CECO Environmental (CECO) 7 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the CECO Environmental Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event today's note being recorded. Please

now Steven Hooser, would like ahead, to to over conference the Investor turn sir. I Relations. go Please

the and joining XXXX Thank you call. CECO on earnings Andria, quarter Environmental you, third thank us, for

Todd On Officer; Chief and Officer; Peter today Chief Nuggihalli, Officer Executive and Financial Gleason, Ramesh the Chief Operating me call Strategy with is Johansson, Officer.

with to guide our provided a be to help our Before on The at have webcast presentation, our we be Relations slide cecoenviro.com. materials earnings we through along begin, which is The section. note that the Investor I'd can will discussion. like accessed call website presentation also presentation

facts to today's a Such future materially statements are statements caution like estimates results forward-looking regarding are made based also on differ expressed presentation statements. statements. expectations to the not or in are uncertainties. subject certain and are Any and Actual forward-looking may historical implied those by forward-looking I'd that and number statements. investors on risks of from based

the we update to any that extent the information, filings, for the SEC on encourage of XX, events including obligation you no make securities we our in revise today, forward-looking XX-K new risks future ended applicable laws, Except a by otherwise. here described to result Form required December XXXX. or the publicly as undertake to year statements We of read whether or

deck. We’ve non-GAAP the in measures. in as certain Today's the supplemental today's well to as reconciled comparable of presentation release the GAAP back will include also non-GAAP slide press financial the and numbers references tables

Todd call over Gleason. turn And with Todd? Chief to the that, Executive I'd to Officer, like

presentation going day everyone. to of number with Thanks, mentioned. three Steven start Steven. And that Slide I'm Good the

get going. Let's

that as made it with begin such. Once, CECO NASDAQ today, sense our changed symbol Environmental Effective to this year it symbol of like the as as became always be I'd secured slide. we to earlier the has note CECO. officially ticker listed available of ticker at the bottom highlighted to for

listed We company. are celebrating NASDAQ a our XXth Anniversary as

a gift. So is anniversary just this nice

bit But the want we to only that's news not of share today. good

reviewing takeaways delivered financial Let's slide. key issues to persisted. presentation and discuss main today. from the We and outlook teams points strong the challenges our these thank chain believe the quarter. I'd have are supply for We our the on global another our navigating that like market results by

We continue for to customers and deliver channel our our partners.

fact, and quarter second In was produced our the EBITDA, revenue we third revenue highest history. quarter company's the record quarter third and in

above third with million. our bookings was quarter consecutive $XXX new this Additionally,

a backlog to remains solid highs close of all-time as Our quarter result orders. of another

CECO we that broad suggest XX Importantly, based months five, or more doing companies would in across of like our to diversification Slide frankly All the muscle in and getting detail so. are I as we XXXX. And enterprise. on diversified their from growth will flex exactly over highlight is past

water leader. also the We capital allocation quarter Korea DSXX, based This one purchase the our our a creation. of a be industrial closed we In to of programs. hallmark will continue remain acquisition, value South focused on

a continued More repurchases. slides. addition, in we In capital our allocations stock on few

bullet two points XXXX final year outlook. full slide full our point and guidance The year our on this XXXX to

is to executing our outlook next committed our are introducing raising strong guidance for year. to line, are XXXX and maintain We and our Bottom expect growth against we commitments.

quarter NASDAQ results. delivers our ticker for where but great as day first the is another CECO symbol CECO, today So,

in into number our third snapshot Peter financials Slide provides four. to more will dive and here our a quarter move are some Let's but detail, year-to-date slide highlights. financials. summary This of

XX% the with digit year-to-date. growth quarter percentages. with up third $XXX On Three and double financial the left orders highlight we quarters year-over-year side consecutive quarter million, slide, key the over almost for orders of another and metrics

XX% third year-to-date growth with points Sales QX year-over-year. quarter in over basis margins adjusted XXX% EBITDA in growth year-over-year. and XXX QX and in our for up year-to-date the XX% up EBITDA are

continue growth solid and free go Free pleased good drive income really forward. our cash expect flow and Overall, quarter to we revenue just very as to the for continues be So very for CECO. year, performance. to cash be we third flow we're with

and on basis to refer of months. provides let's over number This key move of the Now and each visual growth past for Slide this slide I the slide our the platforms I takeaways orders was a a five. when to year-to-date depiction highlighting rates performance. XX quarter eight year-to-date

profile, higher A platforms such our industrial platforms a months. have of over our double the a demonstrated balanced some quarters XXXX. each past delivered growth obviously the bottom have have and the when order's truly growth growth of year-to-date perspective, digit but first growth. past air, line have XX% XX All three from growth of have over to half as orders year compared delivered And

instead The effort our here entire near collection company. one balanced a are drive not two I'm that platforms great not of gap And are markets, growth this our declines quarter of growth growth big going just that a a across point to that But two full read the each showing backlog the see obvious the you is result of or is figures. perhaps themselves. or or one opportunities record and have year in and effort. can close fourth platform to year-to-date great big projects, orders two growth but

