What Happened?
Shares of environmental solutions provider CECO Environmental (NASDAQ: CECO) jumped 14.2% in the morning session after it reported strong second-quarter results that beat analyst expectations and raising its full-year guidance. The environmental solutions provider posted adjusted earnings per share of $0.24, which significantly surpassed Wall Street estimates. Revenue for the quarter also impressed, coming in at $185.4 million, a 35% increase from the prior year and ahead of consensus forecasts. The strong performance was driven by a massive 95% year-over-year surge in new orders, which pushed the company's backlog to a record high of $688.1 million. In light of these powerful results, CECO raised its full-year revenue outlook to a range of $725 million to $775 million.
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What Is The Market Telling Us
CECO Environmental’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for CECO Environmental and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 18.3% on the news that the company reported strong first quarter 2025 results: its revenue surged past Wall Street's expectations, and adjusted EPS outpaced forecasts. The real story this quarter was a 40% jump in sales, fueled by record-breaking orders and a backlog that climbed 55%. Full-year guidance remained intact, with CECO expecting roughly 30% revenue growth and a 50% jump in adjusted EBITDA, showing confidence in its ability to execute despite macro uncertainties. Zooming out, we think this was a solid quarter.
CECO Environmental is up 28.9% since the beginning of the year, and at $40.48 per share, has set a new 52-week high. Investors who bought $1,000 worth of CECO Environmental’s shares 5 years ago would now be looking at an investment worth $5,749.
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