CECO Environmental (CECO) 10 May 222022 Q1 Earnings call transcript

Good morning, and welcome to the CECO Environmental Corporation First Quarter 2022 Earnings Call. [Operator Instructions]. I would now like to turn the conference over to Steven Hooser, Investor Relations. Please go ahead.

Thank you for joining us on the CECO Environmental first quarter 2022 earnings call.

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

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

going of good with prepared day, our along our as detail highlighted for that and forward #X with start the earnings results to Steven everyone. full Slide look our XXXX year Thanks, well quarter We in presentation discussing Steven, release. to remarks. We're reviewing outlook, which as first mentioned to time our follow first the in was

we discuss morning's repurchase this also press issued program of $XX as acquisition separate We today, and week. of will provide share encourage earlier regarding read recent releases information. We you which to do those and these million closed announced Compass we Water releases our last Solutions, both additional they

Let's talk the quarter. first about

We the when to XXXX, the forget, great COVID, of quarter. XXXX. are don't headlined in was first first XXXX. few to quarter by with records. the in it weak And up orders up fantastic impacted XX% XX% XXXX by quarter compared of XXXX I'll growth, a start And only modestly of over quarter was a to when wasn't so compared that $XXX start at million, off which a quarter first in came our

$XX back QX than the is to level That previous our orders million. record quarterly over million Now XXXX bookings. $XXX of record higher

highlight company history will came but in Matt well. backlog QX across detail, Additionally, portfolio. largest broadly is backlog the levels orders cover our created in in our our orders the as growth that

revenue future growth a We as are well result. positioned for

were XX% first million, $XX Speaking year-over-year. up revenues XXXX of quarter revenues,

quarter our of that growth to XXXX. throughout XXXX revenue signaling double-digit each been grow we have We in strong had start given orders would

beyond. throughout just strong such ability the as deliver to margins we and XXXX kick pleased year were XX%. this organic are growth Gross and drive to are our confident under off momentum We in

We what margins we first in produced than quarter. higher in at the have project new seen orders coming

us steadily help will this So gross improve margins.

gross in given declines chains, Of margins, course, and challenges have in the logistics supply global companies inflation. experienced many

have We our the across shorter-cycle this especially in price on and businesses. getting board, are strategically focused

backlog, including margins are throughout at or levels. gross again, recent So above orders our margin current gross

We focusing price, driving will productivity on growth. and margins continue on protecting performance, by to strategically focus

EBITDA. regarding Now

pleased first quarter $X.X the produced of XX% up ago. million a same was are very period XXXX. the We in year we over EBITDA versus

great, orders, a great So strong. XXXX, revenue, start EBITDA, very to all backlog,

highlights actions about section it forward, As certain across will last XXXX performance. year allocation, have our and I felt details are to frameworks guidance moving M&A share the starting this release, this accretive quarter which But can to important in mentioned slide and we we for capital our notes our announced program. providing was earlier, how capital and earnings provided transactions taking Historically, a full you saw outlook. our on we be investors provide on think range. repurchase The we just full year deploy yearly

X flow. about that it It proactive we in that talk Today, the management to $X repurchase see authorization the authorization is same Slide current our effect is years the will hope Board's did million that the confidence execute we and we share to level. until on million this $XX on opportunity of stock investors higher and organic gives authorization please history and program. into million appreciate outstanding price approved Let's free drive announced multiyear a each, continue deliver share in last the turn for reflects immediately profitability and to We so CECO's or this builds #X. area. This opportunity the levels we $XX repurchase largest we complete in goes share good cash growth, The year. remain buyback

billion niche water mid- ago highlight Compass is to a of side their within evaluate our very accelerate And business sales in industrial margins almost double-digit growth and adding treatment produced position utilizing and XXXX. footprint water to expands a in are Now $X.XX million well pleased Compass strategic the our by business number than We months Solutions water addressable our third portfolio, global Water of growth last and EBITDA we leadership and adds on CECO's existing growing acquisition fits can transaction market. the of industrial and in the water our $XX industrial we year. single-digit in that we which market the less began we Compass resources. to CECO Solutions. believe we believe Water high closed The identified Compass right week. market, slide, the by we a

respect pleased the great team Compass employees up will We welcome a represents are acquisitions. to we XXXX to bit CECO. strategic the and a in pick to which year pace with leadership

