CECO Environmental Corp.

Good day and thank you for standing by. Welcome to the Seco Environmental second quarter 2025 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would not like to end the conference over your speaker today. Stephen Hoosier, Investor Relations, please go ahead.

Thank you, Kevin, and thank you all for joining us on the SECO Environmental Second Quarter 2025 Earnings Call. On the call with me today is Todd Gleason, Chief Executive Officer, and Peter Johansen, Chief Financial Officer. Before we begin, I'd like to note that we have provided a slide presentation to help guide our discussion. The call will be webcast along with our earnings presentation, which is on our website at secoinviro.com. The presentation materials can be accessed through the investor relations section of the website. I'd also like to caution investors regarding forward-looking statements. Any statements made in today's presentation that are not based on historical fact are forward-looking statements. Such statements are based on certain estimates and expectations and are subject to a number of risks and uncertainties. Actual future results may differ materially from those expressed or implied by the forward-looking statements. We encourage you to read the risk described in our SEC filings included on Form 10-K for the year ended December 31st, 2024. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that we make here today, whether as a result of new information, future events, or otherwise. Today's presentation will also include references to certain non-GAAP financial measures. We've provided the comparable GAAP and non-GAAP numbers in today's press release and provided non-GAAP reconciliations in the supplemental tables in the back of the slide deck. And with that, I'd now like to turn the call over to Todd Gleason, Chief Executive Officer. Todd?

