# CECO Environmental Corp. (CECO)

> Source: Nexqual · https://nexqual.com/CECO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, CECO Environmental Corp. (CECO), nexqual.com/CECO" · informational, not investment advice.

**Price:** USD 51.51 (-11.57% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 58.25 · day 46.22–56.87 · 52w 42.82–101.24 · market cap $3.02B · TEX

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $903M, net income -$30.6M (-3.4% margin), free cash flow -$21.6M (SEC filings).
- 2 of 80 tracked superinvestors hold CECO (13F, Q2 2026): 0 new, 1 added, 1 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 3 Form 4 filings, $10.3M; 3 not under a Rule 10b5-1 plan ($10.3M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 2 Form 4 filings, $2.6M; 2 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 1.71 on a 1–5 scale) (7 analysts), mean target USD 109 (range 85–130).
- Total return with dividends: 1Y +1.3% vs S&P 500 +14.9%; 5Y +652.0% vs S&P 500 +80.3%.
- Next earnings: 2026-10-27, EPS estimate USD 0.59, revenue estimate $400M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $324M | $423M | $545M | $558M | $774M | $903M |
| Gross profit | $101M | $128M | $171M | $196M | $269M | — |
| Operating income | $9.9M | $22.2M | $34.6M | $35.4M | $106M | -$5.4M |
| Net income | $1.4M | $17.4M | $12.9M | $13.0M | $50.1M | -$30.6M |
| EPS (diluted) | $0.04 | $0.50 | $0.37 | $0.36 | $1.37 | — |
| Free cash flow | $10.7M | $26.3M | $36.3M | $7.5M | -$5.5M | -$21.6M |
| Gross margin | 31.1% | 30.3% | 31.4% | 35.2% | 34.8% | — |
| Operating margin | 3.0% | 5.2% | 6.3% | 6.3% | 13.7% | -0.6% |
| Net margin | 0.4% | 4.1% | 2.4% | 2.3% | 6.5% | -3.4% |
| Revenue growth | +2.6% | +30.4% | +28.9% | +2.4% | +38.8% | — |
| Cash + short-term investments | $29.9M | $45.5M | $54.8M | $37.8M | $33.1M | — |
| Total debt | $63.8M | $111M | $137M | $219M | $212M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 3.3x · EV/EBITDA 134.1x · EV/Sales 4.1x · P/B 1.4x · FCF yield -0.72% · Earnings yield -1.01% · Net debt $667M · EV $3.68B
P/E at fiscal year-ends: Dec 2025 43.8x, Dec 2024 84.9x, Dec 2023 55.5x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold CECO. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | 0.11% | $12.5M | Reduced -3.7% |
| First Eagle Investment | First Eagle Investment Management | 0.04% | $24.9M | Added +13.1% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 3 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-24…2026-06-25 | Dezwirek Jason | Director | 68,000 | $6.6M | 1.6% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-06-24 | Johansson Peter K. | SVP, Chief Financial Officer | 30,000 | $2.9M | 42.4% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-01 | Nanda Munish | Director | 11,218 | $830K | 15.3% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
2 purchases, $2.6M. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-06-01 | Wallman Richard F | Director | 20,000 | $1.5M | 76.85 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-04-29 | Wallman Richard F | Director | 15,000 | $1.1M | 73.43 | Opportunistic (traded every year 2023–2025, no repeating month) |

## Analysts
Consensus Buy (mean 1.71 on a 1–5 scale), 7 analysts; mean target USD 109 (low 85, high 130).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-13 | JP Morgan | Target lowered | Overweight | $130 → $110 |
| 2026-08-11 | Needham | Reiterated | Buy | $110 |
| 2026-08-05 | TD Cowen | Initiated | Buy | $85 |
| 2026-07-09 | JP Morgan | Initiated | Overweight | $130 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +1.3% | +652.0% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +1.3% | +49.6% |
| Volatility (annualized) | 67.1% | 52.6% |
| Max drawdown | -48.3% (Jun 2026→Oct 2026) | -47.6% (Jun 2026→Oct 2026) |

## Peers (Pollution & Treatment Controls)
ZWS (Zurn Elkay Water Solutions Corp) USD 48.66 +0.58% · PCT (PureCycle Technologies, Inc.) USD 2.78 +0.36% · ADUR (Aduro Clean Technologies Inc.) USD 10.07 -2.89% · VLTO (Veralto Corp) USD 104.9 +3.54% · CDZI (Cadiz, Inc.) USD 4.06 +2.27% · ERII (Energy Recovery, Inc.) USD 6.67 +0.30%

## More
Full page: https://nexqual.com/CECO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in CECO's own 10-K filed 2026-03-02 (https://www.sec.gov/Archives/edgar/data/3197/000119312526085815/ceco-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | PENTAIR plc (PNR) | "Previously, Mr. Gleason served on the board of Faradyne, a strategic joint venture between Pentair and Xylem." |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Engineered Systems | $173.7M | 60.9% | +35.2% |
| Industrial Process Solutions | $61.7M | 21.6% | +8.3% |
| Thermal Solutions | $49.6M | 17.4% | — |
| Total revenue | $285.0M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $180.6M | 63.4% | +50.3% |
| Other | $28.9M | 10.1% | +60.3% |
| Netherlands | $26.2M | 9.2% | +66.3% |
| Canada | $18.8M | 6.6% | +249.1% |
| China | $18.8M | 6.6% | +38.7% |
| United Kingdom | $11.6M | 4.1% | -6.6% |
| Total revenue | $285.0M | 100% | — |

## Customer concentration

Period ended 2025-12-31: 10% of revenue from unnamed direct customers (10-K, filed 2026-03-02).

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.59 | $0.52 | +13.0% | $399.6M | 7 |
| Next quarter (ends 2026-12-31) | $0.80 | $0.73 | +8.9% | $448.7M | 7 |
| Current fiscal year (ends 2026-12-31) | $2.30 | $1.91 | +20.5% | $1.34B | 7 |
| Next fiscal year (ends 2027-12-31) | $3.16 | $2.83 | +11.4% | $1.83B | 7 |