CECO Environmental Corp. Reports 39.9% Revenue Growth to $176.7 Million

CECO Environmental Corp. reported significant financial growth in its quarterly results for the period ending March 31, 2025, with net sales reaching $176.7 million, a 39.9% increase from $126.3 million in the same quarter of the previous year. The company’s gross profit also rose to $62.2 million, up 37.9% from $45.1 million, although the gross profit margin slightly decreased to 35.2% from 35.7%. The net income attributable to CECO Environmental Corp. surged to $36.0 million, compared to $1.5 million in the prior year, reflecting a substantial increase in operational efficiency and revenue generation.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Operating income increased dramatically to $61.9 million from $7.7 million, largely due to a pre-tax gain of $64.5 million from the sale of its Global Pump Solutions business. This divestiture, completed on March 31, 2025, allowed CECO to streamline its operations and focus on its core segments. Additionally, selling and administrative expenses rose to $53.6 million, attributed to increased headcount and costs associated with recent acquisitions.

Strategically, CECO has been active in expanding its portfolio through acquisitions. In January 2025, the company acquired Profire Energy, Inc. for $122.7 million, enhancing its capabilities in industrial combustion technology. The company also completed acquisitions of Verantis Environmental Solutions Group and WK Group in late 2024, further solidifying its position in the environmental solutions market. These acquisitions contributed to a 57% increase in orders booked, totaling $227.9 million for the quarter, with organic bookings accounting for approximately 81% of this growth.

Operationally, CECO reported a backlog of $602.0 million as of March 31, 2025, an increase from $540.9 million at the end of 2024, indicating strong future revenue potential. The company’s workforce has expanded to support its growth initiatives, with a focus on enhancing operational capabilities in response to increased demand across its segments. Geographic sales performance showed strong growth in the United States, which accounted for $112.0 million of total sales, up from $83.9 million in the prior year.

Looking ahead, CECO Environmental Corp. remains optimistic about its growth trajectory, driven by its strategic acquisitions and a robust backlog. The company is focused on navigating market pressures, including inflation and supply chain challenges, while leveraging its enhanced operational capabilities to capitalize on emerging opportunities in the environmental solutions sector. The management anticipates continued growth in both revenue and profitability as it integrates recent acquisitions and expands its market presence.