Thermon (THR) investor relations material

Executive summary

• Achieved record quarterly revenue of $147.3 million, up 10% year-over-year, with record profitability and bookings driven by strong project activity, electrification, decarbonization, and robust end-market demand.

• Adjusted EBITDA increased 12% to $35.6 million, with margin at 24.2%, up 50 basis points year-over-year.

• Orders grew 14% year-over-year, with a book-to-bill ratio of 1.1x and backlog up 10% to $259.4 million.

• Raised full-year fiscal 2026 guidance for revenue, Adjusted EBITDA, and EPS, reflecting confidence in continued growth and backlog conversion.

• Strategic growth platforms, including Liquid Load Banks and Medium Voltage Heaters, are scaling rapidly with expanding quote logs and manufacturing capacity.

Financial highlights

• Third quarter revenue was $147.3 million (+10% YoY); gross profit rose 11% to $68.7 million with gross margin at 46.6%.

• Adjusted EBITDA: $35.6 million (+12% YoY); Adjusted EPS: $0.66 (+18% YoY); GAAP EPS: $0.55.

• Net income: $18.3 million; net margin 12.4%; nine-month net income $41.8 million (+14% YoY).

• Free cash flow for the quarter was $13.1 million, up from $8.4 million last year; nine-month free cash flow $25.7 million.

• Trailing twelve months revenue: $522 million; Adjusted EBITDA margin: 22.6%.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $516–$526 million (up to 5.6% YoY); Adjusted EBITDA guidance raised to $114–$120 million (up to 9.9% YoY); Adjusted EPS guidance: $2.05–$2.19.

• CapEx expected to be 2.5%–3% of sales in FY2026–2027, reflecting investments in growth platforms.

• Guidance assumes current tariff structures, sustained business trends, and order momentum.

• Liquidity remains strong with $46.9 million in cash and $94.3 million in available borrowing capacity.

• Company expects to meet liquidity needs for the next 12 months and foreseeable future.