Thermon(THR)2025-05-22 10:45Financial 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]