CECO
CECO Environmental Corp.

CECO Environmental Corp.CECO

Industrials · Pollution & Treatment Controls
43.71USD
+16.06%
Nov 08, 2026
CECO overview ready
Engineered Systems Enabler for Industrial Environmental Compliance
CECO is an engineered-systems enabler for industrial environmental compliance and process efficiency.
Primary theme is improving
Diversified Industrials is improving (+8.5pp vs SPY over 21 sessions; 16 of 24 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash it currently generates.
Solid fundamentals
Ev / sales is strong.
Primary risk
Exposure to industrial capital expenditure cyclicality.
Market Nov 6Filing Jun 30Price action Nov 7Research Sep 30

Conviction Level

PriceAction1.4BusinessPerformance5.0BusinessQuality5.3Valuation3.1ThemeMomentum7.0Mixed — Revenue growth has accelerated, rising from +17% to +54% year over year. Earnings turned negative: a diluted loss of -$0.80 against EPS of $0.26 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+8.5pp
Theme return
+3.5%
Beating SPY
16 of 24
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$2.6B
Avg Volume (60D)
903.4K
60 sessions
Revenue Growth YoY
+38.8%
FY2025 vs FY2024
Gross Margin
+32.1%
Trailing twelve months
Operating Margin
-0.6%
Trailing twelve months
Free Cash Flow Yield
-0.8%
Distance from 200DMA
-38.8%
Next Earnings
2026-11-09
P/E
N/M
EV / Sales
3.6x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Mixed

Revenue growth has accelerated, rising from +17% to +54% year over year. Earnings turned negative: a diluted loss of -$0.80 against EPS of $0.26 a year earlier.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthAccelerating
+54%
$285M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +46%
  2. +35%
  3. +17%
  4. +54%
Earnings growthTurned to a loss
-$0.80
Diluted EPS -$0.80 vs $0.26 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. -33%
  2. -39%
  3. n/a
  4. n/a
Operating marginContracting
-11.6%
-21.4 pp YoY · gross margin 30.3% (-5.9 pp)
The business is consuming cash

Business Quality

5.3 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say expensive; peers is the dissenting view.
CECO Environmental Corp. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash it currently generates.

What changed

  • CECO rose 16.1% in one session
    CECO closed +16.1% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
CECO is an engineered-systems enabler for industrial environmental compliance and process efficiency.
Opportunity
Moderate opportunity
Industrial-facility investment in engineered systems that remove regulated air contaminants, treat or recycle process water, manage emissions, and improve process efficiency during new builds, capacity additions, and compliance retrofits.
Key risk
Exposure to industrial capital expenditure cyclicality.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Pollution & Treatment Controls
What they do

CECO Environmental Corp. designs, manufactures, and services engineered systems that manage industrial air quality, water treatment, and energy transition solutions across multiple international markets. It operates through two segments: Engineered Systems and Industrial Process Solutions.

How it earns

Primarily project-based and transactional revenue from sales of equipment, engineered solutions, and related services.

Products & services
Industrial air emissions management systems
Fluid bed cyclones
Thermal acoustics solutions
Separation and filtration systems
Industrial water treatment and recycling solutions
Engineering services and environmental systems
Customers & end markets
Industrial facilities requiring environmental compliance
Manufacturing plants undergoing capacity expansions or retrofits
Market position

Niche engineered-systems provider focused on industrial environmental compliance and process efficiency.

Demand drivers
Medium cyclicality

Demand is linked to industrial capital expenditure cycles and regulatory compliance timing.