Thermon Reports Third Quarter Fiscal 2026 Results

Rhea-AI Summary

Thermon (NYSE:THR) reported record Q3 Fiscal 2026 results for the quarter ended December 31, 2025: revenue $147.3M (+9.6%), gross profit $68.7M, Adjusted EBITDA $35.6M (+11.9%) and new orders $158.2M (+14.1%) with backlog $259.4M (+10.1%).

Management raised full‑year Fiscal 2026 guidance to $516–$526M revenue, $114–$120M Adjusted EBITDA and $2.05–$2.19 adjusted EPS.

Positive

• Revenue of $147.3M in Q3, +9.6% year-over-year
• Adjusted EBITDA $35.6M, margin of 24.2%, +11.9% year-over-year
• Record new orders of $158.2M, book-to-bill of 1.1x
• Backlog increased to $259.4M, up 10.1%
• Net leverage reduced to 0.8x and liquidity of $141.2M

Negative

• Selling, general and administrative expenses rose to $38.3M, driven by growth investments
• Diluted GAAP EPS modest at $0.55 in Q3, down slightly in margin impact versus adjusted metrics

Key Figures

Q3 2026 Revenue: $147.3M (+9.6%) Q3 Adjusted EBITDA: $35.6M (24.2% margin) Q3 Adjusted EPS: $0.66 +5 more

8 metrics

Q3 2026 Revenue $147.3M (+9.6%) Third quarter Fiscal 2026 sales versus prior-year period

Q3 Adjusted EBITDA $35.6M (24.2% margin) Third quarter Fiscal 2026 non-GAAP Adjusted EBITDA and margin

Q3 Adjusted EPS $0.66 Third quarter Fiscal 2026 non-GAAP earnings per diluted share

Q3 Orders $158.2M (+14.1%) Third quarter Fiscal 2026 new orders with 1.1x book-to-bill

Backlog $259.4M (+10.1%) Backlog as of December 31, 2025 versus December 31, 2024

Net leverage ratio 0.8x Net debt to TTM Adjusted EBITDA at Q3 Fiscal 2026 quarter-end

Liquidity $141.2M Total cash and available liquidity at end of Q3 Fiscal 2026

FY26 Revenue Guide $516–$526M Revised full-year Fiscal 2026 revenue guidance as of Feb 5, 2026

Market Reality Check

Price: $48.77 Vol: Volume 734,870 is 2.48x t...

high vol

$48.77 Last Close

Volume Volume 734,870 is 2.48x the 20-day average of 295,816, indicating elevated trading interest pre-earnings. high

Technical Shares at $46.19 trade above the 200-day MA $30.68, sit 6.89% below the $49.61 52-week high and 100.39% above the $23.05 52-week low.

Peers on Argus

THR is down 2.14% while peers are mixed: TNC +3.8%, GRC +1.81%, KRNT +1.62%, ver...

THR is down 2.14% while peers are mixed: TNC +3.8%, GRC +1.81%, KRNT +1.62%, versus SERV -4.33% and GHM -4.76%. With no peers in the momentum scanner and moves not uniformly aligned, today’s action appears company-specific rather than a broad sector rotation.

Historical Context

4 past events · Latest: Jan 29 (Neutral)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Jan 29	Earnings call notice	Neutral	+5.0%	Announcement of date and time for upcoming Q3 2026 earnings call.
Nov 06	Q2 2026 earnings	Positive	+11.5%	Strong revenue and Adjusted EBITDA growth with raised full-year Fiscal 2026 guidance.
Oct 30	Earnings call notice	Neutral	-0.1%	Scheduling and access details for the Q2 2026 earnings conference call.
Aug 07	Q1 2026 earnings	Negative	-11.6%	Revenue decline despite higher net income and strong backlog; guidance reaffirmed.

Pattern Detected

Earnings releases have triggered strong moves: Q2 news saw a double-digit gain, while Q1’s softer revenue drove a double-digit decline. Conference-call scheduling headlines have had minimal impact.

Recent Company History

Recent news shows Thermon steadily building its fiscal 2026 story. Q1 2026 results on Aug 7, 2025 featured lower revenue but higher net income and a strong backlog, yet the stock fell sharply. Q2 results on Nov 6, 2025 highlighted solid growth and guidance raises, with a strong positive price reaction. Conference-call scheduling notices on Oct 30, 2025 and Jan 29, 2026 produced little movement. Today’s record Q3 and guidance raise extend that improving operational trend.

