Strong Results Lifted CECO Environmental Corp. (CECO) in Q3
Loomis Sayles, an investment management company, released its “Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities delivered strong results in the third quarter, mainly driven by easing tariff concerns, a pro-growth budget passed by the U.S. Congress, and anticipation of the Federal Reserve’s further rate cuts. The fund returned 6.21% in the quarter compared to 12.60% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as CECO Environmental Corp. (NASDAQ:CECO). CECO Environmental Corp. (NASDAQ:CECO) is a critical solutions provider in industrial air quality, industrial water treatment, and energy transition solutions. The one-month return for CECO Environmental Corp. (NASDAQ:CECO) was 20.40%, and its shares gained 113.27% over the last 52 weeks. On December 24, 2025, CECO Environmental Corp. (NASDAQ:CECO) stock closed at $62.51 per share, with a market capitalization of $2.228 billion.
Loomis Sayles Small Cap Value Fund stated the following regarding CECO Environmental Corp. (NASDAQ:CECO) in its third quarter 2025 investor letter:
"CECO Environmental Corp. (NASDAQ:CECO) provides equipment for air, gas and water filtration, as well as ventilation, silencers and scrubbers for industrial applications. The stock was added to the Fund in September of 2023 while the company was off the radar screen of most investors and in the earlier stages of a turnaround implemented by a new management team. Over the past two-years, management has continued to improve the business, both organically and through acquisitions, while key end markets such as energy and power infrastructure have strengthened. During the third quarter, CECO reported strong earnings and a third consecutive quarter of exceptional incoming orders for future delivery. On price strength and a notably higher valuation, we reduced our position size in the quarter at share prices significantly above our original purchase."
CECO Environmental Corp. (NASDAQ:CECO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 23 hedge fund portfolios held CECO Environmental Corp. (NASDAQ:CECO) at the end of the third quarter, up from 16 in the previous quarter. While we acknowledge the potential of CECO Environmental Corp. (NASDAQ:CECO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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