7Lun·

Buy the Dip ?????

$CECO (+1,9 %)

Hello my dears.

I actually wanted to invest outside the US.

But the price reduction for the quality and growth value is very tempting.

What do you think?

Ceco Environmental Corp. announces fourth quarter earnings decline.

Ceco Environmental Corp. (CECO) reported fourth quarter earnings that were down from the prior year.

The company's net income was $3.1 million, or $0.08 per share. This compares to $4.8 million, or $0.13 per share, last year.

The company's turnover in this period rose by 35.4% to USD 214.7 million compared to USD 158.6 million in the previous year.

Ceco Environmental Corp. earnings at a glance (GAAP):

-Revenues: $3.1 million vs. $4.8 million last year.

-EPS: $0.08 vs. $0.13 last year.

-Revenues: $214.7 million vs. $158.6 million last year.

CECO Environmental acquires Thermon for $2.2 billion

CECO Environmental acquires Thermon Group Holdings in a deal valued at 2.2 billion US dollars. The transaction will take the form of a mixture of cash and CECO shares. Thermon shareholders can choose between different compensation options, with the standard offer being worth USD 63.13 per share a premium of premium of 26.8% to the previous Thermon share price.

After the merger CECO shareholders 62.5 % and Thermon shareholders 37.5 % of the new company. The merged company will continue to operate under the name CECO Environmental name. Within 36 months, CECO expects annual cost synergies of around USD 40 million. Both Boards of Directors have unanimously approved the transaction, which is expected to close in mid-2026. mid-2026 is expected in mid-2026.

Strategic importance of the deal

Massive portfolio expansion: CECO strengthens its offering in the field of industrial heat, energy and environmental technologies. Thermon brings in specialized solutions for temperature management and industrial process heat - an area in which CECO was previously less strong.

Economies of scale & cost synergies: Expected synergies of USD 40 million annually improve margins and competitiveness. The merged company can bundle procurement, production and sales more efficiently.

Stronger market position: The acquisition creates a significantly larger player with a broader customer base and global presence. CECO positions itself as a comprehensive provider of critical industrial infrastructure.

Growth in future industries: Thermon is strong in energy, chemicals, infrastructure and electronics manufacturing - all sectors with long-term investment needs. This gives CECO access to stable, high-growth end markets.

Financial leverage: The transaction is large (USD 2.2 billion), but the equity component keeps the balance sheet sustainable. The deal is expected to significantly increase cash flow.

@Get_Rich_or_Die_Tryin What do you think?

Tenbagger-Capital

@Tenbagger-Capital

8Lun·

CECO Environmental: helping companies to become greener - and grow themselves in the process

Hello my dears,

In my company presentations, I often look for small niche players in growth sectors. The market value is often not that high.

So I have a question for you.

Is my selection of companies suitable for you, or would you prefer better-known companies with a higher market value?

I hope many of you will answer in the comments.

So that I can tailor my company ideas even better to our community. That is very important to me.

"Successful together"

Today's company is really about a niche player that is active in an area that will become increasingly important in the future. And an investment can probably be made with a clear conscience.

Enjoy the presentation of CECO $CECO (+1,9 %)

CECO Environmental is benefiting directly from the global trend towards stricter environmental regulations (air and fluid control) and the energy transition. The company has increased its order backlog to a record level and has recently experienced very strong sales growth, laying the foundation for continued growth in the coming periods. The business model is resilient as it is based on critical, often legally required emission control solutions. Recurring revenue is an important stabilizing factor.

CECO supplies core technology for clean air, water and emission control in industry. Benefiting from the megatrend of decarbonization: stricter environmental regulations are driving sustained demand and growth. CECO is one of those companies that flew under the radar for years: a small industrial supplier, barely known, seemingly interchangeable. Today, the company stands for a completely different story. CECO builds systems with which industry cleans its air and water and reduces emissions.

CECO Environmental has installed more than 32,000 air pollution control systems capable of eliminating more than 4.4 billion pounds of pollutants annually, the equivalent of removing more than 50 million cars from the road. CECO technologies and products reduce or eliminate harmful pollutants, including CO, VOCs, NOx, HAPs, acid gases and particulates.

