Latest news with #CECOEnvironmental
Yahoo
2 days ago
- Business
- Yahoo
2 Reasons to Like CECO and 1 to Stay Skeptical
CECO Environmental has been treading water for the past six months, recording a small return of 4% while holding steady at $30.66. Is now the time to buy CECO? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it's free. With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, CECO Environmental's sales grew at an excellent 12.6% compounded annual growth rate over the last five years. Its growth surpassed the average business services company and shows its offerings resonate with customers. Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes. CECO Environmental's adjusted operating margin rose by 10.8 percentage points over the last five years, as its sales growth gave it immense operating leverage. Its adjusted operating margin for the trailing 12 months was 14.7%. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. CECO Environmental's EPS grew at a weak 2.7% compounded annual growth rate over the last five years, lower than its 12.6% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. CECO Environmental's positive characteristics outweigh the negatives, but at $30.66 per share (or 23.3× forward P/E), is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
13-06-2025
- Business
- Yahoo
Q1 Earnings Outperformers: Vestis (NYSE:VSTS) And The Rest Of The Industrial & Environmental Services Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the industrial & environmental services industry, including Vestis (NYSE:VSTS) and its peers. Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems. The 8 industrial & environmental services stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3% while next quarter's revenue guidance was 1% above. Thankfully, share prices of the companies have been resilient as they are up 7.7% on average since the latest earnings results. Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada. Vestis reported revenues of $665.2 million, down 5.7% year on year. This print fell short of analysts' expectations by 4%. Overall, it was a softer quarter for the company with a significant miss of analysts' EPS estimates. 'We are disappointed with our second quarter results, which do not reflect the true potential of our business. As Interim CEO, I've been engaging with our teammates and focusing on our operations to drive immediate action,' said Phillip Holloman, Interim Executive Chairman, President and CEO. Vestis delivered the weakest performance against analyst estimates of the whole group. The stock is down 29.3% since reporting and currently trades at $6.16. Read our full report on Vestis here, it's free. With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. CECO Environmental reported revenues of $176.7 million, up 39.9% year on year, outperforming analysts' expectations by 17%. The business had a stunning quarter with a solid beat of analysts' EPS estimates and full-year revenue guidance beating analysts' expectations. CECO Environmental delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 44.5% since reporting. It currently trades at $27.75. Is now the time to buy CECO Environmental? Access our full analysis of the earnings results here, it's free. With roots dating back to 1909 as a window washing company, ABM Industries (NYSE:ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation. ABM reported revenues of $2.11 billion, up 4.6% year on year, exceeding analysts' expectations by 2.1%. It was a satisfactory quarter as it also posted an impressive beat of analysts' organic revenue estimates but a slight miss of analysts' full-year EPS guidance estimates. As expected, the stock is down 9.6% since the results and currently trades at $46.32. Read our full analysis of ABM's results here. With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. Tetra Tech reported revenues of $1.10 billion, up 4.9% year on year. This number surpassed analysts' expectations by 6.6%. It was a strong quarter as it also logged full-year revenue guidance exceeding analysts' expectations. Tetra Tech scored the highest full-year guidance raise among its peers. The stock is up 17.4% since reporting and currently trades at $36.24. Read our full, actionable report on Tetra Tech here, it's free. With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE:UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries. UniFirst reported revenues of $602.2 million, up 1.9% year on year. This print was in line with analysts' expectations. Overall, it was a strong quarter as it also produced a solid beat of analysts' full-year EPS guidance estimates and an impressive beat of analysts' EPS estimates. The stock is up 7.3% since reporting and currently trades at $187.54. Read our full, actionable report on UniFirst here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
Earnings To Watch: ABM (ABM) Reports Q1 Results Tomorrow
Facility services provider ABM Industries (NYSE:ABM) will be reporting results tomorrow before the bell. Here's what you need to know. ABM met analysts' revenue expectations last quarter, reporting revenues of $2.11 billion, up 2.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and organic revenue in line with analysts' estimates. Is ABM a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting ABM's revenue to grow 2.5% year on year to $2.07 billion, in line with the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ABM has missed Wall Street's revenue estimates twice over the last two years. Looking at ABM's peers in the industrial & environmental services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts' expectations by 17%, and Tetra Tech reported revenues up 4.9%, topping estimates by 6.6%. CECO Environmental traded up 23.9% following the results while Tetra Tech was also up 13%. Read our full analysis of CECO Environmental's results here and Tetra Tech's results here. There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 6.1% on average over the last month. ABM is up 5.7% during the same time and is heading into earnings with an average analyst price target of $56.80 (compared to the current share price of $52.71). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Q1 Industrial & Environmental Services Earnings: CECO Environmental (NASDAQ:CECO) Impresses