and with we at I and organized of capturing design and more core our driving extensively will To goals adjacent would objective more audience I be of a point accountability approach customer. differentiation And has for also XX core after performance, organizational markets. continue this and remind months submit quite real level directly the the platform nimble platforms the have to ago, into growth that focused been in to talked more that consistent and or these to a about The organizational CECO. that half objectives drive interacts platform opportunities about year the growth, a management a we design. eight was when would

let's Now on. move

six. number is Slide unique somewhat Another

on which our which water, three The into air, Let's about represents previous energy platforms that A the our separation platforms solutions across these areas. industrial have XX% go of the transition, eight such makes other focus as industrial fit about there multiple now few strategic XX%. for sales, areas cut slide strategic XX% CECO, represents and which and filtration, now. of up focus

That's brands why for the brands which the EIS are markets. are air is listed and water, a brand strictly only our case, industrial resident in we as and brands challenges customers transition one of industrial industrial such for well-respected peerless platform. the across board. Whichever example, key you number that air, to solve have within AdWest, see platforms those energy or some that Compared are

right a this project of just representative on some slide, And the of section our you of wins. see list

of balance growth. Let's our like orders the and diversity

and with significant air for sharing you size to are these that have investments can we these in these a winning few read small our of the in these industrial wins projects, We a markets highlight we we across will markets. electric areas, There diverse believe diversity continue have semiconductor vehicle been just course, been and various again, sample brands. invest expansion. same an And are

we solutions, a is aluminum food thing same advanced a a metallurgy for serve management for our believe great brands or dollar solution semiconductor that and manufacturer provided. and markets. multibillion this CECO, leading We The an air fabrication these have case, needs technology. million $X a position Whether win to it In facility copper and markets. beverage required project that $X million that chemical

steadily Over past developed leadership the niche we have water markets. in sustainable position years, a various industrial

engineered we these the through has been reuse vendor water growth advanced leadership water certifications, acquisitions on or being that solutions clean industrial the produce In and Oftentimes, provide treat, industry organic or special Our highly and have AVL. and we rigorous investments applications. require lists approved heavy capture, market and throughout XXXX. position made energy offer markets,

So to speak.

these that solutions and The many activities years. engineering confirming AVL or to customers regulatory efficient process their to while in them to are achieving maintain documentation are And can safe. take ensure for also our approved our processes compliance, solution cases,

treatment slide, to East a engineered required a produced filtration solutions. is $XX that dollar Middle platforms, we brand customer delivering water On that highlight our the separation peerless million water management solution highly

example recirculation invest growth. sustainable winds every compass We also our believe continues thus solutions, treatment. we short, focus In shown highlight win, our smaller branded that targeted niche with have saltwater strategic right leadership water water the across build and to potable or and regarding water inorganic to some around we continue or industrial to industrial will more Fybroc areas organic we

strong applications. markets, very And transition and various opportunities legacy energy natural gas, refining such we are position a vast, the in finally, power, have energy as

solutions. to hydrogen, with energy support their CECO positioning are and and infrastructure with also we And Now associated to expand those applications. capture, legacy carbon needs advanced purpose other to gas new customers investments simultaneously

ethanol eliminate capture be are carbon the solution in is product, separation where goal. solutions the will This facility. almost million ultimately carbon carbon on Similar might this environmental carbon exposure. end win space, working the be recent an for and therefore and various filtration we commercial $X as utilize a One might capture projects and within sequestered

of forward our continues examples more scale capture capture look in quarters. will We in to to carbon large sequestration, As to point development these in coming solutions. be aid or receive many of investments infrastructure solutions more highlighting commercialization, or critical the the of

Now capital seven, allocation to our turn Slide highlights actions. which please

and towards almost months, As buybacks share the slide million past takeaway on acquisitions, XX the the of the deployed highlights accretive combination over we strategic have $XX

acquisitions highly and water position Seacoast on helping in closed great listed naval industrial engineered and the ends in or Asia we market slide, and closed water. on with membrane and DSXX, QX, are our leading which relationships EPCs entered to on closed air, And infrastructure solutions. helping Korean and build Compass four on specific process leadership a which The to just in we adds adds to which access also advances industrial the proven water we applications. of industrial position side marine Then QX In left solutions QX, Rubber, in provides applications. General water, East advance certified leadership

water air Each acquisition leadership Western and in energy teams. acquisition positions to Each three in collectors add focused niche solutions. is adds Air accretive, each position standard industrial with of strong advance industrial control QX helps niche dust with management these The leadership very solutions. efficient acquisitions to arenas our

growth. leadership, may believe add and we will drive transactions know a critical on So, meaningful relative small basis, while seem market reach and the resources, great geographic they

purchases update common On we an stock. repurchased purchase of an support price worth value. utilization million of with price. nice average stock to the These our of shareholder around of provide of $X.XX. about repurchases. QX, a and side coupled when in represent the Combined the stock X% discount A our repurchased $X to represented our share This consistent XXXX in and QX of around pretty million worth right stock current we’ve $X.X to slide, cash

repurchases stock utilization already of May, authorization six dollar million third a $XX we about three-year months. of that have in in that announced just we just while So, utilized

Now, this I would but not good maintain stock will and prudent flexibility suggest authorization very rate we of capital to we with allocation. our be gives going are us the buybacks,

hand full year financial our I provide who over Johansen, will will guidance. Peter? now to Peter details an go and through on our update it

Thanks, Todd.

