# CECO ENVIRONMENTAL CORP (CECO)

Informational only - not investment advice.

CIK: 0000003197
SIC: 3564 Industrial & Commercial Fans & Blowers & Air Purifing Equip
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3564 Industrial & Commercial Fans & Blowers & Air Purifing Equip](/industry/3564/)
Latest 10-K filed: 2026-03-02
SEC page: https://www.sec.gov/edgar/browse/?CIK=3197
Filing source: https://www.sec.gov/Archives/edgar/data/3197/000119312526085815/ceco-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-02 · accession 0001193125-26-085815 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000003197.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 774,381,000 USD | 2025 | verified |
| Net income | 50,051,000 USD | 2025 | verified |
| Assets | 893,769,000 USD | 2025 | verified |
| Free cash flow | -5,482,000 USD | 2025 | computed |
| Net margin | 6.46% | 2025 | computed |
| Operating margin | 13.67% | 2025 | computed |
| Revenue YoY | +38.79% | 2025 | computed |
| ROE | 15.76% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CECO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.5% | 7.7% | 40 | 110 |
| Operating margin | 13.7% | 13.1% | 57 | 104 |
| Revenue growth | 38.8% | 5.8% | 91 | 111 |
| FCF margin | -0.7% | 9.6% | 11 | 103 |
| ROE | 15.8% | 11.7% | 63 | 108 |
| ROA | 5.6% | 5.6% | 49 | 111 |
| Liabilities / equity | 1.80 | 1.10 | 73 | 108 |
| Current ratio | 1.34 | 2.02 | 24 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 774381000 | USD | 2025 | 2026-03-02 |
| Net income | 50051000 | USD | 2025 | 2026-03-02 |
| Assets | 893769000 | USD | 2025 | 2026-03-02 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000003197.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 417,011,000 | 345,051,000 | 337,339,000 | 341,869,000 | 316,011,000 | 324,140,000 | 422,627,000 | 544,845,000 | 557,933,000 | 774,381,000 |
| Net income |  |  |  | -38,218,000 | -3,029,000 | -7,121,000 | 17,707,000 | 8,211,000 | 1,426,000 | 17,417,000 | 12,911,000 | 12,957,000 | 50,051,000 |
| Operating income |  |  |  | -25,562,000 | 8,024,000 | 10,002,000 | 17,990,000 | 13,346,000 | 9,857,000 | 22,161,000 | 34,569,000 | 35,403,000 | 105,859,000 |
| Gross profit |  |  |  | 134,859,000 | 113,194,000 | 111,537,000 | 114,099,000 | 105,128,000 | 100,922,000 | 128,225,000 | 171,016,000 | 196,147,000 | 269,226,000 |
| Diluted EPS |  |  |  | -1.12 | -0.09 | -0.21 | -0.50 | 0.23 | 0.04 | 0.50 | 0.37 | 0.36 | 1.37 |
| Operating cash flow |  |  |  | 69,599,000 | 6,570,000 | 21,952,000 | 10,227,000 | 4,421,000 | 13,298,000 | 29,649,000 | 44,647,000 | 24,828,000 | 5,861,000 |
| Capital expenditures |  |  |  | 1,076,000 | 1,028,000 | 3,090,000 | 5,655,000 | 3,945,000 | 2,616,000 | 3,376,000 | 8,384,000 | 17,368,000 | 11,343,000 |
| Share buybacks | 456,000 | 2,365,000 | 973,000 | 188,000 |  |  |  | 0.00 | 5,014,000 | 7,020,000 | 0.00 | 5,000,000 | 0.00 |
| Assets |  |  |  | 498,634,000 | 438,549,000 | 392,582,000 | 408,637,000 | 419,314,000 | 416,197,000 | 504,721,000 | 600,291,000 | 759,699,000 | 893,769,000 |
| Liabilities |  |  |  | 308,552,000 | 251,980,000 | 214,022,000 | 215,620,000 | 215,703,000 | 210,240,000 | 286,573,000 | 362,800,000 | 507,806,000 | 570,587,000 |
| Stockholders' equity |  |  |  | 190,082,000 | 186,569,000 | 178,560,000 | 193,017,000 | 202,658,000 | 204,554,000 | 213,224,000 | 232,643,000 | 247,689,000 | 317,528,000 |
| Cash and cash equivalents |  |  |  | 45,824,000 | 29,902,000 | 43,676,000 | 35,602,000 | 35,992,000 | 29,902,000 | 45,522,000 | 54,779,000 | 37,832,000 | 33,144,000 |
| Free cash flow |  |  |  | 68,523,000 | 5,542,000 | 18,862,000 | 4,572,000 | 476,000 | 10,682,000 | 26,273,000 | 36,263,000 | 7,460,000 | -5,482,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | -9.16% | -0.88% | -2.11% | 5.18% | 2.60% | 0.44% | 4.12% | 2.37% | 2.32% | 6.46% |
| Operating margin |  |  |  | -6.13% | 2.33% | 2.96% | 5.26% | 4.22% | 3.04% | 5.24% | 6.34% | 6.35% | 13.67% |
| Return on equity |  |  |  | -20.11% | -1.62% | -3.99% | 9.17% | 4.05% | 0.70% | 8.17% | 5.55% | 5.23% | 15.76% |
| Return on assets |  |  |  | -7.66% | -0.69% | -1.81% | 4.33% | 1.96% | 0.34% | 3.45% | 2.15% | 1.71% | 5.60% |
| Liabilities / equity |  |  |  | 1.62 | 1.35 | 1.20 | 1.12 | 1.06 | 1.03 | 1.34 | 1.56 | 2.05 | 1.80 |
| Current ratio |  |  |  | 1.46 | 1.61 | 1.55 | 1.56 | 1.68 | 1.62 | 1.64 | 1.39 | 1.35 | 1.34 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000003197.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 0.13 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.06 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.06 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 129,181,000 | 3,724,000 | 0.11 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 149,390,000 | 3,330,000 | 0.09 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 153,711,000 | 3,879,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 126,332,000 | 1,508,000 | 0.04 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 137,522,000 | 4,485,000 | 0.12 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 135,513,000 | 2,086,000 | 0.06 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 158,566,000 | 4,878,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q2 | 2025-06-30 | 185,391,000 | 9,510,000 | 0.26 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 197,599,000 | 1,499,000 | 0.04 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 214,694,000 | 3,058,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2026-03-31 | 205,919,000 | -398,000 | -0.01 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 284,961,000 | -34,768,000 | -0.80 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CECO's latest 10-K: [/company/CECO/business/](/company/CECO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CECO's latest 10-K: [/company/CECO/risk-factors/](/company/CECO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/3197/000119312526342536/ceco-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-10
Report date: 2026-06-30

