CECO Environmental Corp. reported a modest increase in financial performance for the fiscal year ending December 31, 2024, with net sales reaching $557.9 million, up from $544.8 million in 2023, marking a 2.4% growth. The company's gross profit also saw a significant rise, increasing by 14.7% to $196.1 million, driven by improved sales volume and project execution. The gross profit margin improved to 35.1% from 31.4% in the previous year. However, net income remained relatively stable at $13.0 million, slightly up from $12.9 million in 2023, reflecting a consistent performance despite rising operational costs.
In terms of operational developments, CECO's backlog increased significantly to $540.9 million as of December 31, 2024, compared to $370.9 million a year earlier, indicating a 45.8% growth. This increase was attributed to heightened market demand, particularly in the power generation sector. The company also reported a notable rise in orders booked, totaling $667.3 million, which included $51.5 million from organic growth and $33.0 million from acquisitions. The company’s workforce expanded to approximately 1,600 employees, reflecting its growth strategy and operational needs.
Strategically, CECO has been active in acquisitions and divestitures, acquiring several companies in 2024, including Verantis Environmental Solutions Group for $65.5 million and WK Group for $6.8 million. These acquisitions are expected to enhance CECO's capabilities in environmental solutions and industrial processing. Additionally, the company announced plans to divest its Fluid Handling business, which it views as less aligned with its core strategic focus on air, water, and energy transition markets. This divestiture is part of a broader strategy to streamline operations and concentrate on higher-growth areas.
Looking ahead, CECO's management expressed optimism about future growth, driven by increasing demand for environmental solutions and regulatory pressures for cleaner industrial practices. The company is focusing on expanding its market presence, particularly in emerging markets where environmental regulations are becoming more stringent. However, challenges such as supply chain disruptions and inflationary pressures on raw materials and labor costs remain a concern. The company is committed to navigating these challenges while pursuing its strategic objectives, including enhancing its product offerings and operational efficiencies.
Overall, CECO Environmental Corp. is positioned for continued growth, supported by a strong backlog, strategic acquisitions, and a focus on environmental solutions, despite facing external market pressures.
About CECO ENVIRONMENTAL CORP
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