CECO Environmental reported a sharp acceleration in new business in the first quarter of 2026, with orders of $449.5 million, up 97% from a year earlier, and backlog reaching a record $1.035 billion, up 72%.
Revenue rose 17% to $205.9 million. Gross profit increased 3% to $63.9 million, while gross margin was 31.0%. Adjusted EBITDA climbed 46% to $20.4 million, with margin at 9.9%.
The company swung to a net loss of $0.4 million from net income of $36.0 million a year ago. Operating income fell to $1.9 million from $61.9 million, but adjusted operating income rose to $17.9 million from $8.6 million. Non-GAAP net income jumped to $13.9 million from $3.5 million, and diluted non-GAAP EPS increased to $0.36 from $0.09.
Free cash flow was negative $15.7 million, compared with negative $15.1 million in the prior-year quarter.
Management raised full-year 2026 guidance. Revenue is now expected between $940 million and $1 billion, versus prior guidance of $925 million to $975 million. Adjusted EBITDA is now projected at $120 million to $140 million, up from the earlier range of $115 million to $135 million. At the midpoint, revenue implies about 25% growth from 2025, and adjusted EBITDA implies about 45% growth.
The company said it had already booked more than $450 million in new orders in April, including what it called the largest natural gas power order in its history. It also said backlog and booking momentum support a second-quarter start to the year that could materially exceed the first quarter’s record pace. Today the company's shares have moved 0.13% to a price of $64.885. For the full picture, make sure to review CECO ENVIRONMENTAL CORP's 8-K report.
