| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 11 | 794.8x | 17.8x | Bottom tier | |
Growth | 81 | 33.2% | 7.1% | Top tier | |
Quality | 24 | 2.3% | 4.5% | Bottom tier | |
Safety | 43 | 6.6x | 2.6x | Around median | |
Capital Return | 16 | — | 2.12% | Bottom tier | |
Momentum | 71 | 55.8% | 2.9% | Top tier | |
Sentiment | 44 | 4 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CECO Environmental provides engineered solutions to protect industrial equipment and the environment, serving the power generation, industrial water, semiconductor, natural gas processing, infrastructure, and industrial materials markets. Following the closing of the Thermon acquisition on June 1, 2026, the portfolio expanded to include thermal management solutions used in oil and gas, nuclear power, railways, and data centers; revenue is generated from executing engineering projects and supplying systems and products, with additional opportunities to integrate Thermon products into CECO’s existing projects.
In Q2 fiscal 2026, revenue according to EDGAR filings was approximately $285.0 million, and gross profit was $86.5 million, equivalent to a reported gross margin of approximately 30.4%, while the net loss was $34.8 million and loss per share was $0.80. On the adjusted basis presented by management, gross margin was 33.7%, EBITDA was $40.2 million at a 14.1% margin, while adjusted earnings per share were $0.47; therefore, there is a significant gap between accounting profitability and adjusted results.
Q2 fiscal 2026 revenue increased 54% year over year and included only one full month of Thermon’s performance, while standalone CECO recorded record revenue of $235 million. In terms of the $1.82 billion backlog mix, power generation projects represented approximately half, industrial air and water projects accounted for approximately 25%, and the remainder came from natural gas and natural gas liquids infrastructure, hydrocarbon and chemical processing, and other energy activities.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $106.8, versus a wide target range of $85 to $125 and a consensus Buy rating; the average is approximately 5.5% above the 52-week range high of $101.24. The 52-week range extends from $42.82 to $101.24, while no meaningful price-to-earnings ratio is available given the $0.80 loss per share recorded in Q2 fiscal 2026, making the stock’s valuation more dependent on backlog conversion, adjusted profit margins, and the success of the Thermon integration.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue reached $285.0 million, up 54% year over year, and standalone CECO recorded record revenue of $235 million. New orders reached $799 million, up 191%, while backlog rose to $1.82 billion. Momentum came from power generation, liquefied natural gas, semiconductors, and industrial water treatment, in addition to one month of contribution from Thermon following the closing of the acquisition on June 1, 2026.
Thermon added thermal management solutions and exposure to oil and gas, nuclear power, railways, and data centers to CECO’s portfolio. During the first 60 days, the company achieved approximately $13 million in adjusted net annualized savings and identified more than 100 joint commercial opportunities. More than $500 thousand of Thermon products were also included in a group of power generation projects, while the total annualized savings target remained $40 million.
Management expects fiscal 2026 revenue between $1.3 billion and $1.375 billion after raising the previous lower bound by $25 million. It also expects adjusted EBITDA between $200 million and $225 million, a mid-teens margin, and adjusted free cash flow conversion of at least 55%. On a pro forma basis including Thermon for the full year, management estimates revenue between $1.5 billion and $1.6 billion and adjusted EBITDA between $255 million and $280 million.
Backlog reached $1.82 billion at the end of Q2 fiscal 2026, up 164% year over year and 76% from the previous quarter. Management stated that recorded orders are supported by purchase orders, legal commitments, and projects whose customers have already obtained the necessary permits, with a historical cancellation rate of approximately 0.3% to 0.5%. Nevertheless, the timing of revenue depends on projects progressing from engineering to execution and on the availability of materials and labor and suppliers’ ability to meet schedules.
Total debt increased by approximately $523 million since the end of fiscal 2025 to finance the cash portion of the acquisition and transaction costs. Leverage stood at 2.7 times on June 30, 2026, after which the company repaid an additional $39.5 million, bringing total debt to $692 million on July 31, 2026. CECO aims to reduce leverage to a range of 2.0 to 2.5 times, supported by adjusted free cash flow, which reached $53 million in Q2 fiscal 2026.
EDGAR filings for Q2 fiscal 2026 showed a net loss of $34.8 million and a loss per share of $0.80. In contrast, the company presented adjusted earnings per share of $0.47 and adjusted EBITDA of $40.2 million at a 14.1% margin. The quarter coincided with the Thermon acquisition and costs to achieve savings, which reached approximately $21 million year to date and included change-of-control items and accelerated vesting of equity awards for former Thermon executives.
