Thermon Reports Fourth Quarter And Full-year Fiscal 2026 Results
Rhea-AI Summary
Thermon (NYSE:THR) reported Q4 2026 revenue of $148.3 million, up 11%, with gross margin of 44.0% and adjusted EBITDA of $32.1 million (21.6% margin). Net income was $2.7 million, down 84%.
For fiscal 2026, revenue rose 8% to $536.3 million, adjusted EBITDA reached $119.6 million (22.3% margin), and net income was $44.6 million, down 17%. Backlog was $254.9 million, and a $2.2 billion merger with CECO is expected to close in June 2026.
Positive
- Q4 2026 revenue $148.3m, up 10.6% year over year
- Fiscal 2026 revenue $536.3m, up 7.6% year over year
- Fiscal 2026 adjusted EBITDA $119.6m, 22.3% of sales
- Backlog $254.9m at March 31, 2026, up 6% year over year
- Net leverage reduced to 0.7x TTM adjusted EBITDA
- Pending CECO merger valued at approximately $2.2 billion
Negative
- Q4 2026 net income declined 84% to $2.7m
- Fiscal 2026 net income decreased 16.7% to $44.6m
- Q4 free cash flow dropped 75.5% to $7.1m
- Fiscal 2026 free cash flow fell to $32.9m from $52.9m
- Q4 adjusted EBITDA margin declined 110 bps to 21.6%
- Company withdrew guidance and will not host an earnings call
News Market Reaction – THR
In the May 19 session, THR declined 0.98%, reflecting a mild negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 20 | Data center update | Positive | -0.3% | Highlighted growing liquid load bank demand and >$100M quote log. |
| Feb 24 | Deal review news | Neutral | +6.1% | Discussion of fairness of deals involving MASI, THR, CECO. |
| Feb 05 | Q3 2026 earnings | Positive | +5.6% | Reported record Q3 results and raised full‑year Fiscal 2026 guidance. |
| Jan 29 | Earnings call notice | Neutral | +5.0% | Announced timing and access details for Q3 2026 earnings call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news has often seen positive or neutral headlines met with modest to strong positive price reactions, with one instance of slight downside on positive growth commentary.
Over the past several months, Thermon reported record Q3 Fiscal 2026 results with revenue of $147.3M and raised full‑year guidance to $516–$526M revenue, $114–$120M Adjusted EBITDA and $2.05–$2.19 adjusted EPS. An April 8‑K highlighted a liquid load bank quote log above $100M and a roughly $400M pipeline in data centers. The current Fiscal 2026 results, including revenue of $536.3M and Adjusted EBITDA of $119.6M, effectively deliver against that upgraded outlook while the pending CECO merger advances.
Key Terms
adjusted net income financial
adjusted eps financial
adjusted ebitda financial
book-to-bill ratio financial
net leverage ratio financial
free cash flow financial
form s-4 regulatory
stock and cash merger financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
AUSTIN, TX / ACCESS Newswire / May 19, 2026 / Thermon Group Holdings, Inc. (NYSE:THR) ("Thermon" or the "Company"), a global leader in industrial process heating solutions, today announced consolidated results for the fourth quarter ("Q4 2026") and full fiscal year ended March 31, 2026 ("Fiscal 2026").
