Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Industrial & Environmental Services Stocks Q4 Earnings: CECO Environmental (NASDAQ:CECO) Best of the Bunch

In This Article:

CECO Cover Image
Industrial & Environmental Services Stocks Q4 Earnings: CECO Environmental (NASDAQ:CECO) Best of the Bunch

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial & environmental services industry, including CECO Environmental (NASDAQ:CECO) and its peers.

Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.

The 8 industrial & environmental services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.2% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results.

Best Q4: CECO Environmental (NASDAQ:CECO)

With roots dating back to 1869 and a focus on creating cleaner industrial processes, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps companies improve air quality, optimize water treatment, and increase energy efficiency across industrial applications.

CECO Environmental reported revenues of $158.6 million, up 3.2% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.

Todd Gleason, CECO's Chief Executive Officer commented, “While we acknowledge mixed results in 2024 driven by customer project and market related order delays, we are energized by our fourth quarter record orders bookings of $219 million, which provides incredible momentum moving into 2025. The steady progress we continue to make on expanding margins and upgrading our portfolio through organic and inorganic investments will help us maximize the tremendous opportunities that exist in key growth markets we serve such as power generation, reshoring of industrial manufacturing, global infrastructure and data center expansion.”

CECO Environmental Total Revenue
CECO Environmental Total Revenue

CECO Environmental pulled off the highest full-year guidance raise of the whole group. The stock is up 3.2% since reporting and currently trades at $23.40.