CECO Environmental Corp. has announced exceptional financial outcomes for the second quarter of 2026, marking a period of significant growth propelled by the integration of Thermon Group Holdings and robust organic expansion across vital sectors such as power generation and semiconductors. The company experienced notable surges in revenue, order volumes, and its backlog, leading to an optimistic adjustment of its full-year financial projections. These achievements are attributed to strategic investments and the successful realization of synergies from the Thermon acquisition, underscoring a strong operational and strategic performance.
On Monday, August 10, 2026, at 8:30 a.m. ET, CECO Environmental Corp. held its earnings call to discuss the second quarter results. Key executives present included Todd Gleason, Chairman and Chief Executive Officer; Peter Johansson, Chief Financial Officer; and Marcio Pinto, Vice President of Corporate Integration and Investor Relations. The discussion highlighted the substantial contributions of the Thermon acquisition, which closed on June 1, with its financial performance being included for one full month in the reported results. The executives provided detailed insights into the company's performance, integration activities, and an updated outlook for the year.
The second quarter of 2026 was distinguished by several record-breaking achievements for CECO. Orders reached an unprecedented $799 million, representing a 191% increase year-over-year. The quarter-ending backlog soared to over $1.8 billion, demonstrating 12 consecutive quarters of sequential growth and a 164% rise from the previous year. Revenue increased by 54% year-over-year to $285 million, driven by the inclusion of Thermon's performance and strong double-digit organic growth. Adjusted EBITDA also saw a significant boost of 73%, reaching $40.2 million, with margins expanding to 14.1%, marking the first time CECO achieved mid-teen EBITDA margins. These results underscore the effectiveness of the company's strategic growth initiatives and the positive impact of the Thermon integration.
The integration of Thermon is progressing ahead of schedule, with approximately $13 million in annualized EBITDA savings already captured within the first 60 days, representing about one-third of the $40 million target. These savings primarily stem from public company cost reductions and incremental actions across various departments. Furthermore, the combined entity has identified over 100 commercial opportunities, leading to early wins, such as the incorporation of $500,000 worth of Thermon solutions into existing CECO power generation projects. This successful cross-selling indicates a promising avenue for additional organic growth and validates the strategic rationale behind the acquisition. The company's sales pipeline now exceeds $8.5 billion, a substantial increase from $1.5 billion in 2021, reflecting strategic investments in markets, talent, and solutions. This expanded pipeline, coupled with a trailing 12-month book-to-bill ratio of over 2, provides strong visibility for sustained revenue and earnings growth into the foreseeable future. The robust demand extends across global end markets, including power generation, semiconductor and electronics, natural gas infrastructure, industrial water, and emerging opportunities in data centers, reinforcing CECO's diversified growth strategy. Despite strong performance, the company acknowledged risks, including potential delays in large industrial water projects due to geopolitical conflicts in the Middle East and the complexities of supply chains in high-performance markets. The Thermon acquisition also led to an increase in total debt, with a leverage ratio of 2.7x, although strong cash flow generation is actively being used to reduce this. The full-year revenue guidance has been raised to between $1.3 billion and $1.375 billion, and adjusted EBITDA guidance is now between $200 million and $225 million, reflecting confidence in continued strong performance, synergy capture, and cash generation.
CECO's second quarter of 2026 demonstrated exceptional financial and operational strength, driven by strategic acquisitions and organic market expansion. The successful integration of Thermon has not only enhanced the company's financial metrics but also unlocked significant commercial synergies and expanded its market reach. With a record backlog and a robust sales pipeline, CECO is well-positioned for sustained growth and profitability in diverse industrial markets, reinforcing its leadership in environmental and industrial solutions.
