Key Stats for CECO Environmental Stock
- Price Change: -22.76%
- Current Price: $60
- Street Target Price: $67.33
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
CECO Environmental (CECO) shares plunged 22.76% to close at $60.00 on February 24, 2026.
This severe price action followed the company’s fourth-quarter earnings call, where management announced a massive strategic acquisition valued at $2.2 billion.
The company entered into an agreement to acquire Thermon in a stock and cash transaction.
Thermon shareholders will receive $10 in cash and 0.684 shares of CECO common stock for each share they own.
This combination merges two Texas-based organizations into a diversified industrial platform covering environmental solutions and temperature management.
The market reaction indicates investors are heavily weighing the near-term dilution from the stock issuance against the long-term scale of the combined entity.
During the call, CEO Todd Gleason highlighted the strategic logic of the transaction.
Gleason stated verbatim: “This transaction will meaningfully extend CECO’s leadership in industrial, environmental, and thermal solutions by adding Thermon’s established position in the aforementioned process heating, heat tracing, and temperature management.”
The company also reported fourth-quarter financial results that demonstrated fundamental operational strength, contrary to concerns regarding margin compression.
Revenue reached $215 million, representing a 35% increase, while adjusted EBITDA grew 57% to $29.8 million.
CFO Peter Johansson addressed the profitability improvements directly.
Johansson stated verbatim: “In the quarter, we realized a rebound in margins from the third quarter, back above the 35% target level as strong short-cycle volumes and project execution and closeouts provided margin uplift.”
See analysts’ growth forecasts and price targets for CECO Environmental stock (It’s free!) >>>
Is CECO Environmental Undervalued Today?
The consensus Street Target Price is $67.33, representing a 12.2% potential return from current levels.
Wall Street analysts recognize that the Thermon acquisition creates a highly diversified industrial powerhouse.
By combining CECO’s long-cycle infrastructure projects with Thermon’s recurring short-cycle thermal management solutions, the new entity is projected to generate $1.5 billion in pro forma revenue and $40 million in annualized synergies.
CEO Todd Gleason detailed exactly why the combined scale justifies a premium valuation over time.
Gleason stated verbatim: “We expect to drive strong double-digit growth and margin enhancements through our productivity and 80/20 programs while achieving these synergies. So we believe the next few years will show an even more powerful value creation company.”
Valuation Deep Dive
The Wall Street consensus target identifies CECO as a growing industrial player positioned to benefit from the $40 million in annualized synergies projected from the Thermon deal.
- Target Price: $67.33
- Current Price: $60.00
- Potential Return: 12.2%
Scale and Diversification: The acquisition of Thermon shifts CECO’s revenue profile to a more balanced mix. Thermon generates approximately 85% of its sales from short-cycle operations, which offsets CECO’s exposure to long-cycle capital projects. The combined entity is projected to generate $1.5 billion in pro forma revenue and nearly $300 million in adjusted EBITDA.
Backlog and Pipeline Visibility: The core business continues to benefit from infrastructure investments in power generation and industrial water. CECO ended 2025 with a record backlog of $793 million, up 47% year-over-year. Management indicated their sales pipeline now exceeds $6.5 billion, providing significant visibility into 2026.
Conclusion: A strategic acquisition creating a scaled industrial solutions provider. CECO Environmental offers a projected 12.2% return to its $67.33 street target. The path to this valuation is supported by a record backlog, expanding profit margins, and the highly complementary integration of Thermon’s thermal management portfolio.
See what stocks billionaire investors are buying so you can follow the smart money with TIKR.
How Much Upside Does CECO Environmental Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
