CECO Environmental Corp. (Nasdaq: CECO) ("CECO" or the
“Company”), a leading environmentally focused, diversified
industrial company whose solutions protect people, the environment,
and industrial equipment, today announced preliminary financial
results for the fourth quarter and full year 2024 and provided an
update on further portfolio transformation. The Company also
affirmed its previously announced full year 2025 outlook.
Fourth Quarter and Full Year Preliminary
Results
For the full year ended 2024, the Company
expects to report revenues in the range of $555 to $558 million,
when compared to the previous guidance of $575 to $600 million, and
Adjusted EBITDA between $62 to $63 million, when compared to the
previous guidance of $65 to $70 million. Fourth quarter and full
year revenue and Adjusted EBITDA softness were driven primarily
from continued impacts related to delays of customer-driven
projects. Orders for the fourth quarter 2024 are expected to be at
or above $210 million, which sets a new Company record for bookings
and backlog levels.
“Missing our 2024 outlook is disappointing –
especially given the tremendous orders growth we achieved in the
second half of the year,” said Todd Gleason, CECO’s Chief Executive
Officer. “The multi-quarter, customer-driven, project delays did
abate late in the year, but not in enough time for our teams to
recognize the expected revenue levels from key projects. The
revenues from these projects and the associated income will roll
into 2025, which, along with our record orders achieved in 2024,
adds even more conviction to our 2025 full year outlook. We remain
very pleased with our margin expansion progress and our tremendous
sales pipeline in energy transition and general industrial markets.
We look forward to providing more detail on our 2024 performance
and 2025 outlook when we release our full earnings report next
month.”
The Company’s preliminary fourth quarter and
full year 2024 financial results included in this press release are
preliminary, unaudited and subject to completion, reflect
management’s current views, and may change as a result of
management’s continued review and the completion of audit
procedures.
Portfolio & Transaction
Update
In late December 2024, the Company completed its
acquisition of Verantis Environmental Solutions Group (“Verantis”).
Verantis is a global leader in engineering services and
environmental systems that focuses on process improvement in a wide
range of general industrial and high technology processes,
primarily for the industrial air market. Verantis had annualized
sales of approximately $45 million and operating margins which are
expected to be accretive to the Company.
Additionally, the Company is announcing its
intent to divest its Fluid Handling business which the sale is
expected to be completed late in the first quarter of 2025. The
proceeds from this divestiture will be used to pay down debt and
position the balance sheet for future strategic growth
investments.
Lastly, as previously reported, the Company’s
acquisition of Profire Energy closed on January 3, 2025.
“I am very pleased with the fast start
associated with the Profire integration and how many market
opportunities we continue to add to our list of growth initiatives.
We are also excited to welcome the Verantis team to CECO as we
advance our strategic portfolio of leading environmental solution
businesses to help our customers to reduce environmental footprint
while improving profitability,” said Todd Gleason, CECO’s Chief
Executive Officer. “The announced process to divest our Fluid
Handling business has yielded strong interest among well-positioned
leaders in the market, and we expect to complete the divestiture in
late Q1. While our Fluid Handling business is very well positioned
in its markets, we are laser focused on businesses that more
closely align with our strategic investments and leadership
positions in Air, Water and Energy Transition.”
2025 Full Year Guidance Remains
Unchanged
The Company maintains its previously announced
full year 2025 outlook which includes expected Revenue of $700 to
$750 million, up approximately 30 percent at the midpoint year over
year, and Adjusted EBITDA of $90 to $100 million, up approximately
50 percent at the midpoint versus 2024. The Company also affirms
its full year 2025 outlook that free cash flow is expected to be
between 50 and 70 percent of Adjusted EBITDA. The full year
guidance incorporates the net impact of completed acquisitions, the
expected Q1 sale of the Company’s Fluid Handling business, and the
revenue and income that rolls into 2025 associated with the 2024
customer-driven project delays.
