Thermon(THR)2025-02-06 11:45Revenue 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]