CECO ENVIRONMENTAL CORP
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
CECO$43.71+16.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000950170-25-060136
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0000950170-25-099435
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 79 previous paragraphs and 93 current paragraphs.
50 unchanged; 25 reworded; 13 added; 3 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
(1) Other non-recurring expenses, including fair value adjustment of earn-out liabilities from the acquisitions of WK Group, restructuring expenses primarily relating to severance, facility exits, and associated legal expenses, asbestos litigation expenses relating to future settlement payments, and third party professional consulting fees associated with Enterprise Resource Planning system implementations.
Current report
Orders booked increased $133.3 million, or 95%, to $274.1 million during the three months ended June 30, 2025 compared with $140.8 million in the three months ended June 30, 2024. Approximately 89%, or $245.3 million, of the orders for the three months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date. The orders increase is primarily attributable to the Company's energy and power technologies. Investments in domestic energy infrastructure have resulted in increased demand for emissions, separation, and acoustics products. The remainder of the increase in orders is attributable to the Company's recent acquisitions in burner management and industrial air technologies.
Current report
Orders booked increased $216.0 million, or 75%, to $502.1 million during the six months ended June 30, 2025 compared with $286.1 million in the six months ended June 30, 2024. Approximately 86%, or $430.1 million, of the orders for the six months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date. The orders increase is primarily attributable to the Company's energy and power technologies. Investments in energy infrastructure and growth in midstream markets have resulted in increased demand for emissions, separation, and acoustics products. The remainder of the increase in orders is attributable to the Company's recent acquisitions.
Current report
Gross profit increased $35.1 million, or 37.3%, to $129.3 million in the six months ended June 30, 2025 compared with $94.2 million in the six months ended June 30, 2024. The increase in gross profit is primarily attributable to the increase in sales volume as described above. Gross profit as a percentage of sales was flat at 35.7% in the six months ended June 30, 2025 and June 30, 2024.
Current report
Amortization expense was $6.0 million for the six months ended June 30, 2025 compared with $4.4 million for the six months ended June 30, 2024. The increase in expense is attributable to increased intangible assets attributable to current and prior year acquisitions.
Current report
Operating income increased $8.8 million to $18.1 million for the three months ended June 30, 2025 compared with operating income of $9.3 million for the three months ended June 30, 2024. The increase in operating income is primarily attributable to the fair value adjustment to the earn-out liability associated with the acquisition of WK Group, as well as the increase in gross profit described above.
Current report
Non-GAAP operating income was $26.9 million for the six months ended June 30, 2025 compared with $22.8 million for the six months ended June 30, 2024. Non-GAAP operating income as a percentage of sales decreased to 7% for the six months ended June 30, 2025 from 9% for the six months ended June 30, 2024.
Current report
Our Engineered Systems segment orders booked increased $187.1 million, or 94%, to $387.1 million during the six months ended June 30, 2025 compared with $200.0 million in the six months ended June 30, 2024. The increase is primarily attributable to the Company's energy and power technologies. Investments in energy infrastructure and growth in midstream markets have resulted in increased demand for emissions, separation, and acoustics products. The Company’s acquisition of Profire also contributed to the increase in orders. Approximately 91%, or $353.0 million, of the orders for the six months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Current report
Our Industrial Process Solutions segment orders booked increased $9.7 million, or 24%, to $49.9 million during the three months ended June 30, 2025 compared with $40.2 million in the three months ended June 30, 2024. The increase is primarily attributable to the Company’s most recent acquisitions in industrial air treatment applications and increase in demand for the Company's scrubber technologies. Approximately 70%, or $35.1 million, of the orders for the three months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Current report
Our Industrial Process Solutions segment orders booked increased $29.4 million, or 34%, to $114.9 million during the six months ended June 30, 2025 compared with $85.5 million in the six months ended June 30, 2024. The increase is primarily attributable to Company’s most recent acquisitions in industrial air treatment applications and increase in demand for the Company's scrubber technologies. Approximately 67% or $77.0 million, of the orders for the six months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Current report
Our Industrial Process Solutions segment net sales increased $16.8 million to $56.9 million for the three months ended June 30, 2025 compared with $40.1 million for the three months ended June 30, 2024. The increase is primarily attributable to Company’s most recent acquisitions in industrial air treatment applications, partially offset by the loss of net sales due to the divestiture of the Global Pump Solutions business. Approximately 59%, or $33.5 million, of the net sales for the three months ended June 30, 2025 is attributable to organic revenue.