we've As closed multiple transactions. I mentioned, already

COVID. CECO EIS been in few wanted on associated we years acquisitions long run home sales acquisition XXXX nice with a and a income. maximization we the the we to acquisitions, past have While transactions associated a deliver operational to growth believe making The our over driving significant of higher to of with has drive excellence. and earnout of has as the aim history playbook challenges with few made a exceptional returns only We their navigate

on very walk GRC have results. will and Matt? also last intend our you detail years well and to debt hand through few We as of as over to quarter despite XXXX first the it I acquisitions and share now levels balance maintained repurchases Matt, consistent will debt EIS, appropriate sheet the he more over health levels. past year, maintain we

Todd. Thanks,

our as sequentially. place came QX $XX teams and continue as invest of performance. effort XX% treatment was trust XX% and March into we averages and This quality across suggested a up nearly CECO on continue the supply air projects Gross slightly sequentially better backlog. during over compressed in Slide in were customers balanced orders million, year-over-year as executed and solutions. dive well unfreezing remain Todd flat than navigate long-cycle was year-over-year sustainability our the execute and of versus up booked of at continue #X Sales month to following to to Let's as water inflation margins challenges, which their customers in our in peak as COVID. for expected chain historical and

volume, $X.X percent metrics We execute margins and with project businesses, customers. More aided a price year-over-year are operating on where settlement improved improved price markets in are million. seeing we look expenses, Reported increases here. EBITDA operating we our There as income continue to by come exists. improving stick elasticity insurance onetime short-cycle margins to In discipline and of XX-plus lower each lower ahead.

benefit, quarter. EPS Adjusted was FX clean XX% quarter summarize, To impact. this is up at good year-over-year, for the EBITDA story $X.XX up year-over-year predominantly this was with very no $X.XX, a in a Excluding operations CECO. on

end Now acoustics to and to these strong of emissions fantastic industrial let's out sustainability saw the customers that such demand across move Platforms year-over-year. as strong Slide platforms serve was of air markets. growth Coming gate, to air us needs. XXX-plus a were #X. thermal their all XXXX. exceptionally came management, percent for was as QX Each Market start quality

water air, in leadership our demonstrate energy orders headline double-digit New and transition.

from was that coal our a XXX-megawatt control natural Peerless emission utility converting to burning for clean and gas provider First system solar power. is

In multiunit for the in it of from a RTO a employees like booked an the a sustainable of Handling, Todd that single-digit we marked to acquired growth platforms point Xx our of investment can shows few a greater spend. than June toxic highlighted, nearly separation slowing Second, as EIS infrastructure million. our and context, and We EIS while joints leading is value CECO manufacturing signs many believe on and of and a $XX of is beverage and such saw Fluid XX-plus line their nice integrated total, case no DOCs. cycle backlog M&A. years, high market year-over-year expanding coding with environment in for Today, driving high can enjoyed $X Put a protect a into acquisitions on wants large $XXX manufacturer backlog exceeded percent size. million first shorter that million. CECO down. years expansion via platforms in orders haven't treatment Other considerably X XXXX by water of orders we also margin all-time Ductfab growth is proof filtration and this

QX. of and continues Regarding filtration grow proportionate separation with their their as platforms out platform stood exception just to in revenue, single the backlog quarter to in nearly grew started all that size. the backlog all turn to relatively No grew our

grow continue the Our XX% $XX sales million up to quarter, in year-over-year. short-cycle with

With $XXX the of will total and nearly million acquisitions of XX% out GRC sales. short-cycle at top CECO approximately sales or Compass,

healthy margins supply subcontractor see have still chain margins our exists. backlog commissioning. is see opposed improvement to and We one watch margins last in margins. inflationary close the XXXX. record CECO points XX% platforms power industrial keep that few of the weigh last are in very years. QX to weighted progress Gross years. previous #X, challenges $XXX project X but and prior receipts, in executed at is margins in was that trend them and Slide turn execution, half. our to We on improving priced weighted a generation This in impressive to million, QX CECO pressured we X XX% X. noticeable on materials remain pushing we good our as-sold as markets And continue to broad with Nearly Most gross price down Please nearly the make up performance. million on cost our a demonstrates journey. We transformational year-over-year. most feel our is a of material and market second diversification since we've expect to sequentially on all elasticity Today, Slide year taken points on-site our towards the about over executing in backlog this and project $XXX XXXX. towards Continues logistics versus where the is seen for backlog. of

