Revenue and Growth - Revenue for YTD 2025 was approximately $214.9 million, up from $186.1 million at the end of YTD 2024, indicating a growth of about 15%[67] - The backlog at September 30, 2024, was $214.9 million, compared to $186.1 million at March 31, 2024, reflecting an increase of approximately 15.5%[67] - The company expects revenues to increase, supported by a strong pipeline of planned projects and a healthy backlog[66] - Approximately 50% of revenues in YTD 2025 were generated from outside the United States, slightly down from 52% in YTD 2024[67] Revenue Composition - Point in time revenue represented 72% of total revenue for the three months ended September 30, 2024, compared to 59% for the same period in 2023[69] - Over time revenue accounted for 28% of total revenue for the three months ended September 30, 2024, down from 41% in the same period in 2023[69] - Small projects contributed 13% to total revenue for both the three months ended September 30, 2024, and 2023, while large projects accounted for 15% in both periods[69] Financial Performance - For the three months ended September 30, 2024, sales decreased to $114.6 million, down 7% from $123.7 million in the same period of 2023[74] - Gross profit for the same period was $50.9 million, a decrease of 7% compared to $54.5 million in 2023, resulting in a gross margin of 44.4%[75] - Operating income fell to $15.2 million, down 30% from $21.7 million in the prior year, with an operating margin of 13.3%[75] - Net income for the three months was $9.5 million, a decline of 36% from $14.7 million in 2023, reflecting a net margin of 8.3%[75] - Revenue for the six months ended September 30, 2024, was $229.8 million, a slight decrease from $230.5 million in 2023[79] Acquisitions and Strategic Plans - The company acquired Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. ("F.A.T.I."), an Italian manufacturer of electric heaters, on October 2, 2024[71] - The company plans to pursue strategic acquisitions to enhance growth opportunities across diverse regions and industry sectors[66] Costs and Expenses - Selling, general and administrative expenses increased by $3.2 million in YTD 2025 compared to YTD 2024, with SG&A as a percent of sales rising by 140 basis points[84] - Interest expense increased due to a higher average debt balance of $169 million in YTD 2025 versus $112 million in YTD 2024, and higher average interest rates of 6.95% compared to 6.48%[84] - Restructuring and other charges amounted to $0.6 million in the three months ended September 30, 2024, compared to $0.3 million in the same period of 2023[76] - Restructuring and other charges increased to $2.7 million in YTD 2025 from $0.9 million in YTD 2024, related to a reduction in force and consolidation of production lines[84] Cash Flow and Capital Expenditures - Operating cash flows increased to approximately $21.4 million in YTD 2025, primarily due to changes in operating assets and liabilities[90] - Free Cash Flow totaled $15.5 million for YTD 2025, a significant increase from $(1.3) million for YTD 2024[93] - The company expects capital expenditures to be approximately 2.5% to 3.0% of revenue in fiscal 2025[88] Foreign Currency and Interest Rate Risks - Approximately 50% of the year-to-date 2025 consolidated revenue was generated from non-U.S. subsidiaries, exposing the company to foreign currency risks[96] - A 10% appreciation of the U.S. dollar relative to the Canadian dollar would decrease net income by $1.3 million, while a 10% depreciation would increase it by $1.5 million for year-to-date 2025[96] - The company estimates a negative impact of $1.9 million on sales in year-to-date 2025 due to foreign exchange translation rates compared to year-to-date 2024[96] - A 1% change in interest rates would result in a $1.6 million increase or decrease in annual interest expense[97] Supply Chain and Material Costs - The company is experiencing shortages and increased costs of raw materials due to various factors, including higher freight costs and supply chain challenges[97] - The company does not typically enter into long-term purchase commitments or hedging instruments to mitigate commodity price risk, exposing it to market fluctuations[97] - Foreign currency transaction gains and losses are included in net income or loss as part of other income and expense in the consolidated statements of operations[96]

Core Insights - Thermon Group (THR) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, but down from $0.49 per share a year ago, indicating an earnings surprise of 8.57% [1] - The company posted revenues of $114.65 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.23% and down from $123.66 million year-over-year [2] - Thermon Group has surpassed consensus EPS estimates in all four of the last quarters, while it has topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $155.41 million, and for the current fiscal year, it is $1.98 on revenues of $537.58 million [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock performance [3][4] Industry Context - The Instruments - Control industry, to which Thermon Group belongs, is currently ranked in the bottom 8% 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 can impact investor sentiment and stock performance [5][6]

The Zacks Instruments – Control industry is likely to benefit from the diligent focus on energy-efficient production processes and integrated software systems. Rising demand for state-of-the-art technology to replace legacy industrial control systems with automated products is expected to aid growth.However, elevated customer inventory levels amid a challenging geopolitical environment might hurt the process automation and instrumentation market. Nevertheless, Woodward, Inc. (WWD) , Watts Water Technologies ...

Group 1: Acquisition Details - Thermon Group Holdings, Inc. has acquired Italy-based Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. (F.A.T.I.) for €12.5 million, funded through available cash reserves [1] - F.A.T.I. reported revenues of over €12 million for the calendar year ending December 31, 2023, and is recognized for its advanced electrical heaters and heating systems used across various industrial sectors [2] Group 2: Strategic Implications - The integration of F.A.T.I.'s manufacturing facility enhances Thermon's global production capabilities and accelerates entry into expanding markets in Europe and Asia due to F.A.T.I.'s certifications and customer approvals [3] - The acquisition aligns with Thermon's strategy to address the rising global demand for electrification and decarbonization solutions, leveraging its expertise in heat transfer engineering [5] Group 3: Market Opportunities - The global electrification market is projected to reach approximately $172.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.91% from 2023 to 2032, presenting significant opportunities for Thermon [5] - Thermon aims to increase its market share through both inorganic and organic growth strategies, including recent acquisitions [5][8] Group 4: Recent Developments - Thermon has launched the Genesis Network, a platform designed to improve the efficiency and safety of heating system monitoring and maintenance, which is seeing increasing uptake [6] - The company also acquired Vapor Power International, LLC, further strengthening its portfolio with high-quality industrial process heating solutions, contributing to a 7.7% year-over-year revenue increase for the first quarter of fiscal 2025 [7]

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)