Market Pulse Summary

This announcement details record quarterly revenue of $147.3M, strong Adjusted EBITDA of $35.6M with...

Analysis

This announcement details record quarterly revenue of $147.3M, strong Adjusted EBITDA of $35.6M with a 24.2% margin, and a growing backlog of $259.4M. Management highlighted robust demand in data center, power generation and LNG, alongside a low net leverage ratio of 0.8x. The company raised Fiscal 2026 guidance for revenue, Adjusted EBITDA and EPS. Investors may watch execution on large projects, booking trends, and margin durability against these higher targets.

Key Terms

adjusted ebitda, book-to-bill ratio, net leverage ratio, free cash flow, +2 more

6 terms

adjusted ebitda financial

"Adjusted EBITDA (non-GAAP) of $35.6 million, +11.9%; Adjusted EBITDA margin..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

book-to-bill ratio financial

"New orders of $158.2 million, +14.1%; book-to-bill ratio of 1.1x"

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

net leverage ratio financial

"Net Leverage ratio of 0.8x"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

free cash flow financial

"During the third quarter, Free Cash Flow was $13.1 million, an increase..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

capital expenditures financial

"Capital Expenditures | | 4.9 | | 1.4 | | 250.0 | %"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

non-gaap financial

"Adjusted Net Income (non-GAAP) of $21.9 million, +15.3%, or $0.66 Adjusted EPS (non-GAAP)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

Delivering Record Revenue, Profitability and Bookings

Raising Full-Year Fiscal 2026 Guidance

AUSTIN, TX / ACCESS Newswire / February 5, 2026 / Thermon Group Holdings, Inc. (NYSE:THR) ("Thermon" or the "Company"), a diversified industrial technology company and a global leader in industrial process heating solutions, today announced consolidated results for the third quarter ("Q3 2026") of the fiscal year ending March 31, 2026 ("Fiscal 2026").

THIRD QUARTER 2026 HIGHLIGHTS

(all comparisons versus the prior year period unless otherwise noted)

• Revenue of $147.3 million, +9.6%

• Gross profit of $68.7 million, +10.5%; Gross Margin of 46.6%

• Net income of $18.3 million, (1.1)%, or $0.55 earnings per diluted share (EPS)

• Adjusted Net Income (non-GAAP) of $21.9 million, +15.3%, or $0.66 Adjusted EPS (non-GAAP)

• Adjusted EBITDA (non-GAAP) of $35.6 million, +11.9%; Adjusted EBITDA margin (non-GAAP) of 24.2%

• New orders of $158.2 million, +14.1%; book-to-bill ratio of 1.1x

• Net Leverage ratio of 0.8x

MANAGEMENT COMMENTARY

"Thermon delivered a record third quarter, achieving the highest revenue, profitability, and bookings in our company's history-an exceptional milestone that reflects both strong end‑market demand and outstanding execution across our global organization," stated Bruce Thames, President and CEO of Thermon. "Revenue increased 10% in the quarter, driven by growing momentum in the large project business, effective pricing actions, and consistent spending from our loyal customer base. The strong top-line results translated to Adjusted EBITDA growth of 12%, and an Adjusted EBITDA margin above 24%, underscoring our disciplined execution and the continued impact of our Thermon business system initiatives. Our strong margin performance combined with a continued focus on our profitability initiatives is further evidence we are well on track to meet our margin targets."

Thames continued, "We were particularly pleased by our strong bookings momentum during the quarter, with orders increasing 14% versus last year, resulting in a book-to-bill ratio of 1.1x, reinforcing the strength of our strategic positioning, our deep installed base, and favorable secular growth trends across key end markets, including data center, power generation and LNG. As a result, backlog increased 10%, and our confidence in the business outlook remains high, supported by our bid pipeline, that is up 8% compared to last year. Based on these factors, we are raising our our full-year 2026 guidance."

"The acceleration in our organic growth and strong bookings momentum are a direct reflection of an ongoing focus on our 3-Ds strategy: Decarbonization, Digitization and Diversification. Our diversification initiatives continue to position us to benefit from very powerful secular demand trends in markets such as power generation and data center, while the ongoing Decarbonization and Electrification trend, particularly in Europe, is creating strong growth opportunities for our medium voltage heaters. In addition, development of our liquid load bank testing solutions is progressing exceptionally well. We shipped our first units during the quarter, just six months after initiating development, demonstrating the ingenuity and agility of our team. Quoting activity for our data center solutions remains extremely robust, with our quote log nearly doubling sequentially, supporting our expectation for a meaningful ramp in orders in the coming quarters."

