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
Bookings for the full year 2025 expected to exceed 1 billion US dollars
e3bb68c6-1838-414d-a841-bb4c994cd800
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 %
