CECO to Acquire Thermon Group in $2.2 Billion Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy CECO?
Source: seekingalpha
- Acquisition Overview: CECO Environmental has agreed to acquire Thermon Group in a stock and cash deal valued at approximately $2.2 billion, which is expected to further solidify CECO's leadership in industrial environmental and thermal solutions.
- Shareholder Options: Thermon shareholders can elect to receive a mixed consideration of $10 in cash and 0.6840 shares of CECO stock per common share, an all-cash option of $63.89 per share, or an all-stock option of 0.8110 shares of CECO stock, with the mixed consideration totaling $63.13, representing a 26.8% premium over Thermon's closing price on February 23.
- Post-Merger Equity Structure: Upon completion of the transaction, CECO and Thermon shareholders will own 62.5% and 37.5% of the combined company, respectively, creating a robust industrial solutions platform expected to generate approximately $40 million in annual cost synergies within 36 months.
- Management Changes: The combined company will continue to be led by CECO CEO Todd Gleason, with two Thermon directors joining the CECO board, enhancing the diversity and expertise of the management team.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CECO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CECO
Wall Street analysts forecast CECO stock price to fall
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 77.680
Low
73.00
Averages
74.00
High
75.00
Current: 77.680
Low
73.00
Averages
74.00
High
75.00
About CECO
CECO Environmental Corp. is an environmentally focused, diversified industrial company. The Company serves a broad landscape of industrial air, industrial water and energy transition markets globally, providing solutions and application expertise. Its Engineered System segment serves the power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil and gas sectors. The segment seeks to address the global demand for environmental and equipment protection solutions with its engineered platforms, including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints. Its Industrial Process Solutions segment serves the industrial sector with solutions for air pollution and contamination control, and process filtration in applications, such as aluminum beverage can production, automobile production, electronics production, and other markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CECO Environmental Set to Release Q4 Earnings on February 24
- Earnings Announcement: CECO Environmental is scheduled to announce its Q4 2023 earnings on February 24 before market open, with a consensus EPS estimate of $0.41, reflecting a significant year-over-year increase of 51.9%, indicating strong profitability.
- Revenue Growth Expectations: The revenue for Q4 is projected to reach $205.39 million, representing a 29.5% year-over-year growth, showcasing CECO's robust market demand and potential for business expansion in the environmental sector.
- Historical Performance: Over the past two years, CECO has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating the company's financial stability and market confidence.
- Investor Engagement: CECO will also present at the 28th Annual Needham Growth Conference, further attracting investor interest and showcasing its business momentum and market outlook.
See More
Ceco Environmental Reports Decline in Q4 Profit
- Profit Decline: Ceco Environmental Corp. reported a fourth-quarter net profit of $3.1 million, or $0.08 per share, down from $4.8 million and $0.13 per share last year, indicating a weakening in profitability.
- Revenue Growth: Despite the profit decline, the company's revenue increased by 35.4% year-over-year to $214.7 million from $158.6 million, reflecting strong market demand and operational performance.
- Financial Comparison: Ceco's earnings per share fell by 38.5% compared to last year, which may negatively impact investor confidence, although revenue growth suggests potential for business expansion.
- Market Reaction: The decline in profitability could lead to a cautious outlook from the market regarding Ceco's future performance, prompting investors to monitor how the company addresses the challenges of declining profitability.
See More
CECO to Acquire Thermon Group in $2.2 Billion Deal
- Acquisition Overview: CECO Environmental has agreed to acquire Thermon Group in a stock and cash deal valued at approximately $2.2 billion, which is expected to further solidify CECO's leadership in industrial environmental and thermal solutions.
- Shareholder Options: Thermon shareholders can elect to receive a mixed consideration of $10 in cash and 0.6840 shares of CECO stock per common share, an all-cash option of $63.89 per share, or an all-stock option of 0.8110 shares of CECO stock, with the mixed consideration totaling $63.13, representing a 26.8% premium over Thermon's closing price on February 23.
- Post-Merger Equity Structure: Upon completion of the transaction, CECO and Thermon shareholders will own 62.5% and 37.5% of the combined company, respectively, creating a robust industrial solutions platform expected to generate approximately $40 million in annual cost synergies within 36 months.