an As slowed. our has orders business year second not and have price this initiated increase pumps example,

monitor automotive, and they've our larger or select end in so an businesses, are project fact, We in in margins in price and end bev less we half markets push and data to but and our continue XXXX, markets. the to of but In like can late winning mix backlog. second our actually In into anticipate improvement increased. energy-oriented continue ISM

dollar to CECO were As year-over-year. Year-over-year for delivered overcome deliver $X.X significant project increases in EBITDA, volume increases and EBITDA lower the quarter. million able margins

we SG&A quarter million fourth increased was basis salaries $X.X which flat year-over-year million, First was seasonal operating that quarters SG&A adjusted management These expenses. to were approximately first up QX. All legal in, insurance in after are hard quarter incentive many higher resolve. increases on essentially to up approximately and costs and support our by modestly offset versus the with for pleased team on year-over-year on our an we settlement compensation. headcount the were growth, results by quarter an of higher work booked $XX

means million Turning Slide an orders flows cash increase a sheet in XX. healthy coming had the We to predominantly in Outsized growth receivables. on of quarters. of we milestone driven the the $XX million flow billings, $X balance build free improved by in in and a quarter, use cash anticipate customer

the at how leverage support shape capital and allocation recent acquisition, growth. XX Xx think Following great decisions. our balance in sheet about stands outlines to we GRC Slide

beyond sales metric economics Compass to to great priority acquisition reverse First our CECO Water organic accretive platform, water M&A. that industrial investments our a short-cycle adds is osmosis bolt-on and is is GRC improves similar to with technology shareholders.

continue to our confidence over offset count annual The to favorable time. USDX EBITDA and USDX appropriately. million make is small and in industrial the shareholders CECO's on these acquisitions, a will with and largest our size strengthening in air water to We decisions valuations for and market. confidence, to we've and platforms. add To our our meaningful we've target bolt-on the focus $X share team we backlog million of billion We shrink that balance history record in capital $XX have position in believe buyback reward and pipeline, have share enough authorization. on a growing announced improved Slide healthy dilution a will based anticipated allocation buybacks cash M&A program, introduced stock a guidance and X-year the sales on a products With With we repurchase XX. our million flows, XXXX

XXXX. here's and around year's be full we're USDXXX out. the midpoint, the plays to year guidance With providing pipeline would which up up order million orders robust thinking was At this of we XXXX, great versus in QX, how in XX% start So million. XX% a USDXXX are versus a

million For of revenue, USDXXX million. a range USDXXX we to are introducing

are upper supply benefit, course. or our But on stabilize additional an and second we optimistic see constraints is as on the and gross turn the the our And better. to half as guided are slowing outlook. of cautiously to end QX upside pricing margins. margins we Acquisitions we And sales backlog left in year-end. chain range. We we while option midpoint our of see hope XXXX. conservative a backlog expect at bottom navigate to end margins, expect our deliver of currently of will current improved We by be achieve volume the gross inflation, our at range this XX%

our provide also year and key we elaborate EBITDA. X of rate and margins, layering higher the at us to So for would investments, SG&A of on our $XX guidance end guidance you option modest assuming by us full of timing, to XX% million Todd, arrive million and framework. project Acquisitions of non-GAAP for but our in the run further organically push like $XX gross midpoint margins range, an incremental backlog take variables in XXXX Q&A. into likely

Thanks, Matt. remarks then guidance, around a take wrap we'll questions. Yes, areas let our and me prepared our expand few and up on

course, more transition are the development. are we systems, CECO. few CECO far we These important term. investments highlights, slide the markets. making to in develop achieve respect come and energy As past sustainable across balanced how people, results of business growth industrial with to aim investments and over can to We're investments years long process, the These to business in strong and share excited our acquisitions the has to advance deliver portfolio more many that are

reflects guidance our costs. So these

We any challenges, hope good and guidance but with think exceed of also a unforeseen or As we this to we of none supply out inflation respect momentum. certain of challenges, chain helpful. to lot but the find and opportunities have woods guidance logistics are with us you

turn slide, last go Let's #XX. to please our to Slide

billion around to repeatedly are is over pipeline said growth. in to gain we to strong of to opportunities CECO fast large have XXXX. we we start pursuing, continue With traction backlog our As expect off and a today, and $X

is our X, to in of we week to use for ESG of a possible deliver I capital communities CECO announce benefit the team, our as great without of team. None culmination cross-functional to to our is This that all our program, which would our a sharing a announce and are customers just share Operator? with will like line by you our want lot repurchase this excellence and the everything to we And to or questions. incredible of of we shareholders. We look open for you work hard associates that, to for believe new pleased well. story report. a inaugural assure month. this I'd with be thank ESG our And do forward

