CECO Raises Order Forecast to $1.5B+, Signals Major Growth Phase

ADDISON, Texas – March 12, 2026 – CECO Environmental Corp. has signaled a period of aggressive growth and strategic expansion, announcing it now expects full-year 2026 orders to surpass $1.5 billion. This updated outlook, which excludes the pending acquisition of Thermon, represents a significant vote of confidence in the company's market position and its burgeoning sales pipeline, which now exceeds $6.5 billion.

The revised forecast points to a book-to-bill ratio greater than 1.5, a key metric indicating that orders are flowing in much faster than revenue is being recognized. This represents an approximate 50% increase over 2025 levels and builds on a year of record-breaking performance. In 2025, CECO achieved approximately $1.1 billion in orders, marking a 59% year-over-year increase, and ended the year with a backlog of $793.1 million.

“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,” said Todd Gleason, CECO’s Chief Executive Officer. “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.”

A Foundation Built on Global Megatrends

CECO’s confidence is anchored in its strategic alignment with powerful global trends, particularly in natural gas power generation, industrial water treatment, and the reshoring of manufacturing. The company is poised to capitalize on the sustained demand for natural gas, which is forecast to grow globally by 9% by 2030, driven by the expansion of LNG capacity and the rising energy needs of data centers. The natural gas power generation market itself is projected to grow to nearly $148 billion by 2034.

In his comments, Gleason highlighted these key areas, noting the company is preparing for what could be its largest-ever order in the coming weeks. The anticipated contract is for a comprehensive gas turbine solution designed to deliver ultra-low emissions and full environmental compliance.

“Currently, our largest opportunities remain in the natural gas power generation markets, as well as industrial water and industrial reshoring programs,” Gleason added. This focus taps directly into a global industrial water market expected to reach $84.6 billion by 2036, fueled by stricter environmental regulations and growing water scarcity. Similarly, the trend of companies moving manufacturing operations back to domestic markets creates new demand for the efficient and clean industrial solutions that form the core of CECO's business.

The Thermon Transaction: A Strategic Power-Up

Concurrent with its bullish organic growth forecast, CECO confirmed that its transformative acquisition of Thermon remains on track for a mid-2026 closing, pending shareholder and regulatory approvals. The acquisition is set to create a diversified industrial powerhouse with a total addressable market of approximately $30 billion.

The deal's structure will see Thermon shareholders receive $10 in cash and 0.6840 of a CECO share for each Thermon share they hold. The cash portion is capped at approximately $330 million.

More importantly, the strategic fit is expected to unlock significant value. CECO is projecting at least $40 million in run-rate cost synergies by the third year after closing. The integration of Thermon, a leader in industrial process heating, is designed to broaden CECO’s market leadership and create compelling commercial synergies in energy, infrastructure, and international markets.

“When combined, the new CECO Environmental will have an even larger sales pipeline with broader industrial niche market leadership capabilities,” Gleason stated. He outlined an ambitious financial vision for the merged entity, with expectations for strong double-digit topline growth and adjusted EBITDA margins of approximately 20 percent.

An Investor’s Perspective on Performance

CECO’s announcements come on the heels of a robust financial performance in 2025, which saw revenue climb 39% to $774.4 million and adjusted EBITDA grow 44% to over $90 million. The fourth quarter was particularly strong, with record orders exceeding $300 million, boosted by a $135 million contract for a domestic gas-fired power generation project.

This momentum has captured the attention of market analysts, who have largely issued positive ratings, including several “Strong Buy” recommendations, with price targets ranging from $68 to $90. The market appears to be pricing in substantial future success, reflecting confidence in management's ability to execute both its organic growth strategy and the complex integration of Thermon.

The company’s ability to successfully merge the two organizations, realize the projected $40 million in synergies, and convert its massive order pipeline into profitable revenue will be critical in the coming years. As CECO moves to finalize the acquisition and deliver on its record-breaking order book, all eyes will be on its execution as it aims to solidify its position as a dominant force in the environmental industrial solutions sector.