- Management Changes: The combined company will continue to be led by CECO CEO Todd Gleason, with two Thermon directors joining the CECO board, enhancing the diversity and expertise of the management team.
See More
CECO Environmental Q4 Earnings Report Analysis
- Significant Revenue Growth: CECO Environmental reported Q4 revenue of $214.7 million, a 35.4% year-over-year increase, exceeding market expectations by $9.31 million, indicating strong demand and an increase in market share in the environmental sector.
- Orders and Backlog: The company recorded total orders of $329.3 million, up 50%, with a backlog of $793.1 million, a 47% increase, suggesting a robust foundation for future performance and sustained market confidence.
- Adjusted EBITDA Surge: Adjusted EBITDA reached $29.8 million, a 57% increase, reflecting the company's success in cost control and operational efficiency, thereby enhancing its profitability and financial health.
- 2026 Outlook Raised: CECO raised its 2026 revenue outlook to between $925 million and $975 million, approximately a 25% increase from the previous guidance of $850 million to $950 million, demonstrating the company's optimistic view of future market conditions and proactive strategic adjustments.
See More
CECO Environmental Reports Strong 2025 Financials with Orders Exceeding $1 Billion
- Significant Order Growth: CECO Environmental reported total orders of $1.064 billion for 2025, marking a 59% year-over-year increase, which highlights the strong demand and growth potential in the market, particularly in the power generation sector.
- Revenue and Profit Increase: The company achieved revenues of $774.4 million in 2025, up 39%, with gross profit reaching $269.2 million, a 37% increase, indicating successful execution and market expansion that further solidifies its industry position.
- Strategic Merger Announcement: CECO announced a merger transaction with Thermon Group, expected to close in mid-2026, which will enhance CECO's competitiveness in the industrial heating solutions market and drive future growth.
- 2026 Outlook Raised: The company raised its 2026 revenue outlook to between $925 million and $975 million, approximately a 25% increase from the previous guidance of $850 million to $950 million, reflecting confidence in future market conditions and ongoing business expansion plans.
See More
CECO Environmental to Report Q4 2025 Financial Results on February 24, 2026
- Earnings Report Schedule: CECO Environmental Corp. will announce its fourth quarter 2025 financial results on February 24, 2026, before the market opens, which is expected to significantly impact investor perceptions by providing the latest insights into the company's financial health.
- Conference Call Timing: The earnings call will take place at 8:30 a.m. Eastern Time (7:30 a.m. CT), aimed at sharing financial results and addressing investor inquiries, thereby enhancing transparency and boosting investor confidence.
- Webcast Link: The earnings call will be available via live webcast, allowing investors to participate through a designated link, ensuring broad engagement and improving information dissemination efficiency, which fosters better interaction between the company and its investors.
- Replay Availability: A replay of the earnings call will be accessible on the company's website shortly after the live event, providing an opportunity for investors who could not attend in real-time to catch up on the information, reflecting the company's commitment to investor relations.
See More
CECO Environmental Set to Release Q4 Earnings on February 24
- Earnings Announcement: CECO Environmental is scheduled to announce its Q4 2023 earnings on February 24 before market open, with a consensus EPS estimate of $0.41, reflecting a significant year-over-year increase of 51.9%, indicating strong profitability.
- Revenue Growth Expectations: The revenue for Q4 is projected to reach $205.39 million, representing a 29.5% year-over-year growth, showcasing CECO's robust market demand and potential for business expansion in the environmental sector.
- Historical Performance: Over the past two years, CECO has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating the company's financial stability and market confidence.
- Investor Engagement: CECO will also present at the 28th Annual Needham Growth Conference, further attracting investor interest and showcasing its business momentum and market outlook.
See More
Ceco Environmental Reports Decline in Q4 Profit
- Profit Decline: Ceco Environmental Corp. reported a fourth-quarter net profit of $3.1 million, or $0.08 per share, down from $4.8 million and $0.13 per share last year, indicating a weakening in profitability.
- Revenue Growth: Despite the profit decline, the company's revenue increased by 35.4% year-over-year to $214.7 million from $158.6 million, reflecting strong market demand and operational performance.
