CECO Environmental (CECO) 10-Q7 Nov 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	CECO
Entity Registrant Name	CECO ENVIRONMENTAL CORP.
Entity Central Index Key	0000003197
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity File Number	0-07099
Entity Tax Identification Number	13-2566064
Entity Address, Address Line One	14651 North Dallas Parkway
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254
City Area Code	214
Local Phone Number	357-6181
Entity Common Stock, Shares Outstanding		34,270,494
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Document Transition Report	false
Document Quarterly Report	true
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 35,188	$ 29,902
Restricted cash	1,026	2,093
Accounts receivable, net	89,959	74,991
Costs and estimated earnings in excess of billings on uncompleted contracts	56,775	51,429
Inventories, net	24,740	17,052
Prepaid expenses and other current assets	14,140	10,760
Prepaid income taxes	866	2,784
Total current assets	222,694	189,011
Property, plant and equipment, net	20,260	15,948
Right-of-use assets from operating leases	12,049	10,893
Goodwill	182,365	161,183
Intangible assets – finite life, net	36,095	25,841
Intangible assets – indefinite life	9,346	9,629
Deferred income taxes	505	505
Deferred charges and other assets	2,915	3,187
Total assets	486,229	416,197
Current liabilities:
Total current liabilities	139,827	116,685
Current portion of debt	3,303	2,203
Accounts payable and accrued expenses	100,354	84,081
Billings in excess of costs and estimated earnings on uncompleted contracts	33,871	28,908
Notes Payable Current	500	0
Income taxes payable	1,799	1,493
Other liabilities	14,986	14,826
Debt, less current portion	107,034	61,577
Deferred income tax liability, net	9,809	8,390
Operating lease liabilities	9,153	8,762
Total liabilities	280,809	210,240
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $.01 par value; 10,000 shares authorized, none issued	0	0
Common stock, $.01 par value; 100,000,000 shares authorized, 34,329,751 and 35,028,197 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	343	350
Capital in excess of par value	249,248	252,989
Accumulated loss	(27,595)	(36,715)
Accumulated other comprehensive loss	(21,457)	(12,070)
Total CECO shareholders' equity	200,539	204,554
Non-controlling interest	4,881	1,403
Total shareholders' equity	205,420	205,957
Total liabilities and shareholders' equity	$ 486,229	$ 416,197

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	34,329,751	35,028,197
Common Stock, shares outstanding	34,329,751	35,028,197

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 108,414	$ 79,979	$ 306,225	$ 230,551
Cost of sales	75,988	57,254	215,696	158,164
Gross profit	32,426	22,725	90,529	72,387
Selling and administrative expenses	25,166	20,929	66,806	60,894
Amortization and earnout expenses	2,039	1,776	4,939	5,849
Restructuring expenses	0	397	73	655
Acquisition and integration expenses	1,287	219	3,827	357
Executive transition expenses	1,161	0	1,161	29
Income (loss) from operations	2,773	(596)	13,723	4,603
Other income (expense), net	1,276	185	2,754	(1,155)
Interest expense	(1,569)	(722)	(3,489)	(2,152)
Income (loss) before income taxes	2,480	(1,133)	12,988	1,296
Income tax expense	314	63	3,287	813
Net income (loss)	2,166	(1,196)	9,701	483
Non-controlling interest	223	53	579	259
Net income (loss) attributable to CECO Environmental Corp.	$ 1,943	$ (1,249)	$ 9,122	$ 224
Earnings (loss) per share:
Basic	$ 0.06	$ (0.04)	$ 0.26	$ 0.01
Diluted	$ 0.06	$ (0.04)	$ 0.26	$ 0.01
Weighted average number of common shares outstanding:
Basic	34,455,657	35,472,298	34,791,129	35,463,279
Diluted	34,871,313	35,472,298	35,035,041	35,729,887

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 2,166	$ (1,196)	$ 9,701	$ 483
Other comprehensive income (loss), net of tax:
Foreign currency translation (loss) gain	(5,890)	(250)	(9,387)	95
Comprehensive income	$ (3,724)	$ (1,446)	$ 314	$ 578

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Accumulated Loss [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2020	$ 203,611	$ 355	$ 255,296	$ (38,141)	$ (14,496)	$ (356)	$ 953
Beginning Balance, Shares at Dec. 31, 2020		35,505,000				(138,000)
Net income	1,298			1,181
Exercise of stock options	13		13
Exercise of stock options, Shares		2,000
Restricted stock units issued	(133)	$ (1)	(134)
Restricted stock units issued, Shares		40,000
Share based compensation earned	807		807
Share based compensation earned, Shares		21,000
Translation gain (loss)	55				55
Ending Balance at Mar. 31, 2021	205,651	$ 356	255,982	(36,960)	(14,441)	$ (356)	1,070
Ending Balance, Shares at Mar. 31, 2021		35,568,000				(138,000)
Beginning Balance at Dec. 31, 2020	203,611	$ 355	255,296	(38,141)	(14,496)	$ (356)	953
Beginning Balance, Shares at Dec. 31, 2020		35,505,000				(138,000)
Net income	483
Translation gain (loss)	95
Common stock repurchase and retirement (see Note 8)	$ (3,700)
Common stock repurchase and retirement (see Note 8), Shares	520,000
Ending Balance at Sep. 30, 2021	$ 202,527	$ 358	257,482	(37,916)	(14,401)	$ (4,101)	1,105
Ending Balance, Shares at Sep. 30, 2021		35,809				(659)
Beginning Balance at Mar. 31, 2021	205,651	$ 356	255,982	(36,960)	(14,441)	$ (356)	1,070
Beginning Balance, Shares at Mar. 31, 2021		35,568,000				(138,000)
Net income	382			293			89
Restricted stock units issued	(270)	$ (1)	(271)
Restricted stock units issued, Shares		181,000
Share based compensation earned	887		887
Translation gain (loss)	290				290
Noncontrolling interest distribution	(107)						(107)
Ending Balance at Jun. 30, 2021	206,833	$ 357	256,598	(36,667)	(14,151)	$ (356)	1,052
Ending Balance, Shares at Jun. 30, 2021		35,749,000				(138,000)
Net income	(1,196)			(1,249)			53
Restricted stock units issued	(110)	$ (1)	111
Restricted stock units issued, Shares		41
Share based compensation earned	995		995
Share based compensation earned, Shares		19
Translation gain (loss)	(250)				(250)
Noncontrolling interest distribution	(3,745)
Common stock repurchase and retirement (see Note 8)						$ (3,745)
Common stock repurchase and retirement (see Note 8), Shares						(521)
Ending Balance at Sep. 30, 2021	202,527	$ 358	257,482	(37,916)	(14,401)	$ (4,101)	1,105
Ending Balance, Shares at Sep. 30, 2021		35,809				(659)
Beginning Balance at Dec. 31, 2021	205,957	$ 350	252,989	(36,715)	(12,070)	$ 0	1,403
Beginning Balance, Shares at Dec. 31, 2021		35,028,000				0
Net income	2,810			2,792			18
Restricted stock units issued	(67)		(67)
Restricted stock units issued, Shares		34,000
Share based compensation earned	953		953
Share based compensation earned, Shares		14,000
Translation gain (loss)	(531)				(531)
Noncontrolling interest distribution	(900)						(900)
Fair value of noncontrolling interest equity (see Note 14)	5,000						5,000
Ending Balance at Mar. 31, 2022	213,222	$ 350	253,875	(33,923)	(12,601)	$ 0	5,521
Ending Balance, Shares at Mar. 31, 2022		35,076,000				0
Beginning Balance at Dec. 31, 2021	205,957	$ 350	252,989	(36,715)	(12,070)	$ 0	1,403
Beginning Balance, Shares at Dec. 31, 2021		35,028,000				0
Net income	9,701
Translation gain (loss)	(9,387)
Common stock repurchase and retirement (see Note 8)	$ (6,500)
Common stock repurchase and retirement (see Note 8), Shares	981,000
Ending Balance at Sep. 30, 2022	$ 205,420	$ 343	249,248	(27,595)	(21,457)		4,881
Ending Balance, Shares at Sep. 30, 2022		34,330
Beginning Balance at Mar. 31, 2022	213,222	$ 350	253,875	(33,923)	(12,601)	$ 0	5,521
Beginning Balance, Shares at Mar. 31, 2022		35,076,000				0
Net income	4,724			4,385			339
Restricted stock units issued	(209)	$ (2)	(211)
Restricted stock units issued, Shares		183,000
Share based compensation earned	915		915
Translation gain (loss)	(2,966)				(2,966)
Fair value of noncontrolling interest equity (see Note 14)	(901)						(901)
Common stock repurchase and retirement (see Note 8)	(4,324)	$ (7)	(4,317)
Common stock repurchase and retirement (see Note 8), Shares		(725,000)
Ending Balance at Jun. 30, 2022	210,461	$ 345	250,262	(29,538)	(15,567)	$ 0	4,959
Ending Balance, Shares at Jun. 30, 2022		34,534,000				0
Net income	2,166			1,943			223
Restricted stock units issued	(65)		65
Restricted stock units issued, Shares		32
Share based compensation earned	1,242		1,242
Share based compensation earned, Shares		20
Translation gain (loss)	(5,890)				(5,890)
Noncontrolling interest distribution	(301)						(301)
Common stock repurchase and retirement (see Note 8)	(2,193)	$ (2)	(2,191)
Common stock repurchase and retirement (see Note 8), Shares		(256)
Ending Balance at Sep. 30, 2022	$ 205,420	$ 343	$ 249,248	$ (27,595)	$ (21,457)		$ 4,881
Ending Balance, Shares at Sep. 30, 2022		34,330

