CECO Environmental (CECO) 3 Aug 212021 Q2 Earnings call transcript

Good morning and welcome to the CECO Environmental Second Quarter 2021 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Steven Hooser, Investor Relations representative. Please go ahead.

Thank you for joining us on the CECO Environmental Second Quarter 2021 Conference Call.

is Financial Chief Officer. today Matt Officer call Chief Eckl, the Todd Executive Gleason, and On

Todd turn release, over in the press certain now slide the Chief the measures. revise in in to the ended statements reconciled forward-looking investors Such Any today's We've guide Except the estimates update And like no today's publicly GAAP for well supplemental call Before implied to encourage to Todd? non-GAAP by XXXX. the accessed Officer, XX-K the that our that December or at of a financial the to based help here cecoenviro.com. include from we applicable statements. of that, XX, non-GAAP deck. presentation begin, including result uncertainties. the subject earnings made statements Investor presentation have discussion. statements. and to filings, future you to we forward-looking references numbers also I'd facts risks to call the certain on read I'd regarding otherwise. obligation materials risks website. provided on are new Actual that Relations I'd are in of materially Executive slide like presentation, Today's which The presentation a our will information, required laws, historical we section our the along we of comparable those year on results to expressed presentation by or be are not through webcast as of like Gleason. differ We a securities back undergo will to whether and described caution forward-looking and is note make with our also today, on any extent statements Form or tables with based SEC as The website to the expectations be as future and forward-looking number statements. are may can events,

also and CECO for We would dedication Steven, deliver employees interest by continue morning, the to we everyone. to in for we thanking on Today, ensure your our Environmental. helping We I appreciate good thank our to navigate and appreciate partners efforts. hit to our suppliers support Thanks, for their like your contributions and stakeholders. to uncertain few and to continue like times. start a would world topics. CECO around us these all will We

your as take the will and X enterprise perspective our I to will the aspirations well first First, takeaways key I items. second Then X over up the we will and Matt strategy as my several half from share of wrap financials outline quarter certain XXXX. Then will through on the operational years. and next go questions.

to Please ahead had go turn up order again and once Let's past we started. momentum bookings. the X. great in million, were approximately Continuing from Orders quarters, year-over-year. XX% $XX the get few growth

our businesses softening. any backlog but has this the With are healthy of an trend million and and been X% a accelerate at end pace. to Sales momentum. $XX sequentially. since of growth, will down and book-to-bill timing contribution orders backlog our above We X.Xx, and in the $XXX revenue year-over-year sequentially, of X% not continues but few million. our indication we will we of from completely details up were pleased associated that a market It of Orders a our a with balanced were is had minutes, grow with over is year many as discuss

challenges our as of top first said dip XXXX a market of in previously, review is because, throughout we the Importantly, result half as XXXX. in COVID the first half would of line XXXX mirror the experienced

believe and project XXX in-the-quarter are challenges margins basis and we mix for points on inflation. were down some We were on have approximately QX track back XX.X%, these gross modest which growth. navigated

this to onetime Adjusted Matt $X.X was and the execution just see about margins. as continue a from a year-over-year. in very million quarter We good in cost period, project in more EBITDA year's prices actions to $X.X that and million raised minute. second workforce benefited items. quarter, talk certain will onetime such have down furlough Last protect other

reasons in share have periods. is a comparison with negative growing flow mentioned. we structure, the we But half Free earnings QX good quarter, $X.XX coming per revenue expect the we for tough the in the flow cost So year-to-date down generation. and positive cash growth free second EPS of but Adjusted was and future our versus are orders, same XXXX. year-over-year I to was streamlined improved somewhat just results expect cash

that Something to we repurchase share authorization this on, on like I'd but to highlighted a minute isn't slide, the is take comment today. announced

fully utilize before year. board million of we end which a Our program, has approved the to stock $X intend this buyback

our in business shareholders. $X trajectory, the level is confident growth are of ability and simply action to an not strategic cash prospects. generate ability are does our We impact deploy It number strong acquisitions. to taking our to we strategic This shares and towards free our reduce reward flows million current and capital

or strong XX% turn XXXX the $XXX growth. and for to The our over of from positioned over XX%, first very believe year-to-date orders growth. half orders With up is please X. we well up are million backlog we Let's outstanding takeaway key

in periods to in growth our active I maintaining initiatives. focus margins. the will while key proud Our growth am pipeline team's at allow levels. and our This coming invest stronger momentum and to and remains of solid drive us growth high produce earnings

of leaders we growth Last markets. business drive were we aligning our technology highlighted by quarter, are to go X. platforms in core to where and the we adjacent markets into Let's in expansion midst already

