Thermon (THR) Investor presentation summary

Financial performance highlights

• Trailing twelve months revenue reached $509 million with a 45% gross margin and 22.4% adjusted EBITDA margin.

• Adjusted EPS was $2.03, and free cash flow totaled $50 million; net leverage remained low at 1.0x.

• Q2 FY26 revenue grew 15% (9% organically), with adjusted EBITDA up 29% and gross margin at 46.4%.

• Backlog increased 17% year-over-year, and book-to-bill ratio was 1.0x, indicating strong order momentum.

• FY26 guidance raised: revenue expected at $506–$527 million, adjusted EPS at $2.00–$2.15, and adjusted EBITDA at $112–$119 million.

Business model and strategic focus

• Business mix has shifted to 85% OPEX and 15% CAPEX revenue, emphasizing higher-margin, recurring projects.

• Focus on decarbonization, digitization, and diversification to drive growth and margin expansion.

• Digital solutions, such as the Genesis Network, are core to value proposition and customer retention.

• Strategic M&A targets accretive deals with ROIC above WACC by year 3, expanding into non-oil & gas markets.

• Capital allocation prioritizes organic growth, disciplined M&A, and shareholder returns, with a strong balance sheet.

Market position and growth drivers

• Leading global brand in industrial process heating, serving over 10,000 customers in 85+ countries.

• Secular growth trends include energy transition, electrification, and increased demand in chemicals, power, and data centers.

• Installed base generates resilient aftermarket revenue through ongoing maintenance and upgrades.

• Product portfolio addresses diverse markets, including renewables, semiconductors, pharmaceuticals, and rail.

• Operational excellence and continuous improvement drive reduced lead times and stakeholder value.