"Thermon's disciplined financial execution continues to strengthen our balance sheet and enhance our strategic flexibility," said Jan Schott, Senior Vice President and CFO of Thermon. "We ended the third quarter with net leverage of just 0.8x and total cash and available liquidity of $141.2 million, providing us with the capacity to invest in growth while maintaining a strong financial foundation. Our capital allocation strategy remains focused on driving long-term value-enhancing organic investment, strategic acquisitions, and the return of excess capital to shareholders. With the financial strength we have built, we are well positioned to act decisively on opportunities that support our strategic priorities and sustain durable value creation."

Financial Highlights		Three months ended December 31,												Nine months ended December 31,
Unaudited, in millions, except per share data		2025				2024				% Change				2025				2024				% Change
Sales		$	147.3			$	134.4				9.6	%		$	387.9			$	364.1				6.5	%
OPEX Sales1			121.9				115.8				5.3	%			322.2				310.5				3.8	%
CAPEX Sales1			25.4				18.6				36.6	%			65.7				53.7				22.3	%
Net income			18.3				18.5				(1.1)	%			41.8				36.5				14.5	%
Diluted EPS			0.55				0.54				1.9	%			1.27				1.07				18.7	%
Adjusted Net Income2			21.9				19.0				15.3	%			52.3				44.9				16.5	%
Adjusted EPS2			0.66				0.56				17.9	%			1.58				1.32				19.7	%
Adjusted EBITDA3			35.6				31.8				11.9	%			87.4				78.7				11.1	%
% of Sales:
OPEX Sales1			82.8	%			86.2	%			-340 bps				83.1	%			85.3	%			-220 bps
CAPEX Sales1			17.2	%			13.8	%			340 bps				16.9	%			14.7	%			220 bps
Net income			12.4	%			13.8	%			-140 bps				10.8	%			10.0	%			80 bps
Adjusted Net Income2			14.9	%			14.1	%			80 bps				13.5	%			12.3	%			120 bps
Adjusted EBITDA3			24.2	%			23.7	%			50 bps				22.5	%			21.6	%			90 bps

1 "OPEX Sales" (non-GAAP) represents Point-in-Time Sales plus Over Time-Small Projects (i.e., less than $0.5 million in total revenue). "CAPEX Sales" (non-GAAP) represents Over Time-Large Projects (i.e., equal to or greater than $0.5 million in total revenue). See table "Reconciliation of Point-in-Time and Over-Time Sales to OPEX Sales (non-GAAP) and CAPEX Sales (non-GAAP)."
2 Represents Net income after the impact of acquisition costs, restructuring, costs associated with impairments and other charges, amortization of intangible assets, ERP implementation related costs, debt issuance costs and the tax expense/(benefit) for impact of foreign rate increases (see table, "Reconciliation of Net income to Adjusted Net Income and Adjusted EPS").
3 See table, "Reconciliation of Net income to Adjusted EBITDA."

THIRD QUARTER FISCAL 2026 PERFORMANCE

Third quarter revenue was $147.3 million, an increase of 9.6% compared to same period last year, due to improved trends in large project activity, rising demand tied to electrification and decarbonization initiatives throughout Europe, pricing benefits as well as consistent spending from long-standing customer base.

Gross profit was $68.7 million, an increase of 10.5% compared to the third quarter of last year, driven by higher sales volumes, favorable pricing actions, strong operational execution, and comparatively higher project margins. As a result gross margin was 46.6% during the third quarter, up from 46.2% last year.

Selling, general and administrative expenses were $38.3 million, up from $34.1 million last year owing to investments in our growth initiatives, as well as higher performance-based compensation.

Adjusted EBITDA was $35.6 million, up from $31.8 million last year, due to strong volume growth, strong gross margin improvement, and efficiencies from the Thermon Business System. As a result, Adjusted EBITDA margin was 24.2% during the third quarter of Fiscal 2026, up from 23.7% for the same period last year.

Backlog was $259.4 million as of December 31, 2025, representing a $23.8 million increase, or 10.1%, as compared to backlog of $235.6 million at December 31, 2024. Orders for the quarter were a record $158.2 million, up 14.1% year-over-year, with a book-to-bill of 1.1x.