We our X Process Systems. second continue was Industrial to the results into and will process Engineered This -- report in Solutions and segments platform alignment completed quarter.

growth has It are and and been engaged. focused and profitability. a very higher are well-received to teams our people drive structure leadership Our energized

already is design which, geothermal the to recent turn, leaders peerless that also exciting much and from some within line in go it's One efficient. quickly. energy and opportunities our after grid. project technology In renewable are The power pleased of platforms, CECO's will sustainably the delivering sustainable power will short- sight Southeast our opportunities spaces. separation a real is example the of business from cyclone role, direct seeing to important very allows it more results. The medium-term in growing Asia as remove region. And several international are earth, in adjacent moisture extracted steam subsurface generated is our more wins We we platform

industrial immediate shown has bookings good which year-to-date. also air, seeing impacts extremely are We in

Our leadership opportunities layers which, of faster to drive course, positioned is platform to decisions fewer decision-making. surface has of and pursue,

in customer The to identify apply right enable opportunities service our we resources operating similar. performance able rapidly. to the these We improve so address and be these to productivity, opportunities can has are also platforms company delivery, areas. gaps to Every more will addressed

financial leadership will embrace peer-to-peer emerging key Additionally, important by activities as on and international connections markets, platform and to metrics. will a he coordinate provide across others. such Asia India, Matt? it growth we to over can are having our now collaboration. results turn the and I The important markets, detail China, East, on focused more Matt, Southeast Middle

remain we air, Thanks, with happy growth but Slide as and XX% systems industrial midstream and by of bookings European awards confident with refinery in end XX% on orders electric several Todd. products, sequential year. with experienced were and are big vehicle impacted contributed orders, markets markets our timing simply several decline, the off Chinese produced grew QX a great of I'll exceptionally markets a the performance are sequentially. million pleased as opportunity year-over-year basically X. Engineered EIS Fluid out in which the quarter, basis, production kick and of timing orders $XX our in but nearly growth strong. slip and our excited to excellent funnel. returning incredibly At $XX sequential Mefiag-branded this acquisition way. Wind a about flat of second automotive overall is includes the million was This sought a filtration in year-over-year handling saw our half sign the we

for to above record solidly our which, pipeline highs pursuit verified sales with of $X level. Speaking continues billion us the reach new

strengths the and our customer of CECO's portfolio end market of is One diversification. in

some have markets recover, wood others vehicle, and semiconductor are remain as electric can, yet beverage or to our sluggish engineered aluminum While orders such propelling the markets growing nicely. very

million. slide, compared X%, Turning sequentially. to the right sales or of and grew year-over-year revenue the was side $X to up both QX, When

X see You highlighted markets businesses, in our general industrial executed progress. this across Middle grew up process, Engineered the X% is to as the in Systems which were sequentially, that bit green, the remained a held was reported as segments. grew most short can being healthy. mid-cycle to we was believe of and back slower East those in we projects blue but the India Industrial

a Systems but to to utility plant are variety critical all wide of project. separation Engineered such engineered small instances, product a providers, As equipment or reminder, highly acoustical emissions a refineries, more. thermal In we and the petrochemical as facilities the and large-scale overall recovery management, and LNG a provides percentage solutions balance component of

important will for too at EBITDA Xx is is especially the Systems standard EBITDA This margins projects. from so Engineered progresses, margins. our CECO project larger our because the As healthy incremental

CECO's X% continues up customers we X% our a to an flat duct nearly higher. growth see Short-cycle Kirk cycle, up. delivered X/X U.S. to service jobs $XX drives picking most and is future field volumes of million represent relaxing revenue Blum see indicator and great our to in mix. revenue It I'm & pleased our restrictions, commissioning vendor short for which of as approximate As revenue ventilation in and revenue we of QX, branded year-over-year sequentially. order leading

grow, pleased and about at our learn actions can are with homepage. can the products cecoenviro.com, seen our We on on our where quite website you Kirk firsthand & to Blum more be also those

