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].

THERMON GROUP HOLDINGS, INC. EARNINGS PRESENTATION THIRD QUARTER FISCAL YEAR 2025 FEBRUARY 6, 2025 Q3 FY2025 Earnings | 1 Cautionary Note Regarding Forward-looking Statements 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 l ...

Financial Data and Key Metrics Changes - Reported revenues for Q3 2025 were $134.4 million, a year-over-year decrease of 1.5% [24] - Adjusted EBITDA was $31.8 million, up from $30.7 million last year, reflecting a 3% increase [30] - Adjusted EBITDA margin improved to 23.7%, up from 22.5% last year [30] Business Line Data and Key Metrics Changes - OpEx revenues increased by 12.6% year-over-year to $115.8 million, while large project revenue decreased by 45% to $18.6 million [26][27] - OpEx revenues represented 84% of total revenues on a trailing twelve-month basis, up from the low 70% range a few years ago [17] - The backlog increased by 48% year-over-year to $235.6 million, with a 9% organic increase excluding acquisitions [32] Market Data and Key Metrics Changes - EMEA sales were $13.8 million, up 11%, while APAC sales declined by 3% to $9.8 million [27] - US Latin America sales decreased by 8% to $67.2 million, primarily due to the contraction in large project sales [27] - Canadian sales increased by 6% year-over-year to $43.5 million, indicating favorable demand in that region [27] Company Strategy and Development Direction - The company aims to reduce exposure in the oil and gas sector while diversifying its revenue base [19] - The acquisition of ThoughtView is part of the strategy to enhance competitive positioning and mitigate risks from tariffs [15] - The company is focused on disciplined capital allocation, balancing investments in organic growth, strategic M&A, and opportunistic share repurchases [21] Management's Comments on Operating Environment and Future Outlook - Management noted improving customer confidence and order momentum, particularly in the oil and gas sector [39] - The company expects a rebound in large capital expenditures, which will positively impact revenue mix [17] - The potential impacts of tariffs remain uncertain, but the company is monitoring trade negotiations closely [14][29] Other Important Information - Free cash flow for the first nine months of fiscal 2025 was $23 million, up $3 million from the previous year [11] - The company paid down $12 million in debt during the quarter, reducing net leverage to just over one times [11] - The company has a robust M&A pipeline and remains well-capitalized with total cash and available liquidity of $136 million [35] Q&A Session Summary Question: Can you discuss the point-in-time revenue of $99 million? - Management noted that a normalized heating season contributed to the strong revenue, along with efforts to drive recurring revenues from the installed base and contributions from new acquisitions [56] Question: What is the outlook for large CapEx spending? - Management highlighted a surge in LNG project activity and noted that they are well-positioned to benefit from this trend, along with other energy projects [63][65] Question: Can you comment on gross margin expectations? - Management indicated that while gross margins are expected to remain strong, they may see some downside if customer sentiment does not shift positively [70] Question: What is the current bid pipeline since the new administration took over? - Management expressed cautious optimism about growth in FY26, citing increased quoting activity and improved customer sentiment [78] Question: How is the company addressing SG&A spending? - Management expects SG&A spending to remain relatively flat in the near term due to recent acquisitions [92] Question: Can you provide details on the performance of Vapor Power and ThoughtView? - Management noted that ThoughtView performed exceptionally well, while Vapor Power fell short of expectations due to capacity constraints [100][101]

Financial Performance - Sales for the three months ended December 31, 2024, were $134.4 million, a decrease of 2% compared to $136.4 million in 2023[116] - Gross profit increased by 8% to $62.1 million, with a gross profit margin of 46.2%, up from 42.1% in the previous year[116] - Net income for the three months ended December 31, 2024, was $18.5 million, representing a 17% increase from $15.8 million in 2023[116] - Revenues decreased by 11% excluding acquisitions, primarily due to softness in Over time revenue associated with large projects[117] - Free Cash Flow for YTD 2025 was $23.9 million, up from $20.8 million in YTD 2024, driven by higher operating cash flows[159] - Operating cash flows increased by $2.5 million in YTD 2025, primarily due to higher non-cash operating items and lower cash use in operating assets[151] Revenue Composition - Revenue recognized at a point in time accounted for 74% of total revenue for the three months ended December 31, 2024, compared to 63% for the same period in 2023[107] - Over time sales decreased by 32%, primarily due to reduced activity from large customer projects in the US-LAM segment[119] - Point in time sales increased by 16%, with $99.6 million representing 74% of total sales, compared to 63% in the previous year[118] Backlog and Future Prospects - The company's backlog as of December 31, 2024, was $235.6 million, up from $186.1 million at March 31, 2024, indicating a strong pipeline for future revenue[101] - The company expects to secure more new facility project bids and generate additional revenue from facility maintenance and upgrades[94] Acquisitions and Integration - The company executed an acquisition strategy to grow by acquiring businesses in the process heating solutions industry[114] - The company initiated the integration of its recent acquisition, F.A.T.I., into its EMEA operations during the three months ended December 31, 2024[111] Costs and Expenses - Selling, general and administrative expenses rose to 25.4% of sales in Interim 2025, up from 23.3% in Interim 2024, driven by acquisitions and strategic investments[122] - Amortization of intangible assets increased due to recent acquisitions, with interest expense rising to $163 million in YTD 2025 from $122 million in YTD 2024[140] Taxation - The effective tax rate increased to 25.9% in Interim 2025 from 22.2% in Interim 2024, attributed to anticipated withholding tax on repatriated earnings[128] - The effective tax rate increased to 25.5% in YTD 2025 from 23.2% in YTD 2024, influenced by discrete tax items and anticipated withholding tax from Canadian earnings[142] Foreign Exchange and Commodities - Foreign exchange rates negatively impacted revenues by approximately $1.9 million in Interim 2025 as the U.S. dollar strengthened[120] - Sales were negatively impacted by $3.7 million in YTD 2025 due to foreign exchange translation rates compared to YTD 2024[168] - The company is subject to commodity price risks due to reliance on market prices for raw materials without long-term purchase commitments[170] - Recent periods have seen shortages in certain raw materials and increased costs due to various factors including higher freight costs and increased lead times[170] - The company cannot assure continued mitigation of raw material shortages or passing cost increases to customers, which may adversely affect operations[170] Cash and Liquidity - Cash and cash equivalents totaled $38.7 million as of December 31, 2024, with $97.6 million available under the revolving line of credit[146] - Capital expenditures are expected to be approximately 2.5% of revenue in fiscal 2025, with $18.0 million in principal payments on long-term debt anticipated[149] Interest Rate Sensitivity - A 1% change in interest rates would result in a $1.5 million increase or decrease in annual interest expense[169] Workforce and Operations - The company enacted a reduction in force and closed its Denver manufacturing facility, resulting in a gain of $3.0 million from the sale of the facility, offsetting related costs[139] - The company continues to manage working capital effectively through inventory optimization and extending payment terms with suppliers[147] Currency Management - The company had approximately $12.9 million in notional forward contracts to mitigate foreign currency exchange rate fluctuations as of December 31, 2024[167] - Unrealized foreign currency translation losses were $18.3 million in YTD 2025, while gains were $4.7 million in YTD 2024[168]

