CECO ENVIRONMENTAL CORP Segments Disclosure
The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in two reportable segments. Segment profit is reviewed quarterly by the chief operating decision maker ("CODM"), which is the Company's Chief Executive Officer, for the purposes of allocating resources, including personnel, capital, and financial resources, and assessing performance, including the monitoring of budget versus actual results. During the fourth quarter of 2025, management updated the definition of the segment profit measure used by the CODM. The presentation of prior period segment information has been recast to conform to this updated measure. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to the Consolidated Financial Statements.
The Company’s reportable segments are organized as groups of similar products and services, as described as follows:
Engineered Systems segment: The Company's Engineered Systems segment serves the power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil and gas sectors. The Company seeks to address the global demand for environmental and equipment protection solutions with its highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints.
Industrial Process Solutions segment: The Company's Industrial Process Solutions segment serves the broad industrial sector with solutions for air pollution and contamination control, fluid handling, and process filtration in applications such as aluminum beverage can production, automobile production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum mill processing, wood manufacturing, desalination, and aquaculture markets. The Company assists customers in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through its platforms including duct fabrication and installation, industrial air, and fluid handling.
A reconciliation of total segment sales to total consolidated sales, as well as total segment profit to total consolidated net income before taxes is as follows for the year ended December 31, 2025:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
|||
Net sales |
|
$ |
544,298 |
|
|
$ |
230,083 |
|
|
$ |
774,381 |
|
Direct cost of sales |
|
|
333,000 |
|
|
|
146,525 |
|
|
|
|
|
Shop burden |
|
|
14,653 |
|
|
|
10,977 |
|
|
|
|
|
Selling expense |
|
|
32,012 |
|
|
|
12,741 |
|
|
|
|
|
Project engineering expense |
|
|
18,393 |
|
|
|
10,991 |
|
|
|
|
|
General and administrative expense |
|
|
34,406 |
|
|
|
11,410 |
|
|
|
|
|
Gain on the sale of Global Pump Solutions |
|
|
— |
|
|
|
(63,701 |
) |
|
|
|
|
Segment profit |
|
|
111,834 |
|
|
|
101,140 |
|
|
|
212,974 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
13,105 |
|
||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
16,166 |
|
||
Other corporate expenses(1) |
|
|
|
|
|
|
|
|
77,844 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
20,913 |
|
||
Other profit or loss(2) |
|
|
|
|
|
|
|
|
2,101 |
|
||
Total consolidated income before income taxes |
|
|
|
|
|
|
|
$ |
82,845 |
|
||
(1) Includes corporate compensation, professional services, information technology, and other general, administrative corporate expenses.
(2) Includes foreign exchange (gain) loss and pension expense.
Other segment information is as follows for the year ended December 31, 2025:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
||
Property and equipment additions |
|
$ |
3,514 |
|
|
$ |
2,006 |
|
Depreciation and amortization(3) |
|
|
12,623 |
|
|
|
7,912 |
|
(3) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.
A reconciliation of total segment sales to total consolidated sales, as well as total segment profit to total consolidated net income before taxes is as follows for the year ended December 31, 2024:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
|||
Net sales |
|
$ |
384,025 |
|
|
$ |
173,908 |
|
|
$ |
557,933 |
|
Direct cost of sales |
|
|
241,616 |
|
|
|
99,946 |
|
|
|
|
|
Shop burden |
|
|
8,367 |
|
|
|
11,857 |
|
|
|
|
|
Selling expense |
|
|
21,999 |
|
|
|
11,993 |
|
|
|
|
|
Project engineering expense |
|
|
13,821 |
|
|
|
7,850 |
|
|
|
|
|
General and administrative expense |
|
|
19,085 |
|
|
|
9,939 |
|
|
|
|
|
Segment profit |
|
|
79,137 |
|
|
|
32,323 |
|
|
|
111,460 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
7,514 |
|
||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
8,723 |
|
||
Other corporate expenses(1) |
|
|
|
|
|
|
|
|
59,820 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
13,020 |
|
||
Other profit or loss(2) |
|
|
|
|
|
|
|
|
4,692 |
|
||
Total consolidated income before income taxes |
|
|
|
|
|
|
|
$ |
17,691 |
|
||
(1) Includes corporate compensation, professional services, information technology, and other general, administrative corporate expenses.
