Thermon(US:THR)2026-02-05 11:45Financial Performance - Revenue for Q3 2026 was $147.3 million, an increase of 9.6% year-over-year, driven by strong demand in large projects and effective pricing actions [4]. - Adjusted EBITDA for the quarter was $35.6 million, up 11.9% from the previous year, resulting in an Adjusted EBITDA margin of 24.2% [8]. - New orders reached a record $158.2 million, reflecting a 14.1% increase year-over-year, with a book-to-bill ratio of 1.1x [9]. - The company's backlog increased by 10.1% to $259.4 million compared to the previous year [9]. - Net income for Q3 2026 was $18.3 million, a slight decrease of 1.1% compared to the same period last year, resulting in diluted EPS of $0.55 [4]. - Free Cash Flow for the quarter was $13.1 million, a significant increase of 56.0% from $8.4 million in the prior year [11]. - Total sales for the nine months ended December 31, 2025, reached $387.9 million, up 6.5% from $364.1 million in 2024 [40]. - Net income for the nine months ended December 31, 2025, was $41.8 million, a 14.3% increase compared to $36.5 million for the same period in 2024 [30]. - Adjusted EBITDA for the nine months ended December 31, 2025, was $87.4 million, reflecting an increase of 11% from $78.7 million in 2024, with an adjusted EBITDA margin of 22.5% [32]. - Free cash flow for the nine months ended December 31, 2025, was $25.7 million, compared to $23.9 million in 2024, indicating a growth of 7.8% [38]. Guidance and Projections - Full-year Fiscal 2026 revenue guidance has been raised to approximately $516 to $526 million, with Adjusted EBITDA expected to be between $114 to $120 million [13]. - Adjusted EBITDA and Adjusted EPS projections for fiscal 2026 are not available due to uncertainties in future adjustments [18]. Cash Flow and Liquidity - The company reported Free Cash Flow as a measure of liquidity, which is essential for assessing financial health [18]. - Cash and cash equivalents at the end of the period increased to $52.6 million from $40.6 million, marking a rise of 29.5% [30]. Debt and Leverage - The net leverage ratio improved to 0.8x, down from 1.0x in the previous quarter, indicating strong financial discipline [10]. - The current portion of long-term debt decreased to $7.0 million from $18.0 million, a reduction of 61.1% [28]. Assets and Liabilities - Total assets increased to $816.7 million as of December 31, 2025, up from $755.5 million on March 31, 2025, representing a growth of 8.6% [28]. - Total liabilities increased to $278.0 million as of December 31, 2025, from $260.1 million, reflecting a rise of 6.9% [28]. Operational Developments - The development of liquid load bank testing solutions is progressing well, with the first units shipped just six months after development began [3]. - The company plans to pursue strategic acquisitions and expand into emerging growth opportunities across diverse regions [20]. - The company anticipates an increase in revenues driven by new facility project bids and maintenance revenue from existing installations [21]. Risks and Challenges - The company faces various risks, including competition, economic conditions, and operational challenges that could impact future performance [22]. Shareholder Actions - The company has repurchased $15.8 million in common shares during Fiscal 2026, with a total of $36 million repurchased since the start of the program [11].