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August 26, 2025 2025 MIDWEST IDEAS CONFERENCE Marcio Pinto, VP Financial Planning and Investor Relations
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Forward-looking statements and Non-GAAP information 2 This presentation contains forward-looking statements with predictions, projections and other statements about future events. 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,” “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, among others, that could cause actual results to differ materially are discussed under “Part I – Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may be included in subsequently filed Quarterly Reports on Form 10-Q, and include, but are not limited to: 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; 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 identify and integrate acquired businesses and realize the synergies from strategic transactions; and 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. 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. While we report our results in accordance with generally accepted accounting principles in the U.S. (GAAP), comments made during this conference call and these materials may include the following "non-GAAP" financial measures: organic revenue, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, adjusted EBITDA, adjusted free cash flow, adjusted net free cash flow, non-GAAP gross profit margin, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA margin and selected measures expressed on a constant currency basis. These measures are included to provide additional useful information regarding our financial results and are not a substitute for their comparable GAAP measures. Management believes that these measures provide individuals with additional information to better compare the Company's results over multiple periods. Explanations of these non-GAAP measures and reconciliations of these non- GAAP measures to their directly comparable GAAP measures, to the extent the reconciliation be performed without unreasonable efforts, are included in the accompanying "Appendix." Descriptions of many of these non-GAAP measures are also included in our SEC reports.
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CECO Environmental ... Mission Critical Solutions … 3 We Protect The Environment We minimize our environmental impact and help our global customers do the same We Protect People Solving customer challenges to ensure their employees work in a safe and productive work environment We Protect Industrial Equipment and Improve Processes We help maximize our customer’s investment in their operating systems and optimize their output
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About CECO 4
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Delivering Sustainable, Shareholder Value1 5 CECO Up Approx. 600%* Russell 2000 Up 4%* S&P 500 Up 36%* *2025 as of Aug 13th End of Day 1 Since 12/31/2021 2021 2022 2023 2024 2025 $20.28 $6.23 $11.68 $30.23 $46.05* Market Cap: $225M $420M $730M $1.1B $1.7B Y/E Stock Price:
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6 CECO Environmental Building The Leading, Global, Sustainable Industrial Environmental Solutions Company Leading Businesses • Balanced, Niche Leadership Positions o Industrial Air o Industrial Water (new since 2020) o Energy Transition • Global: ~ 50% of Orders Outside U.S. • Strong Organic Growth o Averaged 10%+ Organic Since 2021 o Record Backlog Positions Us for Future Sustainable Value Creation • Focused Capital Allocation Model o Invest in Organic Growth / Expansion o Programmatic M&A o Debt/Balance Sheet Management o Stock Buybacks • Proven M&A Track Record o ~ 50% of Acquisitions Doubled Sales within 24 months of Deal • Management Aligned w/ Shareholders o Strategy deployment o Compensation Programmatic M&A ~ Dozen Strategic Deals Since mid-2020
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7 Sales, Engineering & Admin Manufacturing & Assembly ❑ ~1,600 Employees worldwide Global HQ: Dallas, TX ❑ ~40% Sales Outside of US CECO Environmental ... Global Company To Serve Global Opportunities
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Building Our Sales / Growth Pipeline* Continues to Be Sustainable Growth Predictor 8 Power – Energy Industrial Water Industrial Air Market Drivers: Power Demand, Electrification, Computing / AI, LNG, Nuclear, Geothermal Key Technology: SCR/SNCR/VOC Emissions Treatment, Thermal & Acoustic Mgt., Gas & Liquid Separation & Filtration, Combustion and Burner Mgmt, Market Drivers: Industrial Water & Wastewater Infrastructure, Water Reuse and Recycle, Desalination Key Technology: Dissolved Air Flotation, Oily Water Separations, Ion Exchange, Membrane Water Treatment, Process Water Supply Market Drivers: Industrial Reshoring, Energy Storage, Semiconductors, Electronics, Metals Processing, Construction Materials Production Key Technology: Silencers, Scrubbers, VOC Removal, Thermal Abatement, CatOx, Air Flow Mgmt, Odor Control CECO is Well Positioned on Key Secular Trends in Power, Water and Air *Pipeline is defined as Total Active Order Pursuits for Next ~ 18 Months Building Our Sales / Growth Pipeline* Continues to Be Sustainable Growth Predictor 6*Pipeline is defined as Total Active Order Pursuits for Next ~ 18 Months * 2015 2020 2015 – 2020 … Limited Growth $1.0B $1.1B Steady Pipeline Size … But Didn’t Expand 2015 Revenue Sales Pipeline $367M 2020 Orders $280M No Topline Growth Over 5 Year Period 2021 2025E 2021 – 2025E … High-Growth $1.5B $5.5B+ Up 250% and Growing! 2021 Revenue Sales Pipeline $324M 2025E Revenue ~ $750M High-Performance Topline Growth 2015 2020 2021 2025E $358M 2015 Orders 2020 Revenue $316M 2021 Orders $361M 2025E Orders ~ $900M+ +26% CAGR +23% CAGR +38% CAGR
