CECO Environmental (CECO) Stock Surges on Record Bookings, Strategic Acquisitions

CECO Environmental Corp. (Nasdaq: CECO) shares have surged today, driven by record bookings in the fourth quarter and strategic acquisitions that have bolstered the company's growth prospects. The company reported financial results for the fourth quarter and full year of 2024, highlighting several key achievements.

In the fourth quarter, CECO achieved record bookings of $219 million, which elevated the year-end backlog to a record $541 million. This strong performance was driven by robust demand in key growth markets such as power generation, reshoring of industrial manufacturing, global infrastructure, and data center expansion. The company's strategic acquisitions, including Verantis Environmental Solutions Group and the planned divestment of the Fluid Handling Business, have further enhanced CECO's business mix, margins, and growth prospects.

CECO's Chief Executive Officer, Todd Gleason, commented on the company's performance, stating, "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."

The company's strategic M&A transactions and organic investments have enabled CECO to capitalize on opportunities in key growth markets, driving robust organic growth and further operating margin expansion. CECO's acquisitions have added important new growth markets, technologies, and service capabilities, further advancing the company's niche, industrial leadership positions and improving its overall business mix while enhancing its margin profile.

CECO's record backlog and strong bookings in early 2025, driven by power generation, data center, general industrial, and natural gas infrastructure markets, further demonstrate the effectiveness of the company's strategic approach. The company's early 2025 working capital performance, specifically receivables, has been very strong, as CECO has collected significant cash payments that pushed out of 2024 by just a few weeks.