[Operator Instructions].

comes The H.C. Dayal from Wainwright. with first Amit question

Thank sort customers new your growth strategy morning, of maybe the recent of new you. these customers? Good bit products these little congratulations everyone. acquisitions, on strong with portfolio some on Or for begin Really to respect just results, add-ons? a taking are to execution. you you these And to finding for acquisitions? existing elaborate Are you the could

comment, fit a the of -- our that, one only have year more common On fit theme of so question. all current comfort on of this they the that, time. but growing sort thus M&A, for component transactions positioned we and globally which Thanks have industrial specific the and of year, the I this following been transactions in water far so some all quite Yes. in organically where completed the yes, have for well water, this industrial our appreciate markets strategy, had broad been far we've industrial focusing will And is far, in zones Amit. not as transactions in they

similarly, So access for that markets into to access existing these add the for customers, adds more have to to well. customer to as markets new global did us. believe, transactions acquisition us for they And we our products not targets,

that better services longer our business water and industrial revenue platforms, and add shorter-cycle focused transition, well. give foremost, to sort project to energy businesses as industrial our that is acquisition industrial more of of mix of X our us of profile first have broad a balance the to products, So to continue and on sort out stay air, strategy core areas

of the So fit year-to-date acquisitions all that. have

expect And at we're core. current that and we're can for them future You customers current fundamentally. have necessarily true going to down to double to profile they se, of don't similar if sort transactions on looking but per have all to a stay markets

pressures, some margin do the on reverting from too by then know have the of But the levels to off inflationary et the of see And XX% margins you levels. end sort eventually? you you're side, I historical year not low And cetera. far

our a highlighted Matt prepared bit little in remarks. Yes.

time. cetera, our supply inflation, challenges is So look, a ignoring we're going get have back over have which been XX% long average, point quarters, low still the there. period of next the below few below we're we're would XX%, price believe backlog. We our XX% et going to to would certainly our through just which think to We below of ability certainly, get logistics, chain, that experiencing XX% current being

some of to timing So backlog. ability our price our productivity, there's get actions, through again, price and

now, ramifications below do going a right overcoming -- I that. industrial speak, all a the space, doing look, the fundamentally facing. cost, business So timing companies, look, to speaking, and we're so the continue the great up which market in nothing our companies We and bit there's get And still job certainly is of XX% challenges as appropriate, above of the believe changed are thing getting frankly, think challenges price going other to where broadly in XX%. why but the we're that all little all And we're second year. our that's than back this a of of get we half we're to really imbalance, in we're to into

The came thing just margin and quoting we're XX% was a we add something now and only looking now we're year, right things last time that like that XX% across at then the job this probably definitely we're backlog got at I'd Yes. about XX%. in

P&L. time projects an going some the the seeing in It's funnel backlog margins. improvement long for to cycle to take So our we're through

of Understood.And I respect the from that quarter there for orders a Or the with sort provided expect through? Should in and then, first has seasonality come of Matt, XXXX? may time. know expectation, these any we backlog improvements sequential to you've how through maybe cause variability guidance annual some sequential is

we land they no are projects our really there's It's the and on when of seasonality. timing mix individual and productivity. real of No, working business. about But

seeing modestly. increases, of second margins real do blended up. half We this creep sequential and a the year expect early in are margins the XXXX. We We late see our improvement but in

obviously, double appreciate kind to be about sequential, choppy current given productivity, to profile But just ongoing And CECO, thing like performance. down of of quarters, can just ongoing just to question would We improvement, of in that reluctant that's quarterly one guidance ongoing we currently there. a you the on things a lot because Yes. asking companies. little the give important a be us.