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CECO Environmental ... Delivering Strong Results While Transforming …. 9 $361 $527 $583 $667 B2B >1.0 2021 2022 2023 2024 2025 Orders $324 $423 $545 $558 2021 2022 2023 2024 2025 $26 $42 $58 $63 2021 2022 2023 2024 2025 $725 – $775 Revenue Adj. EBITDA YE ‘24 Backlog > $540M Backlog 3-year CAGR +36% B-2-B Consistently > 1.0x More Short-Cycle Business Mix Global Diversity Adds Balance Revenue at Higher Gross Margins ($MM) Margin Expansion 300+ bps More Productivity in 2024 and Growing Investments in Talent + Process + Footprint $90 – $100 3-Year CAGR +23% 3-Year CAGR +20% 3-Year CAGR +34% CECO Share Price up ~ 450% Since Mid-2020
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FY’2025 Guidance April ’25 FY View Orders/B-2-B (book to bill) Revenue Adj EBITDA Adj. Free Cash Flow* % of Adj. EBITDA ($MM) Current Outlook Assumptions Orders • Raising B2B Outlook • ~ $0.5B bookings in 1H with record pipeline Revenue • Raising ~ $25M given expected 2H conversion • Up ~35% YoY … with 20% Organic Growth Adjusted EBITDA • Maintaining Range … Up ~ 50% YoY – Benefits from higher revenue outlook – Continuing investments to support growth • Uncertainty: 2H’25 Inflation Adj. Free Cash Flow • 2H FCF profile improves over 1H *See definition in Appendix. 1.0 – 1.1X 700 – 750 90 – 100 > 60% > 1.2X 725 – 775 90 – 100 > 60% Margins: 12.5% - 13.0% Up YoY ~ +150bps 10
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Q2 Summary CECO Environmental Protecting People, the Environment and Industrial Equipment Demand Environment is Very Robust • Pipeline of $5.5B+ up ~ $1B YoY • Strong customer engagement • Limited impact from trade and geopolitical tensions Strong Q2 and 1H Performance • +76% Backlog, +95% Orders, +35% Revenue • +45% Adj EBITDA, > 36% Gross Profit Margin Updated Full Year Outlook • Orders B2B of > 1.2x even with record revenues • Revenue outlook increased $25M … +35% YoY • Adj. EBITDA expected up ~ 50% YoY … even with investments Portfolio Transformation • M&A integrations on track • Revenue and Cost synergies on track • Reloading the Pipeline 11
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Appendix Slides 12
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13 CECO Environmental ... 100% Providing Environmental Solutions for Industry 100% Industrial Diversified Industrials Energy Transition / Power o Gas-fired Power Generation o Datacenter Power Management o Natural Gas Infrastructure o Hydrocarbon Processing o Nuclear o Geothermal o Carbon Capture o Water Supply o General Industrial o EV & Battery Production o Beverage Can Production o Food & Beverage Production o Metals Processing o Water / Wastewater o Semiconductor o Renewables Technology 100% Environmental • Supply Water Treatment • Waste Water Treatment • Ultra - Pure Water Supply • Produced Water Treatment • Oily Water Separators • Reverse Osmosis • Emission Management • Thermal & Acoustics Management • Gas & Liquid Separation/Filtration • Cyclonic Separation • Combustion Mgmt • Carbon Capture • Thermal Abatement • Silencers • Wet/Dry Scrubbers • Oil Mist & Smoke Removal • Odor Management • Dust Removal • Air Flow Management ~25% ~ 35% ~ 40% Energy Transition Industrial Water Industrial Air End-Market Solutions
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14 Organic Growth Programs / Investments • Sales Team, Engineers and Project Managers • CapEx: Biz. Growth, ERP Migration, Cybersecurity M&A Transactions • Active Pipeline … Air / Water / Energy Transition • Targeting ROIC > 25% Debt Management • Maintain a Healthy Balance Sheet … Leverage ~2.0X • New Credit Facility Expands Capacity Stock Buybacks • $15M repurchased since 2021 (avg. price ~ $8.20) • $10M remaining on authorization Capital Allocation Strategy Investment Drivers CECO Environmental ... Focused Capital Deployment For Growth … Organic Growth & CapEx Up ~2X+ Since 2020 M&A Programs Remain Programmatic Stock Buybacks $15M Since 2021 Debt Management Maintaining Healthy Leverage
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1st Half 2025 Highlights Sales Pipeline Macro Environment 1H’25 Financials / Portfolio • Highest-Ever Sales Pipeline of opportunities, > $5.5-billion • Customer inquiries remain very active ... No impact from changing regulatory frameworks • Inquiry-to-Order cycle time has improved versus 2024 • Recent M&A expanding CECO pipeline in key verticals and geographies • Power Generation, Gas Infrastructure and Semiconductor markets remain incredibly robust • Very steady regional demand in US, Middle East, Asia and India • Despite ‘headline uncertainty’ from U.S. Policies … Limited impact to market momentum • Continue to expect modest inflation impact in 2H’25 • 1H Bookings ~ $502M up 76% YoY; Book-to-Bill ~ 1.4x • Q2 Power-Gen Related Orders helped deliver record bookings • Backlog ~ $688M up 76% YoY • 1H Revenue ~ $362M… up 37% YoY and higher than almost every full year revenues prior to 2022 • Recent M&A delivering on targets; M&A Pipeline = Attractive Tremendous 1st Half Results … Well Positioned for Strong 2nd Half 15