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 9,701	$ 483
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	7,609	7,373
Unrealized foreign currency loss	2,525	1,531
Fair value adjustment to earnout liabilities		500
Earnout payments	(1,007)	(587)
Gain on sale of property and equipment	(7)	(67)
Debt discount amortization	279	304
Share-based compensation expense	2,859	2,466
Bad debt expense	823	456
Inventory reserve expense	115	428
Changes in operating assets and liabilities, net of divestitures:
Accounts receivable	(15,772)	(7,502)
Costs and estimated earnings in excess of billings on uncompleted contracts	(4,846)	(5,091)
Inventories	(4,620)	(2,172)
Prepaid expense and other current assets	(1,900)	3,448
Deferred charges and other assets	2,311	43
Accounts payable and accrued expenses	17,648	5,655
Billings in excess of costs and estimated earnings on uncompleted contracts	6,567	3,903
Income taxes payable	(51)	(23)
Other liabilities	(2,538)	(916)
Net cash provided by operating activities	19,696	10,232
Cash flows from investing activities:
Acquisitions of property and equipment	(2,367)	(1,740)
Net proceeds from sale of assets	7	533
Net cash paid for acquisition	(44,900)
Net cash used in investing activities	(47,260)	(1,207)
Cash flows from financing activities:
Borrowings on revolving credit lines	73,600	32,100
Repayments on revolving credit lines	(35,900)	(36,900)
Borrowings on long-term debt	11,000
Repayments of long-term debt	(2,294)	(2,188)
Deferred financing fees paid	(130)
Payments on finance leases and financing liability	(444)	(411)
Additional earnout payments		(823)
Proceeds from employee stock purchase plan and exercise of stock options	169	239
Noncontrolling interest distributions	(1,201)	(107)
Common stock repurchase	(6,558)	(3,745)
Net cash (used in) provided by financing activities	38,242	(11,835)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(6,459)	(535)
Net increase (decrease) in cash, cash equivalents and restricted cash	4,219	(3,345)
Cash, cash equivalents and restricted cash at beginning of period	31,995	37,811
Cash, cash equivalents and restricted cash at end of period	36,214	34,466
Cash paid (received) during the period for:
Interest	3,239	1,609
Income taxes	$ 3,566	$ (2,678)

Basis of Reporting for Consolid

Basis of Reporting for Consolidated Financial Statements	9 Months Ended
Basis of Reporting for Consolidated Financial Statements	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Reporting for Consolidated Financial Statements	1. Basis of Reporting for Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements of CECO Environmental Corp. and its subsidiaries (the “Company,” “CECO,” “we,” “us,” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2022 and the results of operations, cash flows and shareholders’ equity for the three months and nine months ended September 30, 2022 and 2021. The results of operations for the three months and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year. The balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on March 14, 2022 (the “Form 10-K”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements and accompanying notes should be read in conjunction with the audited financial statements and the notes thereto included in the Form 10-K. Unless otherwise indicated, all balances within tables are in thousands, except per share amounts. COVID-19 A novel strain of coronavirus (“COVID-19”) surfaced in late 2019 and has spread around the world, including to the United States. In March 2020, the World Health Organization characterized COVID-19 as a pandemic. As of September 30, 2022, the virus, including new emerging variants, continues to spread and has had a significant impact on worldwide economic activity, macroeconomic conditions, and the end markets of the Company's business. The outbreak and a continued spread of COVID-19 has resulted in a substantial curtailment of business activities worldwide and has caused weakened economic conditions, both in the United States and abroad. Although vaccines are available in various countries where the Company operates, it is possible the COVID-19 pandemic may continue to have a negative impact on the Company's ongoing operations and the end markets in which it serves. However, the full impact of the COVID-19 pandemic continues to evolve as of the date of this filing, and as such, it is uncertain as to the full magnitude or lasting impact that the pandemic will have on the Company’s financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the pandemic on its financial condition, liquidity, operations, suppliers, industry, and workforce.

New Financial Accounting Pronou

New Financial Accounting Pronouncements	9 Months Ended
New Financial Accounting Pronouncements	Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract]
New Financial Accounting Pronouncements	2. New Financial Accounting Pronouncements Accounting Standards Adopted in Fiscal 2022 None. Accounting Standards to be Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which addresses how an acquirer should recognize and measure revenue contracts acquired in a business combination. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position and/or results of operations.

Accounts Receivable

Accounts Receivable	9 Months Ended
Accounts Receivable	Sep. 30, 2022
Receivables [Abstract]
Accounts Receivable	3. Accounts Receivable Accounts receivable consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Contract receivables $ 70,580 $ 65,932 Trade receivables 23,384 12,537 Allowance for doubtful accounts ( 4,005 ) ( 3,478 ) Total accounts receivable $ 89,959 $ 74,991 Balances billed but not paid by customers under retainage provisions in contracts within the Condensed Consolidated Balance Sheets amounted to approximately $ 1.4 million and $ 1.8 million at September 30, 2022 and December 31, 2021, respectively. Retainage receivables on contracts in progress are generally collected within a year or two subsequent to contract completion, and are recorded in either accounts receivable, net or deferred charges and other assets within the Condensed Consolidated Balance Sheets depending on timing of expected collection. Bad debt expense was approximately $ 0.4 million for the three months ended September 30, 2022 and 2021, and $ 0.8 million and $ 0.5 million for the nine months ended September 30, 2022 and 2021, respectively.

Inventories

Inventories	9 Months Ended
Inventories	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Raw materials $ 18,125 $ 13,405 Work in process 6,925 5,147 Finished goods 2,508 674 Obsolescence allowance ( 2,818 ) ( 2,174 ) Total inventories $ 24,740 $ 17,052 Amounts credited to the allowance for obsolete inventory and charged to cost of sales amounted to zero and $ 0.2 million for the three months ended September 30, 2022 and 2021, respectively, and $ 0.1 million and $ 0.4 million for the nine months ended September 30, 2022 and 2021, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
Goodwill and Intangible Assets	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	5. Goodwill and Intangible Assets Goodwill activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: (in thousands) Nine months ended September 30, 2022 Year ended December 31, 2021 Goodwill / Tradename Goodwill Tradename Goodwill Tradename Beginning balance $ 161,183 $ 9,629 $ 161,820 $ 12,937 Acquisitions 24,383 — — — Transfers to finite life classification — — — ( 3,150 ) Foreign currency translation ( 3,201 ) ( 283 ) ( 637 ) ( 158 ) Ending balance $ 182,365 $ 9,346 $ 161,183 $ 9,629 Finite life intangible assets consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Intangible assets – finite life Cost Accum. Amort. Cost Accum. Amort. Technology $ 14,457 $ 14,702 $ 14,457 $ 13,704 Customer lists 88,043 57,091 73,199 53,970 Tradename 11,322 3,455 9,728 2,745 Foreign currency adjustments ( 3,620 ) ( 1,141 ) ( 2,149 ) ( 1,025 ) Total intangible assets – finite life $ 110,202 $ 74,107 $ 95,235 $ 69,394 Finite life intangible asset activity for the nine months ended September 30, 2022 and 2021 was as follows: Nine months ended September 30, (in thousands) 2022 2021 Intangible assets – finite life, net at beginning of period $ 25,841 $ 29,637 Amortization expense ( 4,939 ) ( 5,029 ) Transfers from indefinite life classification — 3,150 Acquisition 16,438 — Foreign currency adjustments ( 1,245 ) ( 100 ) Intangible assets – finite life, net at end of period $ 36,095 $ 27,658 Amortization expense of finite life intangible assets was $ 2.0 million and $ 1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $ 4.9 million and $ 5.0 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization over the next five years for finite life intangibles is expected to be $ 1.9 million for the remainder of 2022, $ 6.6 million in 2023, $ 5.9 million in 2024, $ 4.8 million in 2025, and $ 3.5 million in 2026. The Company completes an annual (or more often if circumstances require) goodwill and indefinite life intangible asset impairment assessment on October 1. As a part of its impairment assessment, the Company first qualitatively assesses whether current events or changes in circumstances lead to a determination that it is more likely than not (defined as a likelihood of more than 50 percent) that the fair value of a reporting unit or indefinite life intangible asset is less than its carrying amount. If there is a qualitative determination that the fair value is more likely than not greater than the carrying value, the Company does not need to quantitatively test for impairment. If this qualitative assessment indicates a more likely than not potential that the asset may be impaired, the estimated fair value is calculated. If the estimated fair value is less than carrying value, an impairment charge is recorded. As of September 30, 2022, the Company reviewed its previous forecasts and assumptions based on its current projections, which are subject to various risks and uncertainties, including projected revenue, projected operational profit, terminal growth rates, and the cost of capital. The Company did not identify any triggering events during the three month period ended September 30, 2022 that would require an interim impairment assessment of goodwill or intangible assets. The Company’s assumptions about future conditions important to its assessment of potential impairment of its goodwill and indefinite life intangible assets, including the impacts of the COVID-19 pandemic, are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will update its analysis accordingly.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
Accounts Payable and Accrued Expenses	Sep. 30, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	6. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Trade accounts payable, including amounts due to subcontractors $ 65,284 $ 56,242 Compensation and related benefits 8,745 6,065 Accrued warranty 3,921 3,074 Contract liabilities 5,367 4,405 Short-term lease liability 3,198 2,414 Other 13,839 11,881 Total accounts payable and accrued expenses $ 100,354 $ 84,081