Before and the Strategy Chief performance, mine I third of share begin with of to impressions briefly XX discuss you now Financial financial initial and to role. want days I CECOs almost Officer my quarter some official

and was I the say about to stronger join after a Todd even here very that and today you journey. on possibilities I'm build agreed journey three excited his asked and months, when more excited pleased to CECO. the I'm to better very And before team sit the bigger I to

As about potential front gotten that our and more our is learn CEO. vast I of customers, the have in and our company, people to

We full have of the the for organization. this surface only tapping potential scratched

and been investors, of since learning with more about interact businesses. the and I've the with I And our our company time a and in each struck began, shared to by enthusiasm analysts. and potential number in about had forward I interest have in you I the look meet the Additionally, the spending encounter, investors to CECO more opportunity future.

our third dive the Please four, I Todd you to earlier a into shared nine. highlights On Now turn let numbers page the quarter Slide deeper quarter. and today, you financial into has third results. for results. financial now take from will few quarter performance us with

on view slide today. is this detailed a highlighting for the more you of in the earlier is summary QX are XX-Q filed worth P&L On XXXX few provided items A performance. industrial this than page. $XXX consecutive XX% $XXX for of on air focus. third at quarter Orders and our up strength year-over-year, million, million a continued greater in areas are industrial water A

orders reaching a the With $XXX of level TTM million.

sales. run performance Sales of growing execution six quarters $XXX quarter the our even year-over-year at increasing in XX% million, of consecutive was on better from Continuing up backlog. our steady

profit year quarter Third period. margins improved with the gross XXX XX%, points ago line expectations of and basis were in from

improved execution price actions material costs. and project our offset higher and As

in gross line margin of was XX%. a XX-month profit average level This with of

improved We levels has XX%. margins of backlog back margin historic come. material deliver a contributed in to project expect from And to trending margins towards acquisitions. and that completed subsequent higher profile, outlook our to quarters and gross higher improved XX% On those cost

an final operating that highlight income. to is I four on not number metric earlier described A non-GAAP would that like was slide

income operating over million non-GAAP our except been exchange, impact the $XXX,XXX. the which to the the better have better Our finished number at for $X.X down third would foreign brought It's note quarter in even quarter than XXXX. results this of approximately XXX% performance important by of

a delivered and outstanding of set top of income growth statement, the year with upfront result. share when the excellent has an buyback seek in our combined the on quarter, program full EPS work hard this All

XX. data slide, that points Please orders revenue. some turn is earlier provide Todd you CECO various to to and additional for performance want our an shared widely the Slide with orders Where businesses. distributed on across On I

led also continue, reaching with of million. growth orders quarter, three per Our and set nice order $XXX TTM average we has on million. in quarter record to a seven to period run consecutive strength for A figure orders quarters a TTM $XXX growth. the average of run the of expect in of has This quarter orders orders third $XXX million a

QX $XXX an for results consistent revenue we quarter of steadier slide revenue to quarter, CECO will of through trajectory, TTM future. series convert revenue and as $XXX Todd This of reaching growth even translates of contributed our and seven backlog. orders in our revenue average by been orders on nice you in respectively. the revenue which convert The six, to growth a Earlier ongoing to strength the strength million in walked wins quarters and mirrored and with has million, per selection

greater and the second history. near in million $XX company was than the quarter period, highest revenue year to looking ago in we're again mark quarter Third revenue was future. the A break

figure book-to-bill all-time we flip CECOs near number backlog of third me a some with XX% million end on As I'll third is With to or CECOs X.X -- XXXX XX% times. the $XXX XX% with XX, quarter up an next from and of high. quarter at year-to-date backlog excuse consecutive additional provide backlog. XXXX We a from the over the year XXXX the Slide, quarter, color finished

opportunity October start past an we're in CECO setting up QX the the excess pipeline $X nicely of With of XXXX. with year, of to performance billion seven book-to-bill and still continue bookings, a to good and for our quarters the the with end expecting

existing optimistic more see is opportunities teams Equally expand very are to levels. growth important current our platform about that continue to beyond pipeline the and

to take let's margins. Now XX, Slide to a turn at look

As improvement showed substantial. on gross slide performance nine, profit our year-over-year was