Current report
Our Industrial Process Solutions segment net sales increased $36.1 million to $113.2 million for the six months ended June 30, 2025 compared with $77.1 million for the six months ended June 30, 2024. The increase is primarily attributable to Company’s most recent acquisitions in industrial air treatment applications, partially offset by the loss of net sales due to the divestiture of the Global Pump Solutions business. Approximately 62%, or $70.0 million, of the net sales for the six months ended June 30, 2025 is attributable to organic revenue.
Current report
Operating income for the Industrial Process Solutions segment increased $9.4 million to $15.1 million for the three months ended June 30, 2025 compared with $5.7 million for the three months ended June 30, 2024. The increase is primarily attributable to the fair value adjustment to the earn-out liability associated with the acquisition of WK Group, as well as the increase in gross profit driven by the net sales increase described above.
Removed paragraphs (3)
Previous report
Orders booked increased $82.6 million, or 57.0%, to $227.9 million during the three months ended March 31, 2025 compared with $145.3 million in the three months ended March 31, 2024. Approximately 81%, or $184.8 million, of the orders for the three months ended March 31, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date. This organic orders growth is primarily attributable to separation, filtration, and water treatment technologies. The remainder of the increase in orders is attributable to the Company's recent acquisitions.
Previous report
Our Industrial Process Solutions segment orders booked increased $19.6 million, or 43.3%, to $64.9 million during the three months ended March 31, 2025 compared with $45.3 million in the three months ended March 31, 2024. The increase is primarily attributable to Company’s most recent acquisitions in industrial air treatment applications. Approximately 65%, or $41.9 million, of the orders for the three months ended March 31, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Previous report
Our Industrial Process Solutions segment net sales increased $19.3 million to $56.3 million for the three months ended March 31, 2025 compared with $37.0 million for the three months ended March 31, 2024. The increase is primarily attributable to Company’s most recent acquisitions in industrial air treatment applications. Approximately 65%, or $36.4 million, of the net sales for the three months ended March 31, 2025 is attributable to organic revenue.
Reworded paragraphs (25)
Previous wording
The Company’s Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 reflect the consolidated operations of the Company and its subsidiaries.
Current wording
The Company’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 reflect the consolidated operations of the Company and its subsidiaries.
Previous wording
Our Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 are as follows:
Current wording
Our Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 are as follows:
Previous wording
To compare operating performance between the three months ended March 31, 2025 and 2024, the Company has adjusted GAAP operating income to exclude (1) amortization of intangible assets, (2) acquisition and integration expenses, which include legal, accounting, and other expenses, (3) gain on the sale of the Global Pump Solutions business as discussed in Note 16, and (4) other non-recurring expenses, including restructuring expenses primarily relating to severance, facility exits, and associated legal expenses.
Current wording
To compare operating performance between the three and six months ended June 30, 2025 and 2024, the Company has adjusted GAAP operating income to exclude (1) amortization of intangible assets, (2) acquisition and integration expenses, which include legal, accounting, and other expenses, (3) gain on the sale of the Global Pump Solutions business as discussed in Note 16, and (4) other non-recurring expenses, including fair value adjustment of earn-out liabilities from the acquisitions of WK Group, restructuring expenses primarily relating to severance, facility exits, and associated legal expenses, asbestos litigation expenses relating to future settlement payments, and third party professional consulting fees associated with Enterprise Resource Planning system implementations.
Previous wording
Net sales for the three months ended March 31, 2025 increased $50.4 million, or 39.9%, to $176.7 million compared with $126.3 million for the three months ended March 31, 2024. Approximately 81%, or $142.4 million, of the net sales for the three months ended March 31, 2025 is attributable to organic revenue, defined as revenue recorded subsequent to the twelve month period post-acquisition date. The increase in organic revenue is driven by execution and delivery on our record backlog within energy transition end markets. The remainder of the increase in net sales is attributable to the Company's recent acquisitions.
