NASDAQ$CECO

CECO Environmental Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CECO Environmental's second quarter 2023 results were marked by record orders, revenue, backlog, gross profit, and adjusted EBITDA, leading the company to raise its full-year 2023 outlook.

CECO Environmental Corp. reported record second-quarter results, with significant increases in orders, revenue, and backlog. The company's strong performance led to an increased full-year 2023 outlook.

  • Orders increased by 44 percent, reaching $162.9 million, with a record backlog of $391.0 million, up 35 percent.
  • Revenue grew by 23 percent to $129.2 million, while net income was $3.7 million.
  • Gross profit increased by 26 percent to $39.8 million, resulting in a gross margin of 30.8 percent.
  • The company raised its full-year 2023 revenue guidance to between $500 and $525 million and adjusted EBITDA to between $50 and $55 million.

Headline financials

Total Revenue

$129M

Previous: $105M+22.6%
EPS (adj)

$0.15

Previous: $0.13+15.4%
Backlog

$391M

No prior period
Capital Expenditures

-$3.92M

Previous: -$1.43M-173.7%
Free Cash Flow

-$195K

Previous: $2.95M-106.6%
Net Income

$3.72M

Previous: $4.39M-15.1%
Operating Income

$8.6M

Previous: $5.75M+49.7%
Gross Profit

$39.8M

Previous: $31.7M+25.7%
Cash & Equivalents

$47.6M

Previous: $34.4M+38.4%
Total Assets

$583M

Previous: $482M+20.9%
Stock-Based Comp

$1.16M

Previous: $915K+26.9%

Revenue & EPS history

CECO · Revenue · Quarterly

$129M

Q2 2023+22.6%vs Q2 2022
Beat estimate in 11 of 12 quarters(92%)
ActualEstimate

Forward guidance

CECO Environmental increased its full-year 2023 guidance, projecting revenues between $500 and $525 million and adjusted EBITDA between $50 and $55 million.

Tailwinds

  • Revenue forecasted to be between $500 and $525 million, up at least 21 percent year over year at the midpoint.
  • Adjusted EBITDA forecasted to be between $50 and $55 million, up approximately 25 percent year over year at the midpoint.
  • Record backlog provides strong visibility in support of sustainable future growth.
  • Acquisitions completed over the past year and a half are performing at or above expectations.
  • Company expects 2023 to be another building block in its transformational journey to further advance its leadership in Industrial Air, Industrial Water, and Energy Transition markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+1.9%

Avg return

30 days after

44%

27 / 61 earnings

Positive

+27.1%

Q2 2015

Best reaction

-18.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-18.1%-22.2%-21.4%
Q3 2025-9.2%-8.4%-2.7%
Q1 2025+16.4%+35.0%+42.4%
Q4 2024+8.2%+9.8%+8.4%
Q3 2024-6.5%-10.8%+21.2%
Q2 2024-2.7%-7.9%-5.6%
Q1 2024-13.4%-11.6%-2.0%
Q4 2023-12.0%-3.6%+1.7%
Q3 2023+5.0%+17.6%+18.1%
Q2 2023+17.1%+16.6%+18.0%
Q1 2023+0.2%-4.2%+7.8%
Q4 2022-3.8%-5.3%-18.5%
Q2 2022-3.8%-5.3%-18.5%
Q3 2022+1.3%+2.9%+1.3%
Q1 2022-1.1%-5.1%-13.9%
Q4 2021-1.1%+12.2%-9.4%
Q3 2021-8.1%-10.8%-16.5%
Q2 2021-2.7%+0.1%+9.5%
Q1 2021+0.6%+0.9%-10.0%
Q4 2020-0.2%+14.1%-0.2%
Q3 2020-7.5%-4.3%+11.2%
Q2 2020+10.9%+24.2%+19.5%
Q1 2020-1.5%-1.7%+17.3%
Q4 2019+4.7%-6.1%-29.3%
Q3 2019+5.8%+11.2%+10.9%
Q2 2019-0.6%-10.7%-19.5%
Q1 2019+0.2%+5.6%+7.8%
Q4 2018-0.6%+4.4%+1.5%
Q3 2018-1.2%-3.2%-0.4%
Q2 2018-0.6%+25.6%+21.9%
Q1 2018-1.9%+5.6%+5.6%
Q4 2017+1.0%+23.1%+12.9%
Q3 2017-3.4%-34.3%-45.5%
Q2 2017+2.3%-26.1%-21.4%
Q4 2016+0.6%-4.4%-3.3%
Q3 2016+20.3%+12.1%+52.4%
Q2 2016-5.5%+11.2%+18.4%
Q1 2016+2.8%
Q4 2015+1.1%
Q3 2015-0.5%
Q2 2015+27.1%
Q1 2015-5.0%
Q4 2014+0.2%
Q3 2014-7.3%
Q2 2014-1.1%
Q1 2014+6.6%
Q4 2013-0.6%
Q3 2013+1.9%
Q2 2013-10.5%
Q1 2013-3.4%
Q4 2012+4.2%
Q3 2012-18.0%
Q2 2012-5.2%
Q1 2011-8.1%
Q1 2012+1.1%
Q4 2011+0.9%
Q3 2011-4.1%
Q3 2010-4.1%
Q4 2010+0.9%
Q2 2011+0.9%
Q2 2010+0.9%

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