Thanks, Stephen. Good day, everyone, and thanks for your time, as well as your continued interest in SECO. As today's press release highlighted, in the second quarter, we delivered a number of financial records. Our Q2 and year-to-date results reflect positive impacts from the investments we have made to build and execute our operating model that continues to yield high-performance results while strategically and sustainably transforming our portfolio. As always, we strive to deliver leading environmental solutions to our global industrial customers, ensuring we protect people, protect the environment, and protect our customers' investment in their industrial equipment. Now, please turn to slide number three for a summary of the highlights of the quarter. In the quarter, we grew backlog to a new record, exiting the quarter at $688 million. Year over year, our backlog is up almost 300 million, or more than 75%. Sequentially, our backlog rose an approximate $80 million. This was made possible by another quarter of record orders. In Q2, we generated $274 million in new bookings. This is up 95% versus Q2 last year. We booked our largest ever order, an environmental selective catalytic reduction, or SCR, emissions management solution for a major project in the U.S. power generation market. We continue to be very well positioned for future projects of similar or even larger scale and complexity. When combined with orders from the first quarter, our first half of 2025 book to bill is approximately 1.5. If you expand your look back and add just one more quarter, this is the third consecutive quarter with bookings of over $200 million for a total of approximately $720 million in new orders in the past three quarters. This level of orders is a direct result of several years of focused strategies to diversify our portfolio, gain access to new vertical markets and geographies, and to introduce new products and services. We believe we are well positioned for continued strong order bookings. Revenue of $185 million in the quarter, up 35% year over year, we're also a new record. as we continue to deliver strong project execution and navigate market dynamics. Adjusted EBITDA at over $23 million was up 45% year-over-year driven by volume, strong gross margins, and an improving SEG&A cost profile. A few months ago, when we discussed our Q1 earnings, we articulated we had taken G&A-related cost actions. We're starting to see the benefits of those actions and our operational productivity initiatives. And in the final metric on this slide, we show EPS was 24 cents in Q2. This is up approximately 35% year over year. So overall, just great record results with solid performance. We exit Q2 with an incredible backlog and strong orders and margin momentum. Now let's turn to slide number four. While we feel that Q2 was outstanding on many performance metrics, I think it's even more impressive to appreciate this isn't just a one-quarter phenomenon. On this slide, we capture a few data points and comments that highlight the first half of the year's performance and bolster my comments on our ability to deliver consistent results. First half bookings of over $500 million are up 76% when compared to the first half of 2024. First half revenues were up 37%. Like I said previously, we booked our largest ever order, and we believe we have several similarly sized opportunities in power generation and industrial markets ahead of us. The profile acquisition, which we closed in early January this year, is delivering on the various synergies we discussed when we announced the transaction. And our continued multi-year growth of our sales opportunity pipeline is now over $5.5 billion. We feel very good about the key markets we have targeted with our investments and resources. We believe we have a multi-year opportunity with large growth themes. And those growth themes are captured in the far right column on this slide. The market continues to see an unrelenting demand for power generation. We are also seeing a strong uptick in semiconductor inquiries, as well as natural gas infrastructure and industrial water solutions. And aside from some softness in Europe, we are seeing steady demand in almost every other region. We are expecting some modest inflation in the second half, but we are pleased with how we have been able to offset early supply chain cost increases with either productivity, price, or overall project execution. Now please turn to slide number five. As today's press release highlighted, we are raising our 2025 annual guidance for orders and revenue while reiterating our outlook for adjusted EBITDA and adjusted free cash flow. Starting Top to bottom, we are raising our 2025 full-year orders guidance to exceed full-year revenues, thus delivering another positive book to bill for the year. We now expect our bookings to be 1.2 times revenue, resulting in a bookings range of between $870 million and $930 million. The strength of our full-year order outlook is supported by robust underlying markets, a very active and significant pipeline of opportunities, and the momentum we have built over the past nine to 12 months of sustainable orders growth. For revenue, we are raising our outlook to $725 to $775 million, up from a previous range of $700 to $750. The $25 million increase on both the lower and the upper ends, reflects the strong first-half performance in bookings and revenue, coupled with a record sales pipeline and negligible project delays this year. The midpoint of our full-year range speaks to revenues growing 35% year-over-year, of which approximately 20 points is driven by organic growth. With respect to full year adjusted EBITDA and free cash flow, we are maintaining our previous outlook. The adjusted EBITDA range of $90 to $100 million points to growth of approximately 50% year over year. Even with the modest increase in our full year sales outlook, we still like current adjusted EPS range and expected margin expansion that it implies, which we expect to be higher than 12% to up to low teens in the year. This outlook continues to absorb our expectation that we will experience modest inflation in the second half of the year. It also includes an expectation we will add resources later this year to prepare for what we see as 2026 growth. our record backlog and our full year book to bill expectations, we can actually start to model double digit growth for 2026. So of course, we want to ensure we are prepared to execute on that solid growth. Now let's turn to slide number six. We often talk about the strength and size of our sales opportunity pipeline, but I wanted to spend a couple minutes here to describe two key important items. First, that the pipeline is our best indicator of short and medium term organic revenue growth. And second, the building and maintaining a large and healthy pipeline does not come without appropriate investments in people, processes, and systems. As you can see on this slide, there is a strong correlation between the size or value or growth of pipeline and the level of bookings when you compare the two periods that we present. On the left side of the slide, for the period 2015 to 2020, you can see the pipeline was essentially flat over those five years. And therefore, orders and revenue trended flat to down over that same period. By comparison, on the right side of the slide, in 2021 to this year, our pipeline has grown almost 40% annually on a compounded annual growth rate basis. As our pipeline grew, so did the revenue performance, with a normal lag time associated with bookings turning to revenue. The second point I want to make is that maintaining a consistently high level of viable opportunities certainly doesn't come for free. This level comes as a result of sustained investments in talented commercial teams, business systems and processes, and market entry that has allowed Sequel to penetrate new markets and customers, which in prior years wouldn't have necessarily known our name or our brands. And as long as market conditions are supportive and our global opportunity set is expanding, we will continue to sanction these increased investments to maintain and accelerate Sequel's growth. Five years ago, when I joined Seco, I knew it would not be easy to break out of the company's historic revenue range of limited to no growth. It would take expanding our sales pipeline by focusing aggressively on winning markets, by investing in new geographies, by diversifying our product and service offering. As we approach our new revenue outlook of roughly $750 million for the year, and we expect on our way to a billion-dollar company, we are pleased we have the business model in place to continue to grow our sales pipeline. It might not have been easy, and we have certainly come up short on a few things, but overall, we are very pleased with our long-term growth and how well we continue to transform the portfolio. I really look forward to the next five years. I will now hand it over to Peter, who will go through more detail on our financial results. Peter?