CECO Environmental Provides Update on FY26 Orders and Thermon Transaction

Rhea-AI Summary

CECO Environmental (Nasdaq: CECO) raised its full-year 2026 orders outlook to greater than $1.5 billion, representing a >1.5 book-to-bill ratio and ~50% increase versus 2025. The company's sales pipeline now exceeds $6.5 billion. The previously announced Thermon acquisition remains on track to close in mid-2026, with a maximum cash payout of ~$330 million and expected run-rate cost synergies of $40 million by year three.

Positive

• Full-year orders outlook > $1.5 billion (+~50% vs 2025)
• Sales pipeline exceeds $6.5 billion
• Expected $40 million run-rate cost synergies by year three
• Combined adjusted EBITDA margin target of ~20%

Negative

• Thermon deal includes up to $330 million cash funded by credit facility
• Transaction requires shareholder and regulatory approvals to close mid-2026
• Acquisition consideration includes 0.6840 CECO shares per Thermon share (dilution risk)

Key Figures

2026 orders outlook: >$1.5 billion Book-to-bill ratio: >1.5 Orders growth vs 2025: 50 percent +5 more

8 metrics

2026 orders outlook >$1.5 billion Expected full year 2026 orders, excluding Thermon transaction

Book-to-bill ratio >1.5 Implied full year 2026 orders outlook

Orders growth vs 2025 50 percent Increase in 2026 orders outlook vs 2025

Sales pipeline >$6.5 billion Current sales pipeline cited in outlook

Thermon cash consideration cap $330 million Maximum cash payout for Thermon acquisition

Thermon share consideration 0.6840 CECO share Stock portion per Thermon share in mixed election option

Run-rate cost synergies $40 million Expected annual cost synergies by year three post-close

Adj. EBITDA margin target 20 percent Target adjusted EBITDA margin for combined company

Market Reality Check

Price: $54.89 Vol: Volume 497,326 is about 0...

low vol

$54.89 Last Close

Volume Volume 497,326 is about 0.57x its 20-day average 868,749, showing subdued trading interest pre-news. low

Technical Shares at $54.89 are trading above the $49.72 200-day MA and sit 32.83% below the 52-week high.

Peers on Argus

Momentum data shows 2 peers (e.g., PCT, ARQ) moving down (median about -2.9%) wi...

2 Down

Momentum data shows 2 peers (e.g., PCT, ARQ) moving down (median about -2.9%) without same‑day news, suggesting broader sector pressure contrasted with CECO’s positive guidance update.

Historical Context

5 past events · Latest: Mar 03 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 03	Investor conferences	Neutral	-6.3%	Announced participation in three upcoming investor conferences with webcast access.
Feb 24	Earnings results	Positive	-22.8%	Reported record 2025 orders, revenue, EBITDA and raised 2026 guidance.
Feb 24	Strategic merger	Positive	-22.8%	Announced ~$2.2B stock-and-cash combination with Thermon targeting cost synergies.
Feb 17	Earnings date set	Neutral	-0.7%	Scheduled Q4 2025 earnings release and conference call details.
Jan 07	Investor conference	Neutral	-0.7%	Announced presentation at Needham Growth Conference with materials online.

Pattern Detected

Recent history shows strong fundamental news, including record 2025 results and the Thermon deal, followed by notably negative price reactions, indicating a pattern of selloffs on positive catalysts.

Recent Company History

Over the last few months, CECO has focused on investor outreach and major strategic steps. In January 2026, it highlighted an investor conference. Through February–March 2026, it announced multiple conference appearances, reported record 2025 orders of $1,064.3M, revenue of $774.4M, adjusted EBITDA of $90.3M, and raised 2026 guidance. On Feb 24, CECO also unveiled a stock‑and‑cash combination with Thermon valued at about $2.2B. Those strong updates coincided with sharp price declines, making today’s bullish orders outlook an extension of that growth narrative.

Market Pulse Summary

This announcement highlights CECO’s expectation for 2026 orders to exceed $1.5 billion, supported by...

