Financial Data and Key Metrics Changes - The company achieved record-breaking results in Q3 2026, with revenues up 10% year-over-year, reaching $147.3 million [6][17] - Adjusted EBITDA increased by 12% to $35.6 million, with an adjusted EBITDA margin of 24.2% [6][19] - GAAP earnings per share rose to $0.55, up from $0.54 in the prior year, while adjusted earnings per share increased by 18% to $0.66 [19] Business Line Data and Key Metrics Changes - OpEx revenues were $122 million, a 5% increase year-over-year, representing 83% of total revenues [17] - Large project revenue surged by 37% to $25.4 million, reflecting improved spending in major project markets [17][18] - The backlog increased by 10%, driven by a positive book-to-bill ratio of 1.1 times [19][20] Market Data and Key Metrics Changes - The USLAM market saw a 10% revenue increase, while EMEA experienced a robust 37% growth due to electrification and decarbonization trends [20] - APAC delivered a 9% revenue growth, supported by ongoing project activity [20] Company Strategy and Development Direction - The company is strategically positioned to benefit from macroeconomic drivers such as reshoring, electrification, and decarbonization [25] - Focus on organic growth through investments in new product lines, including liquid load banks and medium voltage heaters, is evident [10][14] - The company is raising its fiscal 2026 financial guidance for revenue and adjusted EBITDA, reflecting confidence in continued momentum [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving macro conditions and strong customer relationships supporting a positive outlook for the remainder of the fiscal year [6][10] - The company anticipates continued growth in the data center market and medium voltage heaters, with significant opportunities in LNG and midstream gas processing [11][52] Other Important Information - The company generated $13.1 million in free cash flow during Q3, up from $8.4 million in the prior year [22] - Capital expenditures for the quarter were $4.9 million, reflecting investments in growth initiatives [22] Q&A Session Summary Question: Can you talk about the sustainability of the 46%-plus gross margin? - Management noted that improved gross margins are driven by the Thermon Business System, productivity gains, and a favorable project mix [30][31] Question: How have conversations with potential customers in the data center industry evolved? - The company has formed relationships with various stakeholders, including data center construction contractors and end users [34][35] Question: What is the current market size for liquid load banks? - Management confirmed that the market size estimate remains around $80 million-$90 million, with a robust quote log indicating strong demand [42][43] Question: How do you see the medium voltage opportunity progressing? - The company has a backlog of $11 million and a quote pipeline exceeding $150 million, indicating a multi-year growth opportunity [49][50] Question: Can you elaborate on the LNG and midstream growth drivers? - The company is actively involved in LNG liquefaction and midstream gas processing, with several projects underway [51][52]