6Lun·

Witches' Sabbath PURCHASE

Hello my dears,

Here we go with a first installment in the growth stock.

Investors believe that companies are now investing less due to the high oil price. At the expense of important environmental measures.

But they seem to be overlooking the good news.

CECO Environmental raises order forecast for 2026 to over 1.5 billion US dollars

From

Firmennews

Published on 12.03.2026,

Lake Street raises CECO Environmental's price target for the Termon deal

Analystenbewertungen

Published on 25.02.2026,

Needham raises CECO Environmental's price target due to strong bookings

Analystenbewertungen

Published on 25.02.2026

CECO Environmental Q4 2025 slides: record results, 2.2 billion dollar Thermon deal

From

Unternehmensnachrichten

Published on 24.02.2026,

20.03

CECO

Compró 47 a 48,26 €

2268,22 €

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

8 Comentarios

Raketentoni@Raketentoni

6Lun

You wanted to know what I think :)

CECO Environmental - The ice-cold formula check:

Growth Score (Score 1 with an asterisk): Organic growth is brute. With a 39% increase in sales and an operating margin of just under 12%, an absolute dream score of over 50 is achieved. The company is growing massively in terms of quality.

Cash flow & dividend (complete failure): If you want to make money, you have to hope for share price gains here. The free cash flow yield is a paltry 0.5 % and the dividend is zero. The business model is currently eating up an extremely large amount of capital.

The mega risk (story > figures): The announced 2.2-billion-dollar takeover of Thermon is an absolutely mammoth deal. The management promises golden synergy mountains for 2026, but at the moment this is still pure fantasy that first has to be proven by hard figures.

Chart & Timing (Full into the falling knife): The plunge to $55 after the news was fierce. The price is currently scraping an important support line. If the market digests the deal over the next few weeks, the entry was a brilliant rebound trade. If the panic continues, the next hard crisis floor will be at $ 48.

Conclusion: A highly aggressive growth gamble on the energy turnaround. Absolute poison for any income portfolio, but mathematically an extremely exciting turnaround play for strong nerves.

•

Tenbagger-Capital@Tenbagger-Capital

6Lun

@Raketentoni Good analysis

•

Tenbagger-Capital@Tenbagger-Capital

6Lun

@Raketentoni If it still goes down, I'll buy more. The business model will become increasingly important in the future. And the maintenance business will also grow

•

Tenbagger-Capital@Tenbagger-Capital

6Lun

@Raketentoni The moat also grows as a result of the merger

•

Tenbagger-Capital@Tenbagger-Capital

6Lun

@Raketentoni My dear, I have used the RSI as a guide. What does my friend Prompt say about the RSI?

••

Raketentoni@Raketentoni

6Lun

@Tenbagger2024 Reply to @Tenbagger2024 (powered by Freund Prompt):
Greetings back from the AI I trust! My "friend Prompt" has run your arguments and the chart through the scanner. Here is the unvarnished truth:
1. about the RSI (Relative Strength Index): > You have a damn good eye. After the brutal crash from 80 to around 55 in such a short time, the RSI on a daily basis is completely shot and is deep in oversold territory (well below 30). Technically speaking, you are absolutely right: the share is massively oversold, the rubber band is extremely tight and the thing is literally crying out for a technical counter-reaction (rebound). For a trader, this RSI is an absolute feast.
2. the "moat" and maintenance business:
Again, the scanner proves you right. The maintenance business is extremely important because it generates recurring and high-margin sales (recurring revenue). And yes, the Thermon merger will create a real giant with a massive moat in industrial environmental technology.
BUT - and here comes the ice-cold filter check:
A moat bought by a 2.2 billion dollar takeover (Thermon is bigger than CECO itself!) means one thing above all: a gigantic mountain of new debt and integration risks.
The operating growth (score of over 50) is extremely good, but the free cash flow is currently a joke (FCF yield is a ridiculous 0.5 %). The business model is currently eating up massive amounts of capital.
Conclusion for you: If the market digests the shock of the takeover, you have jumped perfectly into the falling knife here technically (RSI) and are riding the rebound. Fundamentally, however, it remains a high-risk bet that the management will really be able to squeeze the promised synergies out of the books by 2026. I'm keeping my fingers crossed for the trade!

•

Max@Maximilian1

6Lun

My dear. There flies the broom

•

Tenbagger-Capital@Tenbagger-Capital

6Lun

@Divident_e Which broom

••