as head of look, outlook. of month that we're the noise it, that year answered, comfortable a the the we handful by very that get for could productivity sort and exists so momentum it the in projects. we the in be call and takes number That's an want already about out And if ongoing to our or influenced us you couple larger full little a with the easier Matt because of of of months good But variability to bit kind a feel have. around

that, can appreciate Todd. I

Just With to there backlog some backlog? you're come one seeing, has in maybe. one last domestic orders that the well? international it is mostly as Or strength on respect

XX-XX.

take other that's questions off-line. missed. Yes, right. my I I have All all will

Markets. Brown from Rob comes The next with Lake Capital Street question

work to is the short for that Compass Does cycle? How recurring acquisition. get and it sort I business model? razor-razor customers little on How want does a of just the that the much detail have of business? business kind more a played all of

Sure. tell that this you business. We're systems. pretty excited about is I'd XX%

going is you're the where RO Spanish be slop going are Maersk vessel Coast in but needs with military whoever to market the the or the vessels on ships standards to the by that the whatever where water serve or in compliance we're ocean, to water is needs U.S. discharged systems Guard back typically navalships, is to anywhere be for be response internationally. U.S. that to a Coast or et Guard and like going have potentially separation, cetera, water marine So end

think pull the gross footprint globe We help business or super when certified Guard. to XX% Army the their have the by product about XX% that of Spanish U.S. to like Coast Because all or business, Nordic military more of we And Why? the content the be the something through. has margins. it's to aftermarket over international rich

business And product, have some use can't plug in pirated so other you you or Compass to filter other the just some brand.

so max, me that there just for excited. is because will that's about And million what part, maybe the makes are per and really think million they tell occasionally have being job about cycle, or units you short that's or that But When a their here most $X order that's I'd we $X it's average several size. RO $XXX,XXX sold.

consider few because a the out in we everything ships thing short cycle within So nature months. entire

see, replacements, replacement opportunities what especially the opportunities that into other feel because modest the bring real outside we'll a their their talking margin and also you're rich. replacement, there. aftermarket When access with feel small company systems vessels. this expertise growing and they've in line, been nice of doing to organization. level real of the into an market a But appropriate certified Compass at like getting that growth a There's somewhat then strong very and investment again future for we We great product of line bring job about on just that be there's investment profile, in locking we opportunity balance so Rob, we advancing the Matt their is, and is can product their suggested around

longer-cycle price margins you And on and sort then there? to gross how then upfront gross protect built... the or margins, Are your do back on are projects, take you of there risk inflation kind fixed escalators of you

Yes.

So bid. us We'll typically our that the But on and protect And the language there's now so at price X customers our or over we'll, price business, locked have received maybe ensured we last our and months, also in have materials. our chain with contracts depending a escalating appropriate the speaking, the suppliers. sort even from fixed we'll supply especially times, fixed have generically number market, that of project. different or of a in contracts approaches

something that heavy transportation-related escalation components. could it's So of be around metals, it extensive metal be we'll we clauses providing. even is have a a includes could key if fairly product if contract. area the It are logistics It that

So customers in operation. industrial aren't what companies these that of small very fundamental it. to transition. energy very These a mission-critical water understand do success are that screen. There's air, products handful the off areas can only do and our radar the of are the we These their of

So they understand associated the to that et going at of language now. for new some cetera, are clauses, with that standard is least just escalation be

Next Sweeney with Capital. Gerry question comes from ROTH

talk how of more wanted do obviously market-driven any... I'm just significantly. made going Just Or see maybe internally? changes And strategy? about to made any a Obviously, you up is have of focus. some orders, much sort maybe you of curious that end been versus One, there's you lot on changes market to

Good Yes. question.

$XXX with there some million decent and at our our -- in get out there, dynamics certainly. without market you look, size being don't orders So

we the CECO, So we few want right? I great of say you few a well I'd harbors, want done that would rises in to though feel, be to a in feel like have you rise. job better last things over boats to those has position certainly tide And positioned acknowledge we're if that a -- as tides there's the be years to

focusing cetera. example, as inorganic businesses, been not a period et For extended that we've also but certainly markets, internally talking some internally on on adjacencies, we've acquisitions small after only of over theme made more to few focus years an about little but bit theme organic or go service time, this has And short more made of more we externally, industrial. the last an some investments general an new been more over cycle, have

over years. it's few the been XX%, quarter how orders, really gas, quarter or is, you certainly if or industrial. of X oil if have looked if XX% million combination, lot strength had mentioned back It's give and say numbers. cetera. to we back of of in these would sort general strong last that you ago, a diversified over a it's now. prepared remarks, So $XXX And exact years CECO have point the more I much we been areas, would of X feel power, years has Matt X like energy-related his a have we've growth maybe look in I of but would flipped strong XX% XX% orders, would market But didn't and X et our ago,

I where those put opportunities. customers, really running organization, internally that We're on our the just a we again, the faster. acknowledge to platforms certainly our want spotlight So best to and see teams, has with the

so again, of to it's serve our working our planet all And where hard work lot over the our customers. hard by just are a organization associates

really That's actually. appreciate helpful, I that.