gross quarters, XX% up the period, XX% delivered while level Third to points, profit many highest its for by XXX ago average back basis dollars pushing quarter the the XX-month was margins profit level. the were and gross versus year increased

to and of good for and gross of the and the discipline, execution, Through chain be improvement engineering team feel pricing XX%, this profit expect in XX% from actions continued XX%. price to CECOs supply floor project XX% fully feels historic to value back management. targeting improve it level, our While, margins levels ongoing at that

million year point A $X.X period, X.X%. quarter over higher was EBITDA million ago improvement margins of of producing $X.X of EBITDA basis third adjusted quarter Third than XXXX. the the XXX

commercial In a had period FX of for of the resources in Our made additional true million a investments quarter adjusted in expenses, margins produced effect XX-month for $XX TTM with of $XX.X been margin these the we than the a EBITDA X.X%. of platforms, close million, XXX have basis DSXX number EBITDA higher. to would greater our acquisition. XX Without and adjusted the our points up

the with getting our which These CECO profitability results are we find environment demonstrate leverage ourselves even in increase operating today, that volume. strong challenging on

CECOS had For range. historic realized a been profit consider margins gross at to XX% if XX% moment,

on outcomes, EBITDA back levels, to delivering initiatives but million be pace and our our expenses. approximately at commercial execution, margins remain in doing margin so that selectively to the is XX%. optimize consistent improve $XX million to get for profitability. improved a range the Continuing invest growth, capabilities, of with $XX.X with enabling these quarter we focused would To to and that G&A in

deploying and growth. buybacks support Slide capital capacity to with want to strategy, cash where fund and deployment. on turn cover that $XX here creation we share to to delivering I have spent is please M&A XX, Year-to-date, been our organic have positioning growth briefly CapEx have Now capital that and investment main value we're approximately takeaway aligned ample million strategy. operating and flow, cash The strong

performance strong available programmatic further $XX EBITDA has ratio while investments. yielding M&A on capacity X.X and than healthy of to allowed maintaining over million Our for execute our less times, a buybacks us of share leverage growth

We believe from we management generation have through end of XXXX. execution improving project cash for additional and working opportunities into capital XXXX the and

Slide for shared you converting outlook August. share quarter CECO performance Please we XXXX. company, results XXXX the outlook when financial and am execution. again financial full Todd year pleased our time Where strong second in you XX outlook to that a confidence our turn outlook this increasing walk we our year first I’ll year, as for to our through we our reflect in operational presented year a full earnings full are the increase backlog growing I full and year to Earlier and with

numbers. Here are the

more. or greater million. year be by XX% has and orders consecutive year grown CECO full This a orders full We $XXX year-over-year now increase year would XX% to that second exceed XXXX the expect would than represent

This exceed over quarter for for increase million the a Our $XXX the updated for quarter. year-over-year million, revenue year. in represent in a full is fourth delivering full third sales XX% consecutive outlook would year to $XXX XXXX

expect full profit year with run to of continue which XX% margins higher rates versus down We XXXX. to us the exit basis year points first XXXX. although full year of gross half the allow Will XXX in

We of view increasing which or XX to the range of are million be versus for and also improving stated deliver $XX full a of year our our CECO previously adjusted would of EBITDA exceed XX XX% now XXXX EBITDA low adjusted outlook for that will from year, increase a a an high full XXXX. with

EBITDA we As you implying potentially are XXXX and adjusted numbers, to these for see our exceed guidance can meet target levels. full revenue or year orders expect

while into challenges. the and consideration continue chain important to investments growth taking make supply We inflationary

So a expectations of are we remain cautious setting out about that range.

However, best we believe market these CECOs across our challenges. view represent given the and balance strong figures execution, our current investments

position a The better takeaways year view. such a ever is thus, our for is supportive CECO and higher XXXX of performance full than in outlook

I’ll now talk to over hand it XXXX to about and beyond. Todd back

you, Thank Peter.

slide along shared XX. QX Let's number presented turn signal earnings we this our slide that to the consistent execution drive with financial We report. when August steady We transformation. our and outlined that growth areas intend to guidance, in we will

see over an box August on the months. XX provide check the goal. of execution. you Study items updated largely expect go we to this we back are and this update a remains year, today's do, it same. for in execute that and short, slide expect Well, and to mid-XXXX, the can presentation, We key our That's in similar did the In we slide we what saying on these modestly past achievements points. on we our

diet financial line, Peter above transformation magic fancy performance. a It excellence continue our we items of acquisition product an instead shared and growth will one incremental operating investments. finish one isn't we we growth transactions. year have but outlook, and mentioned chance our of expect, programs, strong. sustainable Our average as and new the or By steady advancing will as

and beyond. into head XXXX into we As XXXX and move

creates put place build returns. operating model economic We two upon over years, deploy expect we the the where to have will it foundation continue the to past highest we in and our advance capital

our to such some continued high as three to add more transformational as in business see a that EBITDA journey delivers the in sales to You come mid-teens can from a two mix. as cycle short financial performance term outlined goals years. we will This culture longer well