Analysis

This announcement highlights CECO’s expectation for 2026 orders to exceed $1.5 billion, supported by a sales pipeline above $6.5 billion, and reiterates plans to acquire Thermon with up to $330 million in cash and targeted $40 million of cost synergies. Compared with recent record 2025 results and raised guidance, it reinforces a growth trajectory. Key factors to watch include closing the Thermon transaction, realizing the projected ~20% adjusted EBITDA margins, and converting the large pipeline into booked orders.

Key Terms

book-to-bill ratio, run-rate cost synergies, adjusted EBITDA margins, NOx, +1 more

5 terms

book-to-bill ratio financial

"The Company’s full year orders outlook represents a greater than 1.5 book-to-bill ratio..."

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

run-rate cost synergies financial

"The Company expects to deliver at least $40 million of run-rate cost synergies by year three."

Run-rate cost synergies are the ongoing, annualized savings a company expects to achieve after combining operations with another business, once integration actions (like consolidating offices or cutting overlapping staff) are fully in place. For investors, they matter because they show how a deal is expected to improve future profitability and cash flow — like projecting the yearly savings from merging two households so you can judge whether the combination was worth the price paid.

adjusted EBITDA margins financial

"we expect the combined organization to have strong double-digit topline growth and adjusted EBITDA margins..."

Adjusted EBITDA margins measure the share of a company's revenue that remains after removing routine operating costs and then excluding interest, taxes, depreciation, amortization and one‑time items; it’s expressed as a percentage (adjusted EBITDA divided by revenue). Investors use it to see the business’s core cash‑generating efficiency and to compare performance across companies, like judging a car’s fuel efficiency after ignoring temporary cargo and unusual detours.

NOx technical

"solutions, designed to deliver ultra-low NOx and VOC emissions, and acoustic and thermal compliance."

NOx are gases made of nitrogen and oxygen produced when fuels burn, commonly called nitrogen oxides; think of the smoky exhaust from a car or a power plant but in gas form. Investors care because NOx emissions trigger regulatory limits, cleanup costs, fines or permit requirements and can affect a company’s operating costs, legal risks and reputation—similar to how a leaking roof can lead to expensive repairs and lower property value.

VOC technical

"solutions, designed to deliver ultra-low NOx and VOC emissions, and acoustic and thermal compliance."

Volatile organic compounds (VOCs) are carbon-based chemicals that evaporate easily at room temperature—think of the smell from paint, solvents, or gasoline. They matter to investors because limits on VOC emissions, workplace air-quality rules, product-safety concerns or cleanup liabilities can create costs, slow production, or harm reputation; in effect they are like a hidden maintenance problem that can reduce future profits and increase regulatory risk.

AI-generated analysis. Not financial advice.

Raises Full Year 2026 Orders Outlook to Exceed $1.5 Billion
Thermon Transaction Remains on Track to Close in Mid-2026

ADDISON, Texas, March 12, 2026 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO) ("CECO" or the "Company"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, announced today it expects full year 2026 orders to be greater than $1.5 billion – not inclusive of the previously announced Thermon transaction, which is expected to close in mid-2026 subject to satisfaction of the applicable conditions to closing. The Company’s full year orders outlook represents a greater than 1.5 book-to-bill ratio, up approximately 50 percent when compared to 2025.

Todd Gleason, CECO’s Chief Executive Officer commented, “Today’s announcement further emphasizes our long-term sustainable growth model, which is a direct result of our strategic investments to position CECO as a leader in high-growth, global, industrial markets. The visibility and confidence we have in our sales pipeline – which now exceeds $6.5 billion – to yield over $1.5 billion in new orders this year, solidifies our ability to maintain strong, double-digit organic growth for the foreseeable future.”

“We will be participating in several upcoming investor conferences and plan to discuss our expectation to generate record orders while we continue to grow our pipeline. Currently, our largest opportunities remain in the natural gas power generation markets, as well as industrial water and industrial reshoring programs. In fact, we expect in the upcoming weeks, to receive our largest-ever order to supply comprehensive, gas turbine exhaust inlet air conditioning and emissions management solutions, designed to deliver ultra-low NOx and VOC emissions, and acoustic and thermal compliance. We understand there is additional economic uncertainty at the moment, but our sales pipeline remains very active, and our key markets are in growth mode,” Gleason added.

