Thermon Group Holdings (THR) 2025 Conference June 10, 2025 02:30 PM ET Speaker0 Okay. Speaker1 All right. Speaker0 Good afternoon. My name is Trip Caldwell with Wells Fargo on the banking side. Here today with Bruce Thames and Jan Schott, CEO and CFO respectively of Thermon Holdings. Thermon is a $1,000,000,000 market cap company that's focused on custom heating solutions for process industries. But maybe, Bruce, for those that are less familiar with Thermon, you can take us a layer deeper and talk a little ...

Thermon Group Holdings, Inc. (THR) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, which surpassed the Zacks Consensus Estimate of 50 cents. The bottom line grew 64.7% year over year, driven by revenue growth, enhanced profitability and reduced interest expenses.For the fiscal year ended March 31, 2025, adjusted EPS grew 2.8% year over year to $1.87.Revenues in the quarter totaled $134.1 million, beating the Zacks Consensus Estimate by 0.4%. The top line expanded 5% year o ...

Thermon Group (THR -0.89%) delivered its fiscal 2025 fourth-quarter results on May 22, reporting 5% year-over-year revenue growth to $134.1 million, an adjusted EBITDA margin of 22.7%, and record annual free cash flow of $53 million. Management at the industrial process heating specialist highlighted a 29% year-over-year backlog increase as of March 31 (the quarter's end), strategic expansion into high-growth markets, and outlined the tariff headwinds it expects for fiscal 2026, as well as its plans for rig ...

THERMON GROUP HOLDINGS, INC. EARNINGS PRESENTATION FOURTH QUARTER FISCAL YEAR 2025 MAY 22, 2025 Q4 FY2025 Earnings | 1 Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) future growth of our key end markets and related capital investments; (ii) our ability to operate successfully in foreign countries; (iii) uncertainty over and changes in administrative poli ...

Growth Strategy - The company plans to strategically pursue emerging growth opportunities, including strategic acquisitions in diverse regions and across industry sectors [18]. - The company expects to secure more new facility project bids, enhancing its revenue potential [18]. - The company anticipates an increase in revenues, reflecting positive market conditions and operational strategies [18]. - The company aims to integrate acquired companies effectively to achieve synergies and enhance overall performance [18]. - The company is committed to developing strategic alliances with major customers and suppliers to strengthen its market position [18]. Financial Health - The company believes its cash flows will be sufficient to meet operational needs for the next year [18]. Market Competitiveness - The company is focused on responding to new market developments and technological advances to maintain competitiveness [18]. - The company acknowledges risks related to competition and the ability to deliver existing orders within its backlog [19]. - The company recognizes the importance of managing risks associated with foreign operations and economic conditions [19]. - The company is focused on maintaining compliance with environmental and health regulations, which could impact operations [19].

Thermon Group Holdings (THR) Q4 2025 Earnings Call May 22, 2025 11:00 AM ET Company Participants Ivonne Salem - Vice President of FP&A and Investor RelationsBruce Thames - President & CEOJan Schott - SVP & CFOJustin Ages - Director - Equity ResearchJonathan Braatz - Partner Conference Call Participants Chip Moore - Managing Director & Senior Research AnalystBrian Drab - Equity Research Analyst Operator Greetings, and welcome to the Thermon Group Holdings Fourth Quarter Fiscal Year twenty twenty five Earning ...

Financial Data and Key Metrics Changes - The company reported revenue of $498 million for fiscal year 2025, a 1% increase year-over-year despite a 37% decline in large capital projects [11] - Adjusted EBITDA margin improved to 22% for fiscal year 2025, up 86 basis points from the previous year [11] - Free cash flow for the year was $53 million, with a gross margin expansion of 196 basis points [12] Business Line Data and Key Metrics Changes - The company achieved 3% organic growth in Q4 2025, marking the first growth in over a year, driven by improved order trends in various verticals, particularly in the LNG market [7][8] - OpEx revenues for Q4 2025 were $111.8 million, a 7% increase year-over-year, representing 83% of total revenues [25] - Large project revenue for Q4 2025 was $22.3 million, down 5% year-over-year but up 20% compared to the previous quarter [25] Market Data and Key Metrics Changes - US sales increased by 6% due to strong OpEx revenue and improved large project trends [27] - EMEA revenue rose by 51% year-over-year, while Canadian sales decreased by 6% due to macroeconomic conditions [27] - APAC revenues were reported at $9.2 million [27] Company Strategy and Development Direction - The company focuses on three strategic pillars: growing the installed base, pursuing decarbonization, digitization, and diversification [14] - The acquisition of Vapor Power expanded the addressable market and increased the sales pipeline by 25% [13] - The company aims to diversify its revenue base, achieving 70% of revenue from diverse markets ahead of schedule [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive order momentum and backlog growth, despite broader macroeconomic uncertainties [13][36] - The company anticipates margin headwinds in the first half of fiscal year 2026 due to tariffs, with a projected annualized impact of $16 million to $20 million [32][36] - The guidance for fiscal year 2026 includes revenue expectations between $495 million and $535 million, reflecting a cautious outlook [36] Other Important Information - The company repurchased over $20 million in shares during fiscal year 2025 and plans to refresh its share repurchase program to $50 million [30] - The company maintained a strong financial position with net leverage of 0.9 times at the end of the fiscal year [30] Q&A Session Summary Question: Can you elaborate on the resurgence in LNG? - Management noted that since the lift of the moratorium in January, several projects have moved forward quickly, particularly in the U.S. Gulf Coast and the Middle East, with approximately $80 million in LNG opportunities in the pipeline [40][41] Question: What are the expectations for margins in FY 2026? - Management indicated that there will be near-term impacts on gross margins in the first half of the year due to inflationary pressures from tariffs, but they expect pricing actions to offset these impacts later in the year [44][46] Question: How is the backlog and CapEx spending forecasted for FY 2026? - Management reported a strong backlog build in capital projects and anticipates that order rates for larger projects may be muted until clarity on trade policy is achieved [50][51] Question: What are the capital allocation priorities? - The company plans to maintain capital investments for growth, continue share repurchases, and actively pursue M&A opportunities [64][66] Question: What is the expected net impact of tariffs for the upcoming year? - The net impact of tariffs is projected to be in the range of $4 million to $6 million for the fiscal year, primarily affecting the first half [76][78]