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 reflect the consolidated operations of the Company and its subsidiaries.

CECO Environmental Corp. (“CECO,” “we,” “us,” "our," or the “Company”) is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally providing innovative technology and application expertise through a collection of focused operating companies with niche leadership positions and well-established brands in fragmented markets with flexible business models and established supply chains. CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. CECO's solutions improve air and water quality, optimize emissions management, and increase the energy and process efficiency for highly engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, chemical processing, electric vehicle production, polysilicon fabrication, semiconductor and electronics production, battery production and recycling, specialty metals, aluminum and steel production, beverage can manufacturing, and industrial and produced water and wastewater treatment, and a wide range of other industrial end markets.

On February 23, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Longhorn Merger Sub, Inc. and Longhorn Merger Sub LLC, each a direct wholly owned subsidiary of the Company (together, the “Merger Subs”), and Thermon Group Holdings, Inc. (“Thermon”), pursuant to which the parties agreed to effect the merger transactions contemplated thereby. On June 1, 2026, the Company consummated the previously announced merger with Thermon in accordance with the terms of the Merger Agreement. The cash portion of the merger consideration and related transaction costs were funded with available cash and borrowings under our existing credit facilities. For additional details, see Note 14 to the unaudited condensed consolidated financial statements within Item 1 of this Quarterly Report on Form 10-Q. The acquisition of Thermon significantly impacts the comparability of the Company’s results of operations, financial condition, and cash flows for the three and six months ended June 30, 2026 compared to the corresponding prior-year periods.

