CECO Environmental boosts 2026 targets following Thermon deal
CECO Environmental (NASDAQ:CECO) raised its full-year 2026 financial guidance, factoring in the initial operational contributions from its recently finalized acquisition of Thermon Group Holdings.
The updated forecast reflects seven months of combined operations following the formal closure of the transaction.
Texas-based CECO now projects its full-year revenue to land between $1.275 billion and $1.375 billion, representing an approximate 20% increase year-over-year at the midpoint of the range.
The industrial environmental solutions provider also lifted its profitability expectations for the current fiscal cycle.
Adjusted EBITDA is now projected to range from $195 million to $225 million, a baseline that marks an approximate 25% growth over the prior year's metrics at the midpoint.
Furthermore, the company established a clear capital efficiency target, expecting to convert at least 55% of its full-year adjusted EBITDA into free cash flow.
Corporate leadership indicated that the post-merger onboarding program has proceeded smoothly without creating operational disruptions.
CECO Chief Executive Officer Todd Gleason noted that initial integration phases are meeting internal schedules, allowing the combined entity to begin realizing early cost and commercial growth advantages.
Management reaffirmed its long-term objective of capturing $40 million or more in annualized cost synergies from the transaction.
The combination unites CECO’s legacy environmental systems—which target industrial air quality, emissions management, and water treatment markets—with Thermon’s global footprint in industrial process heating and temperature maintenance infrastructure.
