Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into the order pipeline momentum for 2025 and where you're seeing strength? A: The momentum seen in the third and fourth quarter orders continues to be strong, particularly in power generation markets and industrial infrastructure. As of mid-Q1 2025, the orders market remains vibrant, and we expect this trend to continue given the advanced stages of our pipeline discussions. - Todd Gleason, CEO
Q: How is the integration of Profire Energy progressing, and what growth opportunities do you see? A: The integration of Profire Energy is progressing well, with significant opportunities identified in energy markets and industrial sectors. The acquisition is the largest since I joined CECO, and we are optimistic about doubling its size in three years. The integration is efficient due to Profire's established processes. - Todd Gleason, CEO
Q: Can you discuss the visibility provided by the backlog entering 2025 and how it compares to past years? A: The backlog entering 2025 is 40% higher than the previous year, providing strong visibility and confidence in achieving a 30% top-line revenue projection. We have better visibility into shorter, mid, and longer cycle projects, which gives us confidence in our 2025 guidance. - Todd Gleason, CEO
Q: What are your expectations for margin progress in 2025, and how are you addressing potential tariff impacts? A: We expect gross margins to continue expanding, albeit at a moderated rate, with accelerated improvement at the EBITDA level due to functional productivity and scale benefits. Tariff impacts are uncertain, but we are prepared to be nimble and flexible in response. - Peter Johansson, CFO
Q: How are you managing the transition to larger, more complex projects in your backlog? A: We are improving our forecasting tools and processes, including consolidating businesses into a standard ERP and standardizing revenue recognition models. While we have experience with large projects, we are learning from past dynamics to better manage project-based revenue models. - Todd Gleason, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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