Over sales already moved approximately the have from two we cycle past XX% years, short XX% today. to only

long on expect our cycle in sales time sales to this and slide. we present to continue We XX% business horizon this short XX% cycle mix that hit

and outlook. XX let's Now review XXXX financial to our turn let's number preliminary

to flow. revenue, on XXXX CECO pleased free adjusted are with EBITDA cash We focus introduce outlook and financial this

We on we detail items. after other any and XXXX and will orders provide items close remaining more finalize P&L budgetary XXXX

is Our range deliver to expected outlook the million XX%. of sales $XXX for the full $XXX year million approximately revenue in XXXX

and guidance you is. what it revenue XXXX full this our If to compare midpoint take as range year

We have growth XXXX in strong into expect heading initiatives. invest to remain …continue and [tech a diff] backlog optimistic to

higher our shorter As growth markets. the we mix aforementioned expect advance cycle in And to adjacent of sales.

for difficulty] are in adjusted driving for …and chain continued to also Our the uncertainty our XXXX growth. and economic this And full balancing balancing while reflected respect outlook. outlook productivity [tech expected investments supply these year challenges. We're XXXX with EBITDA, thinking current

cash cash remain CECO. to we Finally, right of XX% is with free which of the EBITDA, XX% believe committed flow, we flow. target We generate to the range for generating free in free can strong flow that cash

material We term This XXXX Peter our we longer thought the your XXXX. material should our on be would information, transformation progress. good share, current of it assessment and helpful the for provide outlining view transparent and CECO steady our execution slide commitments that outlining and of with to commitments continued our coupled shared on be towards

board. wrap QX the up Great in year-to-date let's Now and with across Slide XX. results

and pipeline good strong, pipe record sales near remains gives us backlog Our our visibility.

information full outlook We to XXXX. this our hope of find initial We view raise are helpful. an year pleased provide XXXX you and

continue to our capital value. committed drive programs higher remain We for and and aim we we allocation performance, transformation shareholder to great of steady to expect CECO,

like would CECO, being teams customers We on for results. this thank for today. thank your that, accountable for interest to With to our delivering their like call everyone I would for

any it questions. to hand that, I'll operators with happy And to answer over the be we'd

Please Amit Instructions] question Our first [Operator Wainwright. of Dayal H.C. ahead. from go comes

taking the you on your morning, questions outlook. my Good execution Appreciate and and Thank raising everyone. congrats you.

chain issues, potentially, know, supply out that to Todd? sort respect to performance for Is still you preventing there relative stronger of what with is you? Just

think, every been we've adjusted have not job, Look, the all, doing I is our one would working chain supply of with say our company markets. navigating we I are first projects all seems customers of teams choppy say I I some like on all of still that know with still and every are choppiness. and or platforms a our working great suppliers schedule, our navigating we're ahead when

But things we So I that think accustomed in that, we're suppose could great even over could the we have level, really, at feel last seems maybe I we a a some now, just smooth when so to XX to been months have suggest I way, or when a choppiness. with just normal. I just about chain. that execution. guess, little having day bit And forward But It more supply better. team's more we're look so to some deal regardless, our and --

to maybe any many outlook, cetera, you. just recession, guys are developments, raising et on front? et just would to relative How around are some much situated than you is outlook, Thank your relative and, recent are. that helpful. how to the macro of environment And know, competition, you headlines risk type color a you these companies be Understood, the on cetera

mean, of very we uncertain. or are were today, a the there, look, out various putting we're, talked in as that understand our lot U.S. to this certainly, unknown And that question. are are Good remarks and chain we we real. that items the international I dynamics There mentioned the prepared headlines, and about, thought, it's at supply we somewhat just concerning, continues point. inflation that if know be not we

profile, diverse stated, balanced, have as really For we one, us, we, however, number our across platforms. a growth we

very a strong And so good really a in pipeline. backlog,

of have. kind us that just some headlines, the punching I'm more visibility does maybe the through points bullet will, or than you provided, companies So, that if we give

and I into and pulling nimble even or made CECO be that down to quickly has in that, investments that a from kind in that slowing more we've for back space, to the another be going to also there, investment market move for put semiconductor suggest might position example, more we're would for a we of move we think opportunities example. market all a ourselves profile, growth there's for be understand feel, able to a large we the really good

us Europe, that I macro I investment for U.S. revitalization. think a So think in some investment in of energy just of but the that, we still U.S., in infrastructure the lot pretty And, of transition. lot markets amount in in fair of innings of mentioned, the in There's really redomestication look there's infrastructure of or industrial we're themes early positive. a a the a inning the some very early

in carbon We have grown solutions, I'm those a two of our about that lot CECO for great supporting markets. two capture, period excited the And of for infrastructure and as hydrogen, businesses is two capabilities. position by legacy transition, time energy next other gas I think