“We believe that we are very well-positioned as
we enter 2025. Our key growth markets in general industrial, energy
transition and power generation, are producing record bookings and
our sales pipeline has never looked better. Our programmatic
M&A program added tremendous businesses to our mix in the
second half of 2024 and early 2025, and we expect each of these
acquisitions will deliver solid growth and accretive margins to the
Company. I am excited for the short- and long-term future of CECO
as we expect to deliver high performance and sustainable value
creation,” concluded Gleason.
ABOUT CECO ENVIRONMENTALCECO
Environmental is a leading environmentally focused, diversified
industrial company, serving a broad landscape of industrial air,
industrial water, and energy transition markets globally through
its key business segments: Engineered Systems and Industrial
Process Solutions. Providing innovative technology and application
expertise, CECO helps companies grow their business with safe,
clean, and more efficient solutions that help protect people, the
environment and industrial equipment. In regions around the world,
CECO works to improve air quality, optimize the energy value chain,
and provide custom solutions for applications in power generation,
petrochemical processing, refining, midstream gas transport and
treatment, electric vehicle and battery production, metals and
mineral processing, polysilicon production, battery recycling,
beverage can production, and produced and oily water/wastewater
treatment along with a wide range of other industrial applications.
CECO is listed on Nasdaq under the ticker symbol "CECO."
Incorporated in 1966, CECO’s global headquarters is in Addison,
Texas. For more information, please visit www.cecoenviro.com.
CECO Company Contact:Peter
JohanssonChief Financial and Strategy
Officer888-990-6670 Investor
Relations Contact:Steven Hooser, Three Part
Advisors214-872-2710Investor.Relations@OneCECO.com
NOTE REGARDING NON-GAAP FINANCIAL
MEASURES
CECO is providing certain non-GAAP historical
financial measures as presented above as we believe that these
figures are helpful in allowing individuals to better assess the
ongoing nature of CECO’s core operations. A "non-GAAP financial
measure" is a numerical measure of a company's historical financial
performance that excludes amounts that are included in the most
directly comparable measure calculated and presented in accordance
with GAAP.
Adjusted EBITDA, as presented in the financial
data included in this press release, has been adjusted to exclude
the effects of amortization expenses for acquisition-related
intangible assets, contingent retention and earnout expenses,
restructuring expenses primarily relating to severance and legal
expenses, acquisition and integration expenses which include
retention, legal, accounting, banking, and other expenses, foreign
currency remeasurement and other nonrecurring or infrequent items
and the associated tax benefit of these items. Management believes
that these items are not necessarily indicative of the Company’s
ongoing operations and their exclusion provides individuals with
additional information to better compare the Company's results over
multiple periods. Management utilizes this information to evaluate
its ongoing financial performance. Our financial statements may
continue to be affected by items similar to those excluded in the
non-GAAP adjustments described above, and exclusion of these items
from our non-GAAP financial measures should not be construed as an
inference that all such costs are unusual or infrequent.
Adjusted EBITDA is not calculated in accordance
with GAAP, and should be considered supplemental to, and not as a
substitute for, or superior to, financial measures calculated in
accordance with GAAP. Non-GAAP financial measures have limitations
in that they do not reflect all of the costs associated with the
operations of our business as determined in accordance with GAAP.
As a result, you should not consider these measures in isolation or
as a substitute for analysis of CECO’s results as reported under
GAAP. Additionally, CECO cautions investors that non-GAAP financial
measures used by the Company may not be comparable to similarly
titled measures of other companies. Non-GAAP measures
presented on a forward-looking basis were not reconciled to the
comparable GAAP financial measures because the reconciliation could
not be performed without unreasonable efforts. The GAAP measures
are not accessible on a forward-looking basis because we are
currently unable to predict with a reasonable degree of certainty
the type and extent of certain items that would be expected to
impact GAAP measures for these periods but would not impact the
non-GAAP measures. Such items may include amortization expenses for
acquisition-related intangible assets, contingent retention and
earnout expenses, restructuring expenses primarily relating to
severance and legal expenses, acquisition and integration expenses
which include retention, legal, accounting, banking, and other
expenses, foreign currency remeasurement and other nonrecurring or
infrequent items and the associated tax benefit of these items. The
unavailable information could have a significant impact on our GAAP
financial results.
