CECO Environmental (CECO) 17th Annual Southwest IDEAS Conference summary

Strategic Vision and Value Creation

• Focused on long-term value creation for customers, employees, and shareholders, with a vision extending to 2030 and beyond.

• Emphasizes niche industrial leadership, global diversification, and a strong operating model inspired by successful peers.

• Maintains a healthy balance sheet and disciplined capital allocation, prioritizing accretive acquisitions, organic growth, debt management, and stock buybacks.

• Recognized for sustainable value creation and management alignment with shareholders through strategy and compensation.

• Decentralized management structure and incentive models drive pipeline growth and market expansion.

Growth Drivers and Market Positioning

• Sales pipeline expanded from $1.1B to nearly $6B in four years, with a record opportunity pipeline of ~$5.8B and backlog >$700M expected to support growth into 2026.

• Power, energy infrastructure, industrial water, and semiconductor markets are strong growth areas, with bookings in power expected to quadruple.

• Industrial water is a rapidly growing segment, projected to reach $100M in sales next year, with significant future potential.

• Approximately 45–50% of sales/orders are international, with significant investments in India, Southeast Asia, and balanced exposure across regions.

• Acquisitions have contributed to growth, with ~50% doubling sales within 24 months.

Financial Outlook and Performance

• Book-to-bill ratio consistently above 1.0, with TTM orders up 65% and a ratio of 1.33x; 2024 sales expected to grow 25%.

• 2025 revenue guidance of $725M–$775M, up from $560M in 2024, with adjusted EBITDA targeted at $90M–$100M; 2026 outlook projects revenue of $850–950M and adjusted EBITDA of $110–130M.

• Q3 2025 saw a 64% increase in backlog, 44% in orders, and 46% in revenue YoY; adjusted EBITDA up 62% with margin expansion.

• Free cash flow typically 50–60% of adjusted EBITDA, with YTD 2025 at $0.9M and leverage ratio reduced to 2.3x.

• Stock price increased ~860% since 2021, outperforming major indices; market cap reached $1.9B and EV $2.2B by 2025.