Senior Debt

Senior Debt	9 Months Ended
Senior Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Senior Debt	7. Senior Debt Debt consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Outstanding borrowings under the Credit Facility (defined below). quarterly principal installments of $ 550 through September 2023, and $ 825 through September 2025 and $ 1,100 thereafter with balance due upon maturity in September 2026 - Term loan $ 41,859 $ 43,511 - Revolving credit loan 59,700 22,000 Total outstanding borrowing under the Credit Facility 101,559 65,511 Outstanding borrowing under the joint venture term debt 10,230 — Unamortized debt discount ( 1,452 ) ( 1,731 ) Total outstanding borrowings 110,337 63,780 Less: current portion ( 3,303 ) ( 2,203 ) Total debt, less current portion $ 107,034 $ 61,577 Scheduled principal payments under the Credit Facility and joint venture term debt are $ 0.8 million remaining in 202 2, $ 3.6 million in 2023, $ 4.9 million in 2024, $ 5.2 million in 2025, $ 93.5 million in 2026, and $ 3.9 million in 2027. Credit Facility As of September 30, 2022 and December 31, 2021, $ 19.4 million and $ 14.5 million of letters of credit were outstanding, respectively. Total unused credit availability under the Company’s senior secured term loan and senior secured revolver loan with sub-facilities for letters of credit, swing-line loans and senior secured multi-currency loans (the "Credit Facility") was $ 60.9 million and $ 45.9 million at September 30, 2022 and December 31, 2021, respectively. Revolving loans may be borrowed, repaid and reborrowed until December 17, 2026, at which time all outstanding balances of the Credit Facility must be repaid. At the Company’s option, revolving loans and the term loans accrue interest at a per annum rate based on either the highest of (a) the federal funds rate plus 0.5 %, (b) the Agent’s prime lending rate, (c) Daily Simple SOFR plus the Daily Simple SOFR Adjustment of 0.11448 % plus 1.0%, or (d) 1.0%, plus a margin ranging from 1.75 % to 2.75 % depending on the Company’s Consolidated Leverage Ratio (“Base Rate”), or (d) a one/three/six-month Term SOFR Rate (as defined in the Credit Facility) plus the Term SOFR Adjustment ranging from 0.11 % to 0.43 % p lus 1.75 % to 2.75 % depending on the Company’s Consolidated Leverage Ratio. Interest on swing line loans is the Base Rate. Interest on Base Rate loans is payable quarterly in arrears on the last day of each calendar quarter and at maturity. Interest on Term SOFR rate loans is payable on the last date of each applicable Interest Period (as defined in the agreement), but in no event less than once every three months and at maturity. The weighted average stated interest rate on outstanding borrowings was 5.44 % and 2.54 % at September 30, 2022 and December 31, 2021, respectively. Under the terms of the Credit Facility, the Company is required to maintain certain financial covenants, including the maintenance of a Consolidated Net Leverage Ratio (as defined in the Credit Facility). Through September 30, 2023, the maximum Consolidated Net Leverage Ratio is 3.75 , after which time it will decrease to 3.50 until the end of the term of the Credit Facility. As of September 30, 2022 and December 31, 2021, the Company was in compliance with all related financial and other restrictive covenants under the Credit Facility. Joint Venture Debt On March 7, 2022, the Company's Effox-Flextor-Mader, Inc. joint venture ("EFM JV") entered into a loan agreement secured by the assets of the EFM JV in the aggregate principal amount of $ 11.0 million for the acquisition of General Rubber, LLC ("GRC"), as further described in Note 14. As of September 30, 2022, $ 10.2 million was outstanding under the loan. Principal will be paid back to the lender monthly with the final installment due by February 27, 2027. Interest is accrued at the per annum rate based on EFM JV's choice of the 1/3/6 month Term SOFR rate plus 3.25%, with a floor rate of 3.75%. Interest is paid monthly on the last day of each month. The interest rate at September 30, 2022 was 6.60 %. As of September 30, 2022, the EFM JV was in compliance with all related financial and other restrictive covenants under this loan agreement. This loan balance does not impact the Company’s borrowing capacity or the financial covenants under the Credit Facility. Foreign Debt The Company has a number of bank guarantee facilities and bilateral lines of credit in various foreign countries currently supported by cash, letters of credit or pledged assets and collateral under the Credit Facility. The Credit Facility allows letters of credit and bank guarantee issuances of up to $ 65.0 million from the bilateral lines of credit secured by pledged assets and collateral under the Credit Facility. As of September 30, 2022, $ 21.5 million in bank guarantees were outstanding. In addition, a subsidiary of the Company located in the Netherlands has a Euro-denominated bank guarantee agreement secured by local assets under which $ 0.6 million in bank guarantees were outstanding as of September 30, 2022. Additionally, a subsidiary of the Company in China recently entered into a renminbi ("RMB") denominated bank guarantee agree ment secured primarily by local assets under which $ 0.7 million in bank guarantees were outstanding as of September 30, 2022. As of September 30, 2022, the borrowers of these facilities and agreements were in compliance with all related financial and other restrictive covenants.

Earnings per Share

Earnings per Share	9 Months Ended
Earnings per Share	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings per Share	8. Earnings per Share The computational components of basic and diluted earnings per share for the three months ended September 30, 2022 and 2021 are as follows: Three months ended September 30, (in thousands) 2022 2021 Numerator (for basic and diluted earnings per share) Net income (loss) attributable to CECO Environmental Corp. $ 1,943 $ ( 1,249 ) Denominator Basic weighted-average shares outstanding 34,456 35,472 Common stock equivalents arising from stock options and restricted stock awards 415 — Diluted weighted-average shares outstanding 34,871 35,472 The computational components of basic and diluted earnings per share for the nine months ended September 30, 2022 and 2021 are as follows: Nine months ended September 30, (in thousands) 2022 2021 Numerator (for basic and diluted earnings per share) Net income attributable to CECO Environmental Corp. $ 9,122 $ 224 Denominator Basic weighted-average shares outstanding 34,791 35,463 Common stock equivalents arising from stock options and restricted stock awards 244 267 Diluted weighted-average shares outstanding 35,035 35,730 Options and restricted stock units included in the computation of diluted earnings per share are calculated using the treasury stock method. For the three months ended September 30, 2022 and 2021, 1.2 million and zero , respectively, and during the nine months ended September 30, 2022 and 2021, 1.7 million and 1.8 million, respectively, of outstanding options and restricted stock units were excluded from the computation of diluted earnings per share due to their having an anti-dilutive effect. Once a restricted stock unit vests, it is included in the computation of weighted average shares outstanding for purposes of basic and diluted earnings per share. Common Stock Repurchase On May 10, 2022, the Company's Board of Directors authorized a share repurchase program under which the Company may purchase up to $ 20.0 million of its outstanding shares of common stock through April 30, 2025. The authorization permits the Company to repurchase shares in the open market, through accelerated share repurchases, block trades, Rule 10b5-1 trading plans or through privately negotiated transactions in accordance with applicable laws, rules and regulations. Through September 30, 2022, the Company has repurchased and retired approximately 981,000 shares of common stock at a cost of $ 6.5 million under the program. On August 3, 2021, the Company's Board of Directors authorized a share repurchase program under which the Company could purchase up to $ 5.0 million of its outstanding shares of common stock through December 31, 2021. The authorization permitted the Company to repurchase shares in the open market, through accelerated share repurchases, block trades, Rule 10b5-1 trading plans or through privately negotiated transactions in accordance with applicable laws, rules and regulations. Through September 30, 2021, the Company repurchased approximately 520,000 shares of common stock at a cost of $ 3.7 million under the program. The authorization under this program has expired.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
Share-Based Compensation	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	9. Share-Based Compensation The Company accounts for share-based compensation in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation – Stock Compensation,” which requires the Company to recognize compensation expense for share-based awards, measured at the fair value of the awards at the grant date. The Company recognized $ 1.1 million and $ 0.9 million of share-based compensation related expense during the three months ended September 30, 2022 and 2021, respectively, and $ 2.9 million and $ 2.4 million during the nine months ended September 30, 2022 and 2021, respectively. The Company granted approximately 68,000 and 5,000 restricted stock units during the three months ended September 30, 2022 and 2021, respectively, and approximately 755,000 and 465,000 restricted stock units during the nine months ended September 30, 2022 and 2021, respectively. There were zero and 2,000 options exercised during the nine months ended September 30, 2022 and 2021, respectively. The Company received zero and $ 13,000 in cash from employees and a non-employee director exercising options during the nine months ended September 30, 2022 and 2021, respectively. The intrinsic value of options exercised during the nine months ended September 30, 2022 and 2021 was zero a nd $ 3,000 , respectively.

