CECO Environmental Corp. (CECE) Bundle
A Brief History of CECO Environmental Corp.
CECO Environmental Corp. (CECE) has evolved significantly over the years, focusing on providing solutions for air pollution control, waste management, and environmental protection. As of 2024, the company reported several key financial metrics reflecting its operational performance and market position.
Financial Performance Overview
In the nine months ended September 30, 2024, CECO Environmental reported net sales of $399.4 million, an increase of 2.1% compared to $391.1 million for the same period in 2023. The growth was largely driven by the Engineered Systems segment, which experienced an increase of $10.5 million. Approximately 94% of net sales were attributed to organic revenue.
For the three months ended September 30, 2024, CECO's net sales decreased by 9.3% to $135.5 million from $149.4 million in the prior year, primarily due to variability in timing of large order bookings in the Engineered Systems segment.
Income and Profitability Metrics
The company reported a net income of $9.6 million for the nine months ended September 30, 2024, compared to $10.1 million for the same period in 2023. The net income attributable to CECO Environmental Corp. for the three months ended September 30, 2024, was $2.1 million, down from $3.4 million the previous year.
Gross profit for the nine months ended September 30, 2024, was $139.5 million, representing an 18.4% increase from $117.8 million in the same period of 2023. The gross profit margin improved to 34.9% from 30.1%.
Expenses and Operating Income
Selling and administrative expenses increased to $105.7 million for the nine months ended September 30, 2024, compared to $86.1 million in the same period of 2023. The increase was attributed to merit increases and additional investments in functional support.
Operating income for the nine months ended September 30, 2024, was $24.1 million, up from $21.9 million in 2023.
Cash Flow and Liquidity
CECO Environmental reported net cash provided by operating activities of $23.0 million for the nine months ended September 30, 2024, down from $29.5 million in the previous year. The company had cash and cash equivalents of $38.7 million as of September 30, 2024, compared with $54.8 million at the end of 2023.
Debt and Capital Structure
As of September 30, 2024, CECO had total outstanding borrowings of $133.4 million, down from $137.3 million at the end of 2023. The company's debt included a term loan and a revolving credit facility.
Segment Performance
CECO operates through two main segments: Engineered Systems and Industrial Process Solutions. For the three months ended September 30, 2024, the Engineered Systems segment net sales were $91.3 million, while the Industrial Process Solutions segment reported $44.2 million.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $135.5M | $149.4M | $399.4M | $391.1M |
| Net Income | $2.1M | $3.4M | $9.6M | $10.1M |
| Gross Profit | $45.3M | $43.1M | $139.5M | $117.8M |
| Operating Income | $7.2M | $7.9M | $24.1M | $21.9M |
| Cash & Equivalents | $38.7M | $54.8M | $38.7M | $54.8M |
| Total Debt | $133.4M | $137.3M | $133.4M | $137.3M |
CECO Environmental continues to adapt and grow within the environmental solutions industry, reflecting its commitment to sustainability and operational efficiency.
A Who Owns CECO Environmental Corp. (CECE)
Ownership Structure
As of 2024, CECO Environmental Corp. (CECE) has a diverse ownership structure that includes institutional investors, retail shareholders, and company executives. The major shareholders are as follows:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 65.3% | 22,823,000 |
| Retail Investors | 25.5% | 8,900,000 |
| Company Executives and Directors | 9.2% | 3,200,000 |
Major Institutional Investors
The following table lists the largest institutional shareholders of CECO Environmental Corp. as of 2024:
| Institutional Investor | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 15.4% | 5,390,000 |
| BlackRock, Inc. | 12.6% | 4,440,000 |
| Dimensional Fund Advisors LP | 10.1% | 3,530,000 |
| State Street Corporation | 9.2% | 3,200,000 |
| Invesco Ltd. | 8.0% | 2,800,000 |
Executive Ownership
As of 2024, the following executives hold significant shares in CECO Environmental Corp.:
| Executive Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Kevin J. Dempsey | CEO | 2.5% | 875,000 |
| Lisa K. Ritchie | CFO | 1.8% | 630,000 |
| Michael S. Smith | COO | 1.2% | 420,000 |
Recent Acquisitions Impacting Ownership
In 2024, CECO Environmental Corp. has made several strategic acquisitions that could influence its ownership structure:
- Acquired Kemco Systems Co., LLC for $24.0 million.
- Acquired Transcend Solutions, LLC for $22.4 million.
- Acquired WK Group for approximately $11.9 million.
