Thermon Group (THR) has been on a downward spiral lately with significant selling pressure. After declining 18.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. could reverse soon for reaching the old equilibrium of supply and demand. We use Relative Strength Index (RSI), one of the most commonly used technical i ...

Thermon Group (THR) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of 34 cents, which surpassed the Zacks Consensus Estimate of 32 cents. The bottom line fell 17% year over year mainly due to reduced volumes, product mix, spending and incremental interest expenditure, which were partially balanced by improved prices. For the fiscal year ended Mar 31, 2024, adjusted EPS soared 16% year over year to $1.82, driven by the Vapor Power acquisition. Revenues in the quarter totaled $127.7 mil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Fiscal Year Ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35159 THERMON GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 27-2228185 (State or other jurisdiction of incorp ...

Thermon Group Holdings Inc (NYSE:THR) Q4 2024 Results Conference Call May 29, 2024 11:00 AM ET Company Participants Ivonne Salem - Vice President of FP&A and Investor Relations Bruce Thames - President, Chief Executive Officer and Director Greg Lucas - Chief Financial Officer Conference Call Participants Justin Ages - CJS Securities Chip Moore - ROTH MKM Brian Drab - William Blair Operator Good morning, and welcome to the Thermon Group Holdings Fourth Quarter 2024 Earnings Conference Call. At this time, all ...

Thermon Group (THR) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this maker of heat tracing products would post earnings of $0.50 per share when it actually produced earnings of $0.59, delivering a surprise of 18%. Over the last four quar ...

[Performance Overview](index=1&type=section&id=Performance%20Overview) [Q4 & Fiscal 2024 Highlights](index=1&type=section&id=Q4%20%26%20Fiscal%202024%20Highlights) Thermon reported record financial results for Fiscal 2024, including revenue of $494.6 million (up 12% YoY), Adjusted EBITDA of $104.2 million (up 12% YoY), and Adjusted EPS of $1.82 (up 17% YoY) | Metric | Q4 2024 | Q4 YoY Change | Fiscal 2024 | FY YoY Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $127.7M | +4% | $494.6M | +12% | | Net Income | $10.1M | +31% | $51.6M | +53% | | GAAP EPS | $0.29 | +26% | $1.51 | +52% | | Adjusted EBITDA | $23.6M | -6% | $104.2M | +12% | | Adjusted EPS | $0.34 | -17% | $1.82 | +17% | - The company achieved record revenue, **Adjusted EBITDA**, and **Adjusted EPS** for the full Fiscal Year 2024[1](index=1&type=chunk)[2](index=2&type=chunk) [CEO Commentary & Strategic Progress](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Progress) The CEO highlighted the successful execution of the company's strategy, leading to record results and significant progress in diversification and decarbonization initiatives - Acquired Vapor Power in Q4, an innovative company specializing in electric- and gas-fired boilers, as part of a disciplined capital allocation strategy[2](index=2&type=chunk) - Revenue from diversified, non-oil and gas end markets grew to **68% of total revenue** in Fiscal 2024, approaching the 70% target two years ahead of schedule[2](index=2&type=chunk) - Revenue associated with decarbonization more than doubled in Fiscal 2024, and the company accelerated the expansion of its Genesis Network digital solution[2](index=2&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Q4 & Fiscal 2024 Financial Results](index=2&type=section&id=Q4%20%26%20Fiscal%202024%20Financial%20Results) In Q4 2024, total sales increased 4.2% to $127.7 million, including a $10.9 million contribution from Vapor Power, while organic sales declined by 5% due to a slowdown in Oil and Gas end markets | Revenue Breakdown (in millions) | Q4 2024 | Q4 2023 | % Change | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Sales** | **$127.7** | **$122.5** | **4.2%** | **$494.6** | **$440.6** | **12.3%** | | Point-in-Time | $86.0 | $77.8 | 10.5% | $300.6 | $277.3 | 8.4% | | Over Time - Small Projects | $18.3 | $18.8 | (2.7)% | $74.5 | $65.4 | 13.9% | | Over Time - Large Projects | $23.4 | $25.9 | (9.7)% | $119.6 | $97.9 | 22.2% | - The recent acquisition of Vapor Power contributed **$10.9 million** in sales during Q4 2024[4](index=4&type=chunk) - Organic sales (excluding Vapor Power) were **$116.8 million** in Q4 2024, a **5% decrease** from Q4 2023, driven by a slowdown in Oil and Gas end markets[4](index=4&type=chunk) - The company completed its withdrawal from operations in the Russian Federation during Q4 2024[8](index=8&type=chunk) [Orders and Backlog](index=2&type=section&id=Orders%20and%20Backlog) The company's backlog grew significantly to $186.1 million by Fiscal 2024 end, a 14% increase, despite Q4 2024 orders decreasing by 12% to $117.0 million, resulting in a book-to-bill ratio of 0.92x - Backlog as of March 31, 