- Financial Comparison: Ceco's earnings per share fell by 38.5% compared to last year, which may negatively impact investor confidence, although revenue growth suggests potential for business expansion.
- Market Reaction: The decline in profitability could lead to a cautious outlook from the market regarding Ceco's future performance, prompting investors to monitor how the company addresses the challenges of declining profitability.
See More
CECO to Acquire Thermon Group in $2.2 Billion Deal
- Acquisition Overview: CECO Environmental has agreed to acquire Thermon Group in a stock and cash deal valued at approximately $2.2 billion, which is expected to further solidify CECO's leadership in industrial environmental and thermal solutions.
- Shareholder Options: Thermon shareholders can elect to receive a mixed consideration of $10 in cash and 0.6840 shares of CECO stock per common share, an all-cash option of $63.89 per share, or an all-stock option of 0.8110 shares of CECO stock, with the mixed consideration totaling $63.13, representing a 26.8% premium over Thermon's closing price on February 23.
- Post-Merger Equity Structure: Upon completion of the transaction, CECO and Thermon shareholders will own 62.5% and 37.5% of the combined company, respectively, creating a robust industrial solutions platform expected to generate approximately $40 million in annual cost synergies within 36 months.
- Management Changes: The combined company will continue to be led by CECO CEO Todd Gleason, with two Thermon directors joining the CECO board, enhancing the diversity and expertise of the management team.
See More
CECO Environmental Q4 Earnings Report Analysis
- Significant Revenue Growth: CECO Environmental reported Q4 revenue of $214.7 million, a 35.4% year-over-year increase, exceeding market expectations by $9.31 million, indicating strong demand and an increase in market share in the environmental sector.
- Orders and Backlog: The company recorded total orders of $329.3 million, up 50%, with a backlog of $793.1 million, a 47% increase, suggesting a robust foundation for future performance and sustained market confidence.
- Adjusted EBITDA Surge: Adjusted EBITDA reached $29.8 million, a 57% increase, reflecting the company's success in cost control and operational efficiency, thereby enhancing its profitability and financial health.
- 2026 Outlook Raised: CECO raised its 2026 revenue outlook to between $925 million and $975 million, approximately a 25% increase from the previous guidance of $850 million to $950 million, demonstrating the company's optimistic view of future market conditions and proactive strategic adjustments.
See More
CECO Environmental Reports Strong 2025 Financials with Orders Exceeding $1 Billion
- Significant Order Growth: CECO Environmental reported total orders of $1.064 billion for 2025, marking a 59% year-over-year increase, which highlights the strong demand and growth potential in the market, particularly in the power generation sector.
- Revenue and Profit Increase: The company achieved revenues of $774.4 million in 2025, up 39%, with gross profit reaching $269.2 million, a 37% increase, indicating successful execution and market expansion that further solidifies its industry position.
- Strategic Merger Announcement: CECO announced a merger transaction with Thermon Group, expected to close in mid-2026, which will enhance CECO's competitiveness in the industrial heating solutions market and drive future growth.
- 2026 Outlook Raised: The company raised its 2026 revenue outlook to between $925 million and $975 million, approximately a 25% increase from the previous guidance of $850 million to $950 million, reflecting confidence in future market conditions and ongoing business expansion plans.
See More
CECO Environmental to Report Q4 2025 Financial Results on February 24, 2026
- Earnings Report Schedule: CECO Environmental Corp. will announce its fourth quarter 2025 financial results on February 24, 2026, before the market opens, which is expected to significantly impact investor perceptions by providing the latest insights into the company's financial health.
- Conference Call Timing: The earnings call will take place at 8:30 a.m. Eastern Time (7:30 a.m. CT), aimed at sharing financial results and addressing investor inquiries, thereby enhancing transparency and boosting investor confidence.
- Webcast Link: The earnings call will be available via live webcast, allowing investors to participate through a designated link, ensuring broad engagement and improving information dissemination efficiency, which fosters better interaction between the company and its investors.
- Replay Availability: A replay of the earnings call will be accessible on the company's website shortly after the live event, providing an opportunity for investors who could not attend in real-time to catch up on the information, reflecting the company's commitment to investor relations.
See More