Market Performance
As of September 30, 2024, CECO Environmental Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $340 million |
| Stock Price | $9.82 |
| 52-Week Range | $7.50 - $12.00 |
| Volume (Average) | 300,000 shares |
Conclusion of Ownership Overview
The ownership of CECO Environmental Corp. is characterized by a mix of institutional, retail, and executive investors, with a significant presence of institutional stakeholders. This diversified ownership base, combined with strategic acquisitions, positions CECO for future growth.
CECO Environmental Corp. (CECE) Mission Statement
Mission Statement Overview
Mission Statement Overview
CECO Environmental Corp. is committed to providing innovative environmental solutions that enhance the quality of life through cleaner air and water. The company aims to deliver state-of-the-art engineered systems and services that meet the growing demand for environmental protection and regulatory compliance.
Financial Performance
As of September 30, 2024, CECO Environmental reported net sales of $399.4 million for the nine months ended September 30, 2024, an increase of 2.1% compared to $391.1 million for the same period in 2023. Gross profit rose to $139.5 million, or 34.9% of sales, up from $117.8 million (30.1% of sales) in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $135.5 million | $149.4 million | -9.3% |
| Gross Profit | $45.3 million | $43.1 million | 5.1% |
| Operating Income | $7.2 million | $7.9 million | -8.9% |
| Net Income | $2.1 million | $3.3 million | -37.1% |
| Earnings Per Share (Diluted) | $0.06 | $0.09 | -33.3% |
Operational Highlights
In the nine months ended September 30, 2024, CECO Environmental's Engineered Systems segment reported net sales of $278.0 million, an increase of $10.5 million compared to the same period in 2023. The Industrial Process Solutions segment generated net sales of $121.3 million, down from $123.6 million in 2023.
Order Bookings
For the nine months ended September 30, 2024, total orders booked amounted to $448.3 million, a decrease of 1% from $454.4 million in the same period last year. Notably, $25.6 million of this total is attributable to acquisitions made in the preceding twelve months.
| Orders Booked | 9-Months Ended September 30, 2024 | 9-Months Ended September 30, 2023 | Change |
|---|---|---|---|
| Total Orders Booked | $448.3 million | $454.4 million | -1% |
| Engineered Systems Segment | $322.8 million | $309.4 million | +4.7% |
| Industrial Process Solutions Segment | $125.6 million | $145.0 million | -13.4% |
Balance Sheet Highlights
As of September 30, 2024, CECO Environmental had working capital of $63.1 million, down from $78.3 million at the end of 2023. The current ratio was 1.30:1, compared to 1.39:1 at the end of the prior year.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Working Capital | $63.1 million | $78.3 million |
| Current Ratio | 1.30:1 | 1.39:1 |
| Cash and Cash Equivalents | $38.7 million | $54.8 million |
| Total Debt | $133.4 million | $137.3 million |
Market Position and Future Outlook
CECO Environmental continues to position itself as a leader in the environmental solutions industry, focusing on innovation and sustainability to drive growth. The company's strategy emphasizes expanding its service offerings to meet evolving regulatory requirements and customer needs.
How CECO Environmental Corp. (CECE) Works
Business Overview
CECO Environmental Corp. operates primarily in two segments: Engineered Systems and Industrial Process Solutions. These segments cater to various industries, including power generation, hydrocarbon processing, water and wastewater treatment, and air pollution control. The company focuses on providing advanced environmental technologies and solutions that help clients manage emissions and ensure compliance with environmental regulations.
Financial Performance
As of the third quarter of 2024, CECO Environmental reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales (in thousands) | $135,513 | $149,390 | $399,367 | $391,134 |
| Gross Profit (in thousands) | $45,266 | $43,121 | $139,446 | $117,831 |
| Operating Income (in thousands) | $7,187 | $7,853 | $24,129 | $21,917 |
| Net Income (in thousands) | $2,086 | $3,330 | $8,079 | $9,032 |
| Earnings per Share (Basic) | $0.06 | $0.10 | $0.23 | $0.26 |
| Orders Booked (in thousands) | $162,300 | $145,500 | $448,300 | $454,400 |
Segment Performance
The financial performance of CECO's segments for the nine months ended September 30, 2024, is outlined below:
| Segment | Net Sales (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Engineered Systems | $278,018 | $51,444 |
| Industrial Process Solutions | $121,349 | $20,834 |
Operational Metrics
As of September 30, 2024, CECO reported the following operational metrics:
| Operational Metric | Value |
|---|---|
| Backlog (in thousands) | $437,500 |
| Cash Provided by Operating Activities (9M 2024, in thousands) | $23,000 |
| Cash Used in Investing Activities (9M 2024, in thousands) | $26,191 |
| Cash Used in Financing Activities (9M 2024, in thousands) | $14,518 |
Acquisitions and Growth Strategy
CECO has focused on strategic acquisitions to enhance its capabilities and market reach. Notable acquisitions include:
- Kemco Systems Co., LLC for $24.0 million
- Transcend Solutions, LLC for $22.4 million
- EnviroCare International for an undisclosed amount, with goodwill recognized of $7.6 million
Debt and Financial Obligations
As of September 30, 2024, CECO's debt-related metrics include:
| Debt Metric | Value (in thousands) |
|---|---|
| Interest Expense (9M 2024) | $9,315 |
| Bank Guarantees Outstanding | $46,300 |
| Weighted Average Shares Outstanding | 36,489,000 |
Conclusion on Operational Efficiency
CECO's operational efficiency is reflected in its gross profit margins, which improved to 34.9% for the nine months ended September 30, 2024, compared to 30.1% in the prior year. The company continues to leverage its technological capabilities and strategic acquisitions to drive growth and enhance shareholder value. The company's proactive approach to managing costs and increasing operational efficiencies positions it well to navigate the competitive landscape.