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proud market of higher-than-expected drive and winning are our We solutions, it growth. to great is

half, gas We driven businesses year-over-year. the orders are and would already We TTM too remain $XX-million-plus XXXX. believe XX% This TTM of were corner, of by our is Handling Handling our markets the U.S. remained XX%. market year-over-year. also yet is XX% turns That Gen buoyant, eclipsing a a and and shortsighted, this sequentially, quarter first this the so in orders aquaculture on If record technology we're since end Fluid In any quarterly as that hospitality, be infrastructure up filtration back-to-back markets. oil serve bookings. combination in well. Through down we Power evaluate up the air certainly Fluid market interested will automotive view, consistently for our XX% first bill. basis. snapshot markets down

a of was XX% was before the the TTM third we trends is consecutive the are are What down TTM quarter However, down improving. TTM metric the of quarter and At that. XX% QX, end the acceleration. seeing

in we So a that favorable position. market believe is do

sequentially. we For on to deleveraging believe Midstream, and sheet large over at CapEx as investment. year-over-year measured pipeline balance is focused that be remain orders, driving market operators or This double-digit the plus, a continue in the saw future to their we currently $X recover will fewer slowest typically quarter, million low decline

pleased difficult very Unfortunately, Lastly, order with half respect of first the to are quarter. we XXXX timing Refinery, these with to book orders large in can the always the bookings. be

our for we solution. in bookings As a result of experience timing, FCC declines did Cyclone

bids, lost improving. no position we our strong remains market Our is for and product know with the market

the on bookings quarter. So $XXX in half we X, at do anticipate which XXXX. the million, backlog some for of sits second come our grew straight Slide Touching second larger to

TTM our funnel Our on and to we most the content. basis remains above book-to-bill quarter, measurement ratio Last remains importantly, on and, billion. a outlook positive XX-month our $X added commented pipeline XX-month some

in last at up Just is $XXX our the pipeline million X of $X.X or billion. extended months, there. above opportunities out Tons and

about bid about confident quarter, sequentially protect in margins. in were as did strategic and reduced prices the steel offset are certain implemented well mostly segment. On our several window conversion. We To in our to gross inflation, our customer as feel validity our increases, our is mix within good prices. of margins to ability XX.X% increased it's this in surcharges, cost all have Systems and Now on times down XX, the Slide we notably also businesses year-over-year, We've commodity We margins. which primarily project measures Engineered experience year. quote modest our these protect

of onetime quick our in Slide to quarter not for that cost furlough QX and and EBITDA. As repeat income in the this of lower having wage expansion were recover. vigilant operating a committed strong to summarizes driver as gross impact total, We lower adjusted quarter. primary sequentially. by and strictly million. negated margin volumes The reduction non-GAAP EBITDA of On was $X was EBITDA EBITDA year-over-year XX was remain margin, down structure 'XX a the volume by flat Incremental basis, in both set limited driven taken highlights. EBITDA, did

a leading First, of XX% is orders revenue indicator growth year-over-year future growth.

to Handling, from Air our mid-cycle short and are Industrial revenue expected, As like businesses, revenue Fluid driving higher.

starts CECO's at flow-through meaningful to leverage sustainable system pace, engineered for more earnings. the turn operating will backlog a As on be

for year-over-year quarter. line non-GAAP and in $X.XX with in the sequentially, but down EPS estimates quarter, $X.XX was Second, the flat consensus

XX, non-GAAP opposite and anticipate projects was continue effective cash use quarter. QX free of AR to larger on went the Timing $X We a some a our collections Slide rate flows the in XXXX. throughout of culprit cash the tax milestones in million XX% with of Flipping to direction this quarter. project

target of cash As to collections of business year-end. our no reiterate, project-based flow see to underperforming always, lumpiness risk It's are the XX% we our the I model. QX, we driving AR. the Despite free strictly a EBITDA by towards

$X in debt $XX shape. our of to Slide in great the balance on Finally, XX, sheet million. quarter remains down We paid million

buyers growing bank defined half of ratio include grow, and deployment. will opportunity will providing additional X we approximately other our X.X, the our of great the share sits program with leverage we healthy us sits stock buyback engine today Our of direction, example dilution compensation. With reasons, be capacity our such as leverage at offsetting is hope share in our and up EBITDA our of available. options This capacity to net years a associated all the ratio shareholders for a second including position The repurchases. plenty financial for backlog right while announced at utilizing for ample and appreciate capital moving X.X, growth. alignment orders our revving are all M&A We and right with stock

our will Todd enterprise months, out strategy, the narrowed expand on we've As building next been over next, also in funnel. our on M&A as X we've

represents list Our internally significant prospects. of already a number harvested

assessing to to are programmatic advisory and our help bank are planning and engaged pipeline for have on business position deal development add us talent We relationships execute M&A. and us