Market Pressures

The senior management team monitors and manages the Company's ability to operate effectively as the result of market pressures. Against the current backdrop of a rapidly evolving global commercial environment, we believe we are comparatively well-positioned as we execute and manufacture a majority of our business in the same regions in which we sell, with our cost and revenue bases largely aligned as a result. Recently, international trade has been impacted by conflict in the Middle East and geopolitical tariff considerations. To mitigate potential impacts from further escalation of conflict in the Middle East, we have implemented contingency planning measures and continue to assess potential effects on our operations, supply chain, and financial results. To mitigate potential tariff-related impacts, we have worked strategically with customers and suppliers to optimize terms and pricing, sourcing locations, and logistics routes and schedules. While we will continue to take a proactive approach on our efforts to mitigate the impacts of these matters, our business and results could be adversely affected by further policy developments. Additionally, we could experience shortages of raw materials and inflationary pressures for certain materials and labor. We have secured raw materials from existing and alternate suppliers and have taken other mitigating actions to mitigate supply disruptions; however, we cannot guarantee that we will be able to continue to do so in the future. If we are unable to continue to mitigate the effects of these supply disruptions and/or inflationary pressures, our business, results and financial condition could be adversely affected.

Note Regarding Use of Non-GAAP Financial Measures

The Company's unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These GAAP financial statements include certain charges the Company believes are not indicative of its core ongoing operational performance.

As a result, the Company provides financial information in this Management’s Discussion and Analysis that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides this non-GAAP financial information because the Company’s management utilizes it to evaluate its ongoing financial performance and the Company believes it provides greater transparency to investors as supplemental information to its GAAP results.

24

The Company has provided the non-GAAP financial measures of non-GAAP operating income and non-GAAP operating margin as a result of items that the Company believes are not indicative of its ongoing operations. These include transactions associated with the Company’s acquisitions, divestiture, and the items described below in “Consolidated Results.” The Company believes that these items are not necessarily indicative of the Company’s ongoing operations and their exclusion provides individuals with additional information to better compare the Company's results over multiple periods. The Company utilizes this information to evaluate its ongoing financial performance. The Company has incurred substantial expense and income associated with acquisitions. While the Company cannot predict the exact timing or amounts of such charges, it does expect to treat the financial impact of these transactions as special items in its future presentation of non-GAAP results.

25

Results of Operations

Consolidated Results

Our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 are as follows:

[[GREPCENT_TABLE]]
[["","","Three months ended June 30,","","","Six months ended June 30,"],["(in millions, except ratios)","","2026","","","2025","","","2026","","","2025"],["Net sales","","$","285.0","","","$","185.4","","","$","490.9","","","$","362.1"],["Cost of sales","","","198.5","","","","118.3","","","","340.5","","","","232.8"],["Gross profit","","$","86.5","","","$","67.1","","","$","150.4","","","$","129.3"],["Percent of sales","","","30.3","%","","","36.2","%","","","30.6","%","","","35.7","%"],["Selling and administrative expense","","","63.9","","","","48.8","","","","110.0","","","","102.4"],["Percent of sales","","","22.4","%","","","26.3","%","","","22.4","%","","","28.3","%"],["Amortization expense","","","7.8","","","","2.9","","","","11.8","","","","6.0"],["Acquisition and integration expense","","","45.5","","","","\u2014","","","","55.7","","","","8.2"],["Gain on sale of Global Pump Solutions business","","","\u2014","","","","\u2014","","","","\u2014","","","","(64.5",")"],["Other operating expense (income)","","","2.5","","","","(2.7",")","","","4.2","","","","(2.7",")"],["Operating (loss) income","","$","(33.2",")","","$","18.1","","","$","(31.3",")","","$","79.9"],["Operating margin","","","(11.6",")%","","","9.7","%","","","(6.4",")%","","","22.1","%"],["Other expense","","$","2.3","","","$","(1.4",")","","$","3.7","","","$","(0.9",")"],["Interest expense","","","9.1","","","","4.9","","","","13.3","","","","11.1"],["(Loss) income before income taxes","","$","(44.6",")","","$","14.6","","","$","(48.3",")","","$","69.7"],["Income tax (benefit) expense","","","(10.1",")","","","4.5","","","","(13.6",")","","","23.2"],["Net (loss) income","","$","(34.5",")","","$","10.1","","","$","(34.7",")","","$","46.5"],["Noncontrolling interest","","","0.3","","","","0.6","","","","0.4","","","","1.0"],["Net (loss) income attributable to CECO Environmental Corp.","","$","(34.8",")","","$","9.5","","","$","(35.2",")","","$","45.5"]]
[[/GREPCENT_TABLE]]

