What happened
Specialty engineering company Ceco Environmental (CECO 0.24%) had a fine Hump Day on the stock exchange. Its share price performance edged past that of the benchmark S&P 500 index, rising by 0.6% against the index's marginal (0.1%) gain. Investors were pleased with their company's latest business update.
So what
Before market open, Ceco announced that it closed its latest acquisition. As of Aug. 23, it has been the owner of Kemco Systems, a designer and maker of water recycling and energy conservation products for industrial uses.
With Kemco in its portfolio, Ceco adjusted its guidance for annual revenue and profitability. It believes the former metric will total at least $525 million for the entirety of 2023, which would shake out to growth of 24% over 2022. It also provided a new forecast for earnings before interest, taxes, depreciation, and amortization (EBITDA). This should come in at a minimum of $55 million for growth of roughly 30%.
Ceco has been doing solid business lately, with fundamentals that have shown significant growth. With this as a foundation, it's been on an acquisition streak -- the Kemco deal is its third notable asset buy so far this year.
Now what
In its press release on Kemco, Ceco wrote that owning it "enhances Ceco's North American presence, extending the company's industrial water and wastewater treatment applications reach, adding new energy conservation and water recycling solutions, and expanding the addressable market into new high-value food processing, commercial laundry, and ready-mix concrete customer segments and end markets."
