CECO earnings analysis
What we found in CECO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CECO reported a strong Q2 revenue and EPS rebound, with revenue of $284.961 million and EPS of $0.47 versus $206 million and $(0.01) in Q1 2026. The quarter’s growth is positive, although the supplied filing text does not provide current gross margin, operating margin, cash flow, balance-sheet working-capital detail, or quantitative guidance. The principal offsets are $736.7 million of long-term debt, $3.0 million of quantified interest-rate sensitivity, and two unremediated material weaknesses that left disclosure controls ineffective as of June 30, 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sharply
- Q2 revenue was $284.961 million, up from $206 million in 2026 Q1 and $185 million in 2025 Q2, representing sequential and year-over-year growth of approximately 38% and 54%, respectively.
- EPS rebounded materially
- Reported Q2 EPS was $0.47 versus $(0.01) in 2026 Q1 and $0.26 in 2025 Q2, an improvement of $0.48 sequentially and $0.21 year over year.
- Debt and SOFR exposure disclosed
- The company reported $736.7 million of total long-term debt at June 30, 2026, with most interest indexed to SOFR market rates.
- Interest-rate sensitivity quantified
- A hypothetical 10% change in the estimated weighted-average borrowing rate was estimated to affect annual earnings and cash flows by $3.0 million.
- Foreign-exchange impact increased
- Transaction gains and losses included in other expense were a $2.1 million loss in Q2 2026 versus a $1.4 million gain in Q2 2025, indicating increased foreign-exchange volatility.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Disclosure controls remain ineffective
- Disclosure controls and procedures were concluded to be not effective as of June 30, 2026 because of material weaknesses in internal control over financial reporting.
- Two material weaknesses unremediated
- The company identified 2 continuing material weaknesses: incomplete integration of Verantis into the control framework and inconsistent assessment of information used in balance-sheet reconciliations.
- Leverage creates rate sensitivity
- Total long-term debt was $736.7 million, and the filing estimates a $3.0 million annual earnings and cash-flow impact from a hypothetical 10% change in borrowing rates; most debt is indexed to SOFR.
- Currency movements became a headwind
- Q2 2026 transaction losses were $2.1 million compared with a $1.4 million transaction gain in Q2 2025, while six-month losses were $3.4 million versus a $0.9 million gain in the prior year.
- Remediation remains incomplete
- Management stated that the control weaknesses had not resulted in material misstatements in the interim or audited financial statements, but remediation requires controls to operate effectively for a sufficient period before they can be considered remediated.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.47
What they said about what is next.
The supplied 10-Q text does not include quantitative revenue or EPS guidance. Recent news reports raised guidance, but that information is not quantified in the filing excerpt.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 30, 2026
- CECO Environmental Corp. reported a revenue of $205.9 million for Q1 2026, reflecting a 16.5% increase year-over-year and surpassing market expectations. The company achieved a significant EPS of $0.36, driven by a…
- 10-K · March 2, 2026
- CECO describes a strategy of becoming a global leader in niche industrial air, industrial water and energy-transition applications through organic growth, aftermarket recurring revenue and acquisitions; the filing notes…
- 10-Q · July 29, 2025
- CECO reported a strong Q2 2025 with revenue of $185.4 million and diluted EPS of $0.26, surpassing estimates by approximately 3.6% and 26.3% respectively. The company achieved a noteworthy year-over-year revenue growth…
- 10-Q · April 29, 2025
- CECO reported Q1 net sales of $176,697,000, up $40,365,000 or 31.9% versus Q1 2024 ($126,332,000). Diluted EPS jumped to $0.98 from $0.04 a year ago, driven largely by a $64,502,000 gain on the sale of the Global Pump…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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