CECONasdaqIndustrial & Commercial Fans & Blowers & Air Purifing EquipUS GAAP · USD

CECO Environmental Corp

CECO Environmental Corp. designs and delivers engineered equipment and systems that help industrial customers control air emissions, treat water, and improve process efficiency. Its business is organized around niche operating companies serving fragmented markets where project engineering, fabrication, installation, and aftermarket support matter as much as the equipment itself. The company sells into end markets tied to industrial production, energy transition, and environmental compliance, including power generation, hydrocarbon processing, semiconductors, battery production, metals, and water/wastewater treatment. CECO differentiates itself through application expertise, localized fabrication capability, and end-to-end project execution rather than through a single standardized product line.

Revenue774m USD
+38.8 %y/y
Operating profit (EBIT)106m USD
+199.0 %y/y
EBIT margin13.7%
+7.3 ppy/y
Net income50.1m USD
+286.3 %y/y
Free cash flow-5.5m USD
−173.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0200400600800m USD2020: 316 m USD2020: EBIT 13 m USD20202021: 324 m USD2021: EBIT 9.9 m USD20212022: 423 m USD2022: EBIT 22 m USD20222023: 545 m USD2023: EBIT 35 m USD20232024: 558 m USD2024: EBIT 35 m USD20242025: 774 m USD2025: EBIT 106 m USD2025774106
RevenueOperating profit (EBIT)

Business

Share of revenue
Engineered air and emissions systems45 %

Custom equipment and systems for emissions control, air quality, dampers, expansion joints, and thermal acoustics.

Industrial water and wastewater solutions20 %

Treatment and separation systems for produced water, wastewater, oily water, and desalination applications.

Process filtration and fluid handling20 %

Filtration, fluid handling, and contamination control solutions used in industrial process environments.

Engineering, fabrication, and installation services10 %

Project engineering, duct fabrication, construction, installation, and commissioning services.

Aftermarket and consumables5 %

Spare parts, consumables, and service support that extend installed-system life and recurring revenue.

Customers

CECO sells primarily to industrial and infrastructure customers that need engineered solutions to meet environmental rules, protect equipment, and keep production running. Its customer base includes natural gas processors, transmission and distribution companies, refineries, power generators, engineering and construction firms, semiconductor manufacturers, compressor manufacturers, beverage can producers, and metals and minerals companies. The company also serves customers in electric vehicle production, battery recycling, polysilicon, electronics, and water treatment, where process purity and emissions control are critical. Buyers typically choose CECO when they need a tailored solution, fast delivery, and a supplier that can manage engineering through installation and aftermarket support. Demand is tied to capital spending, regulatory compliance, and plant uptime, which makes customer purchasing decisions project-driven and cyclical.

Energy and hydrocarbon processing

Refineries, gas processors, and midstream operators buy emissions, separation, and process-protection systems to meet compliance and uptime requirements.

Power generation

Utilities and independent power producers purchase engineered systems for emissions management, dampers, and thermal acoustics.

Industrial manufacturing

Producers in metals, beverage cans, food and beverage, wood, and general manufacturing buy air pollution control and process filtration equipment.

Advanced manufacturing

Semiconductor, electronics, battery, EV, and polysilicon customers buy clean-air and contamination-control solutions for sensitive production environments.

Water and wastewater treatment

Industrial and municipal-adjacent customers buy produced-water, oily-water, desalination, and wastewater treatment systems.

Engineering and construction contractors

EPC firms and contractors source CECO equipment and services as part of larger industrial projects and plant upgrades.

Strategy

CECO is focused on expanding revenue and profitability by targeting markets where environmental regulation and cleaner-energy investment are increasing. Its operating strategy centers on commercial excellence, operational execution, margin expansion, recurring revenue growth, cash flow generation, and disciplined project management. Capital allocation is aimed at building the industrial air portfolio, growing the industrial water treatment business, and supporting customers in the transition to cleaner energy. The company also wants to shift its mix toward more recurring and less cyclical revenue streams, which should improve predictability and reduce dependence on large project timing.

Grow in regulated industrial air and water marketsMedium term

Tighter environmental rules and customer sustainability goals expand demand for CECO's core solutions.

Increase recurring and aftermarket revenueMedium term

Recurring service, consumables, and spare parts reduce project cyclicality and improve cash flow visibility.

Improve execution and margin disciplineShort term

Project-based businesses depend on engineering quality, on-time delivery, and cost control to protect profitability.

Geography

Q1/2026

CECO describes itself as a global business with worldwide operations, and it actively seeks growth in both domestic and international markets. The United States remains its core market and the main base for product development, commercial activity, and customer relationships. Internationally, the company emphasizes developing markets where environmental regulation and awareness are increasing, which supports demand for air and water solutions. Geography matters because many of its projects are heavy, customized, and fabrication-intensive, so local manufacturing and regional execution capabilities can influence competitiveness and delivery times.

United States75 %
Netherlands9.7 %
China8.0 %
United Kingdom7.2 %

Share of the revenue the company reports by geography.

Risks

CECO is exposed to cyclical industrial capital spending, so a slowdown in global economic conditions can delay customer projects and reduce orders. Because many of its solutions are project-based and fixed-price, execution risk, supplier delays, and cost overruns can pressure margins if engineering or installation assumptions prove wrong. The company also depends on information systems and third-party digital infrastructure, making it vulnerable to cyberattacks, outages, and supply-chain-related security failures. In addition, competition is fragmented and often price-based, while local fabrication capability, customer approvals, and lead times can determine win rates in each region. Regulatory changes can create demand for CECO's products, but they also raise compliance expectations and can increase the complexity of customer requirements.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Global economic slowdown1Fixed-price project execution risk2Cybersecurity and IT disruption3Supplier and subcontractor performance4Competitive pricing pressure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Global economic slowdownImpact: HighLikelihood: Medium

    Customers may defer procurement and new product development when industrial activity weakens.

    ExposureProject ordersAftermarket demandCustomer credit quality
  2. Fixed-price project execution riskImpact: HighLikelihood: Medium

    A substantial portion of revenue comes from fixed-price contracts, so cost overruns or delays can compress margins.

    Exposure: Engineered systems and installation projects

  3. Cybersecurity and IT disruptionImpact: HighLikelihood: Medium

    The company relies on internal and third-party systems for operations, and breaches could disrupt production and data integrity.

    ExposureEnterprise systemsSupply chainCustomer-facing operations
  4. Supplier and subcontractor performanceImpact: MediumLikelihood: Medium

    Delays or failures by vendors can affect material purchases, fabrication schedules, and project delivery.

    Exposure: Localized manufacturing and project execution

  5. Competitive pricing pressureImpact: MediumLikelihood: Medium

    Markets are fragmented and many competitors offer lower-priced alternatives, which can pressure win rates and margins.

    Exposure: Industrial air and water equipment

Accounting

Judgemental items
Revenue recognition on fixed-price contracts

Management must judge contract terms, collectability, and progress toward completion, which can materially affect timing of revenue and profit recognition.

Impact: Quarterly revenue, gross margin, and backlog conversion

Goodwill and indefinite-lived intangible impairment

The company has acquired businesses and brands, so valuation assumptions determine whether impairment charges are recorded.

Impact: Reported earnings and balance sheet carrying values

Income taxes and foreign subsidiaries

Foreign operations and tax law changes can affect effective tax rates and cash tax payments.

Impact: Tax expense, cash flow, and repatriation flexibility

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026