Q2 2024 CECO Environmental Corp Earnings Call Transcript
Key Points
- CECO Environmental Corp (CECO) reported its highest second quarter sales, gross profit, and adjusted EBITDA, demonstrating strong financial performance.
- The company achieved a 6% increase in sales compared to the previous year, despite timing delays in customer-driven projects.
- Gross profit increased by 23% year-over-year, with gross margins improving by 500 basis points, reflecting operational excellence and strong project execution.
- Adjusted EBITDA rose by 18%, with margins expanding by 120 basis points due to higher volumes, positive mix, and G&A efficiencies.
- CECO Environmental Corp (CECO) raised its full-year guidance for both revenue and adjusted EBITDA, indicating confidence in continued growth and performance.
- Orders for the first half of 2024 were down 7% year-over-year, with a longer booking process for large customer opportunities impacting order volumes.
- The company experienced timing delays in revenue recognition due to customer-driven project delays, affecting sales performance.
- Despite a strong pipeline, large project bookings have been delayed, impacting the overall order intake for the first half of the year.
- Net debt increased by $10 million from year-end 2023, with leverage moving up slightly, indicating higher financial obligations.
- The company did not complete any acquisitions in the first half of 2024, potentially limiting growth opportunities through inorganic means.
Good morning and welcome to the CECO Environmental second quarter 2024 conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Steven Hooser, Investor Relations. Please go ahead.
Thank you, Gigi, and thank you for joining us for the CECO Environmental second quarter 2024 earnings call. On the call with me today is Todd Gleason, Chief Executive Officer; and Peter Johansson, Chief Financial and Strategy Officer.
Before we begin, I'd like to note that we have provided a slide presentation to help guide our discussion. The call will be webcast along with our earnings presentation, which is on our website at cecoenviro.com. The presentation materials can be accessed through the Investor Relations section of the website.
I'd also like to caution investors regarding forward-looking statements. Any statements made in today's presentation that are not based on historical fact are forward-looking statements. Such statements are based
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