SAFE HARBOR STATEMENT
Any statements contained in this Press Release,
other than statements of historical fact, including statements
about management's beliefs and expectations, are forward-looking
statements and should be evaluated as such. These statements are
made on the basis of management's views and assumptions regarding
future events and business performance. We use words such as
"believe," "expect," "anticipate," "intends," "estimate,"
"forecast," "project," "will," "plan," “feel,” "should" and similar
expressions to identify forward-looking statements. Forward-looking
statements involve risks and uncertainties that may cause actual
results to differ materially from any future results, performance
or achievements expressed or implied by such statements. Potential
risks and uncertainties that could cause actual results to differ
materially include risks regarding our ability to consummate the
planned divestiture of our Fluid Handling business, the effect of
recently announced acquisitions and planned divestiture of our
Fluid Handling Business (together, the “transactions”) on business
relationships, operating results, and business generally,
disruption of current plans and operations and potential
difficulties in employee retention as a result of the transactions,
diversion of management’s attention from ongoing business
operations in connection with the integration of recent
acquisitions, the outcome of any legal proceedings that have been
or may in the future be instituted related to the Profire Energy
transaction or other transactions, the amount of the costs, fees,
expenses and other charges related to the transactions, the
achievement of the anticipated benefits of transactions, the
ability of Profire Energy to achieve its earnings guidance, our
ability to successfully integrate acquired businesses and realize
the synergies from acquisitions, as well as a number of factors
related to our business, including the sensitivity of our business
to economic and financial market conditions generally and economic
conditions in our service areas; dependence on fixed price
contracts and the risks associated therewith, including actual
costs exceeding estimates and method of accounting for revenue; the
effect of growth on our infrastructure, resources, and existing
sales; the ability to expand operations in both new and existing
markets; the potential for contract delay or cancellation as a
result of on-going or worsening supply chain challenges, or other
customer-driven project delays relating to supply chain challenges
or other customer considerations; liabilities arising from faulty
services or products that could result in significant professional
or product liability, warranty, or other claims; changes in or
developments with respect to any litigation or investigation;
failure to meet timely completion or performance standards that
could result in higher cost and reduced profits or, in some cases,
losses on projects; the potential for fluctuations in prices for
manufactured components and raw materials, including as a result of
tariffs and surcharges, and rising energy costs; inflationary
pressures relating to rising raw material costs and the cost of
labor; the substantial amount of debt incurred in connection with
our strategic transactions and our ability to repay or refinance it
or incur additional debt in the future; the impact of federal,
state or local government regulations; our ability to repurchase
shares of our common stock and the amounts and timing of
repurchases, if any; our ability to successfully realize the
expected benefits of our restructuring program; our ability to
successfully integrate acquired businesses and realize the
synergies from strategic transactions; the unpredictability and
severity of catastrophic events, including cyber security threats,
acts of terrorism or outbreak of war or hostilities or public
health crises, as well as management's response to any of the
aforementioned factors; and our ability to remediate our material
weakness, or any other material weakness that we may identify in
the future that could result in material misstatements in our
financial statements. Additional risks and uncertainties are
discussed under "Part I – Item 1A. Risk Factors" of CECO's Annual
Report on Form 10-K for the fiscal year ended December 31,
2023 and may be included in subsequently filed Quarterly Reports on
Form 10-Q. Many of these risks are beyond management's ability
to control or predict. Should one or more of these risks or
uncertainties materialize, or should the assumptions prove
incorrect, actual results may vary in material aspects from those
currently anticipated. Investors are cautioned not to place undue
reliance on such forward-looking statements as they speak only to
our views as of the date the statement is made. Except as required
under the federal securities laws or the rules and regulations of
the Securities and Exchange Commission, we undertake no obligation
to update or review any forward-looking statements, whether as a
result of new information, future events or otherwise.
CECO Environmental (NASDAQ:CECO)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
CECO Environmental (NASDAQ:CECO)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025