PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, detailing the company's financial position, results of operations, and cash flows for the periods ended September 30, 2023 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a summary of the company's financial position, detailing assets, liabilities, and equity as of September 30, 2023, and March 31, 2023 Balance Sheet Summary (in thousands) | Balance Sheet Items | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $269,879 | $250,942 | | **Total Assets** | $663,723 | $649,629 | | **Total Current Liabilities** | $117,928 | $110,072 | | **Total Liabilities** | $221,417 | $230,641 | | **Total Equity** | $442,306 | $418,988 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, including sales, gross profit, and net income for the three and six months ended September 30, 2023, and 2022 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $123,659 | $100,557 | $230,548 | $195,999 | | **Gross Profit** | $54,458 | $45,926 | $101,767 | $83,151 | | **Income from Operations** | $21,684 | $16,038 | $37,098 | $27,252 | | **Net Income** | $14,730 | $10,984 | $25,668 | $17,540 | | **Diluted EPS** | $0.43 | $0.33 | $0.75 | $0.52 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended September 30, 2023, and 2022 Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $4,260 | $12,531 | | **Net cash used in investing activities** | $(5,574) | $(38,810) | | **Net cash provided by/(used in) financing activities** | $(4,596) | $17,943 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides additional details and explanations regarding significant accounting policies, acquisitions, debt, and segment information impacting the financial statements - On May 31, 2022, the company acquired 100% of Powerblanket for an initial purchase price of **$35.0 million**, financed through the Revolving Credit Facility and cash on hand. The acquisition is integrated into the US-LAM reportable segment[26](index=26&type=chunk)[27](index=27&type=chunk) - Due to the Russo-Ukrainian war, the company authorized a withdrawal from its Russian operations on January 31, 2023. Charges related to this 'Russia Exit' totaled **$304 thousand** for the three months and **$885 thousand** for the six months ended September 30, 2023[41](index=41&type=chunk)[42](index=42&type=chunk) - As of September 30, 2023, the company had **$82.8 million** in long-term debt (net) and **$27.5 million** in outstanding borrowings under its Revolving Credit Facility, with **$70.1 million** of available borrowing capacity[53](index=53&type=chunk)[66](index=66&type=chunk) - For the six months ended September 30, 2023, total revenue was **$230.5 million**, with the US-LAM segment contributing **$117.3 million** and the Canada segment contributing **$71.5 million**[73](index=73&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes the company's financial performance, highlighting strong revenue growth, improved gross profit margins, and solid liquidity, driven by strategic initiatives and robust demand across segments [Business Overview and Key Drivers](index=22&type=section&id=Business%20Overview%20and%20Key%20Drivers) This section provides an overview of the company's industrial process heating solutions business, its global market presence, and key factors influencing its revenue and backlog - The company is a global provider of industrial process heating solutions, serving key end markets like chemical, oil & gas, and power generation. Approximately **52% of revenues** in YTD 2024 were generated outside the United States[89](index=89&type=chunk) - Backlog increased to **$166.9 million** at September 30, 2023, from **$163.3 million** at March 31, 2023, providing some visibility into future revenue[92](index=92&type=chunk) Revenue Mix as a Percentage of Total Revenue | Revenue Type | Three Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Point in time** | 59% | 60% | | **Over time** | 41% | 40% | [Results of Operations - Three Months Ended September 30, 2023](index=26&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20September%2030,%202023) This section analyzes the company's financial performance for the three months ended September 30, 2023, highlighting sales, gross profit, and net income trends Quarterly Performance Summary (in thousands) | Metric | Q2 FY2024 | Q2 FY2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $123,659 | $100,557 | $23,102 | 23% | | **Gross Profit** | $54,458 | $45,926 | $8,532 | 19% | | **Income from Operations** | $21,684 | $16,038 | $5,646 | 35% | | **Net Income** | $14,730 | $10,984 | $3,746 | 34% | - Revenue growth was driven by all segments, particularly US-LAM (up **34%**) and EMEA (up **40%**), due to strong demand and increased project activity[108](index=108&type=chunk) - Gross margin decreased to **44.0%** from **45.7%** due to a revenue mix shift towards projects from higher-margin material sales[107](index=107&type=chunk)[110](index=110&type=chunk) [Results of Operations - Six Months Ended September 30, 2023](index=28&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20September%2030,%202023) This section analyzes the company's financial performance for the six months ended September 30, 2023, focusing on sales, gross profit, and net income trends Six-Month Performance Summary (in thousands) | Metric | YTD 2024 | YTD 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $230,548 | $195,999 | $34,549 | 18% | | **Gross Profit** | $101,767 | $83,151 | $18,616 | 22% | | **Income from Operations** | $37,098 | $27,252 | $9,846 | 36% | | **Net Income** | $25,668 | $17,540 | $8,128 | 46% | - Revenue increased across all segments, led by US-LAM (up **26%**), due to strong demand for projects[120](index=120&type=chunk) - Gross margin improved by **170 basis points** to **44.1%**, enhanced by customer price increases and operational efficiencies, despite a mix shift towards lower-margin project revenue[119](index=119&type=chunk)[121](index=121&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity position, including cash balances, available credit, and cash flow trends from operating, investing, and financing activities - As of September 30, 2023, the company had **$30.5 million** in cash and cash equivalents and **$70.1 million** available under its revolving credit facility. **82%** of cash was held outside the U.S.[132](index=132&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Operating activities** | $4,260 | $12,531 | | **Investing activities** | $(5,574) | $(38,810) | | **Financing activities** | $(4,596) | $17,943 | - The decrease in operating cash flow was primarily due to a **$15 million** investment in working capital, partially offset by higher net income. The decrease in investing cash flow was due to the Powerblanket acquisition in the prior year period[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily from fluctuations in foreign exchange rates, interest rates, and commodity prices, with a significant portion of revenue generated outside the U.S. - A **10%** appreciation of the U.S. dollar would decrease YTD 2024 net income by **$0.8 million** relative to the Canadian Dollar and **$0.1 million** relative to the Euro[151](index=151&type=chunk) - The company uses foreign currency forward contracts to mitigate risk, with **$6.0 million** in notional contracts outstanding as of September 30, 2023[153](index=153&type=chunk) - The company has variable-rate debt. A **1%** change in interest rates would result in a **$1.1 million** change in annual interest expense based on outstanding borrowings at September 30, 2023[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the end of the quarter, disclosure controls and procedures were effective to provide reasonable assurance that required information is properly recorded, processed, and reported[157](index=157&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[158](index=158&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a class action lawsuit in Quebec, Canada, regarding heating elements, with an agreement in principle reached that is not expected to materially impact its financial position - The company reached an agreement in principle to resolve a class action lawsuit in Quebec related to certain heating elements. The settlement amount is not expected to be material[68](index=68&type=chunk)[69](index=69&type=chunk)[160](index=160&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023, were reported - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2023, were reported[161](index=161&type=chunk) [Other Items (2-6)](index=33&type=section&id=Other%20Items%20(2-6)) This section confirms no unregistered sales of equity securities, no defaults on senior securities, no mine safety disclosures, and no Rule 10b5-1 trading plan changes by directors or executive officers during the quarter - During the three months ended September 30, 2023, there were no unregistered sales of equity securities, no defaults on senior securities, and no adoption or termination of Rule 10b5-1 trading plans by directors or executive officers[162](index=162&type=chunk)[163](index=163&type=chunk)[165](index=165&type=chunk)