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Q2’25 and TTM Financial Performance Q2’25 YoY Q2 TTM YoY Backlog $688M 76% $688M 76% Orders Book to Bill $274M 1.48x 95% $883M 1.35x 58% Revenue $185M 35% $656M 16% Adj. EBITDA Margin % $23.3M 12.6% 45% +87bps $70.7M 10.8% 11% (45)bps Adj. EPS 0.24 0.04 0.75 (0.06) • Record Orders … up ~ $133M YoY and ~ $46M / 20% sequentially • 3rd consecutive quarter > $200M w/ largest order in history • Gross Margins ~36%, up 100 bps sequentially / 50 bps YoY on continued productivity, project execution and mix • Adj EBITDA margin up ~ 500 bps sequentially, driven by absence of time-specific Q1 items, execution and cost management • Adj EBITDA up 45% YoY and margins up ~ 90bps Highlights TTM = Trailing 12 Month • YoY: Up ~35% … double-digit growth in both organic and inorganic • Seq: Up ~ $8M / +5% despite divestiture of Global Pump Solutions • Expect continued healthy backlog conversion • Adj EPS up 20%, driven by volume and operational improvements, partially offset by higher interest expenses. • Record Backlog ... Strong bookings in PowerGen, Semicon, Water, and Nat Gas (LNG, Midstream) Strong Across the Board … Highlighted by Q2 Orders up 95% and TTM Orders up 58% 16
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Revenue Excluding Acquisitions NOTE: Amounts are computed independently each quarter. Accordingly, the sum of each quarter’s amounts may not equal the total amounts for the respective year. 17
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Non-GAAP Operating Income and Margin NOTE: Amounts are computed independently each quarter. Accordingly, the sum of each quarter’s amounts may not equal the total amounts for the respective year. 18
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Non-GAAP Net Income, Adjusted EBITDA, and Margin NOTE: Amounts are computed independently each quarter. Accordingly, the sum of each quarter’ s amounts may not equal the total amounts for the respective year. 19
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Adjusted Free Cash Flow NOTE: Amounts are computed independently each quarter. Accordingly, the sum of each quarter’s amounts may not equal the total amounts for the respective year. * Other Adjustment: excluding tax payments related to tax gain on the divestiture of GPS business in Q1 2025. Payments are expected to occur through Q1 2026. * 20
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Tariff Environment – Current State and Mitigation Actions Mexico / Canada China / Asia U.S. Capacity EU / ME / India ‒ Majority of supply is USMCA qualified or exempt ‒ Capacity to support additional demand ‒ Limited-to-No China exposure (importing to U.S.) ‒ Vietnam and Korea exposure limited to power and energy projects with exemptions ‒ Asia-for-Asia supply and project execution ‒ Internal capacity for fabrication in China and Korea ‒ Targeting 100% USMCA qualification or exemption ‒ EU for EU supply and project execution ‒ Internal capacity for fabrication in UK and Germany ‒ Securing customer deviation for US supply ‒ Customer-specified German tech for select projects ‒ Manufacture in-region, for region General • Working with our customers to ensure contractual language and protections are sufficient, secure favorable INCO terms • Anticipating and working to mitigate inflationary impact on raw materials • Resiliency and diversification of our operations and supply chain supportive of mitigation of tariff impacts * Assumes tariff rates and imposition on April 28, 2025 are maintained for the remainder of 2025 Better Positioned Than “Covid Supply Chain Shock Quarter(s)” to Handle External Disruptions … Rapid Mitigation Actions Underway to Largely Offset Anticipated Cost Risks* 21 ‒ Existing U.S. supply capacity addresses meaningful portion of U.S. demand ‒ Continuing to develop new sources of U.S. capacity and strengthen supply chain capabilities ‒ Selective insourcing to existing CECO facility
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Tariff Outlook for the Remainder of 2025 Category Gross Impact * Materials $1 – 2 Components (1) $1 – 3 Fabrications $1 – 5 Total $3 – 10 Ongoing Mitigations Key Assumptions • Canadian & Mexican imports retain USMCA compliance/exemptions • 25% tariff rates on “raw” steel and aluminum remain in place • 10% reciprocal tariffs remain in place • Tariff rates as of April 28 remain effective through the rest of the year 22 * Estimated impacts as of April 28, 2025 (1) Finished items including pumps, valves, filters, sensors, control panels Headcount & Process Optimization ~ $3 Supply Chain Efficiencies $0 – 2 Other Actions $0 – 1 Pricing Pass Thru Cost TBD Total Actions Identified $3 – 6 • We buy in-region, for-region. Cost and revenue bases are largely aligned • We are a portfolio of agile, niche businesses with adaptable supply chains • Surcharges/inflation triggers in contract T&C language • Use free trade zones, when possible, to defer duty payment • Canadian & Mexican imports are exempted by USMCA ($MM)