CECO ready excited delivering processes, high-performance more of and The focused shareholder hand M&A. have we X back towards is I driving it last next I its investment and With know growth been stabilization never done turn more our years phase personally to for and growth are productivity on that, simplification, and operational value. While to streamlining am and I'll Todd.

Thanks, Matt.

Let's XX. move to

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on our and we goals the few objectives. expand areas, focus slides, Over next will

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group over our to entire shareholder returns. Importantly, peer respect we aim to this period, outperform with

should move M&A sustainable steadily shareholders and team with believe deliver portfolio is an programmatic By can and management we incentivized forward we our accretive entire our Our process, results. be. as executing aligned we

growth environmental of for knowledge, pipeline of areas outside We goals. have stated this working L.E.K. secular of across fit spent us the view quarters as and our more management We high-level as build such spaces hope our market consultants, and this solutions. provides and target industrial to To opportunities related as our CECO. opportunities various to engaging in arena businesses some specifics several several help air best focused such we depth

turn to portfolio #XX, how could of We have over more the we transform an medium is few a so grow term. longer which just and slides, to CECO illustration to expect please the

various the CECO. and Environmental sectors. to sell of $XXX graph product-category long-cycle into solutions the the today, be XX% left are in bar from CECO markets and On energy-related continue million with important that represents projects side sales, These for services will coming slide, approximately in

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We plans. we expect progress update and, that, to executing the our the the complete for and before authorization for continue interest. key of strategic will on ESG initiatives, end will of with the our questions. now and open our $X all support your Operator? million year, we line And growth you to Thank course, including you toward reporting

Instructions]. [Operator

first Dayal Our from with today comes Amit question H.C. Wainwright.

'XX? pick Do guess, to the this So the will in order the get expect flow. out XXXX? bit side, half on I there into of energy a little softness, this I with you was Or up second know pushed

No, expect up to it we do half. in second the pick

some our certainly or first good is the year And in had the the within of in In we really pipeline our second already. good some first businesses, quarter fact, the pickups -- energy half significant. quarter,

still story would half. refining say the across that not is into going some always able the a segments nailed timing, area heading But for in the obviously energy midstream to you're energy-related of later other But half a It's second quarter. that think good our that about the the our orders to in down and year good just a we're I It's board. probably second and of we little first is half, in momentum in bit. be next we pipeline feel sometimes, seeing in the -- get year.

And the on good versus seems How then international side. traction is is of backlog the much domestic? like international there it some

the I -- XX% probably today Outside international. is Yes. it's of about U.S., say would

little expect you growing here maybe international Do sort from bit? continue flatten a side to or out Interesting. of the

bit or East it, to think it India, grow. us. pick we believe pipeline, is We and markets, energy-based the that Pacific will. look I Middle it is QX let's Yes. since, as slow been the of we continues a Where Middle actually XXXX. our starting those China East of in up for doldrums still call Asia at has little up. still are are in to

So growing would I [indiscernible]. it is say that

and add to Yes, I'll that.

you year, international little know, we've Amit, investment access of grow year acquisition which last some the been our including on to EIS really know attractive Over internationally, to focused also over other gave as and the a markets. a us ago, European we

fact, continued nice orders. Air to Industrial a of we job very booking the In in year, do

A more projects of You've international of shorter, seen the go our to good focused Industrial also in Air number but after percentage faster, that up. which is growing that orders, international was of investments part turn sort mid-cycle markets.

more now you execution forward? Interesting. an chain issues? environment supply delivering going And you behind Or and easier in face did those cetera, less et are or terms of orders and deploying any orders, it's

Matt are steel, resins, in still certain -- pressure I is, off price some let materials There's small that et think I'll we're supply there chain. And some this. cetera. build there with like seeing, Yes. everyone out We did. hiccups the

delays, product, to everyone that of the some cetera, that that just do of sellers with drive et right? obviously. chain has sort to general that supply economics, And And have just the that's

for So able to smoothing are we we need most the the get components though. part. out, We're that think things still

always perspective, think So from I you're navigating a it's -- business. in supply challenges chain

chain. associated in the world, logistics as world whether chain just started in to back it has an I been this of times done time even -- supply on supply with headline course, second think sort the half around much we've job. the unusual in or year, such there's of last be at I first and great again, think turn half in been But a of issues the some chains. the semiconductors And supply

partners. have job do done suppliers and at Matt, Our a expand on you our that want to great all?