(2) Includes foreign exchange (gain) loss and pension expense.
Other segment information is as follows for the year ended December 31, 2024:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
||
Property and equipment additions |
|
$ |
3,926 |
|
|
$ |
2,863 |
|
Depreciation and amortization(3) |
|
|
7,331 |
|
|
|
4,678 |
|
(3) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.
A reconciliation of total segment sales to total consolidated sales, as well as total segment profit to total consolidated net income before taxes is as follows for the year ended December 31, 2023:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
|||
Net sales |
|
$ |
380,108 |
|
|
$ |
164,737 |
|
|
$ |
544,845 |
|
Direct cost of sales |
|
|
254,258 |
|
|
|
100,394 |
|
|
|
|
|
Shop burden |
|
|
7,563 |
|
|
|
11,614 |
|
|
|
|
|
Selling expense |
|
|
17,933 |
|
|
|
11,832 |
|
|
|
|
|
Project engineering expense |
|
|
11,359 |
|
|
|
5,588 |
|
|
|
|
|
General and administrative expense |
|
|
23,370 |
|
|
|
10,003 |
|
|
|
|
|
Segment profit |
|
|
65,625 |
|
|
|
25,306 |
|
|
|
90,931 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
4,533 |
|
||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
7,446 |
|
||
Other corporate expenses(1) |
|
|
|
|
|
|
|
|
44,383 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
13,416 |
|
||
Other profit or loss(2) |
|
|
|
|
|
|
|
|
(372 |
) |
||
Total consolidated income before income taxes |
|
|
|
|
|
|
|
$ |
21,525 |
|
||
(1) Includes corporate compensation, professional services, information technology, and other general, administrative corporate expenses.
(2) Includes foreign exchange (gain) loss and pension expense.
Other segment information is as follows for the year ended December 31, 2023:
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
||
Property and equipment additions |
|
$ |
2,070 |
|
|
$ |
2,827 |
|
Depreciation and amortization(3) |
|
|
5,820 |
|
|
|
4,352 |
|
(3) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.
No single customer represented greater than 10% of consolidated net sales or accounts receivable for 2025, 2024, or 2023.
Geographic Information
Net sales by geographic area are as follows:
|
|
Year ended December 31, |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
|
$ |
513,463 |
|
|
$ |
376,281 |
|
|
$ |
364,483 |
|
Netherlands |
|
|
62,995 |
|
|
|
52,629 |
|
|
|
51,149 |
|
United Kingdom |
|
|
56,267 |
|
|
|
62,961 |
|
|
|
51,066 |
|
China |
|
|
48,835 |
|
|
|
30,622 |
|
|
|
24,660 |
|
Other |
|
|
92,821 |
|
|
|
35,440 |
|
|
|
53,487 |
|
Total net sales |
|
$ |
774,381 |
|
|
$ |
557,933 |
|
|
$ |
544,845 |
|
The geographical area data for net sales is based upon the country location of the Company's business unit generating such sales.
Long-lived assets by geographic area are as follows:
|
|
Year ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
359,584 |
|
|
$ |
332,162 |
|
China |
|
|
39,205 |
|
|
|
36,315 |
|
United Kingdom |
|
|
27,761 |
|
|
|
27,003 |
|
Other |
|
|
57,038 |
|
|
|
33,248 |
|
Total long-lived assets |
|
$ |
483,587 |
|
|
$ |
428,728 |
|
The geographical area data for long-lived assets is based upon physical location of such assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 14, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.