To compare operating performance between the three and six months ended June 30, 2026 and 2025, the Company has adjusted GAAP operating (loss) income to exclude (1) amortization of intangible assets, (2) acquisition and integration expenses, which include legal, accounting, and other expenses, (3) gain on the sale of the Global Pump Solutions business as discussed in Note 15, and (4) other expenses, including restructuring expenses primarily relating to severance, facility exits, and associated legal expenses, asbestos litigation expenses relating to future settlement payments, executive transition expenses, purchase accounting inventory adjustments, and third party professional consulting fees associated with Enterprise Resource Planning system implementations.

The following table presents the reconciliation of GAAP operating (loss) income and GAAP operating margin to non-GAAP operating income and non-GAAP operating margin:

[[GREPCENT_TABLE]]
[["","","Three months ended June 30,","","","Six months ended June 30,"],["(in millions, except ratios)","","2026","","","2025","","","2026","","","2025"],["Operating (loss) income as reported in accordance with GAAP","","$","(33.2",")","","$","18.1","","","$","(31.3",")","","$","79.9"],["Operating margin in accordance with GAAP","","","(11.6",")%","","","9.8","%","","","(6.4",")%","","","22.1","%"],["Amortization expense","","","7.8","","","","2.9","","","","11.8","","","","6.0"],["Acquisition and integration expense","","","45.5","","","","\u2014","","","","55.7","","","","8.2"],["Gain on sale of Global Pump Solutions business","","","\u2014","","","","\u2014","","","","\u2014","","","","(64.5",")"],["Other expense (income)1","","","12.0","","","","(2.7",")","","","13.7","","","","(2.7",")"],["Non-GAAP operating income","","$","32.1","","","$","18.3","","","$","49.9","","","$","26.9"],["Non-GAAP operating margin","","","11.3","%","","","9.9","%","","","10.2","%","","","7.4","%"]]
[[/GREPCENT_TABLE]]

(1) includes $9.5 million related to the inventory fair value adjustment for the three and six months ended June 30, 2026.

Net sales for the three months ended June 30, 2026 increased $99.6 million, or 53.7%, to $285.0 million compared with $185.4 million for the three months ended June 30, 2025, inclusive of organic growth of 44%. Approximately 82.1% of net sales for the three months ended June 30, 2026 is attributable to organic revenue, which the Company defines as revenue from businesses owned for more than twelve months. The increase in organic revenue is driven by strong order intake in preceding quarters, which contributes to the backlog position. During the quarter, the Company continues to execute customer projects and satisfy contractual commitments

26

without experiencing material delays. The largest contributor to organic revenue growth is demand for products and solutions serving power generation end markets. The remainder of the increase in net sales is attributable to the recent acquisition and integration of Thermon.

Net sales for the six months ended June 30, 2026 increased $128.8 million, or 35.6%, to $490.9 million compared with $362.1 million for the six months ended June 30, 2025, inclusive of organic growth of 42%. The increase in organic revenue is driven by significant order intake in the preceding quarters which led to a record backlog position. The Company executed customer projects in accordance with contractual commitments without experiencing material delays. The largest driver of organic revenue is demand for products and solutions supporting power generation end markets. The remainder of the increase in net s

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/3197/000119312526085815/ceco-20251231.htm
Complete FY 2025 MD&A: /company/CECO/mda/fy2025/

Extracted from a substantive MD&A body after the formal Item 7 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-03-02
Report date: 2025-12-31

Overview

Business Overview

CECO is an environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally by providing innovative technology and application expertise. We help companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. Our solutions improve air and water quality, optimize emissions management, and increase the energy and process efficiency for highly engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, chemical processing, electric vehicle production, polysilicon fabrication, semiconductor and electronics production, battery production and recycling, specialty metals, aluminum and steel production, beverage can manufacturing, and industrial and produced water and wastewater treatment, and a wide range of other industrial end markets.

Industry Trends and Corporate Strategy

We are a global corporation with worldwide operations. As a global business, our operations are affected by worldwide, regional and industry-specific economic factors, wherever we operate or do business. Our geographic and industry diversity, and the breadth of our product and services portfolio, have helped mitigate the impact of any one industry or the economy of any single country on our consolidated operating results.