Thermon Group (THR) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12%. A quarter ago, it was expected that this maker of heat tracing products would post earnings of $0.54 per share when it actually produced earnings of $0.56, delivering a surprise of 3.70%.Over the last four quarte ...

Financial Performance - Revenue for Q4 2025 was $134.1 million, a 5% increase year-over-year, while full-year revenue reached $498.2 million, a 1% increase[3] - Adjusted EBITDA for Q4 2025 was $30.5 million, up 29% from the previous year, with an Adjusted EBITDA margin of 22.7%[9] - Net income for Q4 2025 was $17.0 million, a 68% increase year-over-year, resulting in a GAAP EPS of $0.50[3] - Gross profit for Q4 2025 was $59.4 million, a 13% increase, with a gross margin of 44.3%[7] - Net income for the twelve months ended March 31, 2025, was $53,515 thousand, compared to $51,588 thousand in 2024, representing a growth of 3.7%[29] - Adjusted EBITDA for the twelve months ended March 31, 2025, was $109,231 million, compared to $104,201 million in the prior year, reflecting a growth of 4.0%[35] - The company reported a diluted income per share of $0.50 for the three months ended March 31, 2025, compared to $0.29 for the same period in 2024[29] - The adjusted fully diluted earnings per share (EPS) for the twelve months ended March 31, 2025, was $1.87, compared to $1.82 in the previous year, an increase of 2.7%[37] - The company reported a total revenue of $498,207 million for the twelve months ended March 2025, slightly up from $494,629 million in 2024, reflecting a growth of 0.4%[41] Orders and Backlog - New orders in Q4 2025 totaled $138.8 million, a 19% increase, with a book-to-bill ratio of 1.04x[10] - Backlog as of March 31, 2025, was $240.3 million, representing a 29% increase compared to the previous year[10] Guidance and Projections - Fiscal 2026 guidance projects revenue between $495 million and $535 million and Adjusted EBITDA between $104 million and $114 million[16] - Adjusted EBITDA and Adjusted EPS projections for fiscal 2026 cannot be reconciled to GAAP measures due to the uncertainty of future adjustments[22] - The company anticipates an increase in revenues and believes cash flows will be sufficient to meet needs for the next year[24] Strategic Focus - The company plans to focus on decarbonization, digitization, and diversification strategies in emerging markets for future growth[4] - The company plans to pursue strategic acquisitions and emerging growth opportunities across diverse regions and industry sectors[24] - The company is focused on developing strategic alliances with major customers and suppliers to enhance market position[24] - The company is committed to timely delivering backlog and responding to new market developments and technological advances[24] Cash Flow and Expenses - Free cash flow for the twelve months ended March 31, 2025, was $52,934 million, slightly down from $55,038 million in the previous year, a decrease of 3.8%[39] - Operating expenses for the three months ended March 31, 2025, were $32,837 thousand, slightly up from $32,823 thousand in the same period of 2024[29] - Operating expenses (OPEX) sales for the three months ended March 2025 were $111,803 million, compared to $104,276 million in 2024, marking an increase of 7.3%[41] - OPEX sales as a percentage of total sales increased to 83.4% for the three months ended March 2025, up from 81.7% in the same period of 2024[41] Assets and Liabilities - Total assets decreased from $767,740 million in March 2024 to $755,452 million in March 2025, a decline of approximately 1.7%[31] - Current liabilities increased from $109,269 million in March 2024 to $112,663 million in March 2025, an increase of approximately 4.4%[31] - Total liabilities decreased from $292,853 million in March 2024 to $260,137 million in March 2025, a reduction of about 11.2%[31] - Cash and cash equivalents decreased from $50,431 million at the beginning of the period to $41,422 million at the end of the period, a decline of 17.5%[33] - The company reported an increase in retained earnings from $288,783 million in March 2024 to $342,298 million in March 2025, an increase of 18.5%[31] Sales Performance - For the three months ended March 31, 2025, sales were $134,080 thousand, an increase of 3.4% compared to $127,654 thousand for the same period in 2024[29] - Point-in-Time Sales for the twelve months ended March 2025 were $353,072 million, up from $300,606 million in 2024, reflecting a year-over-year increase of 17.5%[41] - Over Time Sales for Small Projects totaled $69,198 million for the twelve months ended March 2025, down from $74,471 million in 2024, indicating a decline of 7.0%[41] - Over Time Sales for Large Projects decreased to $75,937 million in the twelve months ended March 2025 from $119,552 million in 2024, a significant drop of 36.5%[41] - Total Over-Time Sales for the twelve months ended March 2025 were reported at $145,135 million, down from $194,023 million in 2024, a decrease of 25.2%[41] - The company has restructured its reporting of Over Time Sales into Small Projects and Large Projects for better clarity[41] - The company continues to focus on expanding its market presence despite the fluctuations in project revenues[41]

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