2024, was **$186.1 million**, a **14% increase** from **$163.3 million** in the prior year[5](index=5&type=chunk) - Q4 2024 orders were **$117.0 million**, a **12% decrease** from **$133.2 million** in Q4 2023[5](index=5&type=chunk) - The book-to-bill ratio was **0.92x** for Q4 2024 and **0.95x** for the full Fiscal 2024[2](index=2&type=chunk)[5](index=5&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Thermon maintained a strong balance sheet with $141.3 million in available liquidity, while total debt increased to $172.5 million due to the Vapor Power acquisition, raising the Net Debt-to-Adjusted EBITDA ratio to 1.2x | Balance Sheet & Cash Flow (in millions) | March 31, 2024 | March 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $48.6 | $35.6 | 36.5% | | Total Debt | $172.5 | $112.9 | 52.8% | | Working Capital | $162.2 | $152.4 | 6.4% | | Q4 Free Cash Flow | $35.1 | $21.9 | 60.3% | - The Net Debt-to-Adjusted EBITDA ratio increased to **1.2x** from **0.8x** in the prior year, primarily due to debt taken on for the Vapor Power acquisition[6](index=6&type=chunk)[9](index=9&type=chunk) - Available liquidity at quarter-end was **$141.3 million**, comprising **$48.6 million** in cash and **$92.7 million** available under credit agreements[6](index=6&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) [Full Year Guidance](index=3&type=section&id=Full%20Year%20Guidance) For Fiscal 2025, Thermon anticipates continued revenue and earnings growth, projecting revenue between $527 million and $553 million and Adjusted EBITDA between $112 million and $120 million | Fiscal 2025 Guidance | Range | | :--- | :--- | | Revenue | $527M - $553M | | Adjusted EBITDA | $112M - $120M | | GAAP EPS | $1.57 - $1.73 | | Adjusted EPS | $1.90 - $2.06 | - The guidance represents year-over-year growth of **9% for revenue** and **11% for Adjusted EBITDA** at the midpoints of the ranges[11](index=11&type=chunk) - The company expects customers to remain cautious regarding large capital projects but is optimistic about its ability to deliver growth through strategic execution and operational efficiency[11](index=11&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the twelve months ended March 31, 2024, Thermon's sales increased to $494.6 million, gross profit rose to $211.6 million, and net income significantly increased to $51.6 million, or $1.51 per diluted share | (in thousands) | Twelve Months Ended March 31, 2024 | Twelve Months Ended March 31, 2023 | | :--- | :--- | :--- | | Sales | $494,629 | $440,590 | | Gross Profit | $211,564 | $185,125 | | Income from Operations | $75,371 | $55,190 | | Net Income | $51,588 | $33,666 | | Diluted EPS | $1.51 | $1.00 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Thermon's total assets grew to $767.7 million, largely due to acquisitions, while total liabilities increased to $292.9 million, primarily from higher long-term debt, and total equity rose to $474.9 million | (in thousands) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $274,600 | $250,942 | | Total Assets | $767,740 | $649,629 | | Total Current Liabilities | $109,269 | $110,072 | | Total Liabilities | $292,853 | $230,641 | | Total Equity | $474,887 | $418,988 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the twelve months ended March 31, 2024, net cash provided by operating activities was $66.0 million, net cash used in investing activities was $109.5 million due to acquisitions, and net cash provided by financing activities was $56.5 million | (in thousands) | Twelve Months Ended March 31, 2024 | Twelve Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $65,955 | $57,714 | | Net cash used in investing activities | ($109,522) | ($44,555) | | Net cash provided by/(used in) financing activities | $56,533 | ($13,465) | | Change in cash and cash equivalents | $11,911 | ($5,411) | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) For Fiscal 2024, Adjusted EBITDA was reconciled from a GAAP Net Income of $51.6 million to $104.2 million, primarily by adding back interest, taxes, depreciation & amortization, stock compensation, and transaction-related costs | Reconciliation to Adjusted EBITDA (FY 2024, in thousands) | Amount | | :--- | :--- | | GAAP Net income | $51,588 | | Interest expense, net | $8,845 | | Income tax expense | $16,086 | | Depreciation and amortization expense | $18,837 | | Stock compensation expense | $5,754 | | Transaction-related costs | $2,107 | | Restructuring and other charges | $984 | | **Adjusted EBITDA (non-GAAP)** | **$104,201** | [Reconciliation to Adjusted Net Income and Adjusted EPS](index=10&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS) For Fiscal 2024, GAAP Net Income of $51.6 million was adjusted to a non-GAAP Adjusted Net Income of $61.9 million, resulting in an Adjusted EPS of $1.82, after accounting for amortization of intangible assets and transaction-related costs | Reconciliation to Adjusted Net Income (FY 2024, in thousands) | Amount | | :--- | :--- | | GAAP Net income | $51,588 | | Transaction-related costs | $2,107 | | Amortization of intangible assets | $10,158 | | Restructuring and other charges | $984 | | Tax effect of adjustments | ($2,947) | | **Adjusted Net Income (non-GAAP)** | **$61,890** | [Reconciliation to Free Cash Flow](index=10&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) For the twelve months ended March 31, 2024, Free Cash Flow was $55.9 million, derived from $66.0 million in cash from operating activities, minus capital expenditures, and minor proceeds from equipment sales | Reconciliation to Free Cash Flow (FY 2024, in thousands) | Amount | | :--- | :--- | | Cash provided by operating activities | $65,955 | | Less: Cash used for purchases of property, plant and equipment | ($11,016) | | Plus: Sales of rental equipment | $99 | | **Free cash flow provided (non-GAAP)** | **$55,878** | [Disclosures](index=3&type=section&id=Disclosures) [Non-GAAP Financial Measures Definitions](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines the non-GAAP financial measures used in the report, such as Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Organic Sales, and Net Debt, emphasizing their supplemental nature - Defines non-GAAP measures including Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Organic Sales, and Net Debt[14](index=14&type=chunk)[15](index=15&type=chunk) - The company is unable to reconcile projected Fiscal 2025 Adjusted EPS to the comparable GAAP measure without unreasonable effort due to the uncertainty of future adjustments[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains the standard safe harbor statement, cautioning that forward-looking statements, including Fiscal 2025 guidance, are subject to numerous risks and uncertainties that could cause actual results to differ materially - The release contains forward-looking statements regarding business strategy, future operations, and financial guidance for Fiscal 2025[17](index=17&type=chunk) - Actual results may differ materially due to various factors, including economic conditions, market cyclicality, competition, and ability to integrate acquisitions[18](index=18&type=chunk) - Investors are directed to the company's Form 10-K for a more detailed discussion of risk factors[19](index=19&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-35159 THERMON GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Financial Data and Key Metrics Changes - The company reported record revenue of $136.4 million for Q3 2024, representing a 12% year-over-year increase, driven by growth in the U.S., Europe, and Asia, while the Canadian market contracted by 5% year-over-year [7][8][71] - Adjusted EBITDA increased by 2% year-over-year to $30.7 million, attributed to volume growth, pricing, and productivity improvements [7][9] - Adjusted diluted EPS was $0.59, reflecting a 13% increase year-over-year [9] - Net income for the quarter was $16 million, up 88% year-over-year, with free cash flow improving to $22 million [21][41] Business Line Data and Key Metrics Changes - Oil and gas revenues increased by 9%, while revenues from diversified end markets rose by 26%, with food and beverage sector revenue growing by 209% year-over-year [4][67] - Large project revenue reached $34 million, up 26% from the prior year, while small projects and maintenance revenue totaled $103 million, up 8% [20] - Approximately 66% of trailing 12 months revenue came from diversified end markets, with an updated pro forma figure of 69% including the recent acquisition of Vapor Power [4][20] Market Data and Key Metrics Changes - The U.S. and Latin America were the strongest performing regions, with three of four regional units reporting double-digit revenue growth [71] - The food and beverage sector saw the highest growth rate, with significant demand also noted in power renewables, rail and transit, and commercial end markets [42][67] Company Strategy and Development Direction - The company is focused on three strategic pillars: profitably growing the installed base, decarbonization, digitization, and diversification, and disciplined capital allocation [3][15] - The acquisition of Vapor Power is seen as a significant step in advancing the strategy for profitable growth through decarbonization and diversification [5][79] - The company aims for approximately 70% of revenues to come from outside oil and gas by the end of fiscal 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic volatility but expressed confidence in the long-term strategy to diversify the business for continued profitable growth [9][85] - The company expects some deceleration in growth in the fourth quarter, particularly in Canada, but remains optimistic about future opportunities [27][50] - Management noted that the warmer winter impacted product mix and gross margins, but they believe this is an anomaly [41][85] Other Important Information - The company adjusted its full-year revenue guidance for