Thermon Group Holdings (THR) Earnings Call Presentation

Financial Performance & Business Mix - Thermon's FY2025 total revenue reached $492 million[8] - Adjusted EBITDA margin was 21% in FY2025[8] - The company is shifting its business mix towards OPEX, targeting 84% of revenue compared to 66% in FY2017[20] - Q3 FY2025 revenue was $134.4 million, a decrease of 1.5% year-over-year[72] - Q3 FY2025 Adjusted EBITDA increased by 3.3% year-over-year to $31.8 million[72] Growth & Strategy - The company is targeting 90,000 Genesis Network Remote Monitoring & Diagnostics circuits by FY2026[27] - OPEX sales increased 12.6% year-over-year in Q3 FY2025[74] - The company is aiming for a long-term Net Debt to Adjusted EBITDA leverage ratio of 1.5x – 2.0x[38] Market Trends & Opportunities - The company is capitalizing on key secular trends including Energy Transition (~10% CAGR), Developing Market Growth (~5% CAGR), Chemical and Petrochemical Demand Growth (~5% CAGR), and Industrial Internet of Things (~25% CAGR)[29] - The company sees a substantial runway in the energy transition, noting that only 13% of energy for industrial applications in the U S came from electricity in 2022[51] Guidance - The company maintains its full-year FY2025 revenue guidance of $495 million - $515 million, representing 0% - 4% growth[88] - The company anticipates an adjusted EBITDA margin of 21.2% - 21.4% for FY2025[88]