Record Texas Data Center Power Order Might Change The Case For Investing In CECO Environmental (CECO)

• In December 2025, CECO Environmental Corp. announced it had secured its largest-ever order, worth more than US$135,000,000, to provide a comprehensive emissions, acoustic, and thermal management solution for a large Texas natural gas power plant supporting data center expansion.
• The company now expects 2025 bookings to exceed US$1.00 billion and backlog to approach or surpass US$800,000,000, highlighting how data center-related power and environmental needs are reshaping CECO’s growth opportunities.
• We’ll now examine how this record Texas power project order and upgraded bookings outlook might influence CECO Environmental’s broader investment narrative.

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CECO Environmental Investment Narrative Recap

To own CECO Environmental, you need to believe that tightening environmental standards and rising power demand will keep translating into strong, visible orders and a healthy backlog. The record Texas power project meaningfully reinforces that near term bookings and backlog momentum are a key catalyst, while also sharpening the main risk that heavier investment, higher leverage, and large one off projects could backfire if order growth cools.

This backdrop ties directly into CECO’s October 2025 guidance, where management reiterated a sizable revenue outlook for 2025 and introduced higher 2026 targets. When viewed alongside the Texas contract and an expanding pipeline in power, semiconductors, and industrial water, these updates together frame how dependent the story is on sustained large project flow and the company’s ability to convert backlog into profitable growth.

Yet the biggest risk investors should be aware of is what happens if those large, data center and power related projects suddenly...

Read the full narrative on CECO Environmental (it's free!)

CECO Environmental's narrative projects $977.2 million revenue and $54.5 million earnings by 2028. This requires 14.2% yearly revenue growth and a modest $2.0 million earnings increase from $52.5 million today.

Uncover how CECO Environmental's forecasts yield a $58.83 fair value, in line with its current price.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value estimates for CECO cluster between US$58.83 and US$69.37 per share, underlining how even a small sample can produce different views. Against that, reliance on large, sometimes one off power and infrastructure projects means any slowdown or permitting reversal could make actual results diverge sharply from many investors’ expectations, so it is worth comparing several perspectives before forming your own view.

Explore 2 other fair value estimates on CECO Environmental - why the stock might be worth as much as 18% more than the current price!

Build Your Own CECO Environmental Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CECO Environmental research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free CECO Environmental research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CECO Environmental's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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