Thermon(US:THR)2025-11-06 11:45Financial Performance - Revenue for Q2 2026 was $131.7 million, representing a year-over-year increase of 14.9%[3] - Adjusted EBITDA for the quarter was $30.6 million, up 28.6% from the previous year, with an Adjusted EBITDA margin of 23.2%[8] - Net income increased by 57.9% to $15.0 million, translating to $0.45 earnings per diluted share (EPS)[3] - Sales for the three months ended September 30, 2025, were $131.723 million, an increase of 14.9% compared to $114.648 million for the same period in 2024[27] - Net income for the three months ended September 30, 2025, was $14.954 million, compared to $9.494 million for the same period in 2024, representing a 57.8% increase[27] - Basic income per share for the three months ended September 30, 2025, was $0.45, up from $0.28 in the same period of 2024, indicating a significant improvement in earnings per share[27] - Net income for the six months ended September 30, 2025, was $23,535,000, an increase of 30.8% compared to $18,005,000 for the same period in 2024[31] - Adjusted EBITDA for the six months ended September 30, 2025, was $51,848,000, representing a 10.5% increase from $46,967,000 in 2024, with an adjusted EBITDA margin of 21.5%[33] - Total sales for the six months ended September 30, 2025, reached $240,621,000, up 4.0% from $229,774,000 in 2024[42] Guidance and Future Outlook - The company raised its full-year 2026 revenue guidance to approximately $506 to $527 million, with Adjusted EBITDA expected to be between $112 to $119 million[13] - The company expects revenues to increase and believes its cash flows will be sufficient to meet its needs for the next year[22] Cash Flow and Financial Position - Free Cash Flow for the quarter was $4.4 million, down from $6.7 million in the same period last year[11] - Free cash flow for the six months ended September 30, 2025, was $12,682,000, compared to $15,436,000 in 2024, reflecting a decrease of 17.9%[40] - Cash provided by operating activities for the six months ended September 30, 2025, was $18,167,000, down 14.4% from $21,221,000 in 2024[39] - The company reported a cash and cash equivalents balance of $29.748 million as of September 30, 2025, down from $39.537 million as of March 31, 2025[29] - The company’s cash, cash equivalents, and restricted cash at the end of the period were $35,483,000, down from $52,698,000 at the end of the same period in 2024[31] Orders and Backlog - Backlog as of September 30, 2025, was $251.3 million, a 16.9% increase from the previous year[9] - New orders for the quarter totaled $131.0 million, resulting in a book-to-bill ratio of 1.0x[3] - The total bid pipeline increased by 11% at quarter-end, with nearly 80% of opportunities coming from diversified end markets[2] Shareholder Actions - The company repurchased $6 million of shares during the quarter, with total repurchases since the start of the program reaching $36 million[11] Operational Costs - The company reported a stock compensation expense of $3,365,000 for the six months ended September 30, 2025, compared to $2,576,000 in 2024, indicating a 30.7% increase[33] - The company incurred $1,142,000 in ERP implementation-related costs for the six months ended September 30, 2025[37] Asset and Liability Management - Total current assets as of September 30, 2025, were $288.853 million, an increase from $274.292 million as of March 31, 2025[29] - Total liabilities as of September 30, 2025, were $262.954 million, slightly up from $260.137 million as of March 31, 2025[29] Strategic Initiatives - The company plans to pursue strategic acquisitions and emerging growth opportunities across diverse regions and industry sectors[22] - The company is focused on integrating acquired companies and achieving synergies from acquisitions[22]