CECOHIGH SIGNALOPPORTUNITY10-K

CECO announced a major cash and stock acquisition of Thermon Group Holdings through a two-step merger transaction.

This represents a transformative deal that will significantly expand CECO's scale and capabilities in industrial solutions. The acquisition shifts CECO's strategic focus from its previously announced portfolio management activities including the Profire acquisition and Fluid Handling divestiture to this larger consolidation play.

Comparing 2026-03-02 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

CECO delivered strong top-line growth with revenue expanding 39% and gross profit growing 37%, demonstrating solid operational momentum heading into the merger. However, operating cash flow declined substantially to $5.9M from $24.8M, while interest expense increased meaningfully to $20.9M, suggesting higher debt servicing costs likely related to acquisition financing. The balance sheet shows healthy growth across current assets and stockholders' equity, positioning the company well for the pending Thermon integration.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-76.4%
$24.8M→$5.9M

Operating cash flow fell 76.4% — earnings quality concerns; investigate working capital changes and non-cash items.

Interest Expense
P&L
+60.6%
$13.0M→$20.9M

Interest expense surged 60.6% — significant debt increase or rising rates materially impacting earnings.

Revenue
P&L
+38.8%
$557.9M→$774.4M

Strong top-line growth of 38.8% — accelerating demand or successful expansion into new markets.

Gross Profit
P&L
+37.3%
$196.1M→$269.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

SG&A Expense
P&L
+36.8%
$146.7M→$200.7M

SG&A up 36.8% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Capital Expenditure
Cash Flow
-34.7%
$17.4M→$11.3M

Capex reduced 34.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Stockholders Equity
Balance Sheet
+28.2%
$247.7M→$317.5M

Equity base grew 28.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Inventory
Balance Sheet
+26.7%
$42.6M→$54.0M

Inventory built 26.7% — monitor whether demand supports this build or if write-downs may follow.

Current Liabilities
Balance Sheet
+25%
$244.7M→$305.8M

Current liabilities rose 25% — increased short-term obligations, watch current ratio.

Current Assets
Balance Sheet
+23.9%
$331.0M→$410.2M

Current assets grew 23.9% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-02-25
ADDED
As of February 18, 2026 , the registrant had 35,665,813 shares of common stock, par value $0.01 per share, outstanding.
Agreement and Plan of Merger with Thermon Group Holdings, Inc.
On February 23, 2026, the Company entered into an Agreement and Plan of Merger (the Merger Agreement ) with Longhorn Merger Sub, Inc.
and Longhorn Merger Sub LLC, each a direct wholly owned subsidiary of the Company (together, the Merger Subs ), and Thermon Group Holdings, Inc.
( Thermon ), pursuant to which CECO will acquire Thermon in a cash and stock transaction.
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REMOVED
As of February 13, 2025 , the registrant had 34,989,986 shares of common stock, par value $0.01 per share, outstanding.
In 2024 and the first quarter of 2025, we disclosed multiple transactions that strategically align with the Company s portfolio management strategy and vision.
These transactions include the acquisition of Profire Energy ("Profire") and the intended divestiture of the Company s Fluid Handling business.
Profire, a former publicly traded company on the NASDAQ under ticker symbol PFIE, is a leading North American supplier of mission-critical combustion automation and control solution services.
Their core offering supports emissions reduction, safety objectives, and industry regulations.
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