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…
Earnings analysis · 10-Q
CECO earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.