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how CECO Environmental (NASDAQ:CECO) and the rest of the industrial & environmental services stocks fared in Q1. Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems. The 7 industrial & environmental services stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3.1% while next quarter's revenue guidance was 1% above. Luckily, industrial & environmental services stocks have performed well with share prices up 12.4% on average since the latest earnings results. With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors. CECO Environmental reported revenues of $176.7 million, up 39.9% year on year. This print exceeded analysts' expectations by 17%. Overall, it was a stunning quarter for the company with an impressive beat of analysts' EPS estimates and full-year revenue guidance beating analysts' expectations. Todd Gleason, CECO's Chief Executive Officer commented, 'We started 2025 with outstanding first quarter record orders of $228 million, which helped drive new record levels of backlog and revenue for the company. This is a powerful statement on the strength of our well-positioned portfolio, which is closely aligned to key long-term growth themes of industrial manufacturing reshoring, electrification, power generation, natural gas infrastructure, and industrial water investments. This marks the second consecutive quarter with bookings greater than $200 million, which has enabled our backlog to exceed $600 million for the first time in Company history. With our order pursuit pipeline now over $5 billion, we remain highly confident in our continued growth outlook.' CECO Environmental achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 55.7% since reporting and currently trades at $29.90. We think CECO Environmental is a good business, but is it a buy today? Read our full report here, it's free. With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE:UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries. UniFirst reported revenues of $602.2 million, up 1.9% year on year, in line with analysts' expectations. The business had a strong quarter with an impressive beat of analysts' full-year EPS guidance estimates. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $188.95. Is now the time to buy UniFirst? Access our full analysis of the earnings results here, it's free. Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada. Vestis reported revenues of $665.2 million, down 5.7% year on year, falling short of analysts' expectations by 4%. It was a softer quarter as it posted a significant miss of analysts' EPS estimates. Vestis delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29.7% since the results and currently trades at $6.12. Read our full analysis of Vestis's results here. With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE:PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes. Pitney Bowes reported revenues of $493.4 million, down 40.6% year on year. This print came in 0.9% below analysts' expectations. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts' EPS estimates. Pitney Bowes had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 16.1% since reporting and currently trades at $10.40. Read our full, actionable report on Pitney Bowes here, it's free. With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. Tetra Tech reported revenues of $1.10 billion, up 4.9% year on year. This number beat analysts' expectations by 6.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts' EPS guidance for next quarter estimates and full-year revenue guidance exceeding analysts' expectations. Tetra Tech delivered the highest full-year guidance raise among its peers. The stock is up 17.8% since reporting and currently trades at $36.39. Read our full, actionable report on Tetra Tech here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
CECO Q1 Earnings Call: Bookings Surge, Power Pipeline Grows Amid Tariff Uncertainty
Environmental solutions provider CECO Environmental (NASDAQ:CECO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 39.9% year on year to $176.7 million. The company's full-year revenue guidance of $725 million at the midpoint came in 3.5% above analysts' estimates. Its non-GAAP profit of $0.10 per share was 12.2% above analysts' consensus estimates. Is now the time to buy CECO? Find out in our full research report (it's free). Revenue: $176.7 million vs analyst estimates of $151.1 million (39.9% year-on-year growth, 17% beat) Adjusted EPS: $0.10 vs analyst estimates of $0.09 (12.2% beat) Adjusted EBITDA: $14 million vs analyst estimates of $13.35 million (7.9% margin, 4.9% beat) The company reconfirmed its revenue guidance for the full year of $725 million at the midpoint EBITDA guidance for the full year is $95 million at the midpoint, above analyst estimates of $91.51 million Operating Margin: 35%, up from 6.1% in the same quarter last year Free Cash Flow was -$15.1 million compared to -$1.9 million in the same quarter last year Market Capitalization: $905.3 million CECO Environmental's first quarter performance was driven by record order bookings and continued expansion of its diversified sales pipeline. Management highlighted that bookings reached approximately $228 million, up 57% year over year, with the sales pipeline surpassing $5 billion for the first time. CEO Todd Gleason attributed these results to strong demand across industrial air, water, and energy transition markets, as well as the successful integration of recent acquisitions like Profire Energy. Gleason emphasized, 'The same themes that have been driving CECO's growth over the past year are only reinforced by the stated goals of the current administration.' Looking ahead, management reconfirmed full-year guidance, pointing to resilient end-market demand and a robust backlog. The leadership team acknowledged external risks, particularly from evolving tariffs and potential inflationary pressures, but outlined measures to mitigate these impacts, such as localized supply chains and contractual pass-through clauses. CFO Peter Johansson noted, 'We have taken early action to address our preliminary assessment of tariff-related inflation and costs,' reinforcing management's focus on operational flexibility and cost containment. CECO Environmental's management cited diversification, operational agility, and successful M&A as key themes influencing Q1 performance, while also addressing how the company is preparing for tariff-related challenges. Record Bookings Momentum: The company achieved its highest-ever quarterly bookings, driven by balanced demand across industrial air, water, and energy transition sectors. Management reported no evidence of order pull-forward due to tariffs, with robust pipelines in both North America and international markets. Acquisition Integration Progress: The Profire Energy acquisition contributed to first quarter growth and exceeded internal expectations for bookings and integration. Management noted that Profire achieved record bookings in Q1 and that cross-selling opportunities are emerging, especially in international oil and gas markets. Expanding International Presence: CECO's non-U.S. business is approaching half of total operations, with high-growth regions like India, Southeast Asia, and the Middle East demonstrating strong demand. Management described India as having a multi-decade growth opportunity, comparing its current trajectory to China's rapid expansion in earlier decades. Tariff Mitigation Strategies: Management detailed actions to offset tariff-related costs, including contract structures allowing for cost pass-through, localized supply chains, and targeted price increases. They estimate gross tariff exposure between $3 million and $10 million in 2025 but believe most impacts can be managed without significant margin erosion. Operational Investment: Additional technical and commercial resources were added to support the enlarged backlog and accelerated sales pipeline. This investment in talent and systems, especially IT infrastructure, is expected to enable continued execution and margin expansion as the business scales. Management remains focused on executing against a large, diversified backlog and navigating potential tariff and inflationary headwinds while maintaining operational efficiency and sales growth. Backlog Conversion and Project Mix: The $602 million backlog is expected to convert to revenue over the next 18 months, with a shift toward shorter-cycle projects and a steady flow of long-term, highly engineered solutions. Management believes this mix provides revenue stability and margin visibility. International Expansion: Growth in emerging markets, particularly India and the Middle East, is anticipated to become a larger revenue contributor. Management views international diversification as a buffer against localized economic uncertainty and policy shifts. Tariff and Supply Chain Risk Management: Ongoing tariff changes and supply chain inflation are cited as key risks. Management's mitigation plan involves contractual protections, localized sourcing, and proactive pricing actions, but acknowledges that unexpected inflation could still impact profitability. Rob Brown (Lake Street Capital): Asked about the power sector pipeline and timing of large project bookings. Management responded that over $1 billion in opportunities exist, with most revenue from these bookings expected in 2026 and 2027. Bobby Brooks (Northland Capital): Inquired if order strength was influenced by customers rushing orders ahead of tariffs. CEO Todd Gleason stated there was no evidence of pull-forward, attributing steady demand to broad sectoral strength. Aaron Spychalla (Craig-Hallum): Sought clarity on capital expenditure priorities. CFO Peter Johansson said IT infrastructure remains the largest investment, with limited need for new manufacturing assets after the recent divestiture. Gerry Sweeney (Roth Capital): Asked about the risk of indirect tariff impacts on margins later in the year. Management responded that while direct impacts are manageable, broader inflation and supply chain pass-through costs remain a concern. Sameer Joshi (H.C. Wainwright): Questioned the pace of future M&A activity. Management indicated a near-term focus on integrating recent acquisitions and reducing leverage, with new deals unlikely before the second half of the year. Looking forward, the StockStory team will be monitoring (1) the timing and size of power sector contract awards, which could drive step-change revenue growth, (2) the pace of backlog conversion and potential for a quarter with sales above $200 million, and (3) progress on integrating recent acquisitions—especially Profire Energy—along with the effectiveness of tariff mitigation strategies. Shifts in international project mix and any material changes in supply chain costs will also be critical signposts. CECO Environmental currently trades at a forward P/E ratio of 19.9×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
