CECO Environmental reported record Q3 bookings and acquisitions, updated FY24 guidance.

From GlobeNewswire: 2024-10-29 06:15:00

CECO Environmental Corp. (Nasdaq: CECO) reported record Q3 bookings and the highest-ever backlog. Q3 revenue of $135.5 million was impacted by project delays. The company acquired Profire Energy for $125 million and completed the acquisition of WK in early October. FY24 guidance updated with a new 2025 outlook.

Orders in Q3 reached $162.3 million, up 12%, with a backlog of $437.5 million. Gross profit was $45.3 million, up 5%, and net income was $2.1 million, down 36%. Operating income was $7.2 million, down 9%. The company completed the acquisition of WK in early October and announced the acquisition of Profire.

CECO completed the acquisition of WK in early October, a German-based industrial air business. WK is expected to contribute approximately $15 million in sales for FY24 with high-teen EBITDA margins. This acquisition enhances CECO’s presence in the industrial processing solutions segment and strengthens its leadership positions.

CECO announced the acquisition of Profire Energy, Inc. for $125 million in an all-cash transaction expected to close in January 2025. Profire is expected to generate $60 million in revenue with adjusted EBITDA margins of approximately 20% in FY24. The acquisition aims to expand global market presence and introduce high-efficiency solutions.

The updated 2024 full-year revenue guidance is between $575 and $600 million, with adjusted EBITDA between $65 to $70 million. The 2025 outlook projects revenue between $700 and $750 million and adjusted EBITDA between $90 and $100 million. Free cash flow is expected to be 50% to 70% of adjusted EBITDA.

CECO provided non-GAAP financial measures to better assess ongoing operations. Non-GAAP operating income, net income, operating margin, and adjusted EBITDA were adjusted to exclude certain expenses. The company cautions that these non-GAAP measures may not be comparable to other companies’ measures and should be considered supplemental.

CECO issued a safe harbor statement cautioning investors about forward-looking statements and potential risks. Factors like project delays, economic conditions, and acquisitions may impact actual results. The company does not undertake to update forward-looking statements, and investors should not rely solely on these statements.



Read more at GlobeNewswire:: CECO Environmental Reports Third Quarter 2024 Results