CECO Environmental Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, net sales decreased to $135.5 million, down 9.3% from $149.4 million in the same period of 2023. However, for the nine months, net sales increased to $399.4 million, a 2.1% rise from $391.1 million year-over-year.
Gross profit for the third quarter rose to $45.3 million, an increase of 5.1% from $43.1 million in Q3 2023, with the gross profit margin improving to 33.4% from 28.8%. For the nine-month period, gross profit surged to $139.5 million, up 18.4% from $117.8 million in the prior year. Operating income for Q3 2024 was $7.2 million, a slight decrease from $7.9 million in Q3 2023, while for the nine months, it increased to $24.1 million from $21.9 million.
Net income for the third quarter was $2.6 million, down from $3.8 million in Q3 2023, and net income attributable to CECO Environmental Corp. was $2.1 million compared to $3.4 million in the prior year. For the nine months, net income totaled $9.6 million, a decrease from $10.1 million in 2023. The effective income tax rate for Q3 2024 rose significantly to 38.7% from 13.6% in Q3 2023.
The company has been active in acquisitions, completing the purchase of EnviroCare International LLC for approximately $13.0 million in July 2024, which contributed $2.4 million in revenue during the reporting period. Additionally, CECO acquired Kemco Systems Co., LLC in August 2023 for $24.0 million, enhancing its capabilities in water and wastewater treatment. The company also announced a merger agreement to acquire Profire Energy, Inc. for approximately $125 million, expected to close in Q1 2025.
Financially, CECO's cash and cash equivalents decreased to $38.7 million as of September 30, 2024, down from $54.8 million at the end of 2023. Total outstanding borrowings under the Credit Facility were reduced to $126.6 million from $129.7 million. The company reported a backlog of $437.5 million as of September 30, 2024, an increase from $370.9 million at the end of 2023.
Overall, CECO Environmental Corp. continues to navigate market pressures while pursuing strategic acquisitions to bolster its position in the environmental solutions sector.
About CECO ENVIRONMENTAL CORP
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