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- **Revenue Growth**: Q3 revenue up 46% YoY to $198 million, with backlog hitting $720 million (64% YoY). 
- **2026 Outlook**: Orders targeting >$1 billion, revenue $850-$950 million (15-25% growth), EBITDA $110-$130 million (20-40% growth). 
- **Profitability**: Adjusted EBITDA up 62% YoY to $23.2 million. Gross margin 32.7% (down 70bps YoY). 
- **Liquidity**: Net debt-to-EBITDA 2.3x, $109 million investment capacity. 
- **Margin Expansion**: 2026 EBITDA margin expected to grow 110-150bps, offsetting potential gross margin decline from large project mix.

**【CEO Summary Section】**
- **Record Performance**: Q3 revenue reached $198 million (46% YoY growth), driven by robust order intake of $233 million (44% YoY). Backlog hit a new high of $720 million (64% YoY growth). 
- **2025 Outlook**: Full year revenue expected to range $725-$775 million (35% midpoint growth). Adjusted EBITDA target $90-$100 million (50% YoY growth). 
- **2026 Vision**: Orders targeting >$1 billion (1.1x+ book-to-bill). Revenue forecast $850-$950 million (15-25% YoY growth). Adjusted EBITDA $110-$130 million (20-40% YoY growth). 
- **Key Drivers**: Power generation, natural gas infrastructure, industrial water projects. Sales pipeline exceeds $5.8 billion. 

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $23.2 million (62% YoY growth). Gross margin 32.7% (down 70bps YoY due to project mix). 
- **Cash Flow**: Q3 free cash flow $19 million. Year-to-date capital expenditures $8.7 million (ERP migration, facility upgrades). 
- **Leverage**: Net debt-to-EBITDA ratio 2.3x. Liquidity position strong with $109 million investment capacity. 
- **Cost Management**: G&A expenses down 4% sequentially. 80/20 process improvements expected to enhance margins. 

**【Q&A Highlights】**
- **Project Pipeline**: $5.8 billion pipeline with visibility into 2026. Potential for Q4 bookings >$250 million. 
- **Margin Dynamics**: 2026 gross margin may decline slightly due to large project mix, but EBITDA margin expected to expand 110-150bps. 
- **M&A Strategy**: Actively building pipeline for tuck-in acquisitions. Recent Profire Energy integration driving cross-selling opportunities. 
- **Macroeconomic View**: Neutral outlook on macroeconomic conditions; industrial demand resilient to broader economic trends.

CECO Environmental Corp. (CECO) Q3 2025 Earnings Call Transcript

Revenue

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CECO

CECO fundamentals

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