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CECO ENVIRONMENTAL Q2 2026 Earnings Call August 10 , 2026
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L E G A L D I S C L O S U R E S Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements, other than statements of historical fact, included in this presentation that address events or developments that CECO Environmental Corp. (“CECO”) expects, believes, or anticipates will or may occur in the future are forward-looking statements. The words “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements in this presentation include, but are not limited to, statements regarding CECO’s full-year 2026 outlook; expected revenue, margins, Adjusted EBITDA, earnings, cash flow, orders, and backlog conversion; the integration of Thermon Group Holdings, Inc. (“Thermon”), which CECO acquired on June 1, 2026; anticipated cost synergies, commercial opportunities, and other benefits of the Thermon acquisition and the timing of their realization; CECO’s leverage reduction and cash flow expectations; and CECO’s strategic, operational, and financial objectives. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this presentation. These risks and uncertainties include, among others, the ability to successfully integrate Thermon with CECO’s existing operations; the possibility that integration activities may be more difficult, costly, or time- consuming than currently anticipated; the possibility that CECO may not realize some or all of the anticipated cost synergies, commercial opportunities, or other benefits of the Thermon acquisition within the expected timeframe or at all; the effects of the indebtedness incurred in connection with the acquisition; risks associated with the preliminary purchase accounting for the Thermon acquisition, including changes resulting from the finalization of the purchase price allocation and the resulting effects on goodwill, intangible assets, amortization expense, and other financial statement amounts; and risks associated with servicing, repaying, or refinancing the debt incurred in connection with the Thermon acquisition and maintaining compliance with the Company’s credit facility covenants. Additional risks and uncertainties are described in CECO’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, which are available on CECO’s investor relations website at https://investors.cecoenviro.com and on the SEC’s website at https://www.sec.gov. All forward-looking statements are based on assumptions that CECO believes to be reasonable but that may not prove to be accurate. Such forward-looking statements are based on assumptions and analyses made by CECO in light of its perceptions of current conditions, expected future developments, and other factors that CECO believes are appropriate under the circumstances. These statements are subject to a number of known and unknown risks and uncertainties. Forward- looking statements are not guarantees of future performance and actual events may be materially different from those expressed or implied in the forward-looking statements. The forward-looking statements in this presentation speak as of the date of this presentation. CECO undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, and Adjusted Free Cash Flow, Free Cash Flow, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income (collectively, the "Non-GAAP Measures"). Management believes these measures provide useful supplemental information regarding the operating performance of CECO, both on a reported basis and, where presented, on a pro forma basis reflecting Thermon. Non-GAAP Measures should not be considered in isolation or as a substitute for any measure of financial performance or liquidity derived in accordance with GAAP. These measures have limitations as analytical tools, and similarly titled measures used by other companies may not be comparable. Reconciliations of each Non-GAAP Measure to its most directly comparable GAAP measure are set forth in the appendix to this presentation. Non-GAAP Measures presented on a forward-looking basis are not reconciled to the comparable GAAP financial measures because the reconciliation could not be performed without unreasonable efforts. The Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP financial measures but not the applicable Non-GAAP Measures. 2 C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L
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CECO Environmental Q2 2026 Summary Maintaining High-Performance Growth … Full Year 2026 Guidance Raised C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L % = Year over Year performance 3 Q2 2026 KEY FINANCIAL METRICS $1,819M Q2 Ending Backlog, +164% $799M Bookings, +191% $285M Revenue, +54% $40.2M Adjusted EBITDA, +73% ~ 150bps Margin Expansion • Sales Pipeline > $8.5B Reflects Ongoing Strong Market Opportunities • Record Backlog = Secured by PO + Higher Margin + Associated with Active Projects • Bullish on 2H Order Outlook Markets & Backlog* * As reported = CECO + Thermon June Performance (closed acquisition June 1) Execution & Financial Summary Thermon Integration | Full Year Outlook • Continued Strong Double Digit Revenue Growth • Maintaining Steady Margin Expansion … Adj. EBITDA Margins Up +150bp • Healthy Balance Sheet … Net Bank Leverage of 2.7x, Post Acquisition • Adjusted EPS of $0.47 … Up 96% YoY • Integration On-or-Ahead of Schedule • Cost Synergies: Captured ~$13M of Annualized Savings in 1st 60 Days • Commercial Synergies: Early Wins by Cross-Selling into CECO Projects • Raising Full Year 2026 Outlook