We believe growth for our products and services is driven by the increase in demand for air quality and water treatment solutions, the energy transition, a shift towards cleaner sources of fuel such as natural gas, hydrogen, nuclear, and renewable sources, and increased awareness of our customers about corporate social responsibility and interest to procure equipment and solutions that protects employees, the environment and their industrial equipment.

With a shift to cleaner, more environmentally responsible power generation, power providers and industrial power consumers are building new facilities that use cleaner fuels. In developed markets, natural gas is the largest source of electricity generation. We supply product offerings throughout the entire natural gas value chain and believe expansion will drive growth within our Engineered Systems segment for our gas separation & filtration, pressure products, acoustical equipment , water treatment solutions and DeNOx selective catalytic reduction ("SCR") systems for natural-gas-fired power plants. Increases in global natural gas, installed miles of new pipeline, including future CO2 and hydrogen pipelines, and liquified natural gas demand and supply all stand to drive the need for our products.

We also believe there is a growing demand to control and reduce air and water emissions from industrial facilities for which our pollution control equipment will serve. In 2021, the US Congress passed the Infrastructure Investment and Jobs Act with $550 billion of new federal spending aimed at rebuilding roads and bridges, climate resilience, and other environmental initiatives. Similar investments are being made in many other countries in which we do business. As industrial capital expenditures grow, corporations are seeking to do so with a smaller environmental impact. These regulatory and economic tailwinds coupled with shareholder pressure on companies to improve their sustainability and reduce their global carbon footprint serve as catalysts for a growing set of opportunities for our portfolio of equipment and solutions.

We continue to focus on increasing revenues and profitability in developing markets, where environmental awareness and associated regulatory standards are increasing, while continuing to strengthen and expand our product offerings and channels in our domestic market of the United States. Our enterprise strategy consists of a combined operational strategy and capital allocation strategy.

28

Our operational strategy is implemented through our technology and application-based platforms aligned around target customers and end markets where our solutions are particularly valuable. Core elements of our operational strategy are commercial and operational excellence, margin expansion, recurring revenue growth, cash flow generation, product management, and project management execution.

Our capital allocation strategy supports the growth and value creation generated by our operational strategy. We will focus our capital deployment on building out our leading industrial air solutions portfolio, advancing our emerging industrial water treatment position, and supporting our customers as they make the transition to cleaner more sustainable forms of energy, while also shifting our portfolio mix towards businesses with more recurring revenue and more predictable cash flows, strong secular growth trends and less cyclicality. While the primary focuses of our capital allocation strategy is organic growth and portfolio management, the Company closely monitors its leverage and debt repayment strategies.

Market Pressures

The senior management team monitors and manages the Company's ability to operate effectively as the result of market pressures. Against the current backdrop of a rapidly evolving global commercial environment, we believe we are comparatively well-positioned as we execute and manufacture a majority of our business in the same regions in which we sell, with our cost and revenue bases largely aligned as a result. Recently, international trade has been impacted by geopolitical tariff considerations. To mitigate potential tariff-related impacts, we have worked strategically with customers and suppliers to optimize terms and pricing, sourcing locations, and logistics routes and schedules. While we will continue to take a proactive approach on our efforts to mitigate the impacts of tariffs, our business and results could be adversely affected by further policy developments. We could experience shortages of raw materials and additional inflationary pressures for certain materials and labor. We have secured raw materials from existing and alternate suppliers and have taken other mitigating actions to mitigate supply disruptions; however, we cannot guarantee that we will be able to continue to do so in the future. If we are unable to continue to mitigate the effects of these supply disruptions and/or inflationary pressures, our business, results and financial condition could be affected.

Recent Developments

Proposed Transaction with Thermon Group Holdings, Inc.

On February 23, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Longhorn Merger Sub, Inc. and Longhorn Merger Sub LLC, each a direct wholly owned subsidiary of the Company (together, the “Merger Subs”), and Thermon Group Holdings, Inc. (“Thermon”), pursuant to which CECO will acquire Thermon in a cash and stock transaction. The acquisition will be effected pursuant to a two-step merger transaction as contemplated by the Merger Agreement (the “Merger”). The consummation of the Merger is subject to the satisfaction or waiver of customary closing conditions, including, among others, approval by the Company’s stockholders and Thermon’s stockholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the effectiveness of a registration statement on Form S-4 to be filed by the Company, and other customary regulatory approvals and conditions.