Balance Sheet, Liquidity and Cash Flow

As of December 31, 2025, total debt was $143.1 million, with cash and cash equivalents of $46.9 million, resulting in net debt of $96.3 million, down from $110.0 million at September 30, 2025, reflecting strong operating results and disciplined financial management. The Company maintained a net leverage ratio of 0.8x at quarter-end, down from 1.0x at the end of the prior quarter, reflecting continued financial discipline and balance sheet strength.

Working capital increased by 7.2% to $190.0 million at the end of the third quarter of Fiscal 2026. During the third quarter, Free Cash Flow was $13.1 million, an increase from Free Cash Flow of $8.4 million in the prior year period. The Company repurchased $15.8 million in common shares under its existing share repurchase authorization thus far in Fiscal 2026, bringing total repurchases since the start of the program to $36 million. As of December 31, 2025, $38.5 million remains available under the current authorization.

Balance Sheet Highlights		December 31,
Unaudited, in millions		2025				2024				Change
Cash		$	46.9			$	38.7				21.2	%
Total Debt			143.1				153.4				(6.7)	%
Net Debt1 / TTM Adjusted EBITDA (non-GAAP)			0.8	x			1.1	x			(0.3)	x
Working Capital2			190.0				177.2				7.2	%
Capital Expenditures			4.9				1.4				250.0	%
Free Cash Flow (non-GAAP)3			13.1				8.4				56.0	%

1 Total 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."

REVISED FISCAL 2026 OUTLOOK

"Building on the momentum of our record third‑quarter results, we are raising our full‑year Fiscal 2026 outlook," said Jan Schott, Chief Financial Officer. "Another quarter of disciplined pricing execution, a favorable book‑to‑bill ratio, and sustained strength in large‑project activity gives us strong visibility into the remainder of the year. Based on our performance to date and resilient demand across our key end markets, we are increasing our full‑year Fiscal 2026 revenue guidance to approximately $516 to $526 million and Adjusted EBITDA of approximately $114 to $120 million. We are also raising our GAAP EPS guidance to approximately $1.64 to $1.78 per share, with Adjusted EPS expected to be approximately $2.05 to $2.19 per share."

The following forward-looking guidance reflects management's current expectations and beliefs for full-year Fiscal 2026 as of February 5, 2026, and is subject to change.

		Full Fiscal Year (Ending March 31)
Unaudited, in millions, except per share data		2025 Actual			Previous 2026 Guidance			Revised 2026 Guidance
Revenue			$498.2			$506 to $527			$516 to $526
Adjusted EBITDA (non-GAAP)			$109.2			$112 to $119			$114 to $120
EPS			$1.57			$1.62 to $1.77			$1.64 to $1.78
Adjusted EPS (non-GAAP)			$1.87			$2.00 to $2.15			$2.05 to $2.19

Conference Call and Webcast Information

Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, Jan Schott, Senior Vice President and Chief Financial Officer, and Thomas Cerovski, Senior Vice President and Chief Operating Officer, will discuss Q3 2026 results during a conference call today, February 5, 2026 at 10:00 a.m. (Central Time). The call will be simultaneously webcast and the accompanying slide presentation containing financial information can be accessed on Thermon's investor relations website located at http://ir.thermon.com. Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and +1 (412) 902-0031 from outside of the United States/Canada. A replay of the webcast will be available on Thermon's investor relations website after the conclusion of the call.

About Thermon

Thermon is a diversified industrial technology company and a global leader in industrial process heating, temperature maintenance, environmental monitoring, and temporary power distribution solutions. We deliver engineered solutions that enhance operational awareness, safety, reliability, and efficiency to deliver the lowest total cost of ownership. 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," "Organic Sales," "OPEX Sales", "CAPEX 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, 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, debt issuance costs 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 $0.5 million in total revenue). "CAPEX Sales" represents Over Time-Large Projects (i.e., equal to or greater than $0.5 million in total revenue). "Net Debt" represents total outstanding principal debt less cash and cash equivalents.

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, Organic Sales, OPEX Sales, CAPEX 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, CAPEX 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, CAPEX 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 CAPEX Sales" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow." We are unable to reconcile projected fiscal 2026 Adjusted EBITDA and Adjusted EPS to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, we are unable to provide a reconciliation for projected Fiscal 2026 Adjusted EBITDA and Adjusted EPS without unreasonable effort.