I CECO portfolio, question are get to as acquisitions. divest, as there opportunities other making is your The you even smaller a to But to at whole, bigger. get at obviously had maybe look

continue lot feel our short And like transition, got water add it really companies we their portfolio. that adds shareholders. momentum smart, our maximize cycle. air, and add and Yes. of evaluate same our a we'll we if We're to Look, that right diversified CECO that are pieces really to to our of more balanced Right of organization industrial a a we on for a lot again, that profile is growth portfolio in our we've company. strategic like that we those at We're accretive we now, we that again, over our understand value as returns good certainly strategy, options as continue feel excited we're like about to But excited now, clicking then an time, want look have longer industrial cylinders. to about really through there as that. more energy doesn't ability to organization, M&A feel piece to

to That's Free at the you. little a Or any a for capital more have a bit there's -- that do that of bit flow. for all helpful. -- for get... little maybe know probably more that still And working little for up then, look is Matt, it is you early we cash bit do year? some how this nebulous I sort probably inventory, stuff -- projections too

up. going answer is The It's up.

Gerry. a That's up, specific

that are could excess excess, billings early. you payments billings is good cost growing billing sheet, advanced receivables. sign a see that look our good in the will advanced If which are and receivables these called Those balance you greater are and growing, in we're customers or at than are our

for flow This what X roll X up. cash when business the to I is through. the So grows, cash going said exactly will years last It's flows grows.

but We thought thought about that everything going specific... says giving we up, just guidance, not it might be is

up... But I title my got report

next Instructions]. Titan with from [Operator Bill The comes Dezellem Capital. question

quarter? How we the strength that read to that? receivable relative indicate in all, that sales up, there of First do the accounts being was late does

tying Yes, is is on to they're There and not based billings revenue. correlated. milestone not receivables

terms, just it's So they actually they of pay the the starts that be timing XX-, we build might of need to XX-day when XX- us. whatever or further clock customer actually when

would, is of April, an then And the kind throughout please? since separately orders pace you and QX you pace AR indication maybe not of the if highlight into could sales of and was quarter, through what

one strong quarter say all may Bill, fourth seen we he's you thing, to January When results, remember, our we Yes. the to had and was announced we the to tell Well, in he's already got point and orders. talked obviously, very that quarter, going I'll let I dying you. data, about February ready at Matt,

fourth the Matt would were gave February, that our I that shared of very just of sort that when and kind we already we talk release earnings remind about quarter, strong quarter So and seeing how continued. pretty you publicly first January I'll we let that in

a yield. like Orders look

decent. April bad being were like in because to January obviously March February, was than then pretty to little And with revenue from I on with that March a whatsoever. was so more longer more revenue say was and February, February of January not It bit a month ramp slight would So not... par but February -- strong. probably more

given we there that read down, that into is a lumpy? all Yes. it Or you truly and I'll just or into read that, it? bit this can call is up anything that little

lumpy. just It's

but million, million what $XX to on $XX some came of grow mentioned Why? is ease We have those digits, do projects that We and gravy top. We it's why It's that are Because and those. want they more that's do. come short-cycle we to But predictable in. we didn't have sales. sometimes marked I by projects have our headline sometimes a ton double are history those, in. orders and

