CECO Environmental Corp. (CECO) Stock Analysis
Breakout setup
Industrials · Pollution & Treatment Controls
Sell if holding. Engine safety override at $94.51: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 20%; Below-average business quality.
CECO Environmental is an environmentally focused industrial company serving industrial air, industrial water, and energy transition markets globally through Engineered Systems and Industrial Process Solutions segments. Backlog of $793M at end of 2025; executing planned merger... Read more
Sell if holding. Engine safety override at $94.51: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 20%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Score 5.2/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst cluster(7), earnings proximity 47d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About CECO Environmental Corp.
About CECO Environmental Corp.
CECO Environmental's order backlog reached $793.1 million at December 31, 2025, up 46.6% from $540.9 million at year-end 2024, with substantially all expected to deliver within 18-24 months. The company employs approximately 520 engineers, designers, solution experts, and project managers globally, with 34% of 2025 revenues generated outside the United States, serving power generation, hydrocarbon processing, semiconductor, and other industrial end markets through two reportable segments.
CECO earns revenue primarily from fixed-price contracts for engineered systems covering emissions management, separation and filtration, industrial air quality control, and water treatment. Materials, wages, and subcontracting costs are the largest cost components; raw steel, steel-related components, resin, and filtration media are key inputs, with steel prices traditionally volatile. Fixed-price contracts expose CECO to cost overrun risk when actual project costs exceed estimates. Subcontractors perform the majority of manufacturing for international customers, while direct sales teams operate in the US, Netherlands, UK, Germany, Canada, UAE, India, China, South Korea, and Singapore. No single customer contributed 10% or more of consolidated revenues for 2025, 2024, or 2023.
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CECO entered the Agreement and Plan of Merger to acquire Thermon Group Holdings on February 23, 2026, consummating the transaction June 1, 2026 per Form 8-K, funded partly through existing and committed credit facilities alongside $214.2 million in pre-existing indebtedness at December 31, 2025. Integration costs are expected to be significant, including legal, accounting, and financial advisory expenses. Goodwill and indefinite-lived intangibles already totaled $297.9 million, or 33.3% of total assets, at December 31, 2025; the Thermon acquisition may increase that balance materially, adding impairment risk if integration challenges or business conditions weigh on projected cash flows.
See also: Industrials · Pollution & Treatment Controls
From CECO Environmental Corp.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-10Recent Developments — CECO Environmental Corp.
Material events (past 30 days)
- 8K Jun 1, 2026 MEDIUM Item 2.01: On June 1, 2026, CECO Environmental consummated the previously announced merger with Thermon Group Holdings, Inc. Thermon merged with and into Longhorn Merger Sub LLC, a direct wholly-owned subsidiary of CECO, as the surviving entity.
Latest news
- NEWS Is CECO Environmental Corp (CECO) Overvalued After 3.9% Rally? G - GuruFocus — GuruFocus neutral
- NEWS CECO Environmental, Rumble, TD SYNNEX, Stride, and Lumen Shares Skyrocket, What You Need To Know - StockStory — StockStory positive
- NEWS CECO Environmental, Rumble, TD SYNNEX, Stride, and Lumen Shares Skyrocket, What You Need To Know - TradingView — TradingView positive
- NEWS CECO Environmental Corp. (CECO) rises 2 percent even as it misses Q4 2025 earnings per share estimates by 24.2 percent. — Cổng thông tin điện tử tỉnh Lào Cai negative
- NEWS What is the long-term thesis for EnviroCorp (CECO) stock | CECO Environmental Corp reports 24.2% EPS miss - Growth Pick — Cổng thông tin điện tử tỉnh Lào Cai negative
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicrevenues outside the United States34%10-K Item 1A: 'approximately 34% of our 2025 revenues are outside the United States'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $94.51: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 20%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Prior stop was $87.69. Score 5.2/10, moderate confidence.
Take-profit target: $99.22 (+5.2% upside). Prior stop was $87.69. Stop-loss: $87.69.
Target reached (-9.0% upside); Quality below floor (3.7 < 4.0).
CECO Environmental Corp. trades at a P/E of 251.2 (forward 39.0). TrendMatrix value score: 4.8/10. Verdict: Sell.
11 analysts cover CECO with a consensus score of 4.1/5. Average price target: $99.
What does CECO Environmental Corp. do?CECO Environmental is an environmentally focused industrial company serving industrial air, industrial water, and...
CECO Environmental is an environmentally focused industrial company serving industrial air, industrial water, and energy transition markets globally through Engineered Systems and Industrial Process Solutions segments. Backlog of $793M at end of 2025; executing planned merger with Thermon Group Holdings (announced Feb 2026). Approximately 34% of 2025 revenues from outside the United States.