like don't markets moving feel pulling back, we like feel those they're forward. And they're so

just you maybe in will last On Understood. reflecting have wanted to implemented? margin Todd. Thank financials? the from efforts, timeline, your sort you. one some which been me, starting of of start one these steps Are This through these these already see to the improvement implement

they've project feel doing you for to plan to focus think what really the programs nicely. deliver ball here. moving And the teams a down Ramesh is have excellence for that and the have steady going the I'm implemented teams been I a and kind the say protected want been and math thank like margins, result. I'd to our I we management we our of offense field example, because very game margins as actions of our CEO Yes, of certain operating that give execution the and third teams, pricing or, operating a like, actions

to would programs our of of of some I those operating third some early early And kind supply will XX really initiatives, programs Another harder say I Lean now, investment pretty also our sort making just and we're to journey, that months. Ramesh the cetera. days in excellence to place, make we implement we community in that chain is, over of eager share have et really hitting we're investments as of the XX continue is those others we're know, next with the and

But of progress. a little know this making do it's good we we're a good So, news stuff, blend. and the to of experience, a lot is bit how

Thank you.

Next Rob Brown from question ahead. comes of Markets, Street Lake please Capital go

that? weaker, sort you My an that think And potential the Food there? of about were the And? on driving a the can is talked Duct morning. first think for businesses. you uptick and uptick what sort see little there, a when I the Good question do I We of businesses

represent, orders year is it's what a I growth look. over a Yes, a a, it's mean, it's year, indicator they very of look, nice

So is be, order, of orders in I the they lot can like fourth cetera. the financials really et booked it had, quarter something indicator would say can life, the timing or while third quarter, be we of important versus a in an other statistics a also

shown down, call Electric when of great. cycle and I pipelines looking for is for. later nice well So, at think, two business, we're positioned Fab little, we and those have we like, be platforms their in, We're guess big vehicle, example, there, like feel a some a our you're still projects that Duct I year-to-date we it really feel that opportunity. going

if maximizing front bed side, fluid refineries running there's it's they're to in today. or that And And really the -- are refining, delayed continued have markets on be pause, the if hard. investments then them are the of in

good. regardless, sort as fourth as those think pushed technology their out as early capital have we quarter, that maybe their applications, for look both year, But so investment like out. the pushed just pipelines we like been we next a pipelines. certain ended the of And and certainly And really cyclonic but of

to follows year Okay, is of cycle tend But coming next on see okay, about, of this be had that maybe cycle activity on? activity later you confidence transition And talked you great. this for late projects. the that. those some energy And those the some then

Yes, of is, that put whether cycle all of and, scoped the pipelines and these get this control, amount our projects or building, fair some is to take time their later obviously. of and project approved this together a entire investments it's of outside all outside

and we're the five to in alphabet, alphabet piece for A case. position from in everything know a So we represent they up. of Z have lined the that may And project, good get of but letters to this we our

team yes, a on one example and but opportunities of capture really carbon was we we've there. the have knowledge coming. Ramesh long look And turning So great project job term job where that mentioned, we spotlight of that a the had done just again. the that

really we've really project to to But wait had for through to that fruition. whole come

And that's one example. so that just

I late lot as of that's, And well and growing and a that's there's infrastructure of are mid and either for cycle think seems have feel terms that be, talking of about really and other and support, investment. this been well. and, would companies positioned that to that investment in or LNG energy we Another some

Great, you. I'll thank over. it turn

Needham from ahead. Please and Ricchiuti go of Co. question Next comes Jim

economic or morning. Thank I, guidance you. more question, to business. an cycles. decision obviously, preliminary CFO not mean, outlook is I from today for been provide to the Good just short cycle immune XX. the want again, the pursue do, around And has the past

as also sense short taking share you're in even to a it potentially some whether in So cycle healthy, to or is, it sounds I'm it's that how markets? whether get what you're trying which like business, just seeing

whether even but and think Well, we to distribution, in our example, in we there's we some about, maintaining businesses, partner grow with some helped good their for domestically, shorter us. cycle our are you up internationally, feel to acquisitions fluid it's, recent cycle core businesses, through handling us CECO months, really our hit and some those also really for over our or but opportunities we market know, some respect of to more starting may we might share be, business, there opening the XX of opportunities opportunities big acquisitions feel share, really we stride in like with even next, it's to feel taking really, ability bring our shorter six legacy

to I'm course, I back end infrastructure in the then, gave, just there's that well handful us to feel air industrial to which continue And are give water the investments certain we least we think of to answer large the key U.S. and to markets solutions. at industrial companies be to markets is, provide redomestication to of a positioned, that only because go going approved industrial of industrials visibility,

spending to topical still from because not to environmental people it's is ups feel have just with nonetheless, regulatory. some a a respect ESG, I then, downs And and solutions. from companies of how somatically. ESG time are to perspective, think it but But not they're about of energy, And just going really committed lot and