FOURTH QUARTER FISCAL 2026 HIGHLIGHTS
(all comparisons versus the prior year period unless otherwise noted)
Revenue of
$148.3 million , an increase of11% Gross profit of
$65.3 million , an increase of10% , Gross Margin of44.0% Net income of
$2.7 million , a decrease of84% ,$0.08 EPSAdjusted Net Income (non-GAAP) of
$18.3 million , a decrease of3% ,$0.55 Adjusted EPS (non-GAAP)Adjusted EBITDA (non-GAAP) of
$32.1 million , an increase of5% ; Adjusted EBITDA margin (non-GAAP) of21.6% New orders of
$143.5 million , an increase of3% ; book-to-bill ratio of 0.97xNet leverage ratio of 0.7x as of March 31, 2026
FULL YEAR 2026 HIGHLIGHTS
(all comparisons versus the prior year period unless otherwise noted)
Revenue of
$536.3 million , an increase of8% Gross profit of
$243.1 million , an increase of9% ; Gross Margin of45.3% Net income of
$44.6 million , a decrease of17% ,$1.36 EPSAdjusted Net Income (non-GAAP) of
$70.5 million , an increase of11% ,$2.15 Adjusted EPS (non-GAAP)Adjusted EBITDA (non-GAAP) of
$119.6 million , an increase of9% ; Adjusted EBITDA margin (non-GAAP) of22.3% New orders of
$550.8 million , an increase of3% ; book-to-bill ratio of 1.03xProposed transaction with CECO Environmental Corp. ("CECO") on track to close in June 2026
MANAGEMENT COMMENTARY
"Our disciplined focus on our strategic growth priorities enabled us to sustain and build upon the recent momentum in our business, resulting in a strong finish to fiscal 2026, capping a record year for revenue, Adjusted EBITDA, and orders," stated Bruce Thames, President and CEO of Thermon. "Revenue increased by
Thames continued, "We are well positioned to capitalize on several powerful secular trends, including onshoring, decarbonization, power, LNG and data centers, as evidenced by our robust order growth and bid pipeline of nearly
"We are also encouraged by the compelling strategic and financial benefits of our pending combination with CECO, which remains on track to close in June. CECO's strong first quarter performance and outlook for 2026, which call for revenue and adjusted EBITDA growth of
Financial Highlights | Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
Unaudited, in millions, except per share data | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
Sales | $ | 148.3 | $ | 134.1 | 10.6 | % | $ | 536.3 | $ | 498.2 | 7.6 | % | ||||||||||||
OPEX Sales1 | 118.2 | 111.8 | 5.7 | % | 440.4 | 422.3 | 4.3 | % | ||||||||||||||||
Over Time - Large Projects | 30.2 | 22.3 | 35.4 | % | 95.9 | 75.9 | 26.4 | % | ||||||||||||||||
Net Income | 2.7 | 17.0 | (84.1 | )% | 44.6 | 53.5 | (16.7 | )% | ||||||||||||||||
GAAP EPS | 0.08 | 0.50 | (84.0 | )% | 1.36 | 1.57 | (13.5 | )% | ||||||||||||||||
Adjusted Net Income 2 | 18.3 | 18.9 | (3.2 | )% | 70.5 | 63.8 | 10.6 | % | ||||||||||||||||
Adjusted EPS 2 | 0.55 | 0.56 | (1.8 | )% | 2.15 | 1.87 | 14.8 | % | ||||||||||||||||
Adjusted EBITDA3 | 32.1 | 30.5 | 5.2 | % | 119.6 | 109.2 | 9.5 | % | ||||||||||||||||
% of Sales: | ||||||||||||||||||||||||
OPEX Sales1 | 79.7 | % | 83.4 | % | -370 bps | 82.1 | % | 84.8 | % | -270 bps | ||||||||||||||
Over Time - Large Projects | 20.4 | % | 16.6 | % | 380 bps | 17.9 | % | 15.2 | % | 270 bps | ||||||||||||||
Net Income | 1.8 | % | 12.7 | % | -1,090 bps | 8.3 | % | 10.7 | % | -240 bps | ||||||||||||||
Adjusted Net Income 2 | 12.3 | % | 14.1 | % | -180 bps | 13.1 | % | 12.8 | % | 30 bps | ||||||||||||||
Adjusted EBITDA 3 | 21.6 | % | 22.7 | % | -110 bps | 22.3 | % | 21.9 | % | 40 bps | ||||||||||||||
1 "OPEX Sales" (non-GAAP) represents Point-in-Time Sales plus Over Time - Small Projects. See table "Reconciliation of Point-in-Time and Over-Time Sales to OPEX Sales."