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Driving Sustainable, High-Performance Growth C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L Note: Q2 results include one month (June) of Thermon financials • Full POs / Legally Binding T&Cs • Projects Underway / Permitted • Very Low De-booking Rate (Less than 0.5%) • POs Not Associated with “Slot Reservations” • Full Visibility to Revenue Timing and Margin 4 ~ $8.5B Sales Pipeline Building an $8B+ sales pipeline has driven 5 straight years of record orders growth -- enabling consistent double-digit sales growth Sales Pipeline Has Grown from $1.5B in 2021 Q1’25 Orders $228M Q1’26 Orders $449M +57% YoY +97% YoY $274M $799M + 95 % YoY + 191 % YoY Orders Growth YoY First Half 2026 Performance Trailing Twelve Month Book - to - Bill = ~ 2.0 … $1.8B+ + 164 % YoY Q2’25 Orders Q2’26 Orders Current Backlog Record Backlog ~ $1.8B = Solid + High Visibility to Rev & Margins
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Thermon Integration Update 5
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Cost Synergies Ahead of Plan C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L Captured $13M of annualized cost savings representing 1/3 of total target. Expect to deliver on ~50% of savings by Year-1. Confident in our ability to deliver greater than $40M in EBITDA synergies. Year 1 Year 2 Year 3 Total ~$17 - 20M ~$13M ~$9M ~$40M+ Total Target ~20% of Total ~35% of Total ~45% – 50% of Total $13M Captured Annualized Savings ~ 1/3 of Total Target Integration and Cost Synergies Update Net Adjusted EBITDA Savings Target • Integration efforts well underway with all work streams engaged on assessment and process improvement • $13M of captured EBITDA annualized savings driven by PubCo costs and other actions across the organization. Approx. $5M realized in FY ’26 • $19M of captured annualized total savings with additional stock compensation and other cash items • Estimate captured savings between $17 and $20M by 1- year anniversary of the transaction Note: Approximately $21M of year-to-date costs to achieve savings, primarily related to change-in-control provisions and accelerated equity vesting for former executives. A significant portion of the related cash payments will occur over approximately two years. 6
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Commercial Synergies: Building a Pipeline to Add 1 to 2 Percentage Points Organic Growth 7 C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L • $7B+ Detailed Sales Pipeline Leveraging Strengths and Leadership Positions of Each • Leading Thermal Solutions Portfolio • Global Footprint • New Product Development• Global Supply Chain • Niche Leadership in: o Power Generation o LNG / Gas Infrastructure o Industrial Water o Semiconductor o Electronics / Solar / Battery o Materials Processing • Genesis Controls Platform • Leading positions in: o Mid/Downstream O&G o Chem / Petrochem o Datacenter o Nuclear o Gas Infrastructure o Rail & Transit Infrastructure Delivering Early Wins & Opportunities ✓ $500K+ Thermon Content Added to CECO PowerGen Projects ✓ Commercial Teams Already ID’d 100+ Opportunities To Drive Growth ✓ Multi-billion $ PowerGen Sales Pipeline = $M’s in Thermal Opportunities ✓ Joint Marketing Campaigns and Awareness for Scale and Efficiencies
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Q2 2026 Financial Results Summary 8
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Q2 ‘26 YoY Q2 TTM YoY Backlog $1,819M +164% $1,819M +164% Orders Book to Bill $799M 2.80x +191% $1,810M 2.00x +105% Revenue $285M +54% $903M +38% Adj. Gross Profit Margin % $96.0M 33.7% +43% (252)bps $299.9M 33.2% +30% (204)Bps Adj. EBITDA Margin % $40.2M 14.1% +73% +154bps $113.4M 12.6% +61% +180bps Q2 2026 and Trailing Twelve-Month Financial Performance • Orders: Power Gen with significant project bookings in 1H 2026; Industrial with Strong momentum in Semiconductor/Electronics and Industrial Reshoring • Middle East: Conflict = Market Pause … major rebuild and investment expected • Organic orders growth +185% YoY driven by record sales pipeline and return on investments • Q2 Adjusted Gross Margins of 33.7%, up >250 basis points sequentially due to volume/mix benefits on higher margin projects in backlog, Thermon accretion • Expect 2H margins to maintain steady expansion on higher margin projects in backlog and full benefit of Thermon accretion + operating excellence programs • YoY sales increase of ~$100M and ~$247M for Q2 and Q2 TTM, respectively • Organic sales growth +44% YoY driven by record CECO-legacy backlog • Revenue ramp accelerates in 2H from large Power Gen and Semicon projects • Organic Adj EBITDA growth ~ +54% YoY • YoY increase of ~$15M & ~$43M for Q2 and Q2 TTM respectively on growth + G&A leverage • SG&A rate lower YoY on volume leverage, cost management, and integration synergies KEY HIGHLIGHTS C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L 9 As reported = CECO standalone with Thermon June performance See appendix for Adjusted EBITDA and Adjusted Gross Profit reconciliation to GAAP.