Pension and Employee Benefit Pl

Pension and Employee Benefit Plans	9 Months Ended
Pension and Employee Benefit Plans	Sep. 30, 2022
Retirement Benefits [Abstract]
Pension and Employee Benefit Plans	10. Pension and Employee Benefit Plans The Company sponsors a non-contributory defined benefit pension plan for certain union employees. The plan is funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974. The Company presents the components of net periodic benefit cost (gain) within “Other income (expense), net” on the Condensed Consolidated Statements of Operations. Retirement plan expense is based on valuations performed by plan actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Pension plan: Interest cost $ 219 $ 194 $ 658 $ 582 Expected return on plan assets ( 390 ) ( 378 ) ( 1,170 ) ( 1,133 ) Amortization of net actuarial loss 66 103 197 308 Net periodic benefit gain $ ( 105 ) $ ( 81 ) $ ( 315 ) $ ( 243 ) The Company made no contributions to its defined benefit plan during the nine months ended September 30, 2022 and 2021. For the remainder of 2022, the Company does not expect to make any contributions to fund the pension plan. The unfunded liability of the plan of $ 5.3 million and $ 5.6 million as of September 30, 2022 and December 31, 2021, respectively, is included in “Other liabilities” on the Condensed Consolidated Balance Sheets.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The Company files income tax returns in various federal, state and local jurisdictions. Tax years from 2018 forward remain open for examination by Federal authorities. Tax years from 2016 forward remain open for all significant state and foreign authorities. The Company accounts for uncertain tax positions pursuant to ASC Topic 740, “Income Taxes.” As of September 30, 2022 and December 31, 2021, the liability for uncertain tax positions totaled approximately $ 0.1 million, which is included in “Other liabilities” on the Condensed Consolidated Balance Sheets. The Company recognizes accrued interest related to uncertain tax positions and penalties, if any, in income tax expense within the Condensed Consolidated Statements of Operations. Certain of the Company’s undistributed earnings of our foreign subsidiaries are not permanently reinvested. Since foreign earnings have already been subject to United States income tax in 2017 as a result of the 2017 Tax Cuts and Jobs Act, the Company intends to repatriate foreign-held cash as needed. The Company records deferred income tax attributable to foreign withholding taxes that would become payable should it decide to repatriate cash held in our foreign operations. As of September 30, 2022 and December 31, 2021, the Company recorded deferred income taxes of approximately $ 0.8 million and $ 1.1 million, respectively, on the undistributed earnings of its foreign subsidiaries. Income tax expense was $ 0.3 million for the three months ended September 30, 2022 and $ 3.3 million for the nine months ended September 30, 2022 compared with income tax expense of $ 0.1 million for the three months ended September 30, 2021 and $ 0.8 million for the nine months ended September 30, 2021. The effective income tax rate for the three months ended September 30, 2022 was 12.7 % compared with ( 5.6 %) for the three months ended September 30, 2021. The effective income tax rate for the nine months ended September 30, 2022 was 25.3 % compared with 62.7 % for the nine months ended September 30, 2021. The effective income tax rates for the three and nine months ended September 30, 2022 differ from the United States federal statutory rate. The Company's effective rate is affected by certain other permanent differences, including state income taxes, non-deductible incentive stock-based compensation and differences in tax rates among jurisdictions in which it operates.

Financial Instruments

Financial Instruments	9 Months Ended
Financial Instruments	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Financial Instruments	12. Financial Instruments The Company's financial instruments consist primarily of investments in cash and cash equivalents, receivables and certain other assets, foreign debt and accounts payable, which approximate fair value at September 30, 2022 and December 31, 2021, due to their short-term nature or variable, market-driven interest rates. The fair value of the debt issued under the Credit Facility and joint venture term loan was $ 111.8 million and $ 65.5 million at September 30, 2022 and December 31, 2021, respectively. The fair value was determined considering market conditions, the Company's credit worthiness and the current terms of our debt, which is considered Level 2 on the fair value hierarchy. At September 30, 2022 and December 31, 2021, the Company had cash and cash equivalents of $ 35.2 million and $ 29.9 million, respectively, of which $ 24.2 million and $ 22.6 million, respectively, was held outside of the United States, principally in the Netherlands, United Kingdom, China, and Canada.

Commitments and Contingencies -

Commitments and Contingencies - Legal Matters	9 Months Ended
Commitments and Contingencies - Legal Matters	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies - Legal Matters	13. Commitments and Contingencies Asbestos cases The Company's subsidiary, Met-Pro Technologies LLC (“Met-Pro”), beginning in 2002, has been named in asbestos-related lawsuits filed against a large number of industrial companies including, in particular, those in the pump and fluid handling industries. In management’s opinion, the complaints typically have been vague, general and speculative, alleging that Met-Pro, along with the numerous other defendants, sold unidentified asbestos-containing products and engaged in other related actions which caused injuries (including death) and loss to the plaintiffs. Counsel has advised that more recent cases typically allege more serious claims of mesothelioma. The Company’s insurers have hired attorneys who, together with the Company, are vigorously defending these cases. Many cases have been dismissed after the plaintiff fails to produce evidence of exposure to Met-Pro’s products. In those cases, where evidence has been produced, the Company’s experience has been that the exposure levels are low and the Company’s position has been that its products were not a cause of death, injury or loss. The Company has been dismissed from or settled a large number of these cases. Cumulative settlement payments from 2002 through September 30, 2022 for cases involving asbestos-related claims were $ 5.9 million, of which, together with all legal fees other than corporate counsel expenses, $ 5.8 million has been paid by the Company’s insurers. The average cost per settled claim, excluding legal fees, was approximately $ 43,000 . Based upon the most recent information available to the Company regarding such claims, there were a total of 259 cases pending against the Company as of September 30, 2022 (with Illinois, New York, Pennsylvania and West Virginia having the largest number of cases), as compared with 223 cases that were pending as of December 31, 2021. During the nine months ended September 30, 2022, 108 new cases were filed against the Company, and the Company was dismissed from 51 cases and settled 21 cases. Most of the pending cases have not advanced beyond the early stages of discovery, although a number of cases are on schedules leading to or scheduled for trial. The Company believes that its insurance coverage is adequate for the cases currently pending against the Company and for the foreseeable future, assuming a continuation of the current volume, nature of cases and settlement amounts. However, the Company has no control over the number and nature of cases that are filed against it, nor as to the financial health of its insurers or their position as to coverage. The Company also presently believes that none of the pending cases will have a material adverse impact upon the Company’s results of operations, liquidity or financial condition. Other The Company is also a party to routine contract and employment-related litigation matters, warranty claims and routine audits of state and local tax returns arising in the ordinary course of its business. The final outcome and impact of open matters, and related claims and investigations that may be brought in the future, are subject to many variables, and cannot be predicted. In accordance with ASC 450, “Contingencies,” and related guidance, the Company records accruals for estimated losses relating to claims and lawsuits when available information indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. The Company expenses legal costs as they are incurred. The Company is not aware of any pending claims or assessments, other than as described above, which may have a material adverse impact on its liquidity, financial position, results of operations, or cash flows.

Acquisitions and Joint Ventures

Acquisitions and Joint Ventures	9 Months Ended
Acquisitions and Joint Ventures	Sep. 30, 2022
Business Combinations [Abstract]
Acquisitions and Joint Ventures	14. Acquisitions and Joint Ventures General Rubber LLC On March 7, 2022, the Company, through the EFM JV, acquired 100 % of the equity interests of General Rubber LLC ("GRC") for $ 19.7 million in cash, which was financed with a combination of a draw on the Company's revolving credit facility and issuance of term debt by the EFM JV (see Note 7). As additional consideration, the former owners of GRC were issued 10 % of the equity interest in the EFM JV, resulting in the Company holding 63 % of the equity in the joint venture. The fair value ascribed to the equity interest of the former owners of GRC was approximately $ 4.1 million. During the nine months ended September 30, 2022, the Company recorded an adjustment of $ 0.9 million to the fair value of the equity interest, as reflected in the Condensed Consolidated Statement of Shareholders' Equity. As of September 30, 2022, there were $ 13.7 million in current assets, $ 28.1 million in long-lived assets, and $ 30.5 mill ion in total liabilities related to the EFM JV included in the Condensed Consolidated Balance Sheets. GRC engineers and manufactures non-metallic expansion joints and flow control products including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves, serving the industrial water and wastewater markets. The acquisition diversifies and expands the EFM JV product offerings within the Engineered Systems segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 137 ) $ 4,963 Property and equipment 459 Goodwill 11,120 Intangible - finite life 8,380 Total assets acquired 24,922 Current liabilities assumed ( 714 ) Deferred income tax liability ( 388 ) Net assets acquired $ 23,820 During the three and nine months ended September 30, 2022, GRC accounted for $ 3.9 million and $ 8.3 million in revenue, respectively, and $ 0.7 million and $ 1.5 million, respectively, of net income included in the Company’s results. Compass Water Solutions, Inc. On May 3, 2022, the Company acquired 100 % of the equity interests of Compass Water Solutions, Inc. ("Compass") for $ 9.0 million in cash, which was financed with a draw on the Company’s revolving credit facility, and $ 2.0 million in notes payable to the former owners over two years. As additional consideration, the former owners are entitled to earn-out payments based upon a multiple of specified financial results through April 30, 2023. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $ 1.4 million. As of September 30, 2022, the earnout liability recorded in “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets is $ 1.4 million. Compass is a leading global supplier of membrane-based industrial water and wastewater treatment systems that help customers achieve regulatory compliance of water discharge at the lowest lifecycle cost. The acquisition diversifies and expands the Company's industrial water product offerings within our Engineered Systems segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 334 ) $ 4,796 Property and equipment 101 Goodwill 4,848 Intangible - finite life 4,900 Total assets acquired 14,645 Current liabilities assumed ( 623 ) Deferred income tax liability ( 1,627 ) Net assets acquired $ 12,395 During the three and nine months ended September 30, 2022, Compass accounted for $ 1.5 million and $ 2.3 million in revenue, respectively, and $ 0.1 million and $ 0.2 million, respectively, of net loss included in the Company’s results. Western Air Ducts Ltd. On June 22, 2022, the Company acquired 100 % of the equity interests of Western Air Ducts Limited for $ 10.7 million in cash, which was financed with a draw on the Company’s revolving credit facility, and deferred cash consideration of $ 0.8 million payable in one year. The deferred consideration is recorded in “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets. Western Air Ducts is a leading European supplier of dust and fume extraction solutions, providing consultation, design, manufacturing, installation, and service. The acquisition diversifies and expands the Company's industrial air product offerings within the Industrial Process Solutions segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 1,557 ) $ 2,711 Property and equipment 188 Goodwill 7,344 Intangible - finite life 3,158 Total assets acquired 13,401 Current liabilities assumed ( 1,127 ) Deferred income tax liability ( 824 ) Net assets acquired $ 11,450 During the three and nine months ended September 30, 2022, Western Air Ducts accounted for $ 0.7 million in revenue and $ 0.2 million of net loss included in the Company's results. DS21 Co., Ltd. On September 19, 2022, the Company acquired 100 % of the equity interests of DS21 Co., Ltd. ("DS21") for $ 9.2 million, including 8.9 million in cash, which was financed with a draw on the Company’s revolving credit facility, and deferred cash consideration of $ 0.3 million payable in one year. DS21 is a South Korean-based design and manufacturing firm specializing in innovative water and wastewater treatment solutions. The addition of DS21 advances the Company's leadership position in niche oily water and produced water treatment, demineralization water treatment and ultra-pure water supply applications within the Company's Engineered Systems segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 1,453 ) $ 5,099 Property and equipment 4,020 Goodwill 1,071 Other assets 169 Total assets acquired 10,359 Current liabilities assumed ( 1,008 ) Other liabilities ( 113 ) Net assets acquired $ 9,238 The approximate fair values of the assets acquired and liabilities assumed related to the acquisitions are based on preliminary estimates and assumptions. These preliminary estimates and assumptions could change significantly during the purchase price measurement period as the Company finalizes the valuation of assets acquired and liabilities assumed. These changes could result in material variances between the Company's future financial results, including variances in the estimated purchase price, fair values recorded and expenses associated with these items. Goodwill recognized represents value the Company expects to be created by combining the various operations of the acquired businesses with the Company’s operations, including the expansion into markets within existing business segments, access to new customers and potential cost savings and synergies. Goodwill related to these acquisitions is not deductible for tax purposes. Acquisition and integration expenses on the Condensed Consolidated Statements of Operations are related to acquisition activities, which include retention, legal, accounting, banking, and other expenses. The following unaudited pro forma financial information represents the Company’s results of operations as if the GRC, Compass, Western Air Ducts, and DS21 acquisitions had occurred on January 1, 2021: Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2022 2021 2022 2021 Net sales $ 110,139 $ 86,945 $ 318,814 $ 256,072 Net income (loss) attributable to CECO Environmental Corp. 1,985 ( 319 ) 9,767 2,660 Earnings per share: Basic $ 0.06 $ ( 0.01 ) $ 0.28 $ 0.08 Diluted $ 0.06 $ ( 0.01 ) $ 0.28 $ 0.07 The pro forma results have been prepared for informational purposes only and include adjustments to amortize acquired intangible assets with finite life, reflect additional interest expense on debt used to fund the acquisition, and to record the income tax consequences of the pro forma adjustments. These pro forma results do not purport to be indicative of the results of operations that would have occurred had the purchase been made as of the beginning of the periods presented or of the results of operations that may occur in the future.