CECO Environmental: More than just filters: Why the company is growing in the shadow of the energy transition

Performance over the last 12 months is 88 %.
CECO is ideally positioned to benefit from the structural growth trends in global environmental technology.
Stricter regulatory requirements for industrial air pollution control and water treatment are creating consistent demand for CECO's core systems, supported by additional recurring revenues from the service business.

CECO Environmental (NASDAQ: CECO) is a global provider of environmental technologies and solutions whose core business is the design, manufacture and sale of equipment and systems for emissions control and air and liquid filtration. The company focuses on improving industrial air quality, treating industrial water and providing technical solutions to support the global energy transition.

Economically, CECO generates its revenue mainly from two sources: Firstly, from the sale of complex, customized equipment and systems to a diversified industrial customer base, including sectors such as chemicals, energy, pharmaceuticals and metal processing, and secondly from the strategically important, higher-margin service and spare parts business. This recurring income from maintenance, repair and the supply of consumables ensures more stable cash flows and improved overall profitability.

CECO Environmental's growth prospects are directly linked to several strong macroeconomic trends. The most important driver is the global tightening of environmental legislation and emissions standards, which is forcing industrial companies to continuously invest in modern environmental protection technologies. CECO benefits directly from this regulatory pressure. In addition, the company plays an active role in the energy transition by offering solutions that both optimize the efficiency of traditional energy generation plants and minimize the environmental impact of new energy sources. The recent positive financial results are supported by a current historically high order backlog, which provides a solid basis for sales growth in the short and medium term.

To accelerate growth and expand its technological reach, CECO is pursuing a targeted strategy of mergers and acquisitions (M&A), particularly to strengthen its presence in new or underserved segments, such as industrial water treatment. While the company is structurally well positioned to benefit from the ongoing growth trend in environmental technology, this positive outlook is already reflected in an ambitious valuation.

The current high P/E ratio25e of 56 shows that the markets have already priced in very high future growth rates. Investors must therefore closely monitor the consistent implementation of the aggressive growth strategy and the further development of profitability in order to be able to assess the justification for this premium.

LOCATIONS

CECO's extensive reach is highlighted by international locations serving a global customer base.

CECO has a multinational footprint of 25 main operating facilities in 11 US states and eight countries
Globally diverse, far-reaching organization: serving customers in >40 countries
1100+ employees worldwide

Brand diversity:

With over a dozen sub-brands such as Peerless, Burgess-Manning and Compass Water Solutions, CECO covers various technical niches

Important end markets

Automotive (60)

Chemicals & petrochemicals (90)

Commercial (53)

Defense, marine and aerospace (74)

Energy Transition (52)

Food & Beverage (76)

Industrial (105)

Industrial Water (58)

Mining & Metals (64)

Oil & Gas (115)

Pharmaceuticals (54)

Power (77)

MY CONCLUSION

CECO is not a mass player, but a technology-driven technology-driven specialistthat is active in industrial environmental niches worldwide. The combination of a broad industry presence, in-depth technical expertise and growing profitability makes CECO a classic "hidden champion"

CECO Environmental secures record order worth over 135 million US dollars

December 15, 2025

PDF-Version

Bookings for the full year 2025 expected to exceed 1 billion US dollars

Jahresbericht

e3bb68c6-1838-414d-a841-bb4c994cd800

PowerPoint Presentation

USD in millions

Estimates

Year Turnover Change

2024 557,9 2,4 %

2025 765,1 37,13 %

2026 878,8 14,87 %

2027 971,9 10,59 %

Year EBIT Change

2024 35,4 2,41 %

2025 110 210,82 %

2026 77,21 -29,83 %

2027 104,4 35,26 %

Year Net result Change

2024 12,96 0,36 %

2025 58,18 349,03 %

2026 40,05 -31,16 %

2027 62,88 56,99 %

Year Free cash flow Change CAPEX

2024 7,46 -79,43 % 17,37

2025 20,45 174,13 % 12,2

2026 62,6 206,11 % 13

2027 86,65 38,42 % 13

Year EBIT margin Earnings per share Change

2024 6,35 % 0,36 -2,7 %

2025 14,38 % 1,593 342,59 %

2026 8,79 % 1,097 -31,17 %

2027 10,75 % 1,71 55,93 %

Year P/E ratio PEG

2024 84x -31.08x

2025 42.8x 0x

2026 62.2x -2x

2027 39.9x 0.7x

Market value 2,431

Number of shares (in thousands) 35,641

Date of publication 25.02.2025

Performance

1 week +3.10 %

1 month +13.14 %

6 months +112.43 %

1 year +130.75 %

3 years +377.66 %

5 years +810.68 %

+ 1

57 Comentarios

Tenbagger-Capital@Tenbagger-Capital

7Lun

@Klein-Anleger what do you mean?

