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CECO Environmental Corp

CECO Environmental Corp

CECO
$78.34USD↑+3.91%+2.95 today

MARKET CAP

4.6B

P/E (TTM)

54.2x

FWD P/E

27.9x

DAY RANGE

$77 – $80

52W RANGE

$43
$101

AI Summary

Stalk
StalkMedium

CECO remains in a Stage 2 uptrend but is trading in a tight $75–$80 range, with 9/20 EMAs recently crossing above the 50-period SMA and the 200-period SMA rising below. Price is near overhead resistance as RSI sits in neutral territory and no patterns are active. The secular uptrend remains intact above the 200 SMA, yet execution should be deferred until a pullback into the EMA confluence support zone around $75–$75.50. A breakdown below this zone would invalidate the medium-term bullish bias.

  • ↑Q2 revenue $285M (+54% YoY) with record orders of $799M (+191%).
  • ↑Backlog exceeds $1.8B (+164% YoY); new orders +150% H1 YoY.
  • ↓Leverage at 2.7x trailing EBITDA poses elevated debt risk.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

CECO Environmental (NASDAQ: CECO) operates in the environmental services sector, specializing in technologies that address air, water, and surface treatment needs across diverse industries such as power generation and semiconductor manufacturing. The company has recently strengthened its market position following the acquisition of Thermon, which enhances its capabilities and expands its product offerings in a sector benefiting from increasing environmental regulations and a growing demand for sustainable solutions.

Bull says

  • ↑Q2 revenue $285M (+54% YoY) with record orders of $799M (+191%).
  • ↑Backlog exceeds $1.8B (+164% YoY); new orders +150% H1 YoY.
  • ↑Thermon integration delivered $13M annualized EBITDA savings in 60 days.
  • ↑2026 outlook raised: revenue $1.3–1.375B; adj. EBITDA $200–225M.
  • ↑Institutional ownership at 68% supports momentum and analyst revisions.
  • ↑Strong growth and momentum factors with positive quality and liquidity.

Bear says

  • ↓Leverage at 2.7x trailing EBITDA poses elevated debt risk.
  • ↓Negative earnings yield suggests weak profit generation relative to price.
  • ↓Middle East conflicts delaying industrial water jobs, pressuring revenue.
  • ↓Premium 5.2x P/S vs. peers demands flawless execution.
  • ↓Competitive pricing pressures risk margin compression.
  • ↓High short interest and negative size factor signal investor skepticism.

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Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 07-30-2025bullish

Transcript signals

Bull points

  • we started 2024 by delivering a solid first quarter, which puts us in a strong position in terms of our full year outlook.
  • I am pleased that our backlog of approximately $390 million is back to near record levels.
  • First quarter sales and adjusted EBITDA were at record levels for a first quarter, so we feel good about how our top line and bottom line kicked off 2024.

Bear points

  • Orders for the quarter of $145 million were essentially flat year over year, which reflects a potential decrease in customer demand or project delays.
  • these orders took longer than anticipated to convert to a formal purchase order.
  • The reduction in revenue days helps to explain a portion of the sequential step down in sales.
Read full transcript analysis ›