CECO Environmental Corp.

Good day, and thank you for standing by. Welcome to the Seco Environmental Third Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Marcio Penso, Vice President of Financial Planning and Vector Relations. Please go ahead.

Thank you, Tanya, and thank you for joining us on the SECO Environmental Third 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 which is on our website at SecoEnviro.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 risks described in our SEC filings, including on the Form 10-K for the year ended December 31, 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 the information, future events, or otherwise. Today's presentation will also include references to certain non-GAAP financial measures. We've provided comparable GAAP and non-GAAP numbers in today's press release and provide non-GAAP reconciliations in the supplemental tables in the back of the slide deck. All right, with that, I'll turn the call over to SECO CEO Todd Gleason. Todd?

Thanks, Marcio. And good day, everyone. Thanks for your time and for your continued interest in SECO. I'm very pleased to discuss another strong quarter as well as our reaffirmed outlook for 2025 and our initial view of full year 2026. With that said, please turn to slide number two. This executive summary slide captures the main points we hope you take away from today's earnings call and our release this morning. We will provide much more detail in later slides, so I will be brief. We delivered another high performance quarter with outstanding top line and bottom line growth. We exit Q3 with a new record backlog, even after generating our highest ever quarterly revenue. In the quarter, we expanded EBITDA margin nicely while we continue to invest in long-term growth resources and operating capabilities. Given the tremendous visibility we have in our backlog and sales pipeline, we reaffirm our full-year 2025 outlook and introduce our full-year 2026 outlook, which points to another year with very strong growth in both sales and adjusted EBITDA. As you will hear from this call, we remain very bullish as we are encouraged by strong market dynamics in our most impactful sectors, and pleased that our proven operating model continues to deliver for our customers and for our shareholders. Now let's dive into more details. Please turn to slide number three. Demand for SECO solutions and services continues at a record-setting pace. Our backlog grew to $720 million, a new record. Year over year, our backlog is up approximately $280 million, or 64%. Sequentially, our backlog increased by approximately $30 million. This new record backlog was made possible by another quarter of robust order intake of $233 million in new bookings, which is up 44% versus Q3 of 2024. We continue to book a nice mix of mid-sized and large-sized orders, particularly in the power generation and energy transition sectors. While we didn't book any mega jobs this quarter, because of timing of those particular jobs, we are very pleased with how those power opportunities continue to develop. We remain well positioned for these larger projects, which we define as greater than $50 and even greater than $100 million. When combined with orders from the first half, our year-to-date 2025 book-to-bill is nearly $1.3 million, with 735 million dollars in year-to-date orders if you expand the bookings across the past four quarters we have now booked approximately 950 million dollars in new orders with each quarter comfortably above 200 million dollars with the investments we have made to position our businesses to capture and capitalize on robust demand in our core markets we expand into new geographies, and offer more new solutions and services, our sales pipeline is now over $5.8 billion, which adds to our confidence for sustainable growth. Quarterly revenues came very close to eclipsing $200 million for the first time and produced an all-time record of $198 million in the quarter. This was up 46% year over year. Through three quarters of 2025, we have already generated more sales than all of last year, which had been a previous record. When we entered 2025, we forecasted strong growth. And I would submit that our year-to-day bookings and revenues are meeting or exceeding the bullish outlook we originally provided. Adjusted EBITDA was up 62% in the quarter as our sales growth and improving G&A cost profile continues to allow nice EBITDA margin expansion. And Q4 free cash flow of approximately $19 million was in line with the nice cash flow performance we expected and a strong rebound from our first half of 2025. We expect to continue to improve our working capital position as we navigate the balance of the year. A final metric on this summary slide shows adjusted EPS was 26 cents, up approximately 86% year over year. So overall, record results and solid performance. And we enter Q4 with an incredible backlog and sustainable momentum in all of our growth programs. Now please turn to slide number four. As today's press release highlighted, we are reaffirming our full year 2025 annual outlook across the board. This represents full year revenue of between $725 to $775 million, which is up approximately 35% at the midpoint year over year. For adjusted EBITDA, we are maintaining $90 to $100 million, which is up approximately 50% at the midpoint. And free cash flow at around 60% of adjusted EBITDA for the year is also reaffirmed. You can see the comments on the right side of the slide. One of the items we highlight is our expectation that Q4 bookings will be above $250 million, and depending on the timing of just a few orders, we might actually deliver our first $300 million plus quarter. Now, before I hand it over to Peter, let's move to slide number five for a quick overview on SECO's prime position to benefit from current market dynamics and also navigate potential challenges. For the remainder of 25 and our initial 2026 outlook, we have a strong market backdrop in power, electrical equipment, industrial reshoring, industrial water, and natural gas infrastructure sectors. Each of the past four quarters, we have booked orders in the critical infrastructure projects to support domestic power generation and energy delivery investments. And our pipeline would indicate we have the opportunity to maintain that pace throughout 2026. We see these projects continue to grow in both side and volume as we not only head through that year, but into 2027. We remain bullish on the industrial water and wastewater treatment sector, and in particular, the international water infrastructure projects, where we now have our most active and largest pipeline of opportunities associated with water reuse and recycling applications. We expect substantial orders to be placed over the next four to six quarters with a sales pipeline that extends also well into 2027. Industrial reshoring and the global semiconductor and electronic component sectors also remain robust, and SECO's breadth of capabilities in industrial air and energy applications ensure that we are very well positioned to continue to win in these areas. We remain extremely focused on optimizing our project pricing and margin levels based on constant communication with our extended supply chain, including our fabricators, component suppliers, and raw material suppliers. We have seen moderate inflation in select commodities and components that we include in our costing models and work to mitigate our designs and sourcing plans. And certainly last but not least, M&A. We have not announced the transaction since we closed the sale of our global pump business in late Q1, as well as the acquisition of Profire Energy in early January of this year. But that doesn't mean we haven't been actively building our M&A pipeline and advancing certain deal-related discussions. We remain focused on the sustainability of Seco's portfolio. building a world-class industrial company with leadership positions in several and meaningful industrial niches. We expect to have more to discuss in the coming quarters. And as far as challenges or uncertainties, at Seco, we believe that proper planning for scenarios is one of the hallmarks of a high-performance company. We remain laser-focused on the things we can control. and we prepare for additional actions if certain headlines turn into headwinds. As such, we continue to monitor tariffs and the impact on inflation. We are also monitoring the U.S. government shutdown and what impact that might have on various operational items. So far, nothing that we can point to as far as moving the needle up or down as it pertains to SECO. We will maintain our focus on these potential factors and act accordingly. Best to be proactive when possible, and that's our plan. I will now hand it over to Peter, who will go into more detail on our financial results. Peter.