Thermon Transaction

The Company previously announced the acquisition of Thermon at a fixed rate of $10 per Thermon share and 0.6840 of a CECO share. The cash portion is limited to a maximum payout of approximately $330 million – which will be funded through the Company’s current credit facility. The Company expects to deliver at least $40 million of run-rate cost synergies by year three. Commercial synergy discussions are underway, and each company is identifying compelling near-term opportunities in energy markets, general industrial, infrastructure and international market expansion. The transaction is dependent upon securing approval from each company’s shareholders and customary regulatory approvals and is expected to close in mid-2026.

“We have been busy meeting with the talented Thermon organization to advance our appreciation for their operating model. We are developing a detailed integration program to ensure a smooth process and maximize cost and commercial synergies. Each company is focused on delivering tremendous value for our customers while driving financial results that meet or exceed our external commitments. When combined, the new CECO Environmental will have an even larger sales pipeline with broader industrial niche market leadership capabilities. And financially, we expect the combined organization to have strong double-digit topline growth and adjusted EBITDA margins of approximately 20 percent – which speaks to our high-performance focus,” Gleason concluded.

ABOUT CECO ENVIRONMENTAL

CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally providing innovative solutions and application expertise. CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. CECO solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly-engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals and steel production, beverage can, and water/wastewater treatment and a wide range of other industrial end markets. CECO is listed on Nasdaq under the ticker symbol "CECO." Incorporated in 1966, CECO’s global headquarters is in Addison, Texas. For more information, please visit www.cecoenviro.com.

Company Contact:
Marcio Pinto
Vice President - Financial Planning and Investor Relations
888-990-6670
investor.relations@onececo.com

Investor Relations Contact:
Steven Hooser and Jean Marie Young
Three Part Advisors, LLC
214-872-2710
investor.relations@onececo.com

SAFE HARBOR

Any statements contained in this Press Release, other than statements of historical fact, including statements about management’s beliefs and expectations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. We use words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “plan,” “should,” “could” and similar expressions to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future synergies and cost savings, and other statements that are not historical facts. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties, among others, that could cause actual results to differ materially are discussed under “Part I – Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may be included in subsequently filed Quarterly Reports on Form 10-Q, and include, but are not limited to: the expected timing and likelihood of completion of the Proposed Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the Proposed Transaction that could reduce anticipated benefits or cause the parties to abandon the Proposed Transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, the possibility that stockholders of CECO or Thermon may not approve the Proposed Transaction, the risk that the parties may not be able to satisfy the conditions to the Proposed Transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the Proposed Transaction, the risk that any announcements relating to the Proposed Transaction could have adverse effects on the market price of CECO’s common stock, the risk that the Proposed Transaction and its announcement could have an adverse effect on the ability of CECO and Thermon to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk the pending Proposed Transaction could distract management of both entities and they will incur substantial costs, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve synergies or it may take longer than expected to achieve those synergies, the effect of the divestiture of our Global Pump Solutions business on business relationships, operating results, and business generally, disruption of current plans and operations and potential difficulties in employee retention as a result of the transaction, diversion of management’s attention from ongoing business operations in connection with the integration of recent acquisitions, the amount of the costs, fees, expenses and other charges related to the transaction, the achievement of the anticipated benefits of transactions, our ability to successfully integrate acquired businesses and realize the synergies from acquisitions, as well as a number of factors related to our business, including the sensitivity of our business to economic and financial market conditions generally and economic conditions in CECO’s service areas; the potential for fluctuations in prices for manufactured components and raw materials, including as a result of tariffs and surcharges, and rising energy costs; inflationary pressures relating to rising raw material costs and the cost of labor; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for revenue; the effect of growth on our infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges or other customer considerations; liabilities arising from faulty services or products that could result in significant professional or product liability, warranty, or other claims; changes in or developments with respect to any litigation or investigation; failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects; the substantial amount of debt incurred in connection with our strategic transactions and our ability to repay or refinance it or incur additional debt in the future; the impact of federal, state or local government regulations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases; our ability to successfully realize the expected benefits of our restructuring program; economic and political conditions generally; our ability to optimize our business portfolio by identifying acquisition targets, executing upon any strategic acquisitions or divestitures, integrating acquired businesses and realizing the synergies from strategic transactions; and the unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises, as well as management’s response to any of the aforementioned factors. Many of these risks are beyond management’s ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It

