CECO Environmental Corp. Reports 53.7% Revenue Growth Amid Acquisition of Thermon Group

CECO Environmental Corp. reported significant financial changes in its latest quarterly filing, reflecting a transformative period marked by the acquisition of Thermon Group Holdings. For the three months ending June 30, 2026, the company achieved net sales of $284.96 million, a 53.7% increase from $185.39 million in the same period last year. The six-month figures also showed a substantial rise, with sales reaching $490.88 million, up 35.6% from $362.09 million. However, the company recorded a net loss attributable to CECO of $34.77 million for the quarter, compared to a profit of $9.51 million in the prior year, and a loss of $35.17 million for the six months, down from a profit of $45.49 million.

The financial performance was heavily influenced by the recent acquisition of Thermon, which closed on June 1, 2026. This strategic move added significant assets and liabilities to CECO's balance sheet, with total assets increasing to $3.73 billion from $893.77 million at the end of 2025. The acquisition also led to a notable rise in goodwill, which surged to $1.50 billion from $288.16 million, reflecting the expected synergies and market opportunities from the merger. The company incurred $55.74 million in acquisition and integration expenses during the quarter, contributing to the overall net loss.

Operationally, CECO's customer engagement metrics showed promising growth, with orders booked increasing by 192% to $798.5 million in the second quarter, driven by demand in the power generation sector. The backlog also rose significantly to $1.82 billion, bolstered by the Thermon acquisition, which contributed $262 million. The company’s workforce expanded, with employee headcount increasing as part of the integration process, although specific figures were not disclosed.

Despite the challenges posed by the acquisition-related expenses and a decrease in gross profit margins—down to 30.3% from 36.2%—CECO remains optimistic about its future. The company anticipates that the integration of Thermon will enhance its operational capabilities and market reach, particularly in the thermal solutions segment. Management has indicated that they are focused on mitigating supply chain disruptions and inflationary pressures while continuing to execute on existing contracts without significant delays.

Looking ahead, CECO Environmental Corp. is committed to leveraging its expanded portfolio to drive growth and improve profitability. The company plans to continue monitoring market conditions and adjusting its strategies accordingly, with a focus on achieving operational efficiencies and maximizing the benefits of its recent acquisitions.