Financial Data and Key Metrics Changes - Revenue in the first quarter was $107 million, a year-over-year increase of 12%, primarily driven by midstream and downstream oil activity across the U.S. and Latin America [29] - Adjusted EBITDA for the first quarter was $22 million, up 33% year over year, with adjusted EBITDA margin expansion of approximately 330 basis points [50] - Adjusted diluted earnings per share was $0.40 in the quarter, a year-over-year increase of 58% [51] - The net debt to adjusted EBITDA ratio was 0.8x in the current quarter compared to 1.7x in the previous year, with total debt down 25% to $114 million [31] Business Line Data and Key Metrics Changes - Revenue from large projects was $27 million, up 21% versus the prior year, while revenue from small projects and maintenance and repairs totaled $80 million, up 9% [29] - Bookings from rail and transit were up by 39% year over year, commercial was up by 29%, and food and beverage was up 120% [25] - Bookings from data centers were up over 600% and bookings from the semiconductor end market were up over 90% [25] Market Data and Key Metrics Changes - Bookings this year were up 16% over the prior year, with trailing 12-month orders reaching $475 million [13] - The U.S. market showed strong growth, with significant activity in petrochemical wins and LNG opportunities [13] - The company is seeing recovery in Asia, with positive incoming order rates [6] Company Strategy and Development Direction - The company is pursuing growth in decarbonization, digitization, and diversification, aiming for approximately 65% to 70% of revenues to come from end markets outside of oil and gas by the end of fiscal 2026 [43][22] - The company is focused on maintaining a healthy balance sheet and disciplined capital allocation to support organic growth and evaluate bolt-on acquisitions [64][54] - New technology, such as the Quantum Truflow Heater, is being developed to enhance heating efficiency and support the energy transition [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the balance of the year, noting strength in margins and backlog [7] - The company raised its full-year revenue guidance, increasing the lower end from $455 million to $462 million and the upper range to $488 million [53] - Continuous improvement efforts are yielding positive results, contributing to performance and productivity gains [7] Other Important Information - The company reported a book-to-bill ratio of 1.12x, indicating continued strong demand from customers [27] - Free cash flow was negative in the quarter due to timing of certain payments, but the company expects to generate significant free cash flow throughout the year [52] - The company is committed to helping customers achieve sustainability goals through its products and solutions [22] Q&A Session Summary Question: What factors went into your full year guidance raise? - Management highlighted strong order intake and profitability from decarbonization initiatives as key factors supporting the raised guidance [56][58] Question: What goes into transitioning opportunities into wins for end markets? - Management noted that timing and competitive positioning are crucial, along with investments in capacity to meet market demand [60][61] Question: Can you provide an update on your renewables opportunity? - Management reported booking over $8 million in renewables opportunities during the quarter and emphasized ongoing growth in this area [69]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q THERMON GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Thermon Group Holdings, Inc. (NYSE:THR) Q4 2023 Earnings Conference Call May 25, 2023 11:00 AM ET Company Participants Ivonne Salem - VP, FP&A and IR Bruce Thames - President and CEO Kevin Fox - SVP and CFO Conference Call Participants Tyler Hutin - William Blair Operator Hello, and welcome to the Thermon Q4 2023 Earnings Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being reco ...

