CECO Environmental reported second-quarter 2026 results that underscored the immediate impact of its Thermon acquisition. Non-GAAP diluted earnings per share of $0.47 came in well above the $0.20 consensus estimate cited in the earnings headline, while revenue rose 54% year over year to $285.0 million, also topping expectations.
The quarter marked the first full period as a combined company following the June 1, 2026 close of the Thermon deal. Orders surged 191% to $798.5 million, pushing backlog to $1.819 billion, up 164% from the year-earlier period. Gross profit climbed 29% to $86.5 million, though the reported gross margin compressed to 30.3% from the prior year. On a non-GAAP basis, gross profit rose 43% to $96.0 million with a 33.7% margin, reflecting purchase-accounting adjustments tied to the acquisition.
GAAP results showed a net loss of $34.8 million, or $(0.80) per diluted share, compared with net income of $9.5 million a year earlier. The swing was driven by transaction and integration costs associated with Thermon. Adjusted EBITDA increased 73% to $40.2 million. Free cash flow was negative $24.3 million, a $15.5 million decline year over year, but adjusted free cash flow improved by $56.2 million to $53.2 million after stripping out cash payments related to the Thermon transaction.