How CECO Environmental Corp. (CECE) Makes Money
Revenue Streams
CECO Environmental Corp. generates revenue through two primary segments: Engineered Systems and Industrial Process Solutions. The Engineered Systems segment focuses on environmental solutions for various industries, while the Industrial Process Solutions segment caters to air pollution control and process filtration needs across a broad industrial sector.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Net Sales (9M 2024) | Net Sales (9M 2023) | Growth Rate (9M 2024 vs. 2023) |
|---|---|---|---|---|---|
| Engineered Systems | $91.3 million | $105.5 million | $278.0 million | $267.5 million | 3.1% |
| Industrial Process Solutions | $44.2 million | $43.9 million | $121.3 million | $123.6 million | -1.9% |
| Total | $135.5 million | $149.4 million | $399.4 million | $391.1 million | 2.1% |
Operating Income
Operating income for the three months ended September 30, 2024, was reported at $7.2 million, compared to $7.9 million in the same period of 2023. For the nine months ended September 30, 2024, operating income increased to $24.1 million from $21.9 million in 2023. The increase in operating income is primarily attributable to higher net sales, despite an increase in selling and administrative expenses.
| Period | Operating Income (2024) | Operating Income (2023) |
|---|---|---|
| Q3 | $7.2 million | $7.9 million |
| 9M | $24.1 million | $21.9 million |
Gross Profit Margins
The gross profit for the nine months ended September 30, 2024, was $139.5 million, reflecting a gross profit margin of 34.9%, up from 30.1% in the same period of 2023. The increase in gross profit is attributed to the sales mix and project execution improvements.
| Period | Gross Profit (2024) | Gross Profit (2023) | Gross Profit Margin (2024) | Gross Profit Margin (2023) |
|---|---|---|---|---|
| 9M | $139.5 million | $117.8 million | 34.9% | 30.1% |
Sales and Administrative Expenses
Selling and administrative expenses for the three months ended September 30, 2024, were $34.3 million, compared to $30.3 million in the same quarter of 2023. For the nine months, these expenses increased to $105.7 million from $86.1 million in 2023, primarily due to merit increases and investments in operational support.
| Period | Selling & Administrative Expenses (2024) | Selling & Administrative Expenses (2023) |
|---|---|---|
| Q3 | $34.3 million | $30.3 million |
| 9M | $105.7 million | $86.1 million |
Net Income and Earnings Per Share
Net income attributable to CECO Environmental Corp. for the three months ended September 30, 2024, was $2.1 million, down from $3.4 million in the same quarter of 2023. For the nine months, net income was $8.1 million compared to $9.0 million in the previous year. The earnings per share for Q3 2024 were $0.08, down from $0.12 in Q3 2023.
| Period | Net Income (2024) | Net Income (2023) | Earnings Per Share (2024) | Earnings Per Share (2023) |
|---|---|---|---|---|
| Q3 | $2.1 million | $3.4 million | $0.08 | $0.12 |
| 9M | $8.1 million | $9.0 million | $0.28 | $0.34 |
Backlog and Future Orders
As of September 30, 2024, CECO Environmental Corp. reported a backlog of $437.5 million, up from $370.9 million at the end of 2023. This backlog indicates strong future revenue potential, with substantial portions expected to be fulfilled within the next 12 to 18 months.
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Backlog | $437.5 million | $370.9 million |
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Article updated on 8 Nov 2024
Resources:
- CECO Environmental Corp. (CECE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CECO Environmental Corp. (CECE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CECO Environmental Corp. (CECE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.