This communication is being made in respect of the proposed merger transaction (the “Proposed Transaction”) involving Thermon Group Holdings, Inc. (“Thermon”) and CECO Environmental Corp. (“CECO”), among other things. The issuance of shares of CECO common stock in connection with the Proposed Transaction will be submitted to the stockholders of CECO for their consideration, and the Proposed Transaction will be submitted to the stockholders of Thermon for their consideration. In connection therewith, CECO intends to file with the SEC a registration statement on Form S-4 (the “Registration Statement”) that will include a joint proxy statement/prospectus. Each of CECO and Thermon may also file other relevant documents with the SEC regarding the Proposed Transaction. This communication is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that CECO or Thermon, as applicable, may file with the SEC in connection with the Proposed Transaction. After the Registration Statement has been declared effective by the SEC, a definitive joint proxy statement/prospectus will be mailed to the stockholders of CECO and Thermon. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF CECO AND THERMON ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT CECO, THERMON, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus, as well as other filings containing important information about CECO, Thermon and the Proposed Transaction, once such documents are filed with the SEC through the website maintained by the SEC at https://www.sec.gov. Copies of the documents filed with the SEC by CECO will be available free of charge on CECO’s website at https://investors.cecoenviro.com. Copies of the documents filed with the SEC by Thermon will be available free of charge on Thermon’s website at https://ir.thermon.com. The information included on, or accessible through, CECO’s or Thermon’s website is not incorporated by reference into this communication.

Participants in the Solicitation

CECO, Thermon and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the Proposed Transaction.

Information about the directors and executive officers of CECO, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) CECO’s proxy statement for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 10, 2025 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/3197/000155837025004649/ceco-20250520xdef14a.htm), (ii) a Form 8-K filed by CECO on July 24, 2025 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000003197/000095017025098303/ceco-20250718.htm), (iii) a Form 8-K filed by CECO on September 16, 2025 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000003197/000119312525204657/ceco-20250912.htm) and (iv) to the extent holdings of CECO’s securities by the directors or executive officers of CECO have changed since the amounts set forth in CECO’s proxy statement for its 2025 Annual Meeting of Stockholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0000003197.

Information about the directors and executive officers of Thermon, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) Thermon’s proxy statement for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on June 18, 2025 (and which is available at https://www.sec.gov/Archives/edgar/data/1489096/000148909625000097/thr-20250618.htm), (ii) a Form 8-K filed by Thermon on July 1, 2025 (as amended July 15, 2025) (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001489096/000148909625000115/thr-20250701.htm) and (iii) to the extent holdings of Thermon’s securities by the directors or executive officers of Thermon’s have changed since the amounts set forth in Thermon’s proxy statement for its 2025 Annual Meeting of Stockholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001489096.

Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the Proposed Transaction when such materials become available. Investors should read the joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from CECO and Thermon using the sources indicated above.

FAQ

What is CECO's updated full-year 2026 orders outlook (Nasdaq: CECO)?

CECO now expects full-year 2026 orders to exceed $1.5 billion, a roughly 50% increase versus 2025. According to the company, this represents a >1.5 book-to-bill ratio and reflects a sales pipeline exceeding $6.5 billion.

When is CECO’s acquisition of Thermon expected to close and what is the cash exposure (CECO)?

The Thermon acquisition is expected to close in mid-2026, subject to approvals. According to the company, the cash portion is capped at approximately $330 million and will be funded via its credit facility.

What synergies and margin targets did CECO announce for the Thermon transaction (CECO)?

CECO expects at least $40 million of run-rate cost synergies by year three and ~20% adjusted EBITDA margins for the combined company. According to the company, commercial synergy discussions and integration planning are underway.

How will the Thermon deal impact CECO shareholders (Nasdaq: CECO)?

The deal includes a stock component of 0.6840 CECO shares per Thermon share, which may dilute existing shareholders. According to the company, the combination aims to expand pipeline and drive double-digit topline growth.

What markets and orders are driving CECO’s 2026 growth outlook (CECO)?

CECO cites large opportunities in natural gas power generation, industrial water, and reshoring programs as growth drivers. According to the company, a record order for gas turbine inlet air conditioning and emissions solutions is expected soon.