Thermon (THR) investor relations material

Deal rationale and strategic fit

• The combination creates a leading industrial solutions portfolio with an $8 billion sales pipeline, targeting growth sectors like power generation, electrification, data centers, semiconductors, and industrial water.

• The merger brings greater scale, a more balanced portfolio, and higher margins, positioning the company for accelerated growth and value creation.

• Both companies bring complementary market relationships and product offerings, enabling cross-selling and expansion into new geographies and verticals.

Financial terms and conditions

• Thermon is incorporated as a wholly owned business group starting June 1, 2026, with seven months of combined results included in the 2026 outlook.

• Full-year 2026 guidance projects over $2 billion in orders, $1.275–$1.375 billion in revenue (up ~20%), and $195–$225 million in adjusted EBITDA (up ~25%).

• Pro forma 2026 financials estimate $1.5–$1.6 billion in sales and $250–$280 million in adjusted EBITDA, including $10 million in synergies on a 12-month basis.

Synergies and expected cost savings

• Integration management office is executing detailed plans to achieve or exceed $40 million in synergies.

• $15 million in run-rate synergies expected in 2026, with $5 million realized by year-end and the remainder in 2027.

• Commercial synergies are expected to add 1–2 points of organic growth for the legacy Thermon business, with $5–$10 million in incremental growth anticipated.