What Happened?

Shares of environmental solutions provider jumped 14.7% in the morning session after the company reported decent fourth-quarter results, surpassing analysts' expectations for revenue, EPS, and EBITDA. Revenue grew 3% y/y, driven by record-high bookings and a 46% increase in backlog, signaling strong demand across its industrial and environmental businesses. On top of that, the company's full-year revenue and EBITDA guidance came in ahead of forecasts, adding to the positive momentum. Zooming out, we think this was a good quarter with some key areas of upside.

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What The Market Is Telling Us

CECO Environmental’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for CECO Environmental and indicate this news significantly impacted the market’s perception of the business.

CECO Environmental is down 23.4% since the beginning of the year, and at $24.05 per share, it is trading 30.3% below its 52-week high of $34.51 from December 2024. Investors who bought $1,000 worth of CECO Environmental’s shares 5 years ago would now be looking at an investment worth $3,156.

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