Yes.

a disruption If little of areas The computer see talked million suppliers. don't quarter, impacts is last of this a about to bit we pumps about about supply we've million revenue business. at our you're industry the which business. thinking $XX a automotive It's standpoint, facing chips X seeing where any chain is and that. looking we're $XX year from found other resin, in we of which And what

seeing. So are that's up. better going in half. But of be business that pick to again, to in Houston our it's percentage start second Plants the petrochemical the not we're a business. large Things

The Those of some second And, our balance get this East, as disruption working through projects. can't Dhabi, total over plants and a area our smaller have extremely down percentage business around of the projects, Middle Qatar, supply problems. is really labor we're is larger as is just of so we're been all in chain those again, Abu beauty CECO well. to diversified just The site. slowed of

also on the emphasis today's particular on of that air are to any area we side? on expect Understood. And early sort there -- where that you or of looking can Is it's portfolio, strengthen M&A lot call. efforts a sort of whether water

Yes.

more we organically the as not I And air So I secular, faster fit already management there's towards our about can how flow it's for really we're good market then, well market trying our inorganically longer to out management. category, provide until announcing spaces sort know in more over our we mix. think emissions a period place us some that attractive approach. of to we and our cash and terms believe, a slides, us. internationally and us we are grow industrial repeatable core know both where directional areas to with us that we're something. really for businesses and that point in thinking good free of whether that But revenue We're there there believe the build that industrial and you have we of focus. to to air we our be off able can really M&A know somewhat with solutions broad environmental a specific a be leadership, see of shorter-cycle, would right more now in Look, we're that's be portfolio. super obviously but we with on the that's industrial very love and tried we're we Obviously,

a for zone feel to that, now, portfolio But us of we still focus us. good lot we those right a on. rich be have have our We would within for the options target areas

[Operator Instructions].

Sullivan Our Tate Group. comes from next question Maxim with

number into questions I and you In been seems can mentioned year the like how a the split Integrated $XX since best And on between since is quarters. million little so that with was a it's to a comment X? maybe going related -- And It quarter follow-up acquisition? think the EIV. almost you EIS has EIS of just Solutions. And its one done Environmental this

of one business year-to-date Yes. it -- outperformed a wouldn't quarter good and EIS sure. quarters, best expectations. [indiscernible] I The for say was it's but has very the yes, our

the work CECO You'll great us, see there to addition a with that is beneficial they hoping for fantastic they're it. if been guys, previous associated And still earn-out that's max owners with company, and they're do great that and shareholders the that. on, an are obviously leadership, to super

from flow an business performing, an And cash is from so not pleased it's but how only we're also very orders perspective, great with perspective. EBITDA and the And alignment.

if already Adwest we new terms been diversify And a et complement help others. so, theme, acquisitions, provides from internationally, been the set of just of partnership at weren't industrial nice hadn't history smartly but to expand into -- in a history. within air of CECO then a EIS properties and that back CECO's businesses, had cetera, necessarily acquisitions and expanding good markets made, speak, -- And and lot look to a so of have necessarily down the CECO's the double you organization,

something where that's that balance of is how air at acquisitions And off a a and and can good you we getting Now why spaces foundational that's growing look more we're look, build learning another say, make we you can more industrial in we're have we platforms. really of and our good footprint. reason do already

Can mostly the it air? time still And of that helping you was industrial it's Is the remind say? sounds enter you EIS other to markets. industrial -- air at acquisition, like fair

really to reasons Like But a I a acquisition. about -- there's and of you're going there's off lots an core, do it's that market is build if good I to right. say always from That's access. reasons, X -- mean,

You're adjacent perspective. it's markets expansion geography leader either a those adjacent from into a markets expanding in an niche with or new

leader being example. helped of for expand into with So EIS being And aluminum markets, several can, us Europe. really it bev in strong boxes, end a obviously international those several checked one then helped us

