CECO Environmental Reports 34.8% Revenue Growth to $185.4 Million in Q2 2025

CECO Environmental Corp. reported significant financial growth in its latest quarterly results, with net sales reaching $185.4 million for the three months ended June 30, 2025, a 34.8% increase from $137.5 million in the same period last year. For the first half of 2025, net sales totaled $362.1 million, up 37.2% from $263.9 million in the prior year. The company attributed this growth primarily to increased demand in energy transition markets and successful execution of its backlog, with organic revenue contributing approximately 78% of the quarterly sales increase.

The company's gross profit also saw a substantial rise, increasing by 36.9% to $67.1 million in the second quarter of 2025, compared to $49.0 million in the same quarter of 2024. This growth in gross profit was driven by higher sales volumes and a slight improvement in gross profit margin, which rose to 36.2% from 35.6% year-over-year. Operating income for the quarter increased to $18.1 million, up from $9.3 million in the previous year, reflecting the positive impact of the company's strategic acquisitions and operational efficiencies.

CECO Environmental made notable strategic moves during the reporting period, including the acquisition of Profire Energy, Inc. for $122.7 million, which is expected to enhance its capabilities in combustion management technologies. Additionally, the company completed the divestiture of its Global Pump Solutions business, generating a pre-tax gain of $64.5 million. These transactions are part of CECO's strategy to streamline operations and focus on high-growth areas within the industrial sector.

Operationally, CECO reported a backlog of $688.1 million as of June 30, 2025, an increase from $540.9 million at the end of 2024, indicating strong future revenue potential. The company also experienced a 95% increase in orders booked during the second quarter, totaling $274.1 million, with a significant portion attributed to organic growth. The workforce expanded to support these initiatives, contributing to a rise in selling and administrative expenses, which totaled $48.8 million for the quarter.

Looking ahead, CECO Environmental remains optimistic about its growth trajectory, driven by ongoing investments in energy infrastructure and the successful integration of recent acquisitions. The company is focused on navigating market challenges, including inflationary pressures and supply chain disruptions, while leveraging its enhanced operational capabilities to capitalize on emerging opportunities in the industrial air and water treatment sectors.