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 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, our Fiscal 2026 full-year guidance 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; (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) future growth of our key end markets and related capital investments; (ii) our ability to operate successfully in foreign countries; (iii) uncertainty over and changes in administrative policy; (iv) general economic conditions and cyclicality in the markets we serve; (v) our ability to successfully develop and improve our products and successfully implement new technologies; (vi) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (vii) our ability to deliver existing orders within our backlog; (viii) our ability to bid and win new contracts; (ix) the imposition of certain operating and financial restrictions contained in our debt agreements; (x) our revenue mix; (xi) our ability to grow through strategic acquisitions; (xii) our ability to manage risk through insurance against potential liabilities (xiii) changes in relevant currency exchange rates; (xiv) tax liabilities and changes to tax policy; (xv) impairment of goodwill and other intangible assets; (xvi) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xvii) our ability to protect our trade secrets; (xviii) our ability to protect our intellectual property; (xix) our ability to protect data and thwart potential cyber-attacks and incidents; (xx) a material disruption at any of our manufacturing facilities; (xxi) our dependence on subcontractors and third-party suppliers; (xxii) our ability to profit on fixed-price contracts; (xxiii) the credit risk associated to our extension of credit to customers; (xxiv) our ability to achieve our operational initiatives; (xxv) unforeseen difficulties with expansions, relocations, or consolidations of existing facilities; (xxvi) potential liability related to our products as well as the delivery of products and services; (xxvii) our ability to comply with foreign anti-corruption laws; (xxviii) export control regulations or sanctions; (xxix) environmental and health and safety laws and regulations as well as environmental liabilities; (xxx) changes in government administrative policy and government sanctions, including the recently enacted tariffs on trade between the U.S. and Canada; (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, 2025, filed with the Securities and Exchange Commission (the "SEC") on May 22, 2025, 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.

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.
Condensed Consolidated Statements of Operations
(unaudited, in thousands except per share amounts)

		Three Months Ended December 31,								Nine months ended December 31,
		2025				2024				2025				2024
Sales		$	147,310			$	134,353			$	387,931			$	364,127
Cost of sales			78,659				72,232				210,159				200,662
Gross profit			68,651				62,121				177,772				163,465
Operating expenses:
Selling, general and administrative expenses			38,305				34,123				105,988				96,470
Deferred compensation plan expense/(income)			213				(122	)			1,354				415
Amortization of intangible assets			3,480				3,463				10,471				10,262
Restructuring and other charges/(income)			-				(3,029	)			-				(306	)
Income from operations			26,653				27,686				59,959				56,624
Other income/(expenses):
Interest expense, net			(2,161	)			(2,535	)			(6,144	)			(8,172	)
Other income/(expense)			132				(126	)			1,830				580
Income before provision for taxes			24,624				25,025				55,645				49,032
Income tax expense			6,333				6,486				13,819				12,488
Net income		$	18,291			$	18,539			$	41,826			$	36,544
Net income per common share:
Basic income per share		$	0.56			$	0.55			$	1.28			$	1.08
Diluted income per share		$	0.55			$	0.54			$	1.27			$	1.07
Weighted-average shares used in computing net income per common share:
Basic common shares			32,842				33,709				32,759				33,753
Fully-diluted common shares			33,183				34,092				32,991				34,090

Thermon Group Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

		December 31, 2025				March 31, 2025
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	46,858			$	39,537
Accounts receivable, net of allowances of $1,082 and $1,230 as of December 31, 2025 and March 31, 2025, respectively			111,884				109,830
Inventories, net			116,987				88,980
Contract assets			25,101				19,188
Prepaid expenses and other current assets			19,787				16,526
Income tax receivable			-				231
Total current assets		$	320,617			$	274,292
Property, plant and equipment, net of depreciation and amortization of $80,648 and $75,773 as of December 31, 2025 and March 31, 2025, respectively			79,489				72,824
Goodwill			271,388				264,331
Intangible assets, net			107,368				115,283
Operating lease right-of-use assets			15,623				11,192
Deferred income taxes			1,694				895
Other non-current assets			20,522				16,635
Total assets		$	816,701			$	755,452
Liabilities and equity
Current liabilities:
Accounts payable		$	38,887			$	31,185
Accrued liabilities			34,435				35,788
Current portion of long-term debt			7,031				18,000
Contract liabilities			19,243				19,604
Lease liabilities			4,657				4,023
Income taxes payable			6,351				4,063
Total current liabilities		$	110,604			$	112,663
Borrowings under revolving credit facility			19,700				-
Long-term debt, net			115,823				120,366
Deferred income taxes			9,292				9,756
Non-current lease liabilities			12,971				9,299
Other non-current liabilities			9,609				8,053
Total liabilities		$	277,999			$	260,137
Equity
Common stock: $0.001 par value; 150,000,000 shares authorized; 34,148,233 issued and 32,845,065 outstanding at December 31, 2025, and 33,945,413 issued and 33,243,370 outstanding at March 31, 2025		$	33			$	33
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding			-				-
Additional paid in capital			248,080				246,201
Treasury stock			(36,162	)			(20,388	)
Accumulated other comprehensive loss			(57,373	)			(72,829	)
Retained earnings			384,124				342,298
Total equity		$	538,702			$	495,315
Total liabilities and equity		$	816,701			$	755,452