Current wording
Net sales for the three months ended June 30, 2025 increased $47.9 million, or 34.8%, to $185.4 million compared with $137.5 million for the three months ended June 30, 2024. Approximately 78%, or $145.1 million, of the net sales for the three months ended June 30, 2025 is attributable to organic revenue, defined as revenue recorded subsequent to the twelve month period post-acquisition date. The increase in organic revenue is driven by execution and delivery on our record backlog within energy transition end markets. The remainder of the increase in net sales is attributable to the Company's recent acquisitions.
Previous wording
Gross profit increased $17.1 million, or 37.9%, to $62.2 million in the three months ended March 31, 2025 compared with $45.1 million in the three months ended March 31, 2024. The increase in gross profit is primarily attributable to the increase in sales volume as described above. Gross profit as a percentage of sales slightly decreased to 35.2% in the three months ended March 31, 2025 compared with 35.7% in the three months ended March 31, 2024. This decrease is attributable to project mix.
Current wording
Gross profit increased $18.1 million, or 36.9%, to $67.1 million in the three months ended June 30, 2025 compared with $49.0 million in the three months ended June 30, 2024. The increase in gross profit is primarily attributable to the increase in sales volume as described above. Gross profit as a percentage of sales slightly increased to 36.2% in the three months ended June 30, 2025 compared with 35.6% in the three months ended June 30, 2024. This increase is attributable to project mix.
Previous wording
Selling and administrative expenses were $53.6 million for the three months ended March 31, 2025 compared with $34.9 million for the three months ended March 31, 2024. The increase is primarily attributable to increased headcount to support the Company’s backlog execution and growth initiatives. Additionally, acquisitions during the prior year drove increased selling and administrative expense.
Current wording
Selling and administrative expenses were $48.8 million for the three months ended June 30, 2025 compared with $36.4 million for the three months ended June 30, 2024. The increase is primarily attributable to increased headcount to support the Company’s backlog execution and growth initiatives. Additionally, acquisitions during the current and prior year drove increased selling and administrative expense.
Previous wording
Amortization expense was $3.1 million for the three months ended March 31, 2025 compared with $2.2 million for the three months ended March 31, 2024. The increase in expense is attributable to increased intangible assets attributable to prior year acquisitions.
Current wording
Amortization expense was $6.0 million for the three months ended June 30, 2025 compared with $2.2 million for the three months ended June 30, 2024. The increase in expense is attributable to increased intangible assets attributable to current and prior year acquisitions.
Previous wording
Operating income increased $54.2 million to $61.9 million for the three months ended March 31, 2025 compared with operating income of $7.7 million for the three months ended March 31, 2024. The increase in operating income is primarily attributable to the gain on the sale of the Global Pump Solutions business, partially offset by an increase in acquisition and integration expenses related to the Company's recent acquisitions.
Current wording
Operating income increased $63.0 million to $79.9 million for the six months ended June 30, 2025 compared with operating income of $16.9 million for the six months ended June 30, 2024. The increase in operating income is primarily attributable to the gain on the sale of the Global Pump Solutions business and fair value adjustment to the earn-out liability associated with the acquisition of WK Group, partially offset by the increase in selling and administrative expenses described above.
Previous wording
Non-GAAP operating income was $8.6 million for the three months ended March 31, 2025 compared with $10.2 million for the three months ended March 31, 2024. Non-GAAP operating income as a percentage of sales decreased to 4.9% for the three months ended March 31, 2025 from 8.1% for the three months ended March 31, 2024.
Current wording
Non-GAAP operating income was $18.3 million for the three months ended June 30, 2025 compared with $12.6 million for the three months ended June 30, 2024. Non-GAAP operating income as a percentage of sales increased to 9.9% for the three months ended June 30, 2025 from 9.2% for the three months ended June 30, 2024.
Previous wording
Interest expense increased to $6.2 million in the three months ended March 31, 2025 compared with interest expense of $3.4 million for the three months ended March 31, 2024. The increase in interest expense is primarily due to increased debt balances.
Current wording
Interest expense increased to $4.9 million in the three months ended June 30, 2025 compared with interest expense of $3.3 million for the three months ended June 30, 2024. The increase in interest expense is primarily due to increased debt balances.
