PFIE News & Events

CECO Environmental (CECO) announced the closing of its acquisition of Profire Energy (PFIE) as of January 3. As previously announced, CECO, Combustion Merger Sub and PFIE entered into an Agreement and Plan of Merger on October 28, 2024, pursuant to which CECO commenced a cash tender offer to acquire all of the issued and outstanding shares of PFIE common stock at a price of $2.55 per share, in cash, without interest, and subject to applicable withholding tax. Also as previously disclosed, the tender offer expired at one minute after 11:59 P.M., New York City time, on December 31, 2024, after which time CECO accepted for payment and paid for all shares validly tendered. On January 3, 2025, following the expiration of the tender offer and acceptance for payment of the shares validly tendered and not validly withdrawn pursuant to the tender offer and the satisfaction of the remaining conditions to the merger, the Company completed its acquisition of PFIE. As a result of the completion of the transaction, PFIE's common stock is no longer listed on any public market. The aggregate consideration paid by CECO to acquire the shares of PFIE was approximately $122.7M, which CECO financed through a combination of cash on hand and borrowings under its existing credit facility.

Reports Q3 revenue $$17.2M , consensus $15.2M.Total revenues for the period equaled $17.2 million, compared to $15.2 million in the second quarter of 2024 and $14.9 million in the prior-year quarter. The sequential and year-over-year increase was partially driven by strong activity in our diversification business.Gross profit was $8.3 million, compared to $7.9 million in the second quarter and $7.5 million in the third quarter of 2023. Gross margin was 48% of revenues, compared to 52% of revenues in the prior quarter and 50% of revenues in the prior-year quarter. The sequential and year-over-year decrease is partially related to inflationary pressures across the business as well as the increase in diversification business, driven by critical energy infrastructure and non-oil and gas projects, which can have lower overall project margins.