-- the at sort One time. And and way is at times. also of customer, screen, end at again, quarter. look down always -- can of the call a to matter our and on the okay, we we booked a beginning look, trigger days Does it on our of you inside it's lot sort have have what of of the Bill, book we So of our go, our orders $XXX radar coming quarter to it want have just of or million at we I the that, from kind of pipeline the information, it the if the right? had could to level dollar year quarter that pull last had

in window here, call window, Let's million. discussing $XX the that I'm this that current particular XXX-day

higher or of landed have let's $XXX record take, Sure. quarters at say also quarter, our be $XXX or would million, orders this Both just would $XX Let's In it and could at let's have million $XXX even low, backlogs. give worth of record have the numbers QX? million produced say could but "slid" million. those have just been quarter -- been and to first than

if even been of second it still quarter, quarter had our a guess over moved good have that been quarter in would impacting distance record. record I would orders feel fourth or our previous the QX, a we therefore, you placed negatively So it the by to call some

pronounced pulled help a as our we it or got it year. wasn't bookings but perspective, X Fundamentally, because we or wasn't from that So quarter slid did of X maybe in big this things out orders. as last

the the quarter, to a in those, relative be step-up going finally, And nature is orders going helpful. to some we're long-cycle to the significant like try smoother? Or to another had revenues? earlier manage you bit stated really up in that be you as comments a question, in you can see to to just this That's of feel where there of step do given quarter a future in

be we are solid time, mean, there of revenue. we this we quarter one it But clearly who that orders be as Well, are number. pop orders. up believe yes, probably company These a period won't will to I a today. to won't translate just

less We a have that. be than rate. I very, bad It if a and lower very mean talking rate. and very, than X% even most debooking we're average would even debt maybe or industrial low companies kin X% on

look, we this make hard did So the not that to well, revenues we're it's can $XX and higher a when running revenue going that this do a determination that believe million backlog. to through if $XX you quarter, million, we're $XX our which million, just much at of have quarters few math turns reflect

revenue? question does guess is, I when this that through when order so big maybe then the push, -- the does And flow

of up. They the will top you pop-up $XX shows revenue of business quarters, going over projects the course in flow of to some X be and million compiling the order through to base be isn't other. will that might our X several each It just plus on expect

not this a million year, it's And like drop smooth, you blip, in point and an late see back $XX is it's It's pretty time. but early increase major will Bill. so next to some be bet going onetime year, revenue down. at yes, My

with comes next from Partners. Graham question [indiscernible] Thomas The

a maybe looks you on if orders the anything from let early that curious area? going positive environmental there. guys stuff The in what on get company and ESG what on out, owning that in out energy interest it's Has been I flip you early, for still loose I to but probably much not is somebody thinking breaking have to to still know I to know this just keep I any change. me Sorry cycle like was me. color but thinking super think. pipeline? that lot really the I there enough. we in stock too own looks resistance went still of energy Are

Yes.

think pipeline I So side. midstream the on specifically question That's the our... is the on

Yes.

Thanks, Thomas.

So our that you quarter. platform nice that those show was CECO it of have last that It this year. yes, orders that one platform growth only didn't growth orders was showed tracking really for been our

more to expect space, investment continue. pipeline, at being least now midstream in is We in We that capital see where our applied.

job the are they come end margin as those those of say would David also but business midstream developing fantastic only job very and about separation really There supplied, Defense and other tides for relationships talk in of being relationships opportunity markets, an spending we good back, when the in those doing a that investment cycles fantastic a markets have rise filtration understand, business, and capital great of other great maintaining in not the We position and cycles side, doing Department in we are that leaders Navy long us. Taylor within for customers. with have all are to

other is what this would they The I in suggest for and better gases. energy better other capture transition, positioned getting we're especially calling are carbon and

talking the So and solving to sequestration forward about of capture really of along some about a over some suppliers forward solutions look and really unique talking we for few different look of we we to as ours, are those COX carbon industries, variety quarters projects other that. next with partners

and So to we in other ourselves, COX business again, capture areas marketing investment talking finding development finding adjacent organically, new of relationships are markets expect aren't appealing orders worthy doesn't about creating mean be exciting. that strong, our current and that still adjacencies markets and large

like turn I for closing question-and-answer CEO, to to would over Todd This concludes remarks. conference our Gleason, back session. the any

always. today also forward be to Thank you safe right acknowledge healthy for continuing all associates for stakeholders, to at for questions right appreciation connect the are again our we working great to with helpful. world questions the as investors everyone's around and for at to I'd the every to at and the hard place answer CECO, that look time our our the to interest. once We analysts like customers sure our and staying and of for delivering day, make

And the And at you start as we've event See an best so feel look, speak soon that, about out soon. there. times. great we're with to with hope year the and to we about year. excited We luck of articulated multiple you already the

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

You disconnect. may now