CECO Environmental Q3 2026: Thermon Fuels a 205% Backlog Surge

CECO Environmental reported adjusted earnings per share of $0.60 in its third quarter of 2026, edging past the consensus estimate of $0.59, while revenue of $404.4 million topped expectations of $399.6 million. Both lines beat by roughly 1.2%, a modest headline surprise that understates the structural shift the company has undergone since closing its Thermon acquisition on June 1, 2026.

Revenue more than doubled year over year, rising 104.7%, almost entirely because Thermon's results are now fully consolidated. That same transaction dragged on GAAP results through purchase-accounting inventory charges, integration costs, and elevated amortization, producing a GAAP net loss for the quarter. On an adjusted basis, EBITDA reached $70.1 million and free cash flow helped pull leverage down.

The more consequential news came in the guidance update. CECO raised its 2026 order outlook to above $2.5 billion, up from at least $2.0 billion previously, and introduced 2027 revenue guidance of $2.1 billion to $2.3 billion alongside Adjusted EBITDA of $475 million to $525 million. Those 2027 figures represent more than 60% revenue growth and more than 130% EBITDA growth at the respective midpoints compared to 2026 guidance ranges. CEO Todd Gleason said integration of Thermon is running ahead of schedule on both cost and revenue synergies.

Backlog stands at $2.19 billion, up 205% from the prior year, and quarterly orders of $777.6 million were up 234%. Gleason emphasized that the vast majority of the backlog is permitted and already underway, and that the company's sales pipeline has grown to approximately $9 billion. He also stressed that demand for environmental, industrial, and thermal solutions is equally robust to power-market orders and represents funded, active projects.

Investors should keep in mind that Thermon integration risk, acquisition-related debt, fixed-price contract exposure, and preliminary purchase-accounting adjustments remain live variables. CECO also flagged a primary listing transfer to the Texas Stock Exchange as a near-term source of trading volatility. Adjusted EPS has accelerated to $0.60, and the trajectory heading into 2027 is what the market will be pricing.