enterprise operates wholly-owned subsidiaries across the globe. Critical international entities include Aarding Thermal Acoustics B.V. in the Netherlands, CECO Environmental (Shanghai) Co., Ltd. in China, and WK-Systems India Private Limited in India.
Other Investments (Including Minority / Portfolio Holdings)
The enterprise engages in an active acquisition program targeting 100% control of complementary industrial businesses. The financial disclosures do not report any specific, material passive minority portfolio holdings below a 20% ownership threshold accounted for at fair value. The capital allocation strategy is highly focused on operating control rather than passive financial speculation.
Physical Properties
The physical infrastructure of the enterprise is distributed across 13 U.S. states and 10 foreign countries.
- Global Count: The physical footprint encompasses 51 total principal administrative, commercial, and technical operating facilities.
- Engineered Systems Segment: This segment operates 4 owned manufacturing properties and 27 leased facilities across the United States, Canada, China, India, the Netherlands, the Republic of Korea, the UAE, and the UK.
- Industrial Process Solutions Segment: This segment operates entirely from 18 leased facilities located in California, Michigan, New York, North Carolina, Ohio, Tennessee, Germany, Singapore, and the United Kingdom.
- Asset Valuation: The net carrying value of physical property, plant structures, and equipment stands at $47.8 million.
Founders
The industrial enterprise boasts an established operating history exceeding 50 years. The half-century corporate legacy is characterized by an unbroken focus on industrial environmental technology. Specific granular biographical details of original founding individuals are not detailed within the provided financial framework.
Parent
The publicly traded entity operates as the ultimate corporate parent corporation. It is continuously traded on The NASDAQ Stock Market LLC under the ticker symbol “CECO” and directly oversees all global operations from the executive suite in Addison, Texas.
Investments and Capital Expenditure Plans
Capital allocation is disciplined by the executive leadership team, balancing funding for long-term technological advancement with strategic M&A acquisitions.
- Capital Expenditures: The enterprise deployed $11.3 million in capital expenditures during fiscal 2025. These physical investments supported global capacity expansions and IT architecture upgrades.
- M&A Execution: During fiscal 2025, the enterprise directed $97.6 million in cash toward strategic acquisitions, driven heavily by the acquisition of Profire Energy.
- The Thermon Mega-Merger: In a transformational strategic maneuver in February 2026, the company officially entered into a binding Merger Agreement to acquire Thermon Group Holdings, Inc. The enterprise expects to fund the cash portion of this Merger Consideration utilizing available cash and newly authorized borrowings.
Shareholding Pattern
The corporate enterprise manages its equity structure to prioritize total shareholder value.
- Shares Outstanding: As of February 18, 2026, there were 35,665,813 shares of common stock publicly outstanding in the market.
- Registered Stockholders: The public company reported approximately 230 registered stockholders of record as of February 2026.
- Share Repurchase Execution: While no repurchases occurred in 2025, the company previously successfully repurchased 230,000 shares from the open market at a cost of $5.0 million under a board-authorized program during fiscal 2024.
Future Strategy
The strategic corporate roadmap is defined by a mandate to become a dominant global leader in niche applications within the industrial air treatment, industrial water treatment, and energy transition markets.
- Capital Deployment: Executive management is focusing capital deployment on building out the industrial air solutions portfolio and advancing the emerging industrial water treatment position.
- Shift to Recurring Revenue: The global company is permanently shifting its portfolio mix towards technical businesses possessing lucrative recurring revenue and predictable cash flows.
- Pursue Strategic Acquisitions: Executive management is actively seeking to execute additional strategic acquisitions focused on expanding product breadth, while entering into adjacent profitable customer segments.
Key Strengths
The competitive economic moat of the global enterprise is built upon a foundation of engineering technology, a complex global network, and a resilient, specialized workforce.
- Complete Solution Provider: The enterprise offers its global customers an integrated end-to-end solution. This capability includes engineering services, global procurement, physical construction, and lucrative aftermarket support.
- Engineering Talent: The advanced global team includes a deep roster of approximately 520 elite engineers, advanced designers, and specialized solution experts.
- Revenue Diversification: By maintaining a vastly diversified presence across distinct global end markets—ranging from semiconductor fabrication to natural gas processing—the company successfully neutralizes localized economic recessions.
- Asset-Light Operating Model: For complex project-based platforms, the enterprise leverages a third-party subcontract fabrication partner network, avoiding the fixed costs of maintaining idle physical manufacturing plants.
Key Challenges and Risks
Operating a complex high-technology engineering and manufacturing enterprise involves navigating evolving macroeconomic risks.
- Fixed-Price Contract Danger: The majority of corporate projects are performed on a fixed-price basis. If engineering estimates of ultimate total costs are below the actual costs incurred, corporate margins will decrease.
- Supply Chain and Material Costs: Global operations are reliant on raw steel and specialized electronic equipment from third-party global suppliers. Any severe, sudden disruption could compress gross corporate profit margins.
- Internal Control Weaknesses: The enterprise has identified material weaknesses in its internal control over financial reporting, related to specific control deficiencies at the newly acquired Verantis business.
- Thermon Mega-Merger Integration Risk: The transformational success of the proposed Merger depends on whether the enterprise can successfully integrate the new Thermon assets into its existing business in an efficient manner.
- Macroeconomic Tariff Warfare: The exposed global geographic footprint exposes the enterprise to the rise of protectionist trade policies and global tariff actions.
Conclusion and Strategic Outlook
CECO Environmental Corp. concludes fiscal 2025 from a position of financial strength, having successfully generated $774.4 million in total net sales despite navigating a turbulent, inflationary global macroeconomic environment. The enterprise has leveraged its engineering capabilities to drive organic growth across both its Engineered Systems and Industrial Process Solutions segments.
Looking forward, the corporate strategic outlook is focused on technological evolution and a transformative global scale-up. The strategic divestiture of the Global Pump Solutions business equipped the enterprise with a cash war chest to execute the acquisition of Profire Energy, while positioning the balance sheet for the proposed mega-merger with Thermon Group Holdings, Inc. Supported by a new $700.0 million corporate revolving credit facility, a record order backlog of $793.1 million, and a commitment to dominating the high-margin sectors of the global energy transition, the enterprise is optimized to advance complex environmental technologies for a more efficient global heavy industrial economy.
FAQ Section
What is the core strategic mission of the enterprise?
The enterprise fundamentally operates to help global companies grow their businesses with safe, clean, and efficient advanced solutions designed to protect people, the environment, and industrial equipment.
How much did the company generate in total revenue for fiscal 2025?
The global organization successfully achieved a total of $774.4 million in consolidated net sales for the fiscal year 2025, representing a 38.8% increase over the previous fiscal year.
What specific business segment generates the most revenue?
The technical Engineered Systems segment is the largest corporate reporting market, generating $544.3 million, which accounts for 70.3% of the total consolidated global net sales.
Why did the enterprise experience a $63.7 million accounting gain?
During the first quarter of fiscal 2025, the enterprise recorded a $63.7 million pre-tax gain related to the strategic divestiture of its legacy Global Pump Solutions business to a third party.
How is the company addressing its internal control material weaknesses?
The enterprise is taking comprehensive actions to remediate material weaknesses by actively updating control documentation, hiring accounting personnel for the financial close process, and developing an enhanced internal audit monitoring program.
What transactional event occurred in February 2026?
On February 23, 2026, the enterprise officially entered into a binding Agreement and Plan of Merger with Thermon Group Holdings, Inc., executing a complex cash and stock transaction designed to redefine the global scale of the company.
Official Site: cecoenviro.com
Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.
