CECO Environmental (NASDAQ:CECO) Shares Gap Down After Earnings Miss

CECO Environmental Corp. (NASDAQ:CECO) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $77.68, but opened at $73.50. CECO Environmental shares last traded at $65.1720, with a volume of 362,374 shares traded.

The company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.35). The business had revenue of $214.69 million during the quarter, compared to analyst estimates of $205.39 million. CECO Environmental had a net margin of 7.22% and a return on equity of 10.84%. CECO Environmental’s revenue for the quarter was up 35.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.27 EPS.

Trending Headlines about CECO Environmental

Here are the key news stories impacting CECO Environmental this week:

• Positive Sentiment: CECO announced a definitive combination with Thermon Group in a stock-and-cash transaction valued at about $2.2 billion that creates a larger industrial environmental + thermal solutions platform and would leave CECO shareholders with roughly 62.5% of the combined company. CECO Announces Strategic Combination with Thermon Group
• Positive Sentiment: Management raised FY‑2026 revenue guidance to $925–$975 million (well above consensus ~$835M) and reported strong Q4 metrics (orders > $1B, ~35% gross margin), which support higher medium‑term growth expectations (guidance excludes Thermon). CECO Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Thermon shares jumped ~15% on the deal announcement, signaling strong investor approval for Thermon’s valuation and strategic fit; that market action is informative but doesn’t directly resolve integration or financing risk for CECO. Thermon shares jump 15.5% on $2.2 billion Ceco Environmental merger
• Neutral Sentiment: The Q4 earnings call transcript provides management commentary and details on the business mix and integration rationale; investors will parse the call for guidance detail and integration assumptions. CECO Q4 2025 Earnings Call Transcript
• Negative Sentiment: CECO missed consensus on Q4 EPS (reported well below estimates) despite revenue beating expectations, raising concerns about near‑term profitability and possibly explaining selling pressure. CECO Q4 Earnings Miss Estimates
• Negative Sentiment: Multiple shareholder‑rights firms have opened investigations into the merger terms, signaling potential litigation or proxy‑season scrutiny that could create execution risk or transaction delays. Shareholder Investigation of CECO

Analysts Set New Price Targets

CECO has been the subject of a number of analyst reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of CECO Environmental in a research note on Wednesday, January 21st. Zacks Research raised shares of CECO Environmental from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. Needham & Company LLC increased their target price on shares of CECO Environmental from $70.00 to $75.00 and gave the stock a “buy” rating in a research report on Friday, January 16th. Finally, Northland Securities raised their target price on CECO Environmental from $60.00 to $73.00 and gave the company an “outperform” rating in a report on Wednesday, December 24th. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, CECO Environmental has an average rating of “Moderate Buy” and an average price target of $64.75.

Institutional Trading of CECO Environmental

Several hedge funds have recently added to or reduced their stakes in CECO. Royal Bank of Canada grew its holdings in CECO Environmental by 15.6% in the 1st quarter. Royal Bank of Canada now owns 14,661 shares of the company’s stock valued at $335,000 after buying an additional 1,982 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of CECO Environmental by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,442 shares of the company’s stock valued at $398,000 after acquiring an additional 790 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of CECO Environmental by 5.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,137 shares of the company’s stock worth $2,124,000 after acquiring an additional 5,000 shares during the last quarter. Jane Street Group LLC bought a new position in CECO Environmental during the first quarter worth $1,047,000. Finally, Envestnet Asset Management Inc. acquired a new position in CECO Environmental during the 2nd quarter valued at $306,000. Institutional investors own 68.08% of the company’s stock.

CECO Environmental Trading Down 22.8%

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.13 and a current ratio of 1.33. The company’s 50 day moving average is $67.08 and its 200 day moving average is $56.27. The stock has a market capitalization of $2.14 billion, a price-to-earnings ratio of 42.55 and a beta of 1.38.

CECO Environmental Company Profile

CECO Environmental Corp. (NASDAQ: CECO) is a global technology provider specializing in engineered solutions that help industrial and commercial customers manage air emissions, process fluids and optimize energy use. The company develops custom-engineered systems and modular packages designed to meet evolving environmental regulations and improve operational efficiency across diverse production processes.

CECO’s core offerings include air pollution control equipment—such as scrubbers, cyclones, fabric and cartridge filters—and industrial process filtration systems for applications ranging from particulate removal to oil-water separation.