Zacks Investment Research·Jun 15, 2026
What Makes CECO Environmental (CECO) a Strong Momentum Stock: Buy Now?Does CECO Environmental (CECO) have what it takes to be a top stock pick for momentum investors? Let's find out.
CECO Environmental Corp.(CECO)Earnings, Financials & Key Ratios
CECO•NASDAQ
$78.84
57.5× P/E·Price updated Jul 7, 2026
AboutCECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide. It operates in two segments: Engineered Systems Segment and Industrial Process Solutions Segment. The company engineers, designs, builds, and installs systems that capture, clean, and destroy air- and water-borne emissions from industrial facilities as well as fluid handling, gas separation, and filtration systems. It offers dampers and diverters, selective catalytic reduction and selective non-catalytic reduction systems, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, and water and fluid handling equipment, as well as plant engineering services and engineered design build fabrication. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producer companies. CECO Environmental Corp. was incorporated in 1966 and is headquartered in Dallas, Texas.Show more
- Revenue$774M+38.8%
- EBITDA$77M+53.4%
- Net Income$50M+286.3%
- EPS (Diluted)1.37+280.6%
- Gross Margin32.68%-7.0%
- EBITDA Margin9.89%+10.5%
- Operating Margin6.68%+5.2%
- Net Margin6.46%+178.3%
- ROE17.41%+228.7%
CECO Price & Volume
CECO Environmental Corp. (CECO) stock price & volume — 10-year historical chart
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Aggressive Inorganic Growth Masks Operating Margin Stagnation
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Accelerating
Profitability:Strained
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Operating margin scalability concerns
Key Thesis Takeaways
- CECO Environmental is currently executing an aggressive acquisition-led growth strategy, evidenced by a total asset expansion to $1.0 billion as of 2026Q1.
- While top-line momentum remains robust with 21.5% year-over-year revenue growth, the company struggles to convert this scale into operating leverage, as evidenced by mid-single-digit operating margins.
- Investors should monitor the integration of $291.1 million in goodwill and the volatility of cash flows, which remain sensitive to large-scale project timing and significant stock-based compensation expenses.
Verdict Logic
while the balance sheet is fortress-like with a 0.09 debt-to-equity ratio, the high 67.06 P/E TTM and inconsistent cash conversion suggest that the current valuation may be pricing in perfection before operational margins demonstrate sustainable expansion.
CECO Growth Metrics
CECO Environmental Corp. (CECO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years7.66%
5 Years19.63%
3 Years22.37%
TTM33.55%
Profit CAGR
10 Years-
5 Years43.55%
3 Years42.17%
TTM-63.9%
EPS CAGR
10 Years-
5 Years42.89%
3 Years39.93%
TTM-64.17%
Return on Capital
10 Years4.59%
5 Years7.24%
3 Years8.76%
Last Year9.38%
CECO Recent Earnings
CECO Environmental Corp. (CECO) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
Apr 28, 2026Metric
Actual
Est
EPS
$0.36+200.0%
$0.12
Rev
$206M+3.5%
$199M
Q1 2026
Feb 24, 2026Metric
Actual
Est
EPS
$0.30-30.2%
$0.43
Rev
$215M+4.5%
$205M
Q4 2025
Oct 29, 2025Metric
Actual
Est
EPS
$0.26+4.0%
$0.25
Rev
$198M+3.8%
$190M
Q3 2025
Jul 29, 2025Metric
Actual
Est
EPS
$0.24+20.0%
$0.20
Rev
$185M+1.3%
$183M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 28, 2026 | $0.36vs $0.12+200.0% | $206Mvs $199M+3.5% |
| Q1 2026 | Feb 24, 2026 | $0.30vs $0.43-30.2% | $215Mvs $205M+4.5% |
| Q4 2025 | Oct 29, 2025 | $0.26vs $0.25+4.0% | $198Mvs $190M+3.8% |
| Q3 2025 | Jul 29, 2025 | $0.24vs $0.20+20.0% | $185Mvs $183M+1.3% |
Based on last 12 quarters of dataView full earnings history →
Latest CECO News
Recent stock market news and headlines for CECO Environmental Corp. (CECO)
Peers Comparison
Key metrics vs top competitors for CECO Environmental Corp. (CECO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $78.84 | $2.83B | 57.55 | 38.79% | 6.46% | 17.41% | — | |
| $32.49 | $444.64M | -56.02 | 19.56% | -6.32% | -3.4% | — | |
| $14.34 | $266.22M | -19.12 | 4.33% | -30.06% | -34.48% | — | |
| $3.93 | $21.27M | -3.97 | 45.55% | -111.66% | -61.23% | — | |
| $8.80 | $453.6M | 20.95 | -7.07% | 15.1% | 10.89% | — | |
| $4.08 | $343.07M | -8.50 | 69.79% | -221.35% | -129.91% | — |
Compare CECO vs Peers
CECO Environmental Corp. (CECO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
CECO SEC Filings & Documents
CECO Environmental Corp. (CECO) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 28, 2026·SEC
Material company update
Apr 2, 2026·SEC
Material company update
Feb 24, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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CECO Frequently Asked Questions
CECO Environmental Corp. (CECO) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is CECO Environmental Corp.'s revenue?
CECO Environmental Corp. (CECO) reported $812.4M in revenue for fiscal year 2025. This represents a 8149% increase from $9.8M in 1996.
How fast is CECO Environmental Corp. growing?
CECO Environmental Corp. (CECO) grew revenue by 38.8% over the past year. This is strong growth.
Is CECO profitable?
Yes, CECO Environmental Corp. (CECO) is profitable, generating $17.1M in net income for fiscal year 2025 (6.5% net margin).
Dividend & Returns
What is CECO's return on equity?
CECO Environmental Corp. (CECO) has a return on equity (ROE) of 17.4%. This is reasonable for most industries.
What is CECO Environmental Corp.'s free cash flow?
CECO Environmental Corp. (CECO) generated $4.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.