2 See table, "Reconciliation of Net income to Adjusted Net Income and Adjusted EPS".
3 See table, "Reconciliation of Net income to Adjusted EBITDA."
FOURTH QUARTER FISCAL 2026 PERFORMANCE
Fourth quarter revenue was
Gross profit was
Fourth quarter selling, general and administrative expenses were
Adjusted EBITDA was
Backlog was
Balance Sheet, Liquidity and Cash Flow
As of March 31, 2026, total debt was
Working capital increased by
Balance Sheet Highlights | Three Months Ended March 31, | ||||||||||||
Unaudited, in millions, except ratio | 2026 | 2025 | % Change | ||||||||||
Cash and Cash Equivalents | $ | 52.3 | $ | 39.5 | 32.4 | % | |||||||
Total Debt | 141.6 | 138.9 | 2.0 | % | |||||||||
Net Debt1 / TTM Adjusted EBITDA | 0.7 | x | 0.9 | x | (0.2 | )x | |||||||
Working Capital 2 | 202.5 | 167.6 | 20.8 | % | |||||||||
Capital Expenditures | (3.5 | ) | (3.1 | ) | 12.9 | % | |||||||
Free Cash Flow 3 | 7.1 | 29.0 | (75.5 | )% | |||||||||
1 Total Company debt, net of cash and cash equivalents.
2 Working Capital equals Accounts Receivable plus Inventory less Accounts Payable.
3 See table, "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow."
STRATEGIC COMBINATION WITH CECO ENVIRONMENTAL CORP.
On February 24, 2026, Thermon announced it had entered into a definitive merger agreement with CECO Environmental to combine in a stock and cash merger transaction valued at approximately
The parties continue to progress toward completion of the previously announced merger. The registration statement on Form S-4 has been declared effective by the SEC and CECO and Thermon have mailed the definitive joint proxy statement/prospectus to their respective stockholders. Stockholder votes are expected to take place on May 27, 2026, as described in the joint proxy statement/prospectus. The transaction is expected to close in June 2026.
Given the Company's pending combination with CECO, Thermon is not hosting a conference call to discuss its fourth-quarter and full-year financial results and is no longer providing financial guidance.
About Thermon
Through its global network, Thermon provides safe, reliable and mission critical industrial process heating solutions. Thermon specializes in providing complete flow assurance, process heating, temperature maintenance, freeze protection and environmental monitoring solutions. Thermon is headquartered in Austin, Texas. For more information, please visit www.thermon.com.
Non-GAAP Financial Measures
Disclosure in this release of "Adjusted EPS," "Adjusted EBITDA," "Adjusted EBITDA margin," "Adjusted Net Income/(loss)," "Free Cash Flow," "OPEX Sales" and "Net Debt," which are "non-GAAP financial measures" as defined under the rules of the Securities and Exchange Commission (the "SEC"), are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). "Adjusted Net Income/(loss)" and "Adjusted EPS" (or "Adjusted fully diluted EPS") represent net income/(loss) before the impact of restructuring and other charges/(income), Enterprise Resource Planning ("ERP") system implementation related cost, debt issuance cost and costs associated with impairments and other charges, acquisition costs, amortization of intangible assets, tax expense for impact of foreign rate increases, and any tax effect of such adjustments. "Adjusted EBITDA" represents net income before interest expense (net of interest income), income tax expense, depreciation and amortization expense, stock-based compensation expense, acquisition costs, costs associated with restructuring and other income/(charges), ERP implementation related cost, and costs associated with impairments and other charges. "Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of total revenue. "Free Cash Flow" represents cash provided by operating activities less cash used for the purchase of property, plant, and equipment. "OPEX Sales" represents Point-in-Time Sales plus Over-Time Small projects (i.e., less than
We believe these non-GAAP financial measures are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin or Adjusted Net Income. Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, OPEX Sales and Free Cash Flow should be considered in addition to, and not as substitutes for, revenue, income from operations, net income, net income per share and other measures of financial performance reported in accordance with GAAP. We provide Free Cash Flow as a measure of liquidity. Our calculation of Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, OPEX Sales and Free Cash Flow may not be comparable to similarly titled measures reported by other companies. For a description of how Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, OPEX Sales and Free Cash Flow are calculated and reconciliations to the corresponding GAAP measures, see the sections of this release titled "Reconciliation of Net income to Adjusted EBITDA," "Reconciliation of Net income to Adjusted Net Income and Adjusted EPS," "Reconciliation of Point-in-Time and Over-Time Sales to OPEX Sales" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow."