| --- | --- | --- | --- | --- | |-------|--------------------------------------------------------------------------|-----------------------------------------------|-----------------|----------------------------| | | Full Year Revenue and Earnings Guidance | USD in millions except per share information | FY 2023 | FY 2024E | | • | Continued strength in Western Hemisphere and rebound in | Revenue | $440.6 | $455 – $485 | | • | Europe and Asia Pacific Continuous improvement in operations and pricing | YOY% | 2 ...

Commission File Number: 001-35159 THERMON GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) 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, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware 27-2228185 (State or other jurisdiction of incorp ...

Thermon Group Holdings, Inc. (NYSE:THR) Q3 2023 Earnings Conference Call February 2, 2023 11:00 AM ET Company Participants Ivonne Salem - Vice President, FP&A and Investor Relations Bruce Thames - President and Chief Executive Officer Kevin Fox - Senior Vice President and Chief Financial Officer Conference Call Participants Brian Drab - William Blair Jon Braatz - Kansas City Capital Operator Greetings, and welcome to the Thermon Earnings Conference Call for Third Quarter Fiscal Year 2023. [Operator Instruct ...

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, 2022 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 ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 001-35159 THERMON GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

Financial Data and Key Metrics Changes - Thermon reported record Q1 revenue of $95 million, a 34% increase year-over-year, exceeding internal expectations [21][9] - Adjusted EBITDA more than doubled to $16.6 million, with a margin expansion of 600 basis points [34] - Adjusted EPS was $0.25 per share, a 525% increase from the previous year's $0.04 per share [36][11] - Free cash flow for the quarter was strong at $10.3 million, representing over 150% of net income [10] Business Line Data and Key Metrics Changes - The acquisition of Powerblanket contributed approximately $1 million to revenue in June, with 85% of its revenues coming from outside the oil and gas sector [9][40] - Organic growth for Thermon was 33% year-over-year, with point-in-time revenues growing 34% and over-time revenues up 25% [25][26] - Maintenance spending in oil and gas markets is recovering significantly, contributing to strong revenue growth [16][62] Market Data and Key Metrics Changes - North America saw a revenue increase of 34%, driven by a recovery in oil and gas maintenance spending [9][22] - The Eastern Hemisphere is lagging due to the war in Ukraine and higher energy costs, impacting demand [17][60] - The backlog reached $165 million, up 39% year-over-year, indicating strong future demand [18] Company Strategy and Development Direction - The company aims to diversify its revenue sources, targeting 65% of total revenues from non-oil and gas markets by fiscal 2026 [12][46] - Investments in manufacturing capabilities in India are planned to meet demand in the Asia Pacific market [45] - The company is focusing on technology-enabled maintenance and digital transformation to capture new market opportunities [48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Europe due to geopolitical tensions and high energy prices but remains optimistic about growth in North America and Latin America [60][61] - The company raised its fiscal year 2023 revenue guidance to $380 million to $405 million, reflecting strong performance and backlog [55] - Management expects continued strength in maintenance spending in the oil and gas sector, driven by a focus on maximizing existing assets [62][65] Other Important Information - The company is experiencing FX headwinds, with a negative impact of $2.9 million on revenue due to a stronger U.S. dollar [22] - The acquisition of Powerblanket was valued at $35 million, expected to be accretive to GAAP EPS in fiscal 2023 [42] - The company is committed to maintaining fiscal discipline while investing in growth initiatives [31] Q&A Session Summary Question: Can I get a little bit more color on your revenue expectations? - Management noted that Europe is experiencing modest year-over-year declines due to the war in Ukraine and high energy prices, but strong performance in the Western Hemisphere is expected to offset this [60][61] Question: What kind of legs does maintenance spending have to continue? - Management indicated that maintenance spending is expected to remain strong for several quarters, driven by a focus on maximizing existing assets [62][65] Question: How significant is the order for the EnviroDyne units? - The initial order of 20 units is less than $1 million, but management sees potential for significant growth in this area due to environmental regulations [66] Question: How sustainable is the gross margin improvement? - Management believes that gross margin improvements are sustainable, with expectations for continued operational efficiencies and a favorable mix as low-margin contracts roll off [70][72] Question: How much revenue was there from Russia in the first quarter? - Approximately $3 million in revenue was generated from Russia in Q1, with expectations of $8 million to $10 million for the fiscal year as contracts are executed [74] Question: What was the impact of seasonality on orders? - Management emphasized that Q1 is typically the weakest for incoming orders due to seasonality, and year-over-year comparisons are more meaningful [76][80]