Raises Full Year 2026 Orders Outlook to Exceed $1.5 Billion
Thermon Transaction Remains on Track to Close in Mid-2026
CECO Environmental Corp., a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, announced today it expects full year 2026 orders to be greater than $1.5 billion – not inclusive of the previously announced Thermon transaction, which is expected to close in mid-2026 subject to satisfaction of the applicable conditions to closing. The Company’s full year orders outlook represents a greater than 1.5 book-to-bill ratio, up approximately 50 percent when compared to 2025.
Todd Gleason, CECO’s Chief Executive Officer commented, “Today’s announcement further emphasizes our long-term sustainable growth model, which is a direct result of our strategic investments to position CECO as a leader in high-growth, global, industrial markets. The visibility and confidence we have in our sales pipeline – which now exceeds $6.5 billion – to yield over $1.5 billion in new orders this year, solidifies our ability to maintain strong, double-digit organic growth for the foreseeable future.”
“We will be participating in several upcoming investor conferences and plan to discuss our expectation to generate record orders while we continue to grow our pipeline. Currently, our largest opportunities remain in the natural gas power generation markets, as well as industrial water and industrial reshoring programs. In fact, we expect in the upcoming weeks, to receive our largest-ever order to supply comprehensive, gas turbine exhaust inlet air conditioning and emissions management solutions, designed to deliver ultra-low NOx and VOC emissions, and acoustic and thermal compliance. We understand there is additional economic uncertainty at the moment, but our sales pipeline remains very active, and our key markets are in growth mode,” Gleason added.
Thermon Transaction
The Company previously announced the acquisition of Thermon at a fixed rate of $10 per Thermon share and 0.6840 of a CECO share. The cash portion is limited to a maximum payout of approximately $330 million – which will be funded through the Company’s current credit facility. The Company expects to deliver at least $40 million of run-rate cost synergies by year three. Commercial synergy discussions are underway, and each company is identifying compelling near-term opportunities in energy markets, general industrial, infrastructure and international market expansion. The transaction is dependent upon securing approval from each company’s shareholders and customary regulatory approvals and is expected to close in mid-2026.
“We have been busy meeting with the talented Thermon organization to advance our appreciation for their operating model. We are developing a detailed integration program to ensure a smooth process and maximize cost and commercial synergies. Each company is focused on delivering tremendous value for our customers while driving financial results that meet or exceed our external commitments. When combined, the new CECO Environmental will have an even larger sales pipeline with broader industrial niche market leadership capabilities. And financially, we expect the combined organization to have strong double-digit topline growth and adjusted EBITDA margins of approximately 20 percent – which speaks to our high-performance focus,” Gleason concluded.
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