Business Segment Information

Business Segment Information	9 Months Ended
Business Segment Information	Sep. 30, 2022
Segment Reporting [Abstract]
Business Segment Information	15. Business Segment Information The Company’s operations are organized and reviewed by management along with its solutions or end markets that the segment serves and presented in two reportable segments. The results of the segments are reviewed through the “Income from operations” line on the Condensed Consolidated Statements of Operations . The Company’s reportable segments are organized as groups of similar products and services, as described as follows: Engineered Systems segment: The Engineered Systems segment serves the general industrial, power generation, refinery, water/wastewater, midstream oil & gas, and other energy transition markets. The Company is a key part of helping meet the global demand for environmental and equipment protection through our highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation & filtration (gas & water), and dampers & expansion joints. Industrial Process Solutions segment: The Industrial Process Solutions segment serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. The Company protects the air we collectively breathe, maintains clean and safe operations for employees, lowers energy consumption, minimizes waste for customers, and ensures they meet regulatory compliance standards for toxic emissions, fumes, volatile organic compounds and odors through our platforms including duct & installation, industrial air, and fluid handling. The financial segment information is as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Net sales (less intra-, inter-segment sales) Engineered Systems segment $ 65,630 $ 44,779 $ 189,938 $ 130,196 Industrial Process Solutions segment 42,784 35,200 116,287 100,355 Total net sales $ 108,414 $ 79,979 $ 306,225 $ 230,551 Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Income (loss) from operations Engineered Systems segment $ 8,991 $ 4,301 $ 24,467 $ 16,105 Industrial Process Solutions segment 5,226 2,669 14,847 10,932 Corporate and Other (1) ( 11,444 ) ( 7,566 ) ( 25,591 ) ( 22,434 ) Total income (loss) from operations $ 2,773 $ ( 596 ) $ 13,723 $ 4,603 (1) Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses. Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Property and equipment additions Engineered Systems segment $ 96 $ 15 $ 128 $ 79 Industrial Process Solutions segment 330 241 743 603 Corporate and Other 508 487 1,496 1,058 Total property and equipment additions $ 934 $ 743 $ 2,367 $ 1,740 Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Depreciation and amortization Engineered Systems segment $ 1,398 $ 1,061 $ 3,253 $ 3,198 Industrial Process Solutions segment 1,153 1,070 3,212 3,212 Corporate and Other 390 336 1,144 963 Total depreciation and amortization $ 2,941 $ 2,467 $ 7,609 $ 7,373 (in thousands) September 30, 2022 December 31, 2021 Identifiable assets Engineered Systems segment $ 320,261 $ 262,558 Industrial Process Solutions segment 149,311 141,975 Corporate and Other (2) 16,657 11,664 Total identifiable assets $ 486,229 $ 416,197 (2) Corporate and Other assets consist primarily of cash and income tax related assets. (in thousands) September 30, 2022 December 31, 2021 Goodwill Engineered Systems segment $ 115,282 $ 99,303 Industrial Process Solutions segment 67,083 61,880 Total goodwill $ 182,365 $ 161,183 Intra-segment and Inter-segment Revenues The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales), as follows: Three months ended September 30, 2022 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 68,738 $ ( 2,904 ) $ ( 204 ) $ — $ 65,630 Industrial Process Solutions segment 44,079 ( 1,126 ) — ( 169 ) 42,784 Total net sales $ 112,817 $ ( 4,030 ) $ ( 204 ) $ ( 169 ) $ 108,414 Three months ended September 30, 2021 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 45,559 $ ( 472 ) $ ( 308 ) $ — $ 44,779 Industrial Process Solutions segment 35,525 ( 308 ) — ( 17 ) 35,200 Total net sales $ 81,084 $ ( 780 ) $ ( 308 ) $ ( 17 ) $ 79,979 Nine months ended September 30, 2022 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 201,092 $ ( 10,693 ) $ ( 461 ) $ — $ 189,938 Industrial Process Solutions segment 121,122 ( 4,468 ) — ( 367 ) 116,287 Total net sales $ 322,214 $ ( 15,161 ) $ ( 461 ) $ ( 367 ) $ 306,225 Nine months ended September 30, 2021 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 137,104 $ ( 6,359 ) $ ( 549 ) $ — $ 130,196 Industrial Process Solutions segment 109,703 ( 8,363 ) — ( 985 ) 100,355 Total net sales $ 246,807 $ ( 14,722 ) $ ( 549 ) $ ( 985 ) $ 230,551

New Financial Accounting Pron_2

New Financial Accounting Pronouncements (Policies)	9 Months Ended
New Financial Accounting Pronouncements (Policies)	Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Accounting Standards Adopted in Fiscal 2022	Accounting Standards Adopted in Fiscal 2022 None.
Accounting Standards to be Adopted	Accounting Standards to be Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which addresses how an acquirer should recognize and measure revenue contracts acquired in a business combination. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position and/or results of operations.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
Accounts Receivable (Tables)	Sep. 30, 2022
Receivables [Abstract]
Summary of Accounts Receivable	Accounts receivable consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Contract receivables $ 70,580 $ 65,932 Trade receivables 23,384 12,537 Allowance for doubtful accounts ( 4,005 ) ( 3,478 ) Total accounts receivable $ 89,959 $ 74,991

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Sep. 30, 2022
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Raw materials $ 18,125 $ 13,405 Work in process 6,925 5,147 Finished goods 2,508 674 Obsolescence allowance ( 2,818 ) ( 2,174 ) Total inventories $ 24,740 $ 17,052

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
Goodwill and Intangible Assets (Tables)	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill / Tradename	Goodwill activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: (in thousands) Nine months ended September 30, 2022 Year ended December 31, 2021 Goodwill / Tradename Goodwill Tradename Goodwill Tradename Beginning balance $ 161,183 $ 9,629 $ 161,820 $ 12,937 Acquisitions 24,383 — — — Transfers to finite life classification — — — ( 3,150 ) Foreign currency translation ( 3,201 ) ( 283 ) ( 637 ) ( 158 ) Ending balance $ 182,365 $ 9,346 $ 161,183 $ 9,629
Intangible Assets - Finite Life	Finite life intangible assets consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Intangible assets – finite life Cost Accum. Amort. Cost Accum. Amort. Technology $ 14,457 $ 14,702 $ 14,457 $ 13,704 Customer lists 88,043 57,091 73,199 53,970 Tradename 11,322 3,455 9,728 2,745 Foreign currency adjustments ( 3,620 ) ( 1,141 ) ( 2,149 ) ( 1,025 ) Total intangible assets – finite life $ 110,202 $ 74,107 $ 95,235 $ 69,394
Summary of Finite Lived Intangible Assets Activities	Finite life intangible asset activity for the nine months ended September 30, 2022 and 2021 was as follows: Nine months ended September 30, (in thousands) 2022 2021 Intangible assets – finite life, net at beginning of period $ 25,841 $ 29,637 Amortization expense ( 4,939 ) ( 5,029 ) Transfers from indefinite life classification — 3,150 Acquisition 16,438 — Foreign currency adjustments ( 1,245 ) ( 100 ) Intangible assets – finite life, net at end of period $ 36,095 $ 27,658