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Adjusted EBITDA Trend As Reported financials. ($MM) TTM = Trailing 12 Month As reported = CECO standalone with Thermon June performance $42 $58 $63 $90 $113 2022 2023 2024 2025 Q2'26 TTM $23.3 $23.2 $29.8 $20.3 $40.2 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 10.0% 10.6% 11.3% 11.7% 12.6% Adj EBITDA Margin Full Year / TTM Performance Quarter Performance Adj EBITDA Margin • SEG&A ~ 22.4% of revenue… favorable ~400 bps YoY driven by volume leverage and cost actions initiated in 2025 • Gross Profit margin headwind offset with SG&A cost management • Improving Project Execution … improving as-delivered margins • Accelerating Thermon acquisition savings • Continue 80/20 deployment Q2 Comments Go Forward Key Actions $17 $15 $5 $28 $43 Adj EBITDA VPY $7.2 $8.9 $10.7 $6.3 $16.9 Adj EBITDA VPY C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L 12.6% 11.7% 13.9% 9.9% 14.1% 10
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* Starting Backlog – Revenue + Net Orders +/- FX + Acquired Backlog = Ending Backlog ($MM) B2B = Book to Bill $214 $312 $371 $541 $602 $688 $720 $793 $1,035 $1,819 $91 $151 $128 $219 $228 $274 $233 $329 $449 $799 $94 $116 $154 $159 $177 $185 $198 $215 $206 $285 0 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880 0 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880 920 960 1,0 00 1,0 40 1,0 80 1,1 20 1,1 60 1,2 00 1,2 40 1,2 80 1,3 20 1,3 60 1,4 00 1,4 40 1,4 80 1,5 20 1,5 60 1,6 00 1,6 40 1,6 80 1,7 20 1,7 60 1,8 00 1,8 40 1,8 80 Q4'21 Q4'22 Q4'23 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Backlog Orders Revenue Book- to-Bill FY’22 FY’23 ~ 1.2x ~ 1.1x ~1.2x FY’21 ~ 1.1x FY’24 ~2.2x Q1’26 ~8.5x ~1.4x FY’25 Backlog Expansion Supports Future Revenue Growth Backlog + Pipeline Supports Sustained Double - Digit Growth Outlook C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L 11 ~2.8x Q2’26 ~2.6x 1H’26
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Q2 2026 Adjusted Free Cash Flow and Indebtedness Update Strong Q2 Cash Generation + Expected 2H’26 Cash Delivery = Leverage Near Target C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L ($MM) Q2’25 YTD Q2’26 YTD YoY GAAP Net Income (incl. NCI) $46.5 $(34.8) $(81.2) D&A $10.2 $18.1 Gain on Sale $(64.5) -- Working Capital $(10.6) $(45.0) Other Net Operating Assets $4.8 $106.7 Operating Cash Flow, as adjusted $(13.6) $45.0 $58.6 CapEx $(4.4) $(7.5) $(3.1) Adj. Free Cash Flow $(18.0) $37.5 $55.5 Dec 31, 2025 $208.6 Cash Used / (Generated) from Ops $(37.5) M&A + CapEx Investments [Net] $480.8 Bank Debt Net Repayments $0.0 Other Cash Used / (Generated) $80.1 June 30, 2026 $732.0 * See definition of Adj. Free Cash Flow in Appendix. 1) Q2 Adj FCF of approx. $53M. See appendix 2.2 x 2.7 x Dec 31. 2025 June 30. 2026 $209 $732 124 $220 Dec 31. 2025 June 30. 2026 Avail Rev Utilized 1) Leverage Ratio = Net Debt / TTM Bank EBITDA; 2) Net Debt = $732.0 – 61.1 = $670.9 3) Available Debt Stack = Debt utilized (Revolver + Term Loan) + Revolver capacity ADJUSTED FREE CASH FLOW GROSS DEBT POSITION LEVERAGE RATIO 1, 2 CAPACITY 3 12 * 1)
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2026 Outlook and Wrap-Up 13
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Raising Full-Year 2026 Outlook C E C O E N V I R O N M E N T A L Q 2 2 0 2 6 E A R N I N G S C A L L New Outlook FY 2026 $2B+ $1,300 – $1,375 YoY +20% at midpt. $200 – $225 YoY 25% at midpt. Mid-teens Margin 55%+ Orders/B-2-B (book to bill) Revenue Adj EBITDA Free Cash Flow % of Adj. EBITDA • Expecting Well-Over $2B • Market momentum continues • Opportunity pipeline continues to expand • Proforma2 FY $2.4B+ • Increased low-end $25M vs. June Guidance • Backlog growth supports increase in 2H’26 • Thermon Topline up HSD Proforma • Proforma2 FY $1.5B - $1.6B • Increased low-end $5M vs. June Guidance • Includes ~ $5M of cost synergies • Proforma2 FY $255M - $280M • Thermon short cycle mix improves Q/Q Free Cash Flow visibility • Working Capital position improves as project milestones are achieved 1 1) Includes Thermon’s financial performance for the period between 06/01/26 through 12/31/26 2) Proforma includes estimated Thermon Full Year 2026 aligned with CECO’s calendar, i.e. 01/01/26 through 12/31/26. It includes Q1’26 (reported separately by Thermon), April and May (stub period). Commentary Values in $ millions 14 [April] Outlook (Standalone CECO) > $1.5B Off to Great Start $940 – 1B YoY +25% at midpt. $120 – 140 YoY +44% at midpt. +170bps expansion 50%+
