Slide 1: Q1 2025 Earnings Release
Q1 2025 Earnings Release April 29, 2025
Slide 2: Forward-looking statements and Non-GAAP information
Forward-looking statements and Non-GAAP information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management’s views and assumptions regarding future events and business performa
Slide 3: First Quarter Earnings: Key Take Aways
First Quarter Earnings: Key Take Aways Strong Start to 2025 With Multiple Financial Records Led By New Orders Up 57% YoY Sales Pipeline Remains Very Strong and Growing – Now Over $5B Key Growth Themes Intact – If Not Reinforced – By White House’s Stated Goals Price and Cost Actions Underway to Addre
Slide 4: Q1'25 Highlights: Strong Start to the Year While Managing Through Uncertainty
($MM) Q1’25 Highlights Metric Result Performance Demand in End Markets Continues to be Strong Backlog $602 Record • 2nd consecutive quarter with orders >$200M • Book-to-Bill ~ 1.3x … Even with Record Revenues Orders $228 Record Strong Revenue and EBITDA Mostly As Expected • Revenue Ramping Up With R
Slide 5: Well-Positioned Entering 2025 … And … Even Better Positioned Today
Well-Positioned Entering 2025 … And … Even Better Positioned Today Diverse Portfolio + Acquired Profire in Early Q1 = High Margin / Short Cycle ▪ Leadership Businesses With > $10B Installed Base ❖ Industrial Air + Divested Global Pump Solutions = Wasn’t Strategic Fit ❖ Industrial Water ❖ Energy Tran
Slide 6: Balanced Revenue Model With $5B+ Sales Pipeline
Balanced Revenue Model With $5B+ Sales Pipeline Mix of Revenue 1) Sales Pipeline 2) 30% Of Sales from Aftermarket, Services and Standard Product / Quick Shipment Sales > $5B ~ 40% of Sales Pipeline: • Opportunities to Replace / Upgrade ~ $10B+ Installed Base 25% Of Sales from Repeat, Standard or Lig
Slide 7: Tariff Environment – Current State and Mitigation Actions
Tariff Environment – Current State and Mitigation Actions ‒ Existing U.S. supply capacity addresses meaningful ‒ Continuing to develop new sources of U.S. capacity and U.S. Capacity portion of U.S. demand strengthen supply chain capabilities ‒ Selective insourcing to existing CECO facility ‒ Majorit
Slide 8: Tariff Outlook for the Remainder of 2025
Tariff Outlook for the Remainder of 2025 ($MM) * Estimated impacts as of April 28, 2025 Ongoing Mitigations Category Gross Impact * Headcount & Process Optimization ~ $3 Supply Chain Efficiencies $0 – 2 Other Actions $0 – 1 Materials $1 – 2 Pricing Pass Thru Cost TBD Total Actions Identified $3 – 6
Slide 9: Maintaining FY2025 Outlook … Managing Tariff / Inflation Situation
Maintaining FY2025 Outlook … Managing Tariff / Inflation Situation ($MM) Initial: Oct’24 Maintaining Guidance Assumptions Orders Orders B-2-B: 1.0 – 1.1x B-2-B: 1.0 – 1.1x • Maintaining Strong Outlook YoY midpoint 15%+ YoY midpoint 15%+ • Encouraging Start to Year and Past 3 quarters 700 – 750 700 –
Slide 10: Financial Review
Financial Review CECO 0
Slide 11: Q1'25 and TTM Financial Performance
Q1’25 and TTM Financial Performance TTM = Trailing 12 Month Q1’25 YoY Q1 TTM YoY Highlights Backlog $602M 55% $602M 55% • Record Backlog … Continued positive order trend trajectory; 9 out of 10 quarters of sequential growth • Record Orders … up ~ $10M / 4% sequentially and ~ $82M YoY Orders $228M 57