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
Accounts Payable and Accrued Expenses (Tables)	Sep. 30, 2022
Payables and Accruals [Abstract]
Summary of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Trade accounts payable, including amounts due to subcontractors $ 65,284 $ 56,242 Compensation and related benefits 8,745 6,065 Accrued warranty 3,921 3,074 Contract liabilities 5,367 4,405 Short-term lease liability 3,198 2,414 Other 13,839 11,881 Total accounts payable and accrued expenses $ 100,354 $ 84,081

Senior Debt (Tables)

Senior Debt (Tables)	9 Months Ended
Senior Debt (Tables)	Sep. 30, 2022
Debt Disclosure [Abstract]
Summary of Debt	Debt consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Outstanding borrowings under the Credit Facility (defined below). quarterly principal installments of $ 550 through September 2023, and $ 825 through September 2025 and $ 1,100 thereafter with balance due upon maturity in September 2026 - Term loan $ 41,859 $ 43,511 - Revolving credit loan 59,700 22,000 Total outstanding borrowing under the Credit Facility 101,559 65,511 Outstanding borrowing under the joint venture term debt 10,230 — Unamortized debt discount ( 1,452 ) ( 1,731 ) Total outstanding borrowings 110,337 63,780 Less: current portion ( 3,303 ) ( 2,203 ) Total debt, less current portion $ 107,034 $ 61,577

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
Earnings per Share (Tables)	Sep. 30, 2022
Earnings Per Share [Abstract]
Number of Shares Outstanding for Calculation of Earnings Per Share	The computational components of basic and diluted earnings per share for the three months ended September 30, 2022 and 2021 are as follows: Three months ended September 30, (in thousands) 2022 2021 Numerator (for basic and diluted earnings per share) Net income (loss) attributable to CECO Environmental Corp. $ 1,943 $ ( 1,249 ) Denominator Basic weighted-average shares outstanding 34,456 35,472 Common stock equivalents arising from stock options and restricted stock awards 415 — Diluted weighted-average shares outstanding 34,871 35,472 The computational components of basic and diluted earnings per share for the nine months ended September 30, 2022 and 2021 are as follows: Nine months ended September 30, (in thousands) 2022 2021 Numerator (for basic and diluted earnings per share) Net income attributable to CECO Environmental Corp. $ 9,122 $ 224 Denominator Basic weighted-average shares outstanding 34,791 35,463 Common stock equivalents arising from stock options and restricted stock awards 244 267 Diluted weighted-average shares outstanding 35,035 35,730

Pension and Employee Benefit _2

Pension and Employee Benefit Plans (Tables)	9 Months Ended
Pension and Employee Benefit Plans (Tables)	Sep. 30, 2022
Retirement Benefits [Abstract]
Components of Pension and Employee Benefit Expenses	Retirement plan expense is based on valuations performed by plan actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Pension plan: Interest cost $ 219 $ 194 $ 658 $ 582 Expected return on plan assets ( 390 ) ( 378 ) ( 1,170 ) ( 1,133 ) Amortization of net actuarial loss 66 103 197 308 Net periodic benefit gain $ ( 105 ) $ ( 81 ) $ ( 315 ) $ ( 243 )

Acquisitions and Joint Ventur_2

Acquisitions and Joint Ventures (Tables)	9 Months Ended
Acquisitions and Joint Ventures (Tables)	Sep. 30, 2022
Schedule of Unaudited Pro Forma Financial Information	The following unaudited pro forma financial information represents the Company’s results of operations as if the GRC, Compass, Western Air Ducts, and DS21 acquisitions had occurred on January 1, 2021: Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2022 2021 2022 2021 Net sales $ 110,139 $ 86,945 $ 318,814 $ 256,072 Net income (loss) attributable to CECO Environmental Corp. 1,985 ( 319 ) 9,767 2,660 Earnings per share: Basic $ 0.06 $ ( 0.01 ) $ 0.28 $ 0.08 Diluted $ 0.06 $ ( 0.01 ) $ 0.28 $ 0.07
General Rubber LLC [Member]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 137 ) $ 4,963 Property and equipment 459 Goodwill 11,120 Intangible - finite life 8,380 Total assets acquired 24,922 Current liabilities assumed ( 714 ) Deferred income tax liability ( 388 ) Net assets acquired $ 23,820
Compass Water Solutions, Inc [Member]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 334 ) $ 4,796 Property and equipment 101 Goodwill 4,848 Intangible - finite life 4,900 Total assets acquired 14,645 Current liabilities assumed ( 623 ) Deferred income tax liability ( 1,627 ) Net assets acquired $ 12,395
Western Air Ducts Ltd [Member]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 1,557 ) $ 2,711 Property and equipment 188 Goodwill 7,344 Intangible - finite life 3,158 Total assets acquired 13,401 Current liabilities assumed ( 1,127 ) Deferred income tax liability ( 824 ) Net assets acquired $ 11,450 During the three and nine months ended September 30, 2022, Western Air Ducts accounted for $ 0.7 million in revenue and $ 0.2 million of net loss included in the Company's results. DS21 Co., Ltd. On September 19, 2022, the Company acquired 100 % of the equity interests of DS21 Co., Ltd. ("DS21") for $ 9.2 million, including 8.9 million in cash, which was financed with a draw on the Company’s revolving credit facility, and deferred cash consideration of $ 0.3 million payable in one year. DS21 is a South Korean-based design and manufacturing firm specializing in innovative water and wastewater treatment solutions. The addition of DS21 advances the Company's leadership position in niche oily water and produced water treatment, demineralization water treatment and ultra-pure water supply applications within the Company's Engineered Systems segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 1,453 ) $ 5,099 Property and equipment 4,020 Goodwill 1,071 Other assets 169 Total assets acquired 10,359 Current liabilities assumed ( 1,008 ) Other liabilities ( 113 ) Net assets acquired $ 9,238
DS21 Co., Ltd.
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of closing. (in thousands) Current assets (including cash of $ 1,453 ) $ 5,099 Property and equipment 4,020 Goodwill 1,071 Other assets 169 Total assets acquired 10,359 Current liabilities assumed ( 1,008 ) Other liabilities ( 113 ) Net assets acquired $ 9,238

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
Business Segment Information (Tables)	Sep. 30, 2022
Segment Reporting [Abstract]
Net Sales and Income from Operation by Business Segment	The financial segment information is as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Net sales (less intra-, inter-segment sales) Engineered Systems segment $ 65,630 $ 44,779 $ 189,938 $ 130,196 Industrial Process Solutions segment 42,784 35,200 116,287 100,355 Total net sales $ 108,414 $ 79,979 $ 306,225 $ 230,551 Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Income (loss) from operations Engineered Systems segment $ 8,991 $ 4,301 $ 24,467 $ 16,105 Industrial Process Solutions segment 5,226 2,669 14,847 10,932 Corporate and Other (1) ( 11,444 ) ( 7,566 ) ( 25,591 ) ( 22,434 ) Total income (loss) from operations $ 2,773 $ ( 596 ) $ 13,723 $ 4,603 Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.
Property and Equipment Additions, Depreciation and Amortization and Identifiable Assets	Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Property and equipment additions Engineered Systems segment $ 96 $ 15 $ 128 $ 79 Industrial Process Solutions segment 330 241 743 603 Corporate and Other 508 487 1,496 1,058 Total property and equipment additions $ 934 $ 743 $ 2,367 $ 1,740 Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Depreciation and amortization Engineered Systems segment $ 1,398 $ 1,061 $ 3,253 $ 3,198 Industrial Process Solutions segment 1,153 1,070 3,212 3,212 Corporate and Other 390 336 1,144 963 Total depreciation and amortization $ 2,941 $ 2,467 $ 7,609 $ 7,373 (in thousands) September 30, 2022 December 31, 2021 Identifiable assets Engineered Systems segment $ 320,261 $ 262,558 Industrial Process Solutions segment 149,311 141,975 Corporate and Other (2) 16,657 11,664 Total identifiable assets $ 486,229 $ 416,197 (2) Corporate and Other assets consist primarily of cash and income tax related assets.
Goodwill	(in thousands) September 30, 2022 December 31, 2021 Goodwill Engineered Systems segment $ 115,282 $ 99,303 Industrial Process Solutions segment 67,083 61,880 Total goodwill $ 182,365 $ 161,183
Intra-Segment and Inter-Segment Revenues	The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales), as follows: Three months ended September 30, 2022 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 68,738 $ ( 2,904 ) $ ( 204 ) $ — $ 65,630 Industrial Process Solutions segment 44,079 ( 1,126 ) — ( 169 ) 42,784 Total net sales $ 112,817 $ ( 4,030 ) $ ( 204 ) $ ( 169 ) $ 108,414 Three months ended September 30, 2021 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 45,559 $ ( 472 ) $ ( 308 ) $ — $ 44,779 Industrial Process Solutions segment 35,525 ( 308 ) — ( 17 ) 35,200 Total net sales $ 81,084 $ ( 780 ) $ ( 308 ) $ ( 17 ) $ 79,979 Nine months ended September 30, 2022 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 201,092 $ ( 10,693 ) $ ( 461 ) $ — $ 189,938 Industrial Process Solutions segment 121,122 ( 4,468 ) — ( 367 ) 116,287 Total net sales $ 322,214 $ ( 15,161 ) $ ( 461 ) $ ( 367 ) $ 306,225 Nine months ended September 30, 2021 Less Inter-Segment Sales (in thousands) Total Intra- Industrial Process Solutions Engineered Systems Net Sales to Net sales Engineered Systems segment $ 137,104 $ ( 6,359 ) $ ( 549 ) $ — $ 130,196 Industrial Process Solutions segment 109,703 ( 8,363 ) — ( 985 ) 100,355 Total net sales $ 246,807 $ ( 14,722 ) $ ( 549 ) $ ( 985 ) $ 230,551