So But you're et reasons, -- other core. a cetera. or to an up do accretive good There's acquisition when course market say, ones. good geographic building reason earnings, your of I would are adjacencies darn

that is I it. you Or what you -- last did mentioned end did you what I markets. what market mentioned say? mention for And some that? [indiscernible] missed Okay. me, think Is to wood

during around Mohawk commercial That's residential down of booming big and pandemic. If that's that been your construction Ruco, a doing or you and market and anybody are think in people VEKA, the COVID like flooring, customers putting homes buildings.

need protect need so you you That's VOC as need we do. you and Why? dust to collection, to the their Because employees concentration. protect what And grow, you need those neighbors.

great like. of air Okay. Great. work, sounds example A industrial it

Jim question next from Our with Needham. Ricchiuti comes

Tyler is calling Bailey This Jim. for

for So had market. mentioned of the this might question you regarding Matt. be Matt, a -- sort it's and end

bill catalyst about industrial being infrastructure sort of talked a the You potential air. for

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fluid there? mentioned one end you market. you catalyst And me handling what mentioned for Can you well. another that. remind more sorry, There's just as the I missed for just

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Yes.

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In yes. prepared remarks, the

also a aquaculture, up. gas pumps. serve and $XX combination of X million So we Any starts our midstream we aquariums, business. - business those with be oil serve which a This quarter million-to-$XX - hospitality, oil to and hot is like pick more - would

been since So the in X those industries. COVID, doldrum have obviously, all of those

out. some that Yes. secure push large those. pipeline opportunities we're have continued well We've just positioned to that We know had to

refining. markets nice just markets energy another kind first they're have of midstream still not us done we a other still. of a in into that that's in example. And the again, grow. to be year, year, half good just certain believe in like or second very So front to we're when in we and -- but There's but job that that soft It's continued the of head would be next we'll continue half market the we've a way,

Okay. question. And one last

You mentioned, too, a you price passed kind of of of some to increase sort customers. on that your

quarter bookings that think great just this prices. were customers feedback guess, any this? was steel on I obviously, related again. I to from mean, I But

guys you wondering anticipating. So what are just

price You later think you maybe year? additional pass increases can on this

out. where transparent surprise. and mean it sure We and that of side make they it project exactly I understand know been totally no the it's is on business. Yes. line-itemed We've they the we've

doing are as that well. competitors Our

to of challenges. the the price market is the are our increases. it businesses, X On doing done well. the Fact in supply as pumps competitors It's or flow-based because do we've right thing

gotten they're line extraordinary we've But So with are no in and market. feedback. these

Okay.

I And -- just projects. sorry, of interesting, it I was wanted to know, the last one sort question. the thought I

was too space any area? really win think Is there competition application? new Is I that Asia. just you a seen geothermal haven't project mentioned, you I it for got, that a sort a that for new of had Southeast often. it in

space in mean, there. of some international an we've I very get only And not It done And I new $X any solution look forward a to believe sustainable a to continue a projects. almost an highlighting things new insignificant. that continue another into. project good we've grow. the project the market it's before, good we size. that expand expand project not as obviously, to we in international in to to not That's geothermal geothermal, us. That's win. is very but energy time to future region it's sustainable going believe we million energy of Look, business, is a the terms that in maybe there's ton for invested you a invest

in lot it's going these, to hear to So continue like I going sustainable but you're energy suggest we to probably solutions. additional of a it's category us as you're a would that not just just grow not from invest to hear that

a could congrats understand And how renewables. generation not XX the segment, in like too. but seems meaningful a you And X, guys, now. energy kind it's a quarter. Yes. be to nice now, it more you're sort one, be transition from yes, that's on going great. but it the just is about geothermal I It's to position of small years Yes, just -- from traditional XX great thinking of material of

