CECO Environmental Corp. (NASDAQ: CECO) announced its preliminary financial results for the fourth quarter and full year 2024, along with strategic transactions. The company expects to report revenues in the range of $555 to $558 million for the full year 2024, compared to the previous guidance of $575 to $600 million. Adjusted EBITDA is expected to be between $62 to $63 million, down from the previous guidance of $65 to $70 million.
The softness in revenue and adjusted EBITDA for the fourth quarter and full year was primarily driven by continued impacts related to delays of customer-driven projects. However, the company achieved record bookings in the fourth quarter, with orders expected to be at or above $210 million, setting a new company record for bookings and backlog levels.
CECO completed the acquisition of Verantis Environmental Solutions Group in late December 2024. Verantis, with annualized sales of approximately $45 million, is expected to contribute accretive operating margins to the company. Additionally, the company intends to divest its fluid handling business, with the sale expected to be completed late in the first quarter of 2025. The proceeds from this divestiture will be used to pay down debt and position the balance sheet for future strategic growth investments.
The company's acquisition of Profire Energy closed on January 3, 2025, with a fast start associated with the integration and numerous market opportunities added to the list of growth initiatives.
CECO maintains its previously announced full year 2025 outlook, expecting revenue of $700 to $750 million, up approximately 30 percent at the midpoint year over year, and adjusted EBITDA of $90 to $100 million, up approximately 50 percent at the midpoint versus 2024. The company also affirms its full year 2025 outlook that free cash flow is expected to be between 50 and 70 percent of adjusted EBITDA.
The company's CEO, Todd Gleason, expressed confidence in the company's positioning for 2025, citing record bookings and a strong sales pipeline in general industrial, energy transition, and power generation markets. He emphasized the company's strategic acquisitions and expressed excitement for the short* and long-term future of CECO.
CECO Environmental Corp. is a leading environmentally focused, diversified industrial company, serving industrial air, industrial water, and energy transition markets globally through its key business segments: engineered systems and industrial process solutions. CECO is listed on NASDAQ under the ticker symbol "CECO," with global headquarters in Addison, Texas. The market has reacted to these announcements by moving the company's shares -8.5% to a price of $29.41. If you want to know more, read the company's complete 8-K report here.
