NASDAQ$CECO

CECO Environmental Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

CECO Environmental's Q3 2021 results were impacted by a challenging operating environment, despite a 39 percent increase in bookings.

CECO Environmental reported a revenue increase of $80.0 million compared to $77.4 million in the same quarter last year. However, the company experienced a net loss of $(1.2) million, a decrease from the $(0.2) million loss in the prior year. Bookings increased by 39 percent.

  • Revenue reached $80.0 million, up from $77.4 million.
  • Gross profit was $22.7 million with a 28.4% margin, compared to $24.8 million with a 32.0% margin.
  • The company reported an operating loss of $(0.6) million, down from an operating income of $1.0 million.
  • Bookings increased to $92.6 million, compared to $66.8 million.

Headline financials

Total Revenue

$80M

Previous: $77.4M+3.3%
EPS (adj)

-$0.03

Previous: -$0.01-200.0%
Orders

$92.6M

Previous: $66.8M+38.6%
Backlog

$219M

No prior period
Capital Expenditures

-$1.74M

Previous: -$2.88M+39.5%
Free Cash Flow

-$2.99M

Previous: -$3.11M+4.0%
Net Income

-$1.25M

Previous: -$239K-422.6%
Operating Income

-$596K

Previous: $1.02M-158.5%
Gross Profit

$22.7M

Previous: $24.8M-8.4%
Cash & Equivalents

$31.9M

Previous: $44.5M-28.3%
Total Assets

$419M

Previous: $422M-0.8%
Stock-Based Comp

$885K

Previous: $486K+82.1%

Revenue & EPS history

CECO · Revenue · Quarterly

$80M

Q3 2021+3.3%vs Q3 2020

Forward guidance

The company expects improved volumes and margins in the fourth quarter, leading to double-digit revenue growth and a more than doubling of adjusted EBITDA sequentially from the third quarter.

Tailwinds

  • Improved volumes expected.
  • Improved margins expected.
  • Double-digit revenue growth anticipated.
  • Adjusted EBITDA expected to more than double sequentially.
  • Stronger financial results expected in Q4 and throughout 2022.

Headwinds

  • Challenges associated with lower-margin projects booked in late 2020.
  • Short-term execution issues associated with supply chain and logistics costs.
  • Customer delays.
  • Labor shortages.
  • Uncertainties regarding the extent and duration of impacts of matters associated with the novel coronavirus (“COVID-19”)

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 Q3 2021

Historical avgQ3 2021

-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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