to to again, to able some so going or line bullet And we playbook us, we to we're there's us, just not at like going the defense silver navigate things balance, like I but for feel it. acquisition we'd when say, to would one have, the be of we're scrimmage, we is moment the lining one share one up throw or

you new similar adjacent on use And customer this seeing the order this can case, similar question or is just talk either markets? about or and to in increased interest a size related you follow-up existing you're perhaps million whether $X carbon capture, highlighted, whether from customers, that

is mean, I an with peerless our filtration We, for for with position with have in to to may strong a separation a we really very new work nice brand but them our relationships be area a legacy a new have relationship, space, done having just past, in it's for one infrastructure, that a and a that in natural quarters. carbon this happens of Yes, new the customer. us business, this utilizing the fit investment that said, gas a mostly we build now, capture focused number having a solution. natural

look the number, one, I that that, and mean, an could of forward when we in this I'm number to that rolled is of be things similar add, out, other market is about very think kind by industry a we hopefully solution that projects. And companies sure there's a might has that gets two talking space. one series this customer I adapted it's a

optimistic that that you know, we're, So, could opportunity. an be

And really this other range looking then across solution industries. like Ramesh team and a migrating the a of are at

capture and partners You really can similar where we us. other like our feel for beverage, can can industrial of relationships and it's food where, whether up a carbon cement, areas be type a channel lot look relationships open of our

the throughout feel we hope pipeline there these these be teams XXXX. just enthusiasm great you to the our in can sharing of projects about are that because I'm tell voice more the I that of talking hard areas. And reflecting You my in can out energy work transition

it. Congratulations, Got the way. Thanks. by

next comes our Spychalla, Instructions] Please ahead. [Operator from Hallum. question go of And Craig Aaron

Good and morning. the Thanks for taking can expanded water the think of early, the just you we some the offering synergies as but you've forward? questions. Maybe first talk on as how know that and the there, early market industrial been and recent reception fill areas acquisitions. in you we pipeline, about the your looking I just impressions just has how about be for might it's to move

What position is an an a areas. water the At or have built industrial days? really same early to certain in table at I've what and time, water we've And this, seat industrial organic like nice know, we and felt know you solution. analogy produced been again, little the a water using we No. and we solve

work believe the do done good So, with and they whether what niche attractive marine we water, we Compass great naval believe some synergies. we is, our there's growth with what leadership some well, adding combination it's do, really for we've internally, really in That operations of going in coupled a us, position.

in based Boy, relationships we advancing with acquisition not really And and attractive that EPCs in just South then third closed position quarter. to expanding. Korean DSXX look the only the and really that Korea, just have in we we but assembly forward fantastic a that manufacturing just they Korea,

higher things geographic of they let's each all replacement bring an market short cycle, up and adjacencies opportunity these with, opens with, products. more say membranes we XX% business adjacencies margin think So mix,

our we early really next growth about year. opportunities more we already again, into as they, just how numbers hitting what against then acquisition all So, think but excited their Aaron, days, roll they're model. And

on assuming bit, the on just of you kind materials that on you're return And for to it's, know, a and confident what just that look are talk of little historical And talk bit some levels, obviously Thanks. as a touched initiatives then you margins, little can it in we improvement? chain the supply you then in XXXX about about, ongoing costs, there. the guide,

to on management want see into for get when first, our year, really historic the just to we're more, I we be going what's little bit Again, we very where in get going Yes, expect our and up to view see feel little backlog, back to try offering. really confident to more get we we're to ability project in be margins. our a margin of XXXX levels gross aim through our XXXX, a instructive with we we to -- guess, bit those to, what's

a of and goals Peter others and sticking can or we we bit provide to of we'll But guess, with I of just just, into P&L more parts, right level the assure a revenue, you on to and numbers numbers there's expect though, are level around our pieces that of aligned what the have now, uncertainty high kind asked the economic XXXX. moving cetera. exit just EBITDA, shared, with little visibility we're I the poll the objectives as more lot year, when how we get more high four

execute, pricing and actions, early could deliver feel be great lot still, cetera. could utilization inflation et the a lot operational great feel our about up great rates, of uncertainty excellence of programs manufacturing innings our our there journey, A still about be around but uncertainty we of is we Look, labor to lean about coming going feel around we of down.

a is again, just provided. financial execute against can you we're saying but about thoughtful we I'm outlook be numbers, to to numbers the we So, hear all what we're of little that when committed bit give trying our

it color. I'll on. the pass for thanks Understood,

go question comes Tieton Please next ahead. from The Dezellem of Bill Capital.