Forward-Looking Statements
This release includes forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the expected benefits from our pending merger transaction with CECO and the anticipated timing for completion of such merger, our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information and our ability to achieve our strategic initiatives. When used in this discussion, the words "anticipate," "assume," "believe," "budget," "continue," "contemplate," "could," "should," "estimate," "expect," "intend," "may," "plan," "possible," "potential," "predict," "project," "will," "would," "future," and similar terms and phrases are intended to identify forward-looking statements in this release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. These forward-looking statements include, but are not limited to, statements regarding: (i) our plans to strategically pursue emerging growth opportunities, including strategic acquisitions, in diverse regions and across industry sectors and including the transaction with CECO Environmental Corp.; (ii) our plans to secure more new facility project bids; (iii) our ability to generate more facility maintenance, repair and operations or upgrades or expansions revenue, from our existing and future installed base; (iv) our ability to timely deliver backlog; (v) our ability to respond to new market developments and technological advances; (vi) our expectations regarding energy consumption and demand in the future and its impact on our future results of operations; (vii) our plans to develop strategic alliances with major customers and suppliers; (viii) our expectations that our revenues will increase; (ix) our belief in the sufficiency of our cash flows to meet our needs for the next year; (x) our ability to integrate acquired companies; (xi) our ability to successfully achieve synergies from acquisitions; and (xii) our ability to make required debt repayments.
Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of our key end markets and related capital investments; (iii) uncertainty over and changes in administrative policy; (iv) general economic conditions and cyclicality in the markets we serve; (v) our ability to operate successfully in foreign countries; (vi) our ability to successfully develop and improve our products and successfully implement new technologies; (vii) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (viii) our ability to deliver existing orders within our backlog; (ix) our ability to bid and win new contracts; (x) the imposition of certain operating and financial restrictions contained in our debt agreements; (xi) our revenue mix; (xii) our ability to grow through strategic acquisitions; (xiii) our ability to manage risk through insurance against potential liabilities; (xiv) changes in relevant currency exchange rates; (xv) tax liabilities and changes to tax policy; (xvi) impairment of goodwill and other intangible assets; (xvii) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xviii) our ability to protect our trade secrets; (xix) our ability to protect our intellectual property; (xx) our ability to protect data and thwart potential cyber-attacks and incidents; (xxi) a material disruption at any of our manufacturing facilities; (xxii) our dependence on subcontractors and third-party suppliers; (xxiii) our ability to profit on fixed-price contracts; (xxiv) the credit risk associated to our extension of credit to customers; (xxv) our ability to achieve our operational initiatives; (xxvi) unforeseen difficulties with expansions, relocations, or consolidations of existing facilities; (xxvii) potential liability related to our products as well as the delivery of products and services; (xxviii) our ability to comply with foreign anti-corruption laws; (xxix) export control regulations or sanctions; (xxx) environmental and health and safety laws and regulations as well as environmental liabilities; (xxxi) climate change and related regulation of greenhouse gases; and (xxxii) those factors listed under Item 1A, "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026, which we anticipate filing with the Securities and Exchange Commission (the "SEC") on May 21, 2026, and in any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K or other filings that we have filed or may file with the SEC. Any one of these factors or a combination of these factors could materially affect our future results of operations and could influence whether any forward-looking statements contained or incorporated by reference in this release ultimately prove to be accurate.
Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It
This communication relates to the proposed merger transaction (the "Proposed Transaction") involving Thermon and CECO, among other things. The issuance of shares of CECO common stock in connection with the Proposed Transaction is being submitted to the stockholders of CECO for their consideration, and the Proposed Transaction is being submitted to the stockholders of Thermon for their consideration. In connection therewith, CECO filed with the SEC a registration statement on Form S-4 (the "Registration Statement") that included a joint proxy statement/prospectus (the "Joint Proxy Statement/Prospectus"), and the Registration Statement has been declared effective by the SEC. CECO and Thermon have mailed the definitive Joint Proxy Statement/Prospectus to their respective stockholders. Each of CECO and Thermon may also file other relevant documents with the SEC regarding the Proposed Transaction. This communication is not a substitute for the Joint Proxy Statement/Prospectus or any other document that CECO or Thermon, as applicable, has filed or may file with the SEC in connection with the Proposed Transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF CECO AND THERMON ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN OR MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT CECO, THERMON, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the definitive Joint Proxy Statement/Prospectus, as well as other filings containing important information about CECO, Thermon and the Proposed Transaction, through the website maintained by the SEC at https://www.sec.gov. Copies of the documents filed with the SEC by CECO are available free of charge on CECO's website at https://investors.cecoenviro.com. Copies of the documents filed with the SEC by Thermon are available free of charge on Thermon's website at https://ir.thermon.com. The information included on, or accessible through, CECO's or Thermon's website is not incorporated by reference into this communication.
Participants in the Solicitation
CECO, Thermon and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the Proposed Transaction. Information about the directors and executive officers of CECO, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) the definitive Joint Proxy Statement/Prospectus filed by CECO (and which is available at https://www.sec.gov/Archives/edgar/data/3197/000110465926047714/tm2611145-7_424b3.htm) and (ii) to the extent holdings of CECO's securities by the directors or executive officers of CECO have changed since the amounts set forth in the definitive Joint Proxy Statement/Prospectus, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0000003197.
Information about the directors and executive officers of Thermon, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) Thermon's proxy statement for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on June 18, 2025 (and which is available at https://www.sec.gov/Archives/edgar/data/1489096/000148909625000097/thr-20250618.htm), (ii) the definitive Joint Proxy Statement/Prospectus filed by Thermon (and which is available at https://www.sec.gov/Archives/edgar/data/1489096/000110465926047723/tm2612301-1_defm14a.htm) and (iii) to the extent holdings of Thermon's securities by the directors or executive officers of Thermon have changed since the amounts set forth in the definitive Joint Proxy Statement/Prospectus, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001489096.
Investors should read the Joint Proxy Statement/Prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from CECO and Thermon using the sources indicated above
CONTACT:
Jan Schott, Senior Vice President and Chief Financial Officer
Ivonne Salem, Vice President, FP&A and Investor Relations
(512) 690-0600
Investor.Relations@thermon.com
