Financial Performance - Thermon Group Holdings, Inc. (THR) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, exceeding the Zacks Consensus Estimate of 50 cents, representing a year-over-year growth of 64.7% driven by revenue growth, enhanced profitability, and reduced interest expenses [1] - Revenues for the quarter totaled $134.1 million, beating the Zacks Consensus Estimate by 0.4%, and expanded 5% year over year, supported by strong OPEX revenues and contributions from Vapor Power and F.A.T.I. [2] - For the full fiscal year, total revenues reached $498.2 million, up 0.7% year over year, with record revenues and adjusted EBITDA achieved through successful integrations of acquisitions and strategic execution [3] Segment Performance - Revenues from Decarbonization and Electrification reached $63 million in fiscal 2025, marking an 80% year-over-year growth, primarily driven by Vapor Power, although organic revenues in this segment contracted by 19% due to shifts in U.S. policy [3] - The opportunities pipeline for Thermon was $435 million, reflecting a 70% year-over-year increase, indicating positive demand trends in electrification, decarbonization, on-shoring, and power markets [4] Profitability Metrics - Gross margin during the quarter expanded by 330 basis points to 44.3% from 41% in the prior-year quarter, attributed to a favorable revenue mix, improved pricing, and productivity enhancements [5] - Adjusted EBITDA for the quarter increased by 29% year over year to $30.5 million, driven by revenue growth and productivity gains, despite some weakness in large projects [6] Cash Flow and Liquidity - As of March 31, 2025, the company had $39.5 million in cash and cash equivalents and total debt of $138.9 million, compared to $48.6 million and $172.5 million in the prior-year period [8] - For fiscal 2025, THR generated $63.1 million of cash from operating activities, slightly down from $66 million in fiscal 2024 [8] Future Outlook - For fiscal 2026, revenues are projected to be between $495 million and $535 million, indicating a year-over-year growth of 3.5% at the midpoint, with adjusted EBITDA expected to remain flat [10] - Management anticipates GAAP EPS to be between $1.35 and $1.57 and adjusted EPS to be between $1.77 and $1.99 for fiscal 2026 [10] - The effective tax rate for fiscal 2026 is projected to be approximately 26%, with a slight decline in adjusted EBITDA margin expected due to tariff mitigation efforts [11]

Core Insights - Thermon Group reported a 5% year-over-year revenue growth to $134.1 million for fiscal 2025's fourth quarter, with an adjusted EBITDA margin of 22.7% and record annual free cash flow of $53 million [1] - The company experienced a 29% year-over-year increase in backlog as of March 31, driven by strategic expansion into high-growth markets and a rebound in oil and gas activity [2][3] Financial Performance - Revenue for fiscal 2025's fourth quarter was $134.1 million, reflecting a 5% increase from the previous year [1] - Adjusted EBITDA margin stood at 22.7%, indicating strong operational efficiency [1] - Annual free cash flow reached a record $53 million, showcasing robust cash generation capabilities [1] Backlog and Market Dynamics - The backlog increased by 29% year-over-year, with organic backlog growth of 20%, indicating sustained order strength despite a 37% annual decrease in revenue from large capital projects [2] - The book-to-bill ratio has remained above 1.0 for four consecutive quarters, supported by increased activity in the oil and natural gas sectors [2] Strategic Initiatives - The lifting of the U.S. moratorium on new LNG export project permits led to increased project bidding, with Thermon securing five major awards [3] - The acquisition of Vapor Power in January 2024 expanded the sales pipeline by 25%, while the acquisition of Fati later in fiscal 2025 doubled Fati's backlog due to demand from Thermon's legacy customers [3][4] Tariff Impact and Mitigation - Management anticipates an annualized gross tariff headwind of $16 million to $20 million, with a net impact of $4 million to $6 million after mitigation efforts [5][6] - The company is implementing price increases, supply chain reconfigurations, and production shifts to offset cost inflation from new import taxes [5] Future Outlook - For fiscal 2026, management projects revenue between $495 million and $535 million, representing a 3.5% growth at the midpoint, and adjusted EBITDA of $104 million to $114 million [7] - A brief margin dip is expected in the first half of fiscal 2026 due to tariff impacts, but margins are anticipated to recover in the second half as pricing actions take effect [7] - Management remains neutral to cautious on demand expectations due to macroeconomic and trade policy risks, while emphasizing aggressive capital allocation for M&A, share repurchases, and organic growth investments [7]

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].

