CECO Environmental Corp (CECO) Reports Record Revenue and Raises Full-Year 2023 Outlook
CECO Environmental Corp (NASDAQ:CECO) reported a 38% increase in revenue to $149.4 million in Q3 2023.
Net income for the quarter was $3.3 million, up 74% from the same period last year.
The company raised its full-year 2023 outlook and introduced its 2024 guidance.
CECO's Q3 2023 results were released on November 7, 2023.
CECO Environmental Corp (NASDAQ:CECO), a leading environmentally focused, diversified industrial company, announced its financial results for the third quarter of 2023 on November 7, 2023. The company reported a record revenue of $149.4 million, up 38% from the same period last year. Net income also saw a significant increase, up 74% to $3.3 million.
Financial Highlights
CECO's Q3 2023 results showed a strong performance across several key financial metrics. Orders for the quarter were $145.5 million, up 43%, and the company reported a record backlog of $394.0 million, a 42% increase. Gross profit for the quarter was $43.1 million, up 33%, and adjusted EBITDA was $15.1 million, up 64%.
CECO's CEO, Todd Gleason, commented on the results,
Our third quarter results reflect the strong execution our global teams continue to demonstrate as we solve our diverse customers critical needs in industrial air, industrial water, and the energy transition. We delivered several impressive records including the highest revenue, gross profit, and cash flow dollars of any quarter in the companys history."
Financial Outlook
Based on its strong Q3 performance, CECO has raised its full-year 2023 outlook. The company now expects revenue to be between $525 and $550 million, up approximately 25% year over year, and adjusted EBITDA to be between $55 and $57 million, up approximately 33% year over year. CECO also introduced its full-year 2024 guidance, expecting revenue to be between $575 and $600 million, up 10% year over year, and adjusted EBITDA to be between $65 and $70 million, up approximately 21% year over year.
Balance Sheet and Cash Flow
As of September 30, 2023, CECO had cash and cash equivalents of $47.6 million, up from $45.5 million at the end of 2022. The company's total assets were $600.1 million, up from $504.7 million at the end of 2022. CECO's free cash flow for the quarter was $28.5 million, a significant increase from $0.1 million in the third quarter of 2022.
Conclusion
CECO's Q3 2023 results demonstrate a strong financial performance, with record revenue, backlog, gross profit, and cash flow. The company's raised outlook for 2023 and the introduction of its 2024 guidance reflect its confidence in continued growth. These results should be of interest to value investors and potential GuruFocus.com members seeking investment opportunities in environmentally focused, diversified industrial companies.
Explore the complete 8-K earnings release (here) from CECO Environmental Corp for further details.
This article first appeared on GuruFocus.