Thermon Group Holdings, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(Unaudited, in thousands except per share data) | ||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Sales | $ | 148,332 | $ | 134,080 | $ | 536,263 | $ | 498,207 | ||||||||
Cost of sales | 83,048 | 74,649 | 293,207 | 275,311 | ||||||||||||
Gross profit | 65,284 | 59,431 | 243,056 | 222,896 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 52,302 | 32,837 | 158,290 | 129,307 | ||||||||||||
Deferred compensation plan expense/(income) | (755 | ) | 37 | 599 | 452 | |||||||||||
Amortization of intangible assets | 2,957 | 3,419 | 13,428 | 13,681 | ||||||||||||
Restructuring and other charges/(income) | - | 5 | - | (301 | ) | |||||||||||
Income from operations | 10,780 | 23,133 | 70,739 | 79,757 | ||||||||||||
Other income/(expenses): | ||||||||||||||||
Interest expense, net | (1,851 | ) | (2,153 | ) | (7,995 | ) | (10,325 | ) | ||||||||
Other income/(expense) | (348 | ) | 107 | 1,482 | 687 | |||||||||||
Income before provision for taxes | 8,581 | 21,087 | 64,226 | 70,119 | ||||||||||||
Income tax expense | 5,836 | 4,116 | 19,655 | 16,604 | ||||||||||||
Net income | $ | 2,745 | $ | 16,971 | $ | 44,571 | $ | 53,515 | ||||||||
Net income per common share: | ||||||||||||||||
Basic income per share | $ | 0.08 | $ | 0.51 | $ | 1.37 | $ | 1.59 | ||||||||
Diluted income per share | $ | 0.08 | $ | 0.50 | $ | 1.36 | $ | 1.57 | ||||||||
Weighted-average shares used in computing net income per common share: | ||||||||||||||||
Basic common shares | 32,858 | 33,569 | 32,541 | 33,708 | ||||||||||||
Fully-diluted common shares | 33,218 | 33,986 | 32,800 | 34,058 | ||||||||||||
Thermon Group Holdings, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(Unaudited, in thousands, except share and per share data) | ||||||||
March 31, 2026 | March 31, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 52,275 | $ | 39,537 | ||||
Accounts receivable, net of allowances of | 125,414 | 109,830 | ||||||
Inventories, net | 118,148 | 88,980 | ||||||
Contract assets | 26,737 | 19,188 | ||||||
Prepaid expenses and other current assets | 18,574 | 16,526 | ||||||
Income tax receivable | 53 | 231 | ||||||
Total current assets | 341,201 | 274,292 | ||||||
Property, plant and equipment, net of depreciation and amortization of | 79,739 | 72,824 | ||||||
Goodwill | 269,041 | 264,331 | ||||||
Intangible assets, net | 103,660 | 115,283 | ||||||
Operating lease right-of-use assets | 14,783 | 11,192 | ||||||
Deferred income taxes | 1,121 | 895 | ||||||
Other non-current assets | 21,030 | 16,635 | ||||||
Total assets | $ | 830,575 | $ | 755,452 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | 41,110 | 31,185 | ||||||
Accrued liabilities | 49,779 | 35,788 | ||||||
Current portion of long-term debt | 7,813 | 18,000 | ||||||
Contract liabilities | 19,471 | 19,604 | ||||||
Lease liabilities | 4,701 | 4,023 | ||||||
Income taxes payable | 3,962 | 4,063 | ||||||
Total current liabilities | $ | 126,836 | $ | 112,663 | ||||
Borrowings under revolving credit facility | 19,700 | - | ||||||
Long-term debt, net of current maturities and deferred debt issuance costs of | 113,559 | 120,366 | ||||||
Deferred income taxes | 10,861 | 9,756 | ||||||
Non-current lease liabilities | 12,099 | 9,299 | ||||||
Other non-current liabilities | 8,813 | 8,053 | ||||||
Total liabilities | $ | 291,868 | $ | 260,137 | ||||
Equity | ||||||||
Common stock: $.001 par value; 150,000,000 authorized; 34,169,520 issued and 32,866,352 outstanding, and 33,945,413 shares issued and 33,243,370 outstanding at March 31, 2026 and 2025, respectively | $ | 33 | $ | 33 | ||||
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding | - | - | ||||||
Additional paid in capital | 250,785 | 246,201 | ||||||
Treasury stock, common stock, at cost; 1,303,168 and 702,043 shares at March 31, 2026 and 2025, respectively | (36,162 | ) | (20,388 | ) | ||||
Accumulated other comprehensive loss | (62,818 | ) | (72,829 | ) | ||||
Retained earnings | 386,869 | 342,298 | ||||||
Total equity | $ | 538,707 | $ | 495,315 | ||||