Financial Data and Key Metrics Changes - The company generated $498 million in revenue for fiscal year 2025, a 1% increase year-over-year despite a 37% decline in large capital projects [10] - Adjusted EBITDA margin for fiscal year 2025 was 22%, up 86 basis points from the previous year, reflecting a more favorable revenue mix and productivity gains [10] - Free cash flow for the year was $53 million, with a gross margin expansion of 196 basis points [11][28] Business Line Data and Key Metrics Changes - Organic growth of 3% was achieved in the fourth quarter, marking the first growth in over a year, driven by improved order trends in various verticals, particularly in the LNG market [7][10] - OpEx revenues for the fourth quarter were $111.8 million, a 7% increase compared to the previous year, representing 83% of total revenues [25] - Large project revenue for the fourth quarter was $22.3 million, down 5% year-over-year but up 20% compared to the previous quarter [24] Market Data and Key Metrics Changes - US sales increased by 6%, while EMEA revenue rose by 51% year-over-year, indicating strong performance in those regions [26] - The backlog as of March 31 increased by 29% from the previous year, with organic backlog up 20% [8] - The company reported a book-to-bill ratio of 1.04 times for the fourth quarter, reflecting balanced strength across diversified end markets [25] Company Strategy and Development Direction - The company is focused on three strategic pillars: growing the installed base, pursuing decarbonization, digitization, and diversification, and maintaining disciplined capital allocation [13][16] - The acquisition of Vapor Power has expanded the addressable market, increasing the sales pipeline by 25% [12] - The company aims to leverage existing solutions and new product development to meet customer decarbonization needs, with a strong emphasis on electrification of industrial heating [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products despite macroeconomic uncertainties, with a focus on navigating a dynamic global trade environment [31][35] - The company anticipates margin headwinds in the first half of fiscal year 2026 due to tariffs but expects to offset these through pricing actions in the latter half of the year [35][44] - The guidance for fiscal year 2026 includes revenue expectations between $495 million and $535 million, representing a 3.5% growth at the midpoint [35] Other Important Information - The company repurchased $14 million in shares during the fourth quarter, with a total of over $20 million in share repurchases for fiscal year 2025 [28] - The board approved a refresh of the share repurchase program back to $50 million, reflecting optimism for future growth [9][29] - The company is actively working on extending the maturity of its existing credit facility, which becomes current in September 2025 [29] 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 FY 2026 regarding margins and growth? - Management indicated that there will be near-term impacts on gross margins in the first half due to tariffs, but pricing actions are expected to mitigate these effects in the second half [42][44] Question: How is the company viewing the overtime category in the forecast for FY 2026? - Management mentioned a strong backlog build in overtime projects, with expectations for muted order rates until clarity on trade policy is achieved [50] Question: What is the competitive landscape regarding tariffs and trade policy? - Management highlighted that the company has a significant presence in the U.S. and Canada, which provides an advantage, and noted that they are not heavily dependent on China, reducing exposure to tariff impacts [78][80]

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]

Core Viewpoint - Thermon Group reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.34 per share a year ago, representing a 12% earnings surprise [1][2] Financial Performance - The company achieved revenues of $134.08 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.39%, and an increase from $127.65 million year-over-year [2] - Over the last four quarters, Thermon Group has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Thermon Group shares have increased approximately 1.2% since the beginning of the year, contrasting with a decline of 0.6% in the S&P 500 [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes in these expectations [4] - The current consensus EPS estimate for the next quarter is $0.39 on revenues of $124.26 million, and for the current fiscal year, it is $2.03 on revenues of $540.33 million [7] Industry Context - The Instruments - Control industry, to which Thermon Group belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

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]

Core Insights - Ascletis Pharma Inc. is conducting a randomized, double-blind, placebo-controlled study (ASC47-103) to evaluate the safety and preliminary efficacy of ASC47 in combination with semaglutide for obesity treatment [3][6] - ASC47 is an adipose-targeted, ultra-long-acting small molecule agonist with a half-life of up to 40 days, showing promising results in preclinical studies [4][6] - The combination of low-dose ASC47 and semaglutide resulted in a 56.7% greater reduction in body weight with muscle preservation compared to semaglutide alone in a mouse model [2][4] Study Design - The ASC47-103 study includes three cohorts receiving single ascending doses of ASC47 (10 mg, 30 mg, and 60 mg) or placebo, along with four doses of semaglutide (0.5 mg, once weekly) [3][6] - Topline data from the ASC47-103 study are anticipated in the fourth quarter of 2025 [5] Company Overview - Ascletis Pharma Inc. is a biotech company listed on the Hong Kong Stock Exchange, focusing on metabolic diseases and addressing unmet medical needs globally [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Thermon (THR) as a strong value stock based on various financial metrics [2][8]. Group 1: Value Investing Trends - Value investing is a preferred strategy for identifying strong stocks in any market condition, relying on fundamental analysis to find undervalued companies [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on the "Value" category for value investors [3]. Group 2: Thermon (THR) Financial Metrics - Thermon (THR) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4]. - The stock's P/E ratio is 12.85, significantly lower than the industry average of 17.32, suggesting it may be undervalued [4]. - THR's P/B ratio stands at 1.82, compared to the industry's average of 3.36, further indicating attractive valuation [5]. - The P/S ratio for THR is 1.89, while the industry average is 2.63, reinforcing the perception of THR as undervalued [6]. - THR has a P/CF ratio of 13.79, which is lower than the industry's average of 14.79, suggesting solid cash flow outlook [7]. - Overall, these metrics contribute to THR's strong Value grade and indicate it is likely undervalued at present [8].