CECO Environmental Corp. (CECO) AI Stock Analysis

CECO Environmental Corp. specializes in industrial air quality and fluid handling systems across two primary segments: Engineered Systems and Industrial Process Solutions. Through these segments, CECO engineers, designs, and installs systems that capture, clean, and eliminate air and water pollutants from industrial facilities. Its offerings include dampers, diverters, selective catalytic reduction and selective non-catalytic reduction systems, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, and fluid handling equipment. Headquartered in Dallas, Texas, the company serves diverse industries such as natural gas processors, refineries, power generators, semiconductor manufacturers, beverage can producers, and electric vehicle manufacturers.

Annual revenue expanded from $324.1M in FY2021 to $774.4M in FY2025, producing a 5-year revenue CAGR of 19.6%. Annual net income rose to $50.1M in FY2025 from $1.4M in FY2021, with net margin improving to 6.5%. Operating margins fluctuated from 3.0% in FY2021 to 6.7% in FY2025. Over the trailing twelve months ending June 30, 2026, revenue stood at $903.2M, though profit margin was -3.4% and EPS fell to -$0.77. In the latest quarter, quarterly revenue growth reached 53.7% year-over-year, while quarterly earnings declined 41.5%.

As of June 30, 2026, CECO held $61.1M in cash and short-term investments against total debt of $762.7M, yielding net debt of $701.7M. Shareholders' equity totaled $2.08B against total assets of $3.73B, with a debt-to-equity ratio of 0.37 and a current ratio of 1.50. Operating cash flow in FY2025 fell to $5.9M while capital expenditures were $11.3M, resulting in free cash flow of -$5.5M. Additionally, CECO's share count increased 21.9% over five years.

CECO shares closed at $56.72 on October 16, 2026, trading 21.6% below their 200-day average. The company trades at a forward P/E of 26.2x and an enterprise value to EBITDA multiple of 233.4x, compared to medians of 17.2x and 13.9x, respectively, for US-listed Industrials peers. Its price-to-sales ratio is 3.7x against the peer median of 1.5x. Over the past year, CECO returned 11.4%, trailing the S&P 500 return of 16.8%, but its 5-year return of 702.3% significantly outpaced the index return of 83.0%.

Wall Street sentiment includes 5 Strong Buy and 2 Buy ratings, with zero Hold or Sell recommendations. The mean price target of $109.00 indicates an implied upside of 92.2% from the last close of $56.72. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.34B and EPS of $2.30, representing 158.0% EPS growth. CECO beat EPS expectations in 3 of the last 4 quarters, and its next earnings report is scheduled for October 27, 2026.

This page is an AI-written research summary of CECO Environmental Corp. (CECO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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