Total liabilities and equity | $ | 830,575 | $ | 755,452 | ||||
Thermon Group Holdings, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited, in thousands) | ||||||||
Twelve Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Operating activities | ||||||||
Net income | $ | 44,571 | $ | 53,515 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 22,466 | 22,339 | ||||||
Amortization of debt costs | 497 | 486 | ||||||
Stock compensation expense | 8,244 | 5,244 | ||||||
Deferred income taxes | 619 | (1,081 | ) | |||||
Reserve release for uncertain tax positions | - | (1,046 | ) | |||||
Remeasurement (gain)/loss on intercompany balances | (75 | ) | 36 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (13,205 | ) | (4,220 | ) | ||||
Inventories | (28,021 | ) | (698 | ) | ||||
Contract assets and liabilities | (7,736 | ) | (6,655 | ) | ||||
Other current and non-current assets | (3,089 | ) | (9,402 | ) | ||||
Accounts payable | 8,485 | (1,156 | ) | |||||
Accrued liabilities and non-current liabilities | 14,083 | 3,410 | ||||||
Income taxes payable and receivable | (44 | ) | 2,346 | |||||
Net cash provided by operating activities | $ | 46,795 | $ | 63,118 | ||||
Investing activities | ||||||||
Purchases of property, plant and equipment | (13,931 | ) | (10,249 | ) | ||||
Sale of rental equipment | 850 | 65 | ||||||
Proceeds from sale of property, plant and equipment | - | 5,759 | ||||||
Cash paid for acquisitions, net of cash acquired | - | (10,545 | ) | |||||
Net cash used in investing activities | $ | (13,081 | ) | $ | (14,970 | ) | ||
Financing activities | ||||||||
Proceeds from Term Loan A | 125,000 | - | ||||||
Payments on Term Loan A | (142,000 | ) | (28,625 | ) | ||||
Proceeds from revolving credit facility | 36,711 | 12,000 | ||||||
Payments on revolving credit facility | (17,011 | ) | (17,000 | ) | ||||
Issuance costs associated with debt financing | (523 | ) | - | |||||
Lease financing | (59 | ) | (58 | ) | ||||
Issuance of common stock including exercise of stock options | 72 | 632 | ||||||
Repurchase of treasury shares under authorized program | (15,774 | ) | (20,138 | ) | ||||
Repurchase of employee stock units on vesting | (3,732 | ) | (3,230 | ) | ||||
Net cash provided by/(used in) financing activities | $ | (17,316 | ) | $ | (56,419 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 29 | (738 | ) | |||||
Change in cash and cash equivalents | $ | 16,427 | $ | (9,009 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 41,422 | 50,431 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 57,849 | $ | 41,422 | ||||
Thermon Group Holdings, Inc. | ||||||||||||||||
Reconciliation of Net Income/(Loss) to Adjusted EBITDA | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
GAAP Net income/(loss) | $ | 2,745 | $ | 16,971 | $ | 44,571 | $ | 53,515 | ||||||||
Interest expense, net | 1,851 | 2,153 | 7,995 | 10,325 | ||||||||||||
Income tax expense/(benefit) | 5,836 | 4,116 | 19,655 | 16,604 | ||||||||||||
Depreciation and amortization expense | 5,293 | 5,578 | 22,466 | 22,339 | ||||||||||||
EBITDA (non-GAAP) | $ | 15,725 | $ | 28,818 | $ | 94,687 | $ | 102,783 | ||||||||
Stock compensation expense | 3,040 | 1,197 | 8,244 | 5,244 | ||||||||||||
Transaction-related costs1 | 12,894 | - | 12,894 | 355 | ||||||||||||
Restructuring and other charges/(income)2 | - | 456 | 1,334 | 292 | ||||||||||||
Debt issuance costs3 | - | - | 523 | - | ||||||||||||
ERP implementation-related costs | 477 | 19 | 1,904 | 557 | ||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 32,136 | $ | 30,490 | $ | 119,586 | $ | 109,231 | ||||||||
Adjusted EBITDA % | 21.6 | % | 22.7 | % | 22.3 | % | 21.9 | % | ||||||||
1 Fiscal 2026 charges relate to the pending merger transaction with CECO. Fiscal 2025 charges relate to the October 2024 F.A.T.I. acquisition costs.
2 Fiscal 2026 charges associated with cost-cutting measures. Fiscal 2025 charges associated with cost-cutting measures including reduction-in-force and facility consolidation, of which