Previous wording
Income tax expense was $18.6 million for the three months ended March 31, 2025 compared with income tax expense of $0.7 million for the three months ended March 31, 2024. The effective income tax rate for the three months ended March 31, 2025 was 33.8% compared with 24.2% for the three months ended March 31, 2024. The effective income tax rate for the three months ended March 31, 2025 and March 31, 2024 differs from the United States federal statutory rate. Our effective tax rate is affected by certain other permanent differences, including the gain on the sale of the Global Pump Solutions business, state income taxes, non-deductible incentive stock-based compensation, and differences in tax rates among the jurisdictions in which we operate.
Current wording
Income tax expense was $4.5 million for the three months ended June 30, 2025 compared with income tax expense of $1.0 million for the three months ended June 30, 2024. Income tax expense was $23.1 million for the six months ended June 30, 2025 compared with income tax expense of $1.0 million for the six months ended June 30, 2024. The effective income tax rate for the three months ended June 30, 2025 was 30.9% compared with 7.4% for the three months ended June 30, 2024. The effective income tax rate for the six months ended June 30, 2025 was 33.2% compared with 13.1% for the six months ended June 30, 2024. The effective income tax rates for the three and six months ended June 30, 2025 and June 30, 2024 differ from the United States federal statutory rate. Our effective tax rate is affected by certain other permanent differences, including the gain on the sale of the Global Pump Solutions business, state income taxes, non-deductible incentive stock-based compensation, and differences in tax rates among the jurisdictions in which we operate.
Previous wording
For the three months ended March 31, 2025, financial results by segment are as follows:
Current wording
For the three and six months ended June 30, 2025, financial results by segment are as follows:
Previous wording
For the three months ended March 31, 2024, financial results by segment are as follows:
Current wording
For the three and six months ended June 30, 2024, financial results by segment are as follows:
Previous wording
Our Engineered Systems segment orders booked increased $62.9 million, or 62.9%, to $163.0 million during the three months ended March 31, 2025 compared with $100.1 million in the three months ended March 31, 2024. The increase is primarily attributable to increased demand for separation, filtration, and water treatment technologies and the Company’s recent acquisition of Profire, a niche-leader specializing in the design and manufacture of burner-management systems and other combustion-management technologies. Approximately 88%, or $142.9 million, of the orders for the three months ended March 31, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Current wording
Our Engineered Systems segment orders booked increased $123.7 million, or 123%, to $224.2 million during the three months ended June 30, 2025 compared with $100.5 million in the three months ended June 30, 2024. The increase is primarily attributable to the Company's energy and power technologies. Investments in energy infrastructure and growth in midstream markets have resulted in increased demand for emissions, separation, and acoustics products. The Company’s acquisition of Profire, a niche-leader specializing in the design and manufacture of burner-management systems and other combustion-management technologies, is another driver of increased orders. Approximately 94%, or $210.1 million, of the orders for the three months ended June 30, 2025 is attributable to organic bookings, defined as orders recorded subsequent to the twelve month period post-acquisition date.
Previous wording
Our Engineered Systems segment net sales increased $31.1 million to $120.4 million for the three months ended March 31, 2025 compared with $89.3 million for the three months ended March 31, 2024. The increase is led by backlog execution on large scale power projects and inorganic sales growth attributable to Profire. Approximately 88%, or $106.0 million, of the net sales for the three months ended March 31, 2025 is attributable to organic revenue.
Current wording
Our Engineered Systems segment net sales increased $31.1 million to $128.5 million for the three months ended June 30, 2025 compared with $97.4 million for the three months ended June 30, 2024. The increase is led by backlog execution on large scale power projects and inorganic sales growth attributable to Profire. Approximately 87%, or $111.6 million, of the net sales for the three months ended June 30, 2025 is attributable to organic revenue.
Previous wording
Operating income for the Engineered Systems segment increased $2.4 million to $18.7 million for the three months ended March 31, 2025 compared with $16.3 million for the three months ended March 31, 2024. The operating income increase is attributable to higher gross profit related to increased net sales, partially offset by an increase in selling and administrative expense.
Current wording
Operating income for the Engineered Systems segment increased $5.9 million to $25.2 million for the three months ended June 30, 2025 compared with $19.3 million for the three months ended June 30, 2024. The operating income increase is attributable to higher gross profit related to increased net sales, partially offset by an increase in selling and administrative expense.
Previous wording
Operating income for the Industrial Process Solutions segment increased $62.6 million to $69.7 million for the three months ended March 31, 2025 compared with $7.1 million for the three months ended March 31, 2024. The increase is primarily attributable to the gain on the sale of the Global Pump Solutions business, partially offset by project mix in industrial air end markets and the absence of a unique prior year high margin project in commercial duct fabrication and installation.