Slide 12: Record Backlog Trend Continues
($MM) Record Backlog Trend Continues B2B = Book to Bill * Starting Backlog – Revenue + Net Orders +/- FX + Acquired Backlog = Ending Backlog Company 700 Record 320 660 620 ~3x $602 280 580 $541 $228 540 $219 240 500 460 $438 $391 200 420 $371 $390 380 $162 $312 $154 $145 $141 $177 340 160 $159 300 2
Slide 13: Growing Gross Profit / Margin Improvements Sustained
($MM) Growing Gross Profit / Margin Improvements Sustained TTM = Trailing 12 Month TTM basis Company Record 220 .0 +67% $214 39. 0% $193 $196 $191 200 .0 $181 37. 0% 180 .0 $171 35.2% 35.2% 34.8% 160 .0 33.6% 35. 0% 32.4% 33. 0% 140 .0 $128 31.4% 120 .0 30.3% 31. 0% FY’22 FY’23 FY’24 100 .0 29. 0% Q
Slide 14: Cash Flow and Indebtedness Update
($MM) Cash Flow and Indebtedness Update Free Cash Flow Gross Debt Position YTD 2024 YTD 2025 YoY Dec 31, 2024 $216.9 Gaap Net Income Cash Used / (Generated) from Ops $12.2 (incl. NCI) $1.5 $36.0 $34.5 M&A + CapEx Investments $(4.8) D&A $3.5 $5.1 Bank Debt Repayments $27.6 Gain on Sale -- $(64.5) Oth
Slide 15: Additional Items, as of March 31, 2025
Additional Items, as of March 31, 2025 $MM Item Q1’25 Q1’24 Commentary Share buy-back $0.0 $0.0 $8 remaining on current authorization Share count (mio), diluted 36.7 36.2 Increased stock grants, Profire acquisition Cash balance1 $147 $47 Increased by Global Pump Solutions divestiture proceeds Total
Slide 16: Final Comments
Final Comments CECO «
Slide 17: Strong Start to 2025 and Well-Positioned For Higher Performance
Strong Start to 2025 and Well-Positioned For Higher Performance ▪ Back-to-Back Quarters with Record Orders Demonstrates Well-Positioned Portfolio In Growth Markets ▪ Investments to Achieve Higher Gross Margins Have Yielded Great Returns … Taking Actions to Streamline G&A Structure and Drive EBITDA M
Slide 18: Appendix
Appendix Non-GAAP Reconciliation Tables and Supplemental Materials
Slide 19: Revenue Excluding Acquisitions
Revenue Excluding Acquisitions (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Annual 2023 2024 2024 2024 2024 2024 2025 2025 TTM Revenue as reported in accordance with GAAP $ 544.9 $ 126.3 $ 137.5 $ 135.5 $ 158.6 $ 558.0 $ 176.7 $ 176.7 $ 608.3 Less revenue attributable to acquisitions (51.1) (1
Slide 20: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Annual 2023 2024 2024 2024 2024 2024 2025 2025 TTM Operating Income as reported in accordance with GAAP $ 34.7 $ 7.7 $ 9.3 $ 7.2 $ 11.3 $ 35.4 $ 61.9 $ 61.9 $ 89.6 Operating Margin in accordance with GAAP 6.4% 6.
Slide 21: Non-GAAP Net Income, Adjusted EBITDA, and Margin
Non-GAAP Net Income, Adjusted EBITDA, and Margin (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Annual 2023 2024 2024 2024 2024 2024 2025 2025 TTM Net Income as reported in accordance with GAAP $ 12.9 $ 1.5 $ 4.5 $ 2.1 $ 4.9 $ 13.0 $ 36.0 $ 36.0 $ 47.4 Acquisition and integration expense 2.5 0.2
Slide 22: Adjusted Free Cash Flow
Adjusted Free Cash Flow (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 2023 2024 2024 2024 2024 2024 2025 TTM Net Cash provided by (used in) operating activities $ 44.6 $ 1.2 $ 6.7 $ 15.1 $ 1.8 $ 24.8 $ (11.7) $ 11.9 Add: Earn-outs classified as operating - - - - - - - $ - Capital Expenditures (