Thermon Group Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

		Nine months ended December 31,
		2025				2024
Operating activities
Net income		$	41,826			$	36,544
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			17,173				16,761
Amortization of deferred debt issuance costs			342				369
Stock compensation expense			5,203				4,046
Deferred income taxes			(1,945	)			(2,277	)
Remeasurement (gain)/loss on intercompany balances			(386	)			937
Changes in operating assets and liabilities:
Accounts receivable			1,578				(9,703	)
Inventories			(25,914	)			(4,494	)
Contract assets and liabilities			(6,281	)			(2,117	)
Other current and non-current assets			(3,224	)			(10,448	)
Accounts payable			6,060				(2,437	)
Accrued liabilities and non-current liabilities			(647	)			261
Income taxes payable and receivable			2,364				3,618
Net cash provided by operating activities		$	36,149			$	31,060
Investing activities
Purchases of property, plant and equipment			(10,404	)			(7,178	)
Sales of property, plant and equipment			22				5,759
Sale of rental equipment			507				63
Cash paid for acquisitions, net of cash acquired			-				(9,963	)
Net cash used in investing activities		$	(9,875	)		$	(11,319	)
Financing activities
Proceeds from revolving credit facility			36,711				5,000
Payments on revolving credit facility			(17,011	)			(10,000	)
Proceeds from long-term debt			125,000				-
Payments on long-term debt			(140,438	)			(14,125	)
Issuance costs associated with revolving line of credit and long-term debt			(628	)			-
Proceeds from option exercises			-				632
Repurchase of employee stock units on vesting			(3,398	)			(3,022	)
Repurchase of shares under authorized program			(15,774	)			(6,189	)
Payments on finance leases			(182	)			(118	)
Net cash provided by/(used in) financing activities		$	(15,720	)		$	(27,822	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			621				(1,770	)
Change in cash, cash equivalents and restricted cash			11,175				(9,851	)
Cash, cash equivalents and restricted cash at beginning of period			41,422				50,431
Cash, cash equivalents and restricted cash at end of period		$	52,597			$	40,580

 

Thermon Group Holdings, Inc.
Reconciliation of Net income to Adjusted EBITDA
(Unaudited, in thousands)

		Three Months Ended December 31,								Nine months ended December 31,
		2025				2024				2025				2024
Net income		$	18,291			$	18,539			$	41,826			$	36,544
Interest expense, net			2,161				2,535				6,144				8,172
Income tax expense			6,333				6,486				13,819				12,488
Depreciation and amortization expense			5,702				5,624				17,173				16,761
EBITDA (non-GAAP)		$	32,487			$	33,184			$	78,962			$	73,965
Stock compensation expense			1,838				1,470				5,203				4,046
Restructuring and other charges/(income)1			991				(3,029	)			1,334				(163	)
Transaction-related costs2			-				-				-				355
Debt issuance cost3			-				-				523				-
ERP implementation-related costs			286				149				1,427				538
Adjusted EBITDA (non-GAAP)		$	35,602			$	31,774			$	87,449			$	78,741
Adjusted EBITDA %			24.2	%			23.7	%			22.5	%			21.6	%

1 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 $0.1 million are in cost of sales.
2 Fiscal 2025 charges relate to the January 2024 Vapor Power acquisition.
3 Debt issuance costs related to refinancing the Company's credit facility.