Accounts Receivable - Summary o

Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract receivables	$ 70,580	$ 65,932
Allowance for doubtful accounts	(4,005)	(3,478)
Total accounts receivable	89,959	74,991
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 23,384	$ 12,537

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Receivables [Abstract]
Amount billed but not received under retainage provisions in contracts	$ 1,400		$ 1,400		$ 1,800
Bad debt expense	$ 400	$ 400	$ 823	$ 456

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory, Net [Abstract]
Raw materials	$ 18,125	$ 13,405
Work in process	6,925	5,147
Finished goods	2,508	674
Obsolescence allowance	(2,818)	(2,174)
Total inventories	$ 24,740	$ 17,052

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Inventory Disclosure [Abstract]
Amounts credited to the allowance for obsolete inventory	$ 0	$ 200	$ 100	$ 400

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill / Tradename (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, beginning balance	$ 161,183	$ 161,820
Goodwill, acquisitions and related adjustments	24,383
Goodwill, foreign currency translation	(3,201)	(637)
Goodwill, ending balance	182,365	161,183
Tradename, beginning balance	9,629	12,937
Tradename, transfers to finite life classification		(3,150)
Tradename, foreign currency translation	(283)	(158)
Tradename, ending balance	$ 9,346	$ 9,629

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets - Finite Life (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Cost	$ 110,202	$ 95,235
Accumulated Amortization	74,107	69,394
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	14,457	14,457
Accumulated Amortization	14,702	13,704
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	88,043	73,199
Accumulated Amortization	57,091	53,970
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	11,322	9,728
Accumulated Amortization	3,455	2,745
Foreign Currency Adjustments [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	(3,620)	(2,149)
Accumulated Amortization	$ (1,141)	$ (1,025)

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Finite Lived Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets – finite life, net at beginning of period			$ 25,841	$ 29,637
Amortization expense	$ (2,000)	$ (1,700)	(4,939)	(5,029)
Transfers from indefinite life classification				3,150
Acquisition			16,438
Foreign currency adjustments			(1,245)	(100)
Intangible assets – finite life, net at end of period	$ 36,095	$ 27,658	$ 36,095	$ 27,658

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Amortization expense of finite life intangible assets	$ 2,000	$ 1,700	$ 4,939	$ 5,029
Amortization expense of finite life intangibles for 2022	1,900		1,900
Amortization expense of finite life intangibles for 2023	6,600		6,600
Amortization expense of finite life intangibles for 2024	5,900		5,900
Amortization expense of finite life intangibles for 2025	4,800		4,800
Amortization expense of finite life intangibles for 2026	$ 3,500		$ 3,500

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Trade accounts payable, including amounts due to subcontractors	$ 65,284	$ 56,242
Compensation and related benefits	8,745	6,065
Accrued warranty	3,921	3,074
Contract liabilities	5,367	4,405
Short-term lease liability	3,198	2,414
Other	13,839	11,881
Total accounts payable and accrued expenses	$ 100,354	$ 84,081

Senior Debt - Summary of Debt (

Senior Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total outstanding borrowings under the Credit Facility	$ 110,337	$ 63,780
Less: current portion	(3,303)	(2,203)
Debt, less current portion	107,034	61,577
Term Loan [Member]
Debt Instrument [Line Items]
Total outstanding borrowings under the Credit Facility	41,859	43,511
Revolving Credit Loan [Member]
Debt Instrument [Line Items]
Revolving Credit Loan	59,700	22,000
Senior Debt [Member]
Debt Instrument [Line Items]
Total outstanding borrowings under the Credit Facility	101,559	65,511
Line Of Credit [Member]
Debt Instrument [Line Items]
Outstanding borrowing under the joint venture term debt	10,230
Term Debt [Member]
Debt Instrument [Line Items]
Unamortized debt discount	$ (1,452)	$ (1,731)

Senior Debt - Summary of Debt_2

Senior Debt - Summary of Debt (Parenthetical) (Detail) - Term Loan [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Debt Instrument [Line Items]
Frequency of periodic payment	quarterly
Term loans, year of maturity	Sep. 30, 2026
Debt Instrument, Redemption, Through September 2025 [Member]
Debt Instrument [Line Items]
Outstanding borrowings, quarterly principal installments payable amount	$ 825
Debt Instrument, Redemption, Through June 2023 [Member]
Debt Instrument [Line Items]
Outstanding borrowings, quarterly principal installments payable amount	550
Debt Instrument, Redemption, Thereafter [Member]
Debt Instrument [Line Items]
Outstanding borrowings, quarterly principal installments payable amount	$ 1,100

Senior Debt - Additional Inform

Senior Debt - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Mar. 07, 2022	Dec. 31, 2021
Line Of Credit Facility [Line Items]
Credit facility principal payments 2022	$ 0.8
Credit facility principal payments 2023	3.6
Credit facility principal payments 2024	4.9
Credit facility principal payments 2025	5.2
Credit facility principal payments 2026	93.5
Credit facility principal payments 2027	$ 3.9
Weighted average interest rate on outstanding borrowings	5.44%		2.54%
Maximum consolidated leverage ratio	3.75%		3.50%
EFM JV [Member]
Line Of Credit Facility [Line Items]
Weighted average interest rate on outstanding borrowings	6.60%
Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Unused credit availability under credit facility	$ 60.9		$ 45.9
Credit Agreement [Member] \| EFM JV [Member]
Line Of Credit Facility [Line Items]
Secured Debt		$ 11
Federal Funds Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.11448%
Minimum [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Line Of Credit Facility [Line Items]
Maximum consolidated leverage ratio	1.75%
Minimum [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.11%
Minimum [Member] \| Base Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Maximum [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Line Of Credit Facility [Line Items]
Maximum consolidated leverage ratio	2.75%
Maximum [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.43%
Maximum [Member] \| Base Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.75%
Letters of Credit [Member]
Line Of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities	$ 19.4		$ 14.5
Letters of Credit [Member] \| EFM JV [Member]
Line Of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities	10.2
Bank Guarantees [Member]
Line Of Credit Facility [Line Items]
Bank guarantee issuance under bilateral lines and collateral	65
Bank guarantee agreement outstanding amount	21.5
Bank Guarantees [Member] \| Euro-Denominated Bank Guarantee [Member]
Line Of Credit Facility [Line Items]
Bank guarantee agreement outstanding amount	0.7
Netherlands Facility [Member] \| Euro-Denominated Bank Guarantee [Member]
Line Of Credit Facility [Line Items]
Bank guarantee agreement outstanding amount	$ 0.6

Earnings per Share - Number of

Earnings per Share - Number of Shares Outstanding for Calculation of Earnings Per Share (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net loss attributable to CECO Environmental Corp.	$ 1,943	$ (1,249)	$ 9,122	$ 224
Denominator
Basic weighted-average shares outstanding	34,455,657	35,472,298	34,791,129	35,463,279
Common stock equivalents arising from stock options and restricted stock awards	415,000	0	244,000	267,000
Diluted weighted-average shares outstanding	34,871,313	35,472,298	35,035,041	35,729,887

Earnings per Share - Additional

Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	May 10, 2022	Aug. 03, 2021
Earnings And Dividends Per Share [Abstract]
Anti-dilutive options and restricted stock units outstanding	1,200,000		0	1,700,000	1,800,000
Purchase of outstanding shares of common stock						$ 20,000	$ 5,000
Repurchase of common stock (in shares)				981,000	520,000
Repurchase of common stock	$ 2,193	$ 4,324		$ 6,500	$ 3,700

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized share-based compensation awards	$ 1,100	$ 900	$ 2,900	$ 2,400
Non-Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received from employee stock option exercised			$ 0	$ 13,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0	2,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 0	$ 3,000
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock awards granted	68,000	5,000	755,000	465,000

Pension and Employee Benefit _3

Pension and Employee Benefit Plans - Components of Pension and Employee Benefit Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit (gain) cost	$ (105)	$ (81)	$ (315)	$ (243)
Health Care Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	219	194	658	582
Expected return on plan assets	(390)	(378)	(1,170)	(1,133)
Amortization of net actuarial loss	$ 66	$ 103	$ 197	$ 308

Pension and Employee Benefit _4

Pension and Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Unfunded liability plans	$ 5.3	$ 5.6

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Taxes [Line Items]
Liability for uncertain tax positions	$ 100		$ 100		$ 100
Income tax expense	$ 314	$ 63	$ 3,287	$ 813
Effective income tax rate	12.70%	(5.60%)	25.30%	62.70%
Foreign Subsidiaries [Member]
Income Taxes [Line Items]
Deferred income taxes on undistributed earnings			$ 800		$ 1,100
Federal Authorities [Member]
Income Taxes [Line Items]
Open tax years			2018
State and Foreign Authorities [Member]
Income Taxes [Line Items]
Open tax years			2016

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Fair Value Of Financial Instruments [Line Items]
Cash and cash equivalents	$ 35,188	$ 29,902
Cash held outside United States, principally in Netherlands, United Kingdom, China, and Canada	24,200	22,600
Credit Facility [Member]
Fair Value Of Financial Instruments [Line Items]
Fair value of debt issued	$ 111,800	$ 65,500

Commitments and Contingencies_2

Commitments and Contingencies - Legal Matters - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 USD ($)	Dec. 31, 2021 Case
Commitments and Contingencies Disclosure [Abstract]
Cumulative settlement payments for cases involving asbestos-related claims	$ 5,900,000
Cumulative settlement payments made for cases involving asbestos-related claims with all legal fees other than corporate counsel expenses	5,800,000
Average cost per settled claim excluding legal fees	$ 43,000
Number of claims pending \| Case		223
Assessment regarding Loss contingency impact Description	not aware of any pending claims or assessments, other than as described above, which may have a material adverse impact on its liquidity, financial position, results of operations, or cash flows.