We expect to fund any cash portion of the Merger Consideration and related transaction costs with available cash and borrowings under our existing and/or committed credit facilities. We expect to incur significant costs in connection with the transaction, including legal, accounting, financial advisory and other expenses, and additional costs may be incurred in connection with integration planning and execution. For a description of risks related to the proposed transaction, see "Part I—Item 1A. Risk Factors—Risks Related to the Proposed Transaction with Thermon Group Holdings, Inc." and for additional details regarding the proposed transaction, see Note 17 to the Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K.

Operations Overview

Our segments consist of like end-market and end-market adjacent platforms. Our platforms are structured to win in their target markets with a core focus on understanding customer needs and providing best-in-class solutions. Our business model provides scalable efficiencies enabling us to serve our customers with a variety of products that we typically classify into three categories: make-to-order, configure-to-order, and engineer-to-order. For our project-based platforms, we leverage third-party subcontract fabrication partners in a global network to execute for our customers world-wide. Our platforms are focused on sales, application engineering, product management, project management, and supply chain execution for our customers.

Our operations management team has distinct industry expertise coupled with strong leadership skills resulting in a customer-first mindset across the business. Our operations management team works closely with our Chief Executive Officer on global fulfillment strategies, operational excellence, resource allocation, and employee development.

29

Within our segments, we have monthly business reviews to ensure we are serving customers, achieving our operating plan, and executing on strategic growth initiatives. These reviews include, but are not limited to pipeline reviews, quotation reviews, project management reviews, financial performance, manufacturing scorecards, safety, and customer feedback. In these reviews we focus on metrics such as quality, customer satisfaction, on-time-delivery, lead-times, price, inflation, project margins, backlog, and above all, safety.

In support of the segments, centralized teams provide back-office functions for scale, efficiency, and compliance. These key functions include: accounting, treasury, tax, payroll, human resources and total rewards management, legal, information technology, marketing, and internal control over financial reporting. We have excellent collaboration between our segments and our centralized service teams ensuring optimal efficiency and alignment on growth and improvement initiatives.

Our reportable segments are:

•
Engineered Systems segment: Our Engineered Systems segment serves the power generation, hydrocarbon transport and processing, water/wastewater treatment, oily water separation and treatment, marine and naval, and natural gas and natural gas liquids infrastructure, treatment and transport sectors. We seek to address the global demand for contaminant removal and environmental protection solutions with its highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints.

•
Industrial Process Solutions segment: Our Industrial Process Solutions segment serves the broad industrial sector with solutions for contamination control, exhaust air treatment, VOC abatement, process filtration and fluid handling in applications such as aluminum beverage can production, vehicle production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum processing, engineered wood products manufacturing, chemical processing, general manufacturing and machining, coating and surface treatment, battery production and recycling, and wind and solar power components manufacturing end markets. We assist our customers in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through its platforms including duct

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CECO/mda/fy2025/
All MD&A years: /company/CECO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CECO/mda/fy2024/): filed 2025-02-25; accession 0000950170-25-026562 (https://www.sec.gov/Archives/edgar/data/3197/000095017025026562/ceco-20241231.htm)
- [FY 2023 MD&A](/company/CECO/mda/fy2023/): filed 2024-03-05; accession 0000950170-24-025511 (https://www.sec.gov/Archives/edgar/data/3197/000095017024025511/ceco-20231231.htm)
- [FY 2022 MD&A](/company/CECO/mda/fy2022/): filed 2023-03-06; accession 0000950170-23-006169 (https://www.sec.gov/Archives/edgar/data/3197/000095017023006169/ceco-20221231.htm)
- [FY 2021 MD&A](/company/CECO/mda/fy2021/): filed 2022-03-14; accession 0000950170-22-003502 (https://www.sec.gov/Archives/edgar/data/3197/000095017022003502/cece-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3564 Industrial & Commercial Fans & Blowers & Air Purifing Equip) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CECO.md · JSON record: /company/CECO.json · verified financials: /company/CECO/financials.json / /company/CECO/financials.csv · machine TOC for the whole site: /llms.txt