 

Thermon Group Holdings, Inc.
Reconciliation of Net income to Adjusted Net Income and Adjusted EPS
(Unaudited, in thousands except per share amounts)

		Three Months Ended December 31,								Nine months ended December 31,
		2025				2024				2025				2024
Net income		$	18,291			$	18,539			$	41,826			$	36,544
Amortization of intangible assets			3,480				3,463				10,471				10,262		Intangible amortization
Restructuring and other charges/(income)1			991				(3,029	)			1,334				(163	)	Operating expense and cost of sales
Transaction-related costs2			-				-				-				355		Operating expense
Debt issuance cost3			-				-				523				-		Operating expense
ERP implementation related costs			286				149				1,427				538		Operating expense
Tax effect of adjustments			(1,141	)			(157	)			(3,323	)			(2,598	)
Adjusted Net Income (non-GAAP)		$	21,907			$	18,965			$	52,258			$	44,938
Adjusted Fully Diluted Earnings per Common Share (Adjusted EPS) (non-GAAP)		$	0.66			$	0.56			$	1.58			$	1.32
Fully-diluted common shares			33,183				34,092				32,991				34,090

1 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 $0.1 million are in cost of sales.
2 Fiscal 2025 charges relate to the January 2024 Vapor Power acquisition.
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 December 31,								Nine months ended December 31,
		2025				2024				2025				2024
Cash provided by operating activities		$	17,982			$	9,839			$	36,149			$	31,060
Cash provided by/(used in) by investing activities			(4,471	)			(5,570	)			(9,875	)			(11,319	)
Cash provided by/(used in) by financing activities			3,761				(14,163	)			(15,720	)			(27,822	)
Cash provided by operating activities		$	17,982			$	9,839			$	36,149			$	31,060
Less: Cash used for purchases of property, plant and equipment			(4,919	)			(1,393	)			(10,404	)			(7,178	)
Free cash flow (non-GAAP)		$	13,063			$	8,446			$	25,745			$	23,882

Thermon Group Holdings, Inc.
Reconciliation of Point-in-Time and Over-Time Sales to OPEX Sales and CAPEX Sales
(Unaudited, in thousands)

		Three Months Ended December 31,								Nine months ended December 31,
		2025				2024				2025				2024
Point-in-Time Sales		$	102,310			$	99,562			$	274,091			$	258,607
Over Time - Small Projects			19,600				16,238				48,135				51,860
Over Time - Large Projects (CAPEX)			25,400				18,553				65,705				53,660
Total Over-Time Sales1		$	45,000			$	34,791			$	113,840			$	105,520
Total Sales		$	147,310			$	134,353			$	387,931			$	364,127
Point-in-Time Sales			102,310				99,562				274,091				258,607
Over Time - Small Projects			19,600				16,238				48,135				51,860
OPEX Sales (non-GAAP)		$	121,910			$	115,800			$	322,226			$	310,467
OPEX Sales %			82.8	%			86.2	%			83.1	%			85.3	%

1 Over Time Sales are presented as Over Time - Small Projects and Over Time - Large Projects. Over Time - Small Projects are each less than $0.5 million in total revenue and Over Time - Large Projects are each equal to or greater than $0.5 million in total revenue.

SOURCE: Thermon Group Holdings, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Thermon (THR) Q3 Fiscal 2026 revenue and growth figures?

Thermon reported $147.3 million revenue in Q3 Fiscal 2026, a 9.6% increase year-over-year. According to the company, growth was driven by large project activity, pricing actions, and steady customer spending across key end markets.

How did Thermon (THR) perform on profitability and margin in Q3 2026?

Adjusted EBITDA was $35.6 million with a 24.2% margin in Q3 Fiscal 2026, up 11.9%. According to the company, margin expansion reflected pricing, higher project margins, and Thermon Business System efficiencies.

What guidance did Thermon (THR) update for full-year Fiscal 2026 on February 5, 2026?

Thermon raised full-year Fiscal 2026 guidance to $516–$526 million revenue and $114–$120 million Adjusted EBITDA. According to the company, the revision reflects stronger bookings, pricing execution, and visibility into large-project activity.

How strong were Thermon (THR) orders and backlog in Q3 Fiscal 2026?

New orders hit a record $158.2 million in Q3, up 14.1%, producing a backlog of $259.4 million. According to the company, a 1.1x book-to-bill and increased bid pipeline support near-term demand visibility.

What is Thermon (THR)'s financial position and capital return activity after Q3 2026?

As of December 31, 2025 Thermon had net leverage of 0.8x, cash of $46.9M, and available repurchase authorization of $38.5M. According to the company, capital allocation targets organic growth, M&A, and returning excess capital to shareholders.