of questions. Group you. Thank

quarter fourth strength. with me Let the begin order

already have this please, some details You since you referenced preview? of you walk that that through a you a quarter. of gave seen Would bit us

of fourth some we we across that the say feel power, fourth that nice single separation bed a market would quarter, turnaround highlighted opportunities really example, our could have about some really We for quarter. still I to-date, filtration area opportunities, that our business fluid that transition. terms nice platform. think cycle the energy Yes, in in good in

us for an again, opportunity global we terms to think that's CapEx, that support. suggest would I refining So that, of in

when in orders year confidence into quarter of our have to to million Those great. Peter we throughout that another than be and head quarters of that certainly strength deliver us wouldn't XXXX. in that shared Four are a orders, we quarter would the gives greater shared expect of level us a balanced our as solid be expectations, our backlog on balance, otherwise, nice indicator And, date our we another in would row them. give $XXX really

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a of as a an there answer. So, Bill And lot that's because lot there's opportunity.

quarter, that you that QX budget that Now is specific is component are flush? a anticipating have fourth is really And the helpful. customers will Or not of a orders? to in

is you that the I or CapEx Is to to be the different And know, works, the it, what somewhere mean, the it go spend world markets. they could use it different lose think you'd Bill. be have way at it. quarter, times, I yes, just because say, in spent the customers through fourth going the that's they're in

so, budget, September, also like Department things for beginning flips the we've end been waiting which Defense some in October. October of X, And of of

interesting Denton some came unique some open naval -- seen visited facility. and our of when projects, to those you you've we could that a up position applications and where have think We

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in to affecting the the sellers' of on And done in helpful. has potential uncertainty present or not strategy, that ever that What sellers terms your has the call economic referenced here lastly, mindset? press? the in and M&A been is affecting That potential done relative

a Yes, for I data think it's point very them. important

being companies think helped. a larger, I see of organization it's stable, diversified that part financially

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in invest, And we we and class we are time, auction grow, organization, we bid don't we homegrown and relationships and process cultivate, people, the jump an that these buy at and into minute I going price fire out headlines rip accretive bunch the just term the perspective, with look to from any a of because of to a are don't because deals my in maintain bad. relationships. those negotiate a that, be think And long value a do deliver that from going the future we're the we from and last type

you Thank you. just a on want more. I seen just little to push this pricing as Have bit are nervous? soften sellers becoming

Prices up. That's sure. are for going

Not…

People capital But up their out us. going need put money there's still not on to are transactions. there. to Prices

good liquidity, We have are our got don't sheet, We've going prices the think cash. at allocation. being And have about capital Peter I we good showed. balance thoughtful And as good moment. higher a we're

Great, thank on the congratulations questions quarter. great you all a and taking for

Claugus from question [Operator Instructions] of Capital. Thomas GMT And our come Please next ahead. go will

I lot a projects it's there there's hoping like of is peerless over me get looks business to Yes. correct? a remind And I deal companies Europe. all any in deal. then that guess So looks keep gas going progress? that is going Can change Todd. you some got further you Hi, be I that like time. Is peerless Europe? the Because in EMEA it to natural

there's keep products then or getting that. hoping think I movement company EMEA there's And again, over more I not you those XX%. overall remind into Can in some I'll a hoping the know, there. European strategy it's or what's some Europe. I'm But The exposure? me? lot that peerless So of

are an good Yes, really look East, about or in international opportunity That well it's markets. -- the doing take. well has give other we doing really is it XX% in question. Europe, Peerless in Middle

the in has more That's Our product [ph] on line a silencer. fantastic HARTING position management noise Europe.

throughout other sales more with peerless developing We are lines. product Europe and channels

business applications, more develop industrial for we our us just but capabilities legacy not as energy development. our energy more and opportunities transition and Our sales air opens up

a are update as we with how So like fair space, in if people relationship try call natural that think we'll have look, gas. there. we're solutions U.S. to And companies. you on little I I more I there energy well gas more, up natural bit And open for great they Europe, it doing a more we you peerless question, feel throughout positioned is be Europe, to think it's know, whatever, opportunities think, a want

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Okay, thanks.

thank Yes, you.

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

it's great that the Also, questions. going Thank a you. always address to questions, with and that association I'll of really one symbol is nice questions, lot have CECL. the interest the our happy and comments. forward. And few Number comments a to ticker appreciate now pleased just close

our their to without have years partners, like a the CECO, the to to that Ida commitment half, had. wouldn't performance at navigating challenges, year date channel performance, last again, teams and year once customers, global we've our we the also, to two and thank the

for of every for you, other each you doing what all for customers and So our thank do you day.

the And least, together, and Lin Peter, a and really coming team, or little bit of still for we last opportunities so days really adding great strategies. but what our leadership adding longer, our here with I feel our but and not have been Ramesh XX last about

to for want quickly, leadership so year strong and have good our team the and that And CECO for of new ensure we someone to positioned set the well helping thank just XXXX. I jumping in a to end

conferences at and We today. other that, for look And some And the we're investor over forward well speaking coming with you Ideas like the going to to thank some some Dallas other events. few conferences in that be your next time everybody Southwest with conference days. so up

at talk So again, seeing of soon. to we many to you We'll events. you and Thank forward with those you. look meeting

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