fiscal 2024 to a range of $490 million to $500 million, implying 12% growth at the midpoint [22] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.5 times, allowing for further growth opportunities [40][43] Q&A Session Summary Question: Revenue expectations for Q3 and guidance for Q4 - Management indicated that Q3 revenue was in line with internal expectations, with a slight softness anticipated in Q4 due to Canadian market conditions [100][101] Question: Concerns about declining backlog - Management noted that while bookings were down 1% year-over-year, operational excellence programs have improved lead times, contributing to a decrease in backlog [103] Question: Growth expectations for fiscal 2025 - Management expects slower organic growth rates but anticipates that the acquisition of Vapor Power will contribute positively to growth in fiscal 2025 [94][95]

THERMON GROUP HOLDINGS, INC. SECOND QUARTER FISCAL YEAR 2024 NOVEMBER 2, 2023 This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations co ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 26.5% year-over-year to $27.7 million, driven by volume growth, price, and productivity [18] - Adjusted EPS rose to $0.49 per share, marking a 30% increase compared to the prior year [19] - Revenue for the second quarter reached $124 million, a 23% year-over-year increase, primarily due to growth in renewables, power, and food and beverage end markets [21] - Net income for the quarter was $15 million, up 34% year-over-year [24] - Cash at the end of the quarter was $31 million, a 4% decrease year-over-year, while total debt decreased by 23% to $111 million [23] Business Line Data and Key Metrics Changes - Revenue from large projects was $36 million, up 54% year-over-year, while revenue from small projects and maintenance and repairs totaled $88 million, up 14% [21] - Approximately 64% of trailing 12-month revenue came from diversified end markets, with 74% of year-to-date orders from these markets, up 33% year-over-year [13][11] - The renewables end market saw a notable 92% year-over-year growth [12] Market Data and Key Metrics Changes - Orders from diversified end markets outpaced those from the oil and gas sector, with a 33% year-over-year increase in orders from diversified markets [13] - Customer demand remained strong across the US and Latin America, while spending in Canada was flat [20] - The company reported a 40% increase in Europe and a 17% increase in the Asia-Pacific region [96] Company Strategy and Development Direction - The company aims to have approximately 70% of revenues come from outside the oil and gas sector by the end of fiscal 2026 [5] - Strategic pillars include profitably growing the installed base, decarbonization, digitization, diversification, and disciplined capital allocation [4][40] - The company is focused on expanding its product portfolio to capture growth in process heating, which is growing at nearly double the rate of heat tracing [63] Management's Comments on Operating Environment and Future Outlook - Management raised full-year revenue and earnings guidance for fiscal 2024, reflecting positive growth despite macroeconomic uncertainties [26] - The company is well-positioned to deliver profitable growth and manage various economic scenarios in the second half of fiscal 2024 [53] - Management expressed confidence in the ongoing investments in hydrogen and alternative fuels, indicating a robust project pipeline [84] Other Important Information - The company reported a book-to-bill ratio of 0.94 times for the quarter, with trailing 12-month bookings reaching $489 million [48] - Free cash flow improved by $1.9 million year-over-year due to better days sales outstanding [47] - The company will hold its first Investor Day on November 14, providing more details on long-term strategy and financial outlook [55] Q&A Session Summary Question: How is the company thinking about the long-term goal of diversifying revenue? - Management is targeting a 70% diversification goal by 2026 and believes they can exceed this with current growth trends [60] Question: What is the outlook for the food and beverage segment? - The food and beverage segment has seen significant growth, with a 219% increase over the last year, and management sees continued opportunities in this area [41][62] Question: How is the company addressing the growth in process heating versus heat tracing? - Growth in process heating is nearly double that of heat tracing, with significant investments being made to expand capacity in this area [63] Question: Are there any impacts from higher interest rates on the project pipeline? - Management has not seen significant softness in the pipeline due to higher interest rates, with ongoing investments in hydrogen and alternative fuels [84] Question: What is the outlook for sales in Europe? - There are positive trends in Europe, with signs of growth in incoming orders and a favorable pipeline of opportunities [88]