Core Viewpoint - Thermon Group reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $0.59 per share a year ago, indicating a 3.70% earnings surprise [1][2] Financial Performance - The company posted revenues of $134.35 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.10% and down from $136.43 million year-over-year [2] - Over the last four quarters, Thermon Group has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Thermon Group shares have declined approximately 6.3% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $133.46 million, and for the current fiscal year, it is $1.80 on revenues of $499.08 million [7] Industry Outlook - The Instruments - Control industry, to which Thermon Group belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Thermon Group's stock performance [5][6]

Revenue and Profitability - Revenue for Q3 2025 was $134.4 million, a decrease of 1.5% compared to the same period last year[4] - Gross profit increased by 8.2% to $62.1 million, with a gross margin of 46.2%, up from 42.1% last year[7] - Adjusted EBITDA for Q3 2025 was $31.8 million, reflecting a 3.3% increase, with an adjusted EBITDA margin of 23.7%[9] - Net income for Q3 2025 was $18.5 million, a 17.1% increase, translating to $0.54 earnings per diluted share[4] - For the three months ended December 31, 2024, sales were $134.353 million, a decrease of 1.6% compared to $136.427 million for the same period in 2023[29] - Gross profit for the three months ended December 31, 2024, was $62.121 million, representing a gross margin of 46.2%, compared to $57.410 million and a margin of 42.1% in the prior year[29] - Net income for the three months ended December 31, 2024, was $18.539 million, an increase of 17.1% from $15.837 million in the same period of 2023[29] - Basic income per share for the three months ended December 31, 2024, was $0.55, up from $0.47 in the prior year, reflecting a 17.0% increase[29] - Adjusted EBITDA for the nine months ended December 31, 2024, was $78,741,000, representing a decrease of 2.3% from $80,561,000 in 2023[35] - Total sales for the nine months ended December 31, 2024, were $364,127,000, slightly down from $366,975,000 in 2023[41] - Adjusted fully diluted earnings per share (EPS) for the nine months ended December 31, 2024, was $1.32, down from $1.47 in 2023[37] Orders and Backlog - New orders totaled $138.6 million, an increase of 11.4%, resulting in a book-to-bill ratio of 1.03x[10] - The backlog reached a record high of $236 million, up 48% from the previous year, with a 9% organic increase[3] Cash Flow and Financial Position - Free cash flow for Q3 2025 was $8.5 million, bringing the year-to-date total to $23.9 million, up $3.2 million from the prior year[13] - Total current assets as of December 31, 2024, were $280.227 million, an increase from $274.600 million as of March 31, 2024[31] - Total liabilities decreased to $274.706 million as of December 31, 2024, from $292.853 million as of March 31, 2024[31] - Free cash flow for the nine months ended December 31, 2024, was $23,945,000, an increase of 15.5% compared to $20,781,000 in 2023[39] - Cash provided by operating activities for the nine months ended December 31, 2024, was $31,060,000, up from $28,588,000 in 2023, marking an increase of 5.2%[39] - The company incurred $9,963,000 in cash paid for acquisitions during the nine months ended December 31, 2024, compared to $100,472,000 in 2023[33] - The company experienced a net cash used in financing activities of $27,822,000 for the nine months ended December 31, 2024, compared to a net cash provided of $97,538,000 in 2023[33] Guidance and Strategic Plans - Full-year 2025 revenue guidance is set between $495 million and $515 million, with adjusted EBITDA guidance of $105 million to $110 million[16] - The company anticipates an increase in revenues and plans to pursue strategic acquisitions to enhance growth opportunities[24] - The company expects to integrate acquired companies successfully and achieve synergies from these acquisitions[24] Risks and Challenges - The company has identified risks including competition and economic conditions that may impact future performance[25] - Net income for the nine months ended December 31, 2024, was $36,544,000, a decrease of 12.4% compared to $41,505,000 for the same period in 2023[33] - OPEX sales for the nine months ended December 31, 2024, were $310,467,000, up from $270,817,000 in 2023, reflecting a growth of 14.7%[41]