Current wording
Operating income for the Industrial Process Solutions segment increased $72.0 million to $84.8 million for the six months ended June 30, 2025 compared with $12.8 million for the six months ended June 30, 2024. The increase is primarily attributable to the gain on the sale of the Global Pump Solutions business and fair value adjustment to the earn-out liability associated with the acquisition of WK Group.
Previous wording
Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. Backlog increased to $602.0 million as of March 31, 2025, from $540.9 million as of December 31, 2024. Our customers may have the right to cancel a given order. Historically, cancellations have not been common. Backlog is adjusted on a quarterly basis for adjustments in foreign currency exchange rates. Substantially all backlog is expected to be delivered within 18 to 24 months. Backlog is not defined by GAAP and our methodology for calculating backlog may not be consistent with methodologies used by other companies.
Current wording
Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. Backlog increased to $688.1 million as of June 30, 2025, from $540.9 million as of December 31, 2024. Our customers may have the right to cancel a given order. Historically, cancellations have not been significant. Backlog is adjusted on a quarterly basis for adjustments in foreign currency exchange rates. Substantially all backlog is expected to be delivered within 18 to 24 months. Backlog is not defined by GAAP and our methodology for calculating backlog may not be consistent with methodologies used by other companies.
Previous wording
At March 31, 2025, the Company had working capital of $197.4 million, compared with $86.3 million at December 31, 2024. The ratio of current assets to current liabilities was 1.71 to 1.00 on March 31, 2025, as compared with a ratio of 1.35 to 1.00 on December 31, 2024.
Current wording
At June 30, 2025, the Company had working capital of $98.0 million, compared with $86.3 million at December 31, 2024. The ratio of current assets to current liabilities was 1.34 to 1.00 on June 30, 2025, as compared with a ratio of 1.35 to 1.00 on December 31, 2024.
Previous wording
At March 31, 2025 and December 31, 2024, cash and cash equivalents totaled $146.5 million and $37.8 million, respectively. As of March 31, 2025 and December 31, 2024, $30.5 million and $29.7 million, respectively, of our cash and cash equivalents were held by certain foreign subsidiaries, as well as being denominated in foreign currencies.
Current wording
At June 30, 2025 and December 31, 2024, cash and cash equivalents totaled $36.8 million and $37.8 million, respectively. As of June 30, 2025 and December 31, 2024, $26.2 million and $29.7 million, respectively, of our cash and cash equivalents were held by certain foreign subsidiaries, as well as being denominated in foreign currencies.
Previous wording
The Company’s outstanding borrowings in the United States consist of a senior secured revolver loan with sub-facilities for letters of credit, swing-line loans and multi-currency loans (collectively, the “Credit Facility”). As of March 31, 2025 and December 31, 2024, the Company was in compliance with all related financial and other restrictive covenants under the Credit Facility. In April 2025, the Company made payments of $98.7 million on its Credit Facility.
Current wording
The Company’s outstanding borrowings in the United States consist of a senior secured revolver loan with sub-facilities for letters of credit, swing-line loans and multi-currency loans (collectively, the “Credit Facility”). As of June 30, 2025 and December 31, 2024, the Company was in compliance with all related financial and other restrictive covenants under the Credit Facility.
Previous wording
For the three months ended March 31, 2025, $11.7 million of cash was used in operating activities compared with $1.2 million provided by operations in the prior year period, representing a decrease of $12.9 million. Cash flow from operating activities in the first three months of 2025 had an unfavorable impact year-over-year primarily due to timing of project-related payments.
Current wording
For the six months ended June 30, 2025, $19.4 million of cash was used in operating activities compared with $7.9 million provided by operations in the prior year period, representing a decrease of $27.3 million. Cash flow from operating activities in the first six months of 2025 had an unfavorable impact year-over-year primarily due to timing of project-related payments.
Previous wording
For the three months ended March 31, 2025, net cash provided by investing activities was $4.8 million compared with $2.7 million used in investing activities in the prior year period. For the three months ended March 31, 2025, the Company received $105.8 million related to the sale of the Global Pump Solutions business as discussed in Note 16, offset by $97.6 million used in the acquisition of Profire as discussed in Note 15. In the prior year period, $3.1 million cash used in investing activities was primarily the result of acquisitions of property and equipment.