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Klein-Anleger@Klein-Anleger

7Lun

@Tenbagger2024 phew 😅 the profit expectations were missed by a wide margin, which could indicate strong pressure on margins. I would classify the takeover as positive for the time being, but I haven't read into the subject that deeply. Maybe wait for the bottom, because at the moment the thing is still falling like a stone, or synonymous with $NOVO B 😂📉
But have you already invested in it today? And do you expect it to take off first?

••

Tenbagger-Capital@Tenbagger-Capital

7Lun

@Klein-Anleger As you have already written, don't fall into fomo. Wait and see. Not that the share is now entering a downward trend. But the earnings growth for next year is not bad. I don't actually believe in a longer downward trend

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Julius@Norisknofun

7Lun

@Tenbagger2024 he has just been banned

••

Julius@Norisknofun

7Lun

@Tenbagger2024 should let you know apparently discord links were banned in the profile but it just can't be that you get permanently banned for it

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Norisknofun Let's wait and see. But I think whoever wanted to sell is out now

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Norisknofun What do you think you did? I don't understand right now

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Dividendenopi👴@Dividendenopi

7Lun

@Tenbagger2024 it looks like the profile of our little investor was banned because there was a link to this discord - whatever that may be - group. Looks like Kate is no longer there either

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Dividendenopi ach they had written to open a group on another portal. Kleinanleger had written while I was away that he was unhappy with getquin. And there was also Kate and this other girl. Maybe it has something to do with that. If it said group, it was probably a link to her group. Just a guess.

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Dividendenopi👴@Dividendenopi

7Lun

@Tenbagger2024 That's probably the case, but why a profile is closed because of this is really beyond my understanding, simply ridiculous.

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Dividendenopi yes, you could have simply deleted the post or comment.

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Ver todas las 30 respuestas adicionales

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

7Lun

Around €50 would be a very good entry point in my opinion. I won't be investing due to US containment, but the current level is definitely much more attractive than your idea.

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Get_Rich_or_Die_Tryin and take a look at the profit growth for next year. And I also see the merger as positive. The division is also growing

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

7Lun

Just jumped on at $EXENS. I parted with my Dino $BA. with a heavy heart 😂

••

Tenbagger-Capital@Tenbagger-Capital

7Lun

@Get_Rich_or_Die_Tryin yes I think so, I don't know yet whether I will leave Ferrari

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

7Lun

@Tenbagger2024 Ferrari is difficult, I wouldn't find it easy either 😖 What do you want to buy as an alternative? You should also make it a little dependent on that.

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Get_Rich_or_Die_Tryin I think something from my last ideas. I also find NEC $6701 interesting, but there has to be a turnaround first. I think @Multibagger and @PikaPika0105 are already in there

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Chris@Multibagger

7Lun

@Get_Rich_or_Die_Tryin Have you blocked me? I can't even click on your profile 😉

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Get_Rich_or_Die_Tryin If $PAL doesn't get above the old high, I'll throw it out too. Although there is fundamental growth and the analysts are also positive. And the dividend is not bad either. But I have no desire to slide back into the red with it

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@Multibagger blocking is silly

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PikaPika0105@PikaPika0105

7Lun

@Tenbagger2024 difficult today due to escalation from China + pressure on the sector due to the sell-off at IBM. Difficult situation, BUT objectively everything looks good in the long term.

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@PikaPika0105 Do you mean NEC? Have you seen my Japan Special?

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PikaPika0105@PikaPika0105

7Lun

@Tenbagger2024 Yes, NEC is also on the blacklist. I haven't had time to read your post yet. China has massively exacerbated the situation today with its aggressive behavior. No more rare earths for the largest industrial groups in Japan and export licenses for many others. A real trade war is brewing. Continue to follow the situation closely.

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Tenbagger-Capital@Tenbagger-Capital

7Lun

@PikaPika0105 Then you should definitely take a look at my post. It might fit the topic well. Now I also understand why $5713 is doing so well

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Ver todas las 3 respuestas adicionales