3 Debt issuance costs related to refinancing the Company's credit facility.
Thermon Group Holdings, Inc. | ||||||||||||||||||
Reconciliation of Net Income/(Loss) to Adjusted Net Income/(Loss) and Adjusted EPS | ||||||||||||||||||
(Unaudited, in thousands except per share amounts) | ||||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||
GAAP Net Income/(loss) | $ | 2,745 | $ | 16,971 | $ | 44,571 | $ | 53,515 | ||||||||||
Transaction-related costs1 | 12,894 | - | 12,894 | 355 | Operating expense | |||||||||||||
Amortization of intangible assets | 2,957 | 3,419 | 13,428 | 13,681 | Intangible amortization | |||||||||||||
Restructuring and other charges/(income)2 | - | 456 | 1,334 | 292 | Cost of Sales and Operating expense | |||||||||||||
ERP implementation-related costs | 477 | 19 | 1,904 | 557 | Operating expense | |||||||||||||
Debt issuance costs3 | - | - | 523 | - | ||||||||||||||
Tax benefit from the release of uncertain tax position reserve | - | (1,046 | ) | - | (1,046 | ) | Income tax expense | |||||||||||
Tax effect of adjustments | (809 | ) | (940 | ) | (4,132 | ) | (3,582 | ) | ||||||||||
Adjusted Net Income/(Loss) (non-GAAP) | $ | 18,264 | $ | 18,879 | $ | 70,522 | $ | 63,772 | ||||||||||
Adjusted Fully Diluted Earnings per Common Share (Adjusted EPS) (non-GAAP) | $ | 0.55 | $ | 0.56 | $ | 2.15 | $ | 1.87 | ||||||||||
Fully-diluted common shares | 33,218 | 33,986 | 32,800 | 34,058 | ||||||||||||||
1 Fiscal 2026 charges relate to costs associated with the pending merger with CECO and are not tax deductible. Fiscal 2025 charges relate to acquisition costs incurred in connection with the October 2024 F.A.T.I. acquisition.
2 Fiscal 2026 charges associated with cost-cutting measures. Fiscal 2025 charges associated with cost-cutting measures including reduction-in-force and facility consolidation, of which
3 Debt issuance costs related to refinancing the Company's credit facility.
Thermon Group Holdings, Inc. | ||||||||||||||||
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Cash provided by/(used in) operating activities | $ | 10,646 | $ | 32,058 | $ | 46,795 | $ | 63,118 | ||||||||
Cash provided by/(used in) investing activities | (3,206 | ) | (3,651 | ) | (13,081 | ) | (14,970 | ) | ||||||||
Cash provided by/(used in) financing activities | (1,596 | ) | (28,597 | ) | (17,316 | ) | (56,419 | ) | ||||||||
Cash provided by operating activities | $ | 10,646 | $ | 32,058 | $ | 46,795 | $ | 63,118 | ||||||||
Less: Cash used for purchases of property, plant and equipment | (3,527 | ) | (3,071 | ) | (13,931 | ) | (10,249 | ) | ||||||||
Free cash flow provided (non-GAAP) | $ | 7,119 | $ | 28,987 | $ | 32,864 | $ | 52,869 | ||||||||
Thermon Group Holdings, Inc. | ||||||||||||||||
Reconciliation of Point-in-Time and Over-Time Sales to OPEX Sales | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Point-in-Time Sales | $ | 101,460 | $ | 94,466 | $ | 375,552 | $ | 353,072 | ||||||||
Over Time - Small Projects | 16,695 | 17,337 | 64,830 | 69,198 | ||||||||||||
Over Time - Large Projects | 30,177 | 22,277 | 95,881 | 75,937 | ||||||||||||
Total Over-Time Sales1 | $ | 46,872 | $ | 39,614 | $ | 160,711 | $ | 145,135 | ||||||||
Total Sales | $ | 148,332 | $ | 134,080 | $ | 536,263 | $ | 498,207 | ||||||||
Point-in-Time Sales | 101,460 | 94,466 | 375,552 | 353,072 | ||||||||||||
Over Time - Small Projects | 16,695 | 17,337 | 64,830 | 69,198 | ||||||||||||
OPEX Sales | $ | 118,155 | $ | 111,803 | $ | 440,382 | $ | 422,270 | ||||||||
OPEX Sales % | 79.7 | % | 83.4 | % | 82.1 | % | 84.8 | % | ||||||||
1 Over Time Sales were previously reported as a single figure and are now presented as Over Time - Small Projects and Over Time - Large Projects. Over Time - Small Projects are each less than
SOURCE: Thermon Group Holdings Inc.
View the original press release on ACCESS Newswire