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Q2 2026 Summary Opportunity Pipeline of $8.5B grew in all key end markets and geographies Large Power Jobs maintain / grow momentum Balanced across end markets and regions Managing impact from conflict in the Middle East Orders > $2B+ driven by strong end markets Accelerating backlog conversion with strong execution and margin expansion in 2H Strong Adjusted FCF generation aligned with project milestones Well-Positioned in Very Strong Markets +164% Backlog, +191% Orders, +54% Revenue +73% Adj EBITDA, up ~ 150 bps in margin Integration of Thermon progressing as scheduled $13M annualized savings captured Strong Q2 Performance Increased Full Year 2026 Outlook Industrial Equipment Protecting People, the Environment, and 15
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Appendix 16
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Additional Items as of Q2 2026 APPENDIX 17 Item Q2’26 Commentary Shares outstanding 58.6 million Shares issued for Thermon transaction, Increased stock grants, PRSU multiplier Cash balance $61.1 Cash utilized for debt repayment and working capital Total borrowings $732 Combined revolver and Term Loan balances; Focus on debt repayment to meet 2.0-2.5x range Leverage1 2.7x Target range 2.0 – 2.5x Borrowing capacity2 $220 Revolver capacity is sufficient to meet WC needs Interest expense $9.1 Blended borrowing rate at ~6.5% Global headcount ~3,500 1/ Leverage Ratio = Net Debt / TTM Bank EBITDA 2/ Capacity = Revolver and Delayed Draw Term Loan (Q1’26) less utilized ($MM)
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Thermon Proforma financials for 2024 and 2025 APPENDIX 18 ($MM) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year YoY Orders $117 $127 $131 $139 $514 $139 $121 $131 $158 $549 7% B-t-B 0.92 1.10 1.14 1.03 1.04 1.04 1.11 0.99 1.07 1.05 Revenue $128 $115 $115 $134 $492 $134 $109 $132 $147 $522 6% Adj EBITDA $23.6 $23.2 $23.8 $31.8 $102.4 $30 $21 $31 $36 $118 15% Margin % 18.5% 20.1% 20.8% 23.6% 20.8% 22.7% 19.5% 23.2% 24.2% 22.6% Free Cash Flow $35 $9 $7 $8 $59 $29 $8 $4 $13 $55 -7% % of Adj. EBITDA 148% 38% 28% 26% 58% 95% 39% 14% 37% 46% 2024 FY Proforma - Calendar Year 2025 FY Proforma - Calendar Year
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Revenue Excluding Acquisitions. Revenue by Segment. APPENDIX NOTE: Amounts are computed independently each quarter. Accordingly, the sum of each quarter’s amounts may not equal the total amounts for the respective year. 19 (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 YTD 2024 2025 2025 2025 2025 2025 2026 2026 2026 TTM 558.0$ 176.7$ 185.4$ 197.6$ 214.7$ 774.4$ 205.9$ 285.0$ 490.9$ 903.2$ - - 8.1 8.5 7.8 24.5 8.2 - 8.2 24.5$ (33.2) (34.3) (40.3) (33.3) (22.9) (130.8) (0.4) (51.0) (51.4) (107.6)$ 524.8$ 142.4$ 153.2$ 172.9$ 199.6$ 668.1$ 213.7$ 234.0$ 447.6$ 820.1$ Organic Revenue Revenue as reported in accordance with GAAP Revenue attributable to divestitures Revenue attributable to acquisitions
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Non-GAAP Gross Profit APPENDIX 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. 1) Purchase accounting inventory valuation adjustment, related to Thermon Group acquisition. 20 1)
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Non-GAAP Operating Income and Margin APPENDIX 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. 21
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Non-GAAP Net Income, Adjusted EBITDA, and Margin APPENDIX 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. 3) 4) 22
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Free Cash Flow APPENDIX 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. It also includes cash paid related to the Thermon Group acquisition, for external vendor services, incurred in the transaction. 23