CECO Environmental shares sink after reporting lower net income

[Water Treatment Plant at sunset]
tuachanwatthana/iStock via Getty Images

CECO Environmental Corp. (NASDAQ:CECO [https://seekingalpha.com/symbol/CECO]) shares fell 8.8% on Tuesday after the industrial pollution-control company reported third-quarter results that topped Wall Street expectations but showed a decline in profit on a GAAP basis.

The Dallas-based firm posted adjusted earnings of $0.26 a share, above analysts’ estimates of $0.25, on revenue of $197.6 million, which beat forecasts of roughly $190 million. Revenue surged 46% from a year earlier, and orders climbed 44% to a record $232.9 million.

However, net income fell to $1.5 million, or $0.04 a share, from $2.1 million, or $0.06 a share, in the same quarter last year, even as the company continued to integrate recent acquisitions and restructure its portfolio. Gross profit margin slipped slightly to 32.7% from 33.3% a year earlier.

The company’s adjusted earnings before interest, taxes, depreciation and amortization margin were $23.2 million, representing an 11.7% margin, up from $14.3 million and a margin of 10.9% a year earlier.

The company reaffirmed its 2025 revenue outlook of $725 million to $775 million and introduced 2026 guidance projecting sales between $850 million and $950 million, with adjusted ebitda of $110 million to $130 million. Wall Street analysts on average estimate revenue of $839 million for 2026.

MORE ON CECO ENVIRONMENTAL

* CECO Environmental Corp. (CECO) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4834285-ceco-environmental-corp-ceco-q3-2025-earnings-call-transcript]
* CECO Environmental Corp. (CECO) Environmental Corp. Presents at Jefferies Mining and Industrials Conference 2025 - Slideshow [https://seekingalpha.com/article/4820725-ceco-environmental-corp-ceco-environmental-corp-presents-at-jefferies-mining-and-industrials]
* CECO Environmental outlines $850M-$950M 2026 revenue target while expanding backlog to $720M [https://seekingalpha.com/news/4509652-ceco-environmental-outlines-850m-950m-2026-revenue-target-while-expanding-backlog-to-720m]
* CECO Environmental beats top-line and bottom-line estimates; initiates FY26 and reaffirms FY25 outlook [https://seekingalpha.com/news/4509209-ceco-environmental-beats-top-line-and-bottom-line-estimates-initiates-fy26-and-reaffirms-fy25-outlook]
* Seeking Alpha’s Quant Rating on CECO Environmental [https://seekingalpha.com/symbol/CECO/ratings/quant-ratings]