Instructions]. [Operator

Bill with Dezellem from Capital. next question comes Our Tieton

Relative to here you please? in about Can orders. and the more the issues the engineering timing of opportunities you see mentioned the now, systems bookings second timing being in talk soft, simply that detail was it you'd half

finalize is quarter it -- -- -- is of sure of It's just stronger, their their large had fall, order of them half. timing timing. it We a spend I or about start approvals. again, timing to the -- And is honestly could second very call And could not when good to beginning bookings. been those even good second really supply right? us, the our final have some think they're finalize issues. I Good waiting before capital some quarter so the thanks. that It's project -- I'm of making even a feel be those and or because chunk think going often And to the it We the to end Bill, for towards chain to -- some they call waiting business the before that's just happens we're large up of chips fairly just -- speak. which issues, start approve the question. the wouldn't of customer these orders. you teed they purchase everything Yes, orders, for obviously, I budgets called for I about the

saw we that lot think a don't issues. I So of

quarter are despite higher I order the $XX ended terms with million was the than started versus in always just in quarter $XX quarter quarter it of that the interesting. slightly stronger the dealing It's think first even certain We how up, we this timing. first fact million.

very So We those quarter of you of a consistent. the good early XXs, orders well, second Ironically, first second really timing would between, the quarter, really some XXs anything is happened quarter. the was obviously, stayed the quarter, stronger. in of say, just -- part like

the could continue. stronger, We'd third the probably quarter come it side. be We believe will out of Solutions to that Engineered to and like expect

going that That's key off that the of that was of than activity, terms was really million. there. of to stronger Are you first felt million than building? feel and in momentum said a mean, just quarter you inferring that's just second But are $XX helpful. like actually is quarter the I -- I'm you something lower the number the $XX recognize you I

Solutions is the we little our didn't pipeline we're Yes. strong in Engineered I second that was about the the believe it more would our color But be could businesses. in happen in it quarter, talking a strong. first give as quarter Solutions in It's to and simply continues to you wasn't -- you of our pipeline business. as say saw our pipeline in since Engineered the our reason our for And second to a forward. what it, lot very to the be maybe And or a going yes. audience, qualified

we're board. our the So across momentum that side, strong. of industrial air, a industrial believe especially there's lot We really,

second has So any said, the It between slight we timing. the quarter I our first feel step-down in in and with was perceived second orders the nothing just like markets. good to really quarter. And do really about slowdown

think we outside that market, Geographically, if And then the may. improving. you inferred shift allow I U.S. me was to the to refining

U.S., So secondarily, as in in from the refinery shape, helpful. jet inventories much And X customers? all which countries as the fuel, diesel shake then would decent shape, on with is can you which out? gasoline your questions have you I demonstrating -- are the domestic be does runs U.S. better and much that How what are detail we think outside and strength refinery are And down. hearing in certainly of

in to about Africa the and seeing things India, were lot slower. talk I a and East Middle we're bids. tons you Domestically, seeing we're to of If

see just of to list of were mentioned map, refineries you. just you growth a would around most the you is to If the the a that all Google I the on in globe countries occurring

demand specific but question to U.S. the below XX% I year. what's so, Within answer -- here North jet nearly call, is every your July in fuel I'll last mentioned happening in America. it of

level, below So seeing XX% or -- sorry. we're XXXX not

COVID. And so up, but climb to XXX% we're starting it's see it back from up

not I to are like So utilization. something up we're U.S. to as say that high back to levels XXXX refineries that want at grows. either. XX% XX% isn't moving mobility And utilization

you're up, not spending to And Bill, back climbs until that bunch going see a CapEx. on so them

Exxon happens You with they what in to trying the refiners their more of the or market. buybacks, all in short-term posts be could are see whether their capital prudent here increase these Chevron as share posted, see,

one on end by is the think market We So on only and that's improving. orders it's page market. we upwards, feel that mentioned we like why

Just In $XX in have from million. through this quarter, the we didn't our range to a job projects anywhere quarter. come from typically this big business, in $X million

Qatar, Abu India, funnel, our Bill, but -- pipeline rich. the Dhabi, look so at And when I Saudi is Arabia,

like This any call to for closing over to the concludes Gleason remarks. Todd session. I'd back question-and-answer our turn

partners. day on you forward everybody dialogue investors. We to And for our all And, partners think all the future everyone. all CECO our we're And And to in today's safety in Have your environment for safe with customers I'd look get I once for questions. in health put participation and all continued interest anxious thanks with your our our a way. to very so direction. world. To day. to But Obviously, that healthy we're continue priority. our is of throughout to the be and with great employees, our Thank of our the hopefully that, of continue going and call. we the thank to meantime, thanks, the of our and in Good much. employees, of deliver a our and very are that, all and on like again, heading stabilized, us customers focus around again, to #X doing

has for Thank now today's you conference attending The concluded. presentation.

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