Current wording
For the six months ended June 30, 2025, net cash provided by investing activities was $3.8 million compared with $6.8 million used in investing activities in the prior year period. For the six months ended June 30, 2025, the Company received $105.8 million related to the sale of the Global Pump Solutions business as discussed in Note 16, offset by $97.6 million used in the acquisition of Profire as discussed in Note 15. In the prior year period, $6.8 million cash used in investing activities was primarily the result of acquisitions of property and equipment.
Previous wording
For the three months ended March 31, 2025, $115.8 million was provided by financing activities compared with $6.5 million used in financing activities in the prior year period, for an increase of $122.3 million. For the three months ended March 31, 2025, cash provided by financing activities was driven by net borrowings of $120.1 million, primarily to fund the acquisition of Profire as discussed in Note 15, partially offset by $1.0 million of deferred consideration paid for acquisitions, representing the repayment of the remainder of the promissory note associated with the acquisition of Transcend Solutions in 2023. For the three months ended March 31, 2024, the primary uses of cash for financing activities were $3.0 million to repurchase common stock, $2.6 million to repay long-term debt, $1.0 million of deferred consideration paid for acquisitions and $0.8 million on distributions to the noncontrolling interest, partially offset by $0.8 million in net borrowings.
Current wording
For the six months ended June 30, 2025, $14.2 million was provided by financing activities compared with $16.6 million used in financing activities in the prior year period, for an increase of $30.8 million. For the six months ended June 30, 2025, cash provided by financing activities was driven by net borrowings of $19.7 million, primarily to fund the acquisition of Profire as discussed in Note 15, partially offset by $1.0 million of deferred consideration paid for acquisitions, representing the repayment of the remainder of the promissory note associated with the acquisition of Transcend Solutions in 2023. For the six months ended June 30, 2024, the primary uses of cash for financing activities were $6.7 million of net repayments on revolving credit lines and long-term debt, $5.0 million to repurchase common stock, and $2.1 million of deferred consideration paid for acquisitions..
Previous wording
Management believes there have been no changes during the three months ended March 31, 2025 to the items that the Company disclosed as its critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Management believes there have been no changes during the six months ended June 30, 2025 to the items that the Company disclosed as its critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Net sales for the six months ended June 30, 2025 increased $98.2 million, or 37.2%, to $362.1 million compared with $263.9 million for the six months ended June 30, 2024. Approximately 79%, or $287.5 million, of the net sales for the six months ended June 30, 2025 is attributable to organic revenue, defined as revenue recorded subsequent to the twelve month period post-acquisition date. The increase in organic revenue is driven by execution and delivery on our record backlog within energy transition end markets, with notable growth in midstream. The remainder of the increase in net sales is attributable to the Company's recent acquisitions.
Current report — wording carried from elsewhere
Selling and administrative expenses were $102.4 million for the six months ended June 30, 2025 compared with $71.4 million for the six months ended June 30, 2024. The increase is primarily attributable to increased headcount to support the Company’s backlog execution and growth initiatives. Additionally, acquisitions during the current and prior year drove increased selling and administrative expense.
Current report — wording carried from elsewhere
Interest expense increased to $11.1 million in the six months ended June 30, 2025 compared with interest expense of $6.7 million for the six months ended June 30, 2024. The increase in interest expense is primarily due to increased debt balances.
Current report — wording carried from elsewhere
Our Engineered Systems segment net sales increased $62.2 million to $248.9 million for the six months ended June 30, 2025 compared with $186.7 million for the six months ended June 30, 2024. The increase is led by backlog execution on large scale power projects and inorganic sales growth attributable to Profire. Approximately 87%, or $217.6 million, of the net sales for the six months ended June 30, 2025 is attributable to organic revenue.
Current report — wording carried from elsewhere
Operating income for the Engineered Systems segment increased $8.3 million to $43.9 million for the six months ended June 30, 2025 compared with $35.6 million for the six months ended June 30, 2024. The operating income increase is attributable to higher gross profit related to increased net sales, partially offset by an increase in selling and administrative expense.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(1) Other non-recurring expenses, including restructuring expenses primarily relating to severance, facility exits, and associated legal expenses.