Acquisitions and Joint Ventur_3

Acquisitions and Joint Ventures - Additional Information (Detail) - USD ($)		3 Months Ended				9 Months Ended
	Mar. 07, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 19, 2022	Jun. 22, 2022	May 03, 2022	Dec. 31, 2021
Business Acquisition Contingent Consideration [Line Items]
Equity, Fair Value Adjustment			$ (901,000)	$ 5,000,000
Assets Current		$ 222,694,000				$ 222,694,000					$ 189,011,000
Liabilities		280,809,000				280,809,000					$ 210,240,000
Pre tax loss		2,480,000			$ (1,133,000)	12,988,000	$ 1,296,000
General Rubber LLC [Member]
Business Acquisition Contingent Consideration [Line Items]
Gain (Loss) on Sales of Loans, Net		110,139,000			$ 86,945,000	318,814,000	$ 256,072,000
Net revenue		700				1,500
Net assets acquired	$ 23,820,000
Revenues		3,900				8,300
General Rubber LLC [Member] \| General Rubber [Member]
Business Acquisition Contingent Consideration [Line Items]
Percentage of equity method investment in joint venture	63%
Compass Water Solutions, Inc [Member]
Business Acquisition Contingent Consideration [Line Items]
Acquisition of equity										100%
Contingent consideration										$ 9,000,000
Notes Payable										2,000,000
Earn out, Fair value										1,400,000
Accounts payable and accrued expenses										1,400
Net revenue		100,000				200,000
Net assets acquired										$ 12,395,000
Revenues		1,500,000				2,300,000
Western Air Ducts Ltd [Member]
Business Acquisition Contingent Consideration [Line Items]
Acquisition of equity									100%
Contingent consideration									$ 10,700,000
Gain (Loss) on Sales of Loans, Net						200
Net revenue		700,000
Net assets acquired									11,450,000
Western Air Ducts Ltd [Member] \| Revolving Credit Facility [Member]
Business Acquisition Contingent Consideration [Line Items]
Deferred cash consideration									$ 800,000
DS21 Co., Ltd.
Business Acquisition Contingent Consideration [Line Items]
Acquisition of equity								100%
Contingent consideration								$ 8,900
Deferred cash consideration								9,200,000
Net assets acquired								9,238,000
DS21 Co., Ltd. \| Revolving Credit Facility [Member]
Business Acquisition Contingent Consideration [Line Items]
Deferred cash consideration								$ 300,000
Joint Venture Agreement [Member]
Business Acquisition Contingent Consideration [Line Items]
Acquisition of equity	100%
Contingent consideration	$ 19,700,000
Fair value	$ 4,100,000
Equity, Fair Value Adjustment		900,000
Percentage of equity hold in joint venture	10%
Assets Current		13,700				13,700
Noncurrent Assets		28,100				28,100
Liabilities		$ 30,500,000				$ 30,500,000

Acquisitions and Joint Ventur_4

Acquisitions and Joint Ventures - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 19, 2022	Jun. 22, 2022	May 03, 2022	Mar. 07, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 182,365					$ 161,183	$ 161,820
General Rubber LLC [Member]
Business Acquisition [Line Items]
Current assets					$ 4,963
Property and equipment					459
Goodwill					11,120
Intangible - finite life					8,380
Total assets acquired					24,922
Current liabilities assumed					(714)
Deferred income tax liability					(388)
Net assets acquired					$ 23,820
Compass Water Solutions, Inc [Member]
Business Acquisition [Line Items]
Current assets				$ 4,796
Property and equipment				101
Goodwill				4,848
Intangible - finite life				4,900
Total assets acquired				14,645
Current liabilities assumed				(623)
Deferred income tax liability				(1,627)
Net assets acquired				$ 12,395
Western Air Ducts Ltd [Member]
Business Acquisition [Line Items]
Current assets			$ 2,711
Property and equipment			188
Goodwill			7,344
Intangible - finite life			3,158
Total assets acquired			13,401
Current liabilities assumed			(1,127)
Deferred income tax liability			(824)
Net assets acquired			$ 11,450
DS21 Co., Ltd.
Business Acquisition [Line Items]
Current assets		$ 5,099
Property and equipment		4,020
Goodwill		1,071
Other Assets		169
Total assets acquired		10,359
Current liabilities assumed		(1,008)
Deferred income tax liability		(113)
Net assets acquired		$ 9,238

Acquisitions and Joint Ventur_5

Acquisitions and Joint Ventures - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 19, 2022	Jun. 22, 2022	May 03, 2022	Mar. 07, 2022
General Rubber LLC [Member]
Business Acquisition [Line Items]
Cash, Current assets				$ 137
Compass Water Solutions, Inc [Member]
Business Acquisition [Line Items]
Cash, Current assets			$ 334
Western Air Ducts Ltd [Member]
Business Acquisition [Line Items]
Cash, Current assets		$ 1,557
DS21 Co., Ltd.
Business Acquisition [Line Items]
Cash, Current assets	$ 1,453

Acquisitions and Joint Ventur_6

Acquisitions and Joint Ventures - Schedule of Unaudited Pro Forma Financial Information (Details) - General Rubber LLC [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Net sales	$ 110,139	$ 86,945	$ 318,814	$ 256,072
Net (loss) income attributable to CECO Environmental Corp.	$ 1,985	$ (319)	$ 9,767	$ 2,660
Earnings (loss) per share:
Basic	$ 0.06	$ (0.01)	$ 0.28	$ 0.08
Diluted	$ 0.06	$ (0.01)	$ 0.28	$ 0.07

Business Segment Information -

Business Segment Information - Net Sales and Income from Operation by Business Segment (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net sales		$ 108,414	$ 79,979	$ 306,225	$ 230,551
Income (loss) from operations		2,773	(596)	13,723	4,603
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income (loss) from operations	[1]	(11,444)	(7,566)	(25,591)	(22,434)
Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Net sales		65,630	44,779	189,938	130,196
Income (loss) from operations		8,991	4,301	24,467	16,105
Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Net sales		42,784	35,200	116,287	100,355
Income (loss) from operations		$ 5,226	$ 2,669	$ 14,847	$ 10,932

[1] Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.

Business Segment Information _2

Business Segment Information - Property and Equipment Additions, Depreciation and Amortization and Identifiable Assets (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Property and equipment additions		$ 934	$ 743	$ 2,367	$ 1,740
Depreciation and amortization		2,941	2,467	7,609	7,373
Identifiable assets		486,229		486,229		$ 416,197
Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Property and equipment additions		96	15	128	79
Depreciation and amortization		1,398	1,061	3,253	3,198
Identifiable assets		320,261		320,261		262,558
Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Property and equipment additions		330	241	743	603
Depreciation and amortization		1,153	1,070	3,212	3,212
Identifiable assets		149,311		149,311		141,975
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Property and equipment additions		508	487	1,496	1,058
Depreciation and amortization		390	$ 336	1,144	$ 963
Identifiable assets	[1]	$ 16,657		$ 16,657		$ 11,664

[1] Corporate and Other assets consist primarily of cash and income tax related assets.

Business Segment Information _3

Business Segment Information - Goodwill (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Goodwill	$ 182,365	$ 161,183	$ 161,820
Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Goodwill	115,282	99,303
Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Goodwill	$ 67,083	$ 61,880

Business Segment Information _4

Business Segment Information - Intra-Segment and Inter-Segment Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net sales	$ 108,414	$ 79,979	$ 306,225	$ 230,551
Energy Inter-Segment Sales [Member]
Segment Reporting Information [Line Items]
Net sales	(169)	(17)	(367)	(985)
Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Net sales	65,630	44,779	189,938	130,196
Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Net sales	42,784	35,200	116,287	100,355
Industrial Process Solutions Segment [Member] \| Energy Inter-Segment Sales [Member]
Segment Reporting Information [Line Items]
Net sales	(169)	(17)	(367)	(985)
Intra-Segment Sales [Member]
Segment Reporting Information [Line Items]
Net sales	(4,030)	(780)	(15,161)	(14,722)
Intra-Segment Sales [Member] \| Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(2,904)	(472)	(10,693)	(6,359)
Intra-Segment Sales [Member] \| Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(1,126)	(308)	(4,468)	(8,363)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net sales	112,817	81,084	322,214	246,807
Operating Segments [Member] \| Engineered Systems Segment [Member]
Segment Reporting Information [Line Items]
Net sales	68,738	45,559	201,092	137,104
Operating Segments [Member] \| Industrial Process Solutions Segment [Member]
Segment Reporting Information [Line Items]
Net sales	44,079	35,525	121,122	109,703
Inter-Segment Elimination [Member] \| Industrial Inter-Segment Sales [Member]
Segment Reporting Information [Line Items]
Net sales	(204)	(308)	(461)	(549)
Inter-Segment Elimination [Member] \| Engineered Systems Segment [Member] \| Industrial Inter-Segment Sales [Member]
Segment Reporting Information [Line Items]
Net sales	$ (204)	$ (308)	$ (461)	$ (549)