Thermon (THR) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for fiscal 2025, with 3% organic growth in Q4, the first positive quarter in over a year, and strong execution on strategic priorities including decarbonization, digitization, and diversification.

• Bookings and backlog reached record levels, with backlog up 29% year-over-year (20% organically), and four consecutive quarters of positive book-to-bill.

• Successfully integrated Vapor Power and F.A.T.I. acquisitions, expanding product portfolio, global footprint, and addressable market.

• Strategic initiatives in diversification, decarbonization, and digitization (3D) drove $93M in revenue and 28 new product/software releases, with Genesis digital controls now 12% of heat tracing product revenue.

• Net leverage reduced to 0.9x, supporting growth investments and share repurchases.

Financial highlights

• Q4 2025 revenue was $134.1M, up 5% year-over-year, with organic revenue up 2.6%; gross profit up 13% to $59.4M and gross margin at 44.3%.

• Q4 adjusted EBITDA was $30.5M (22.7% margin), up 29% year-over-year; full-year adjusted EBITDA was $109.2M (21.9% margin).

• Q4 net income increased 68% to $17.0M ($0.50 EPS); adjusted EPS $0.56, up 64.7% year-over-year.

• Free cash flow for FY25 was $52.9M, down slightly from $55M last year, with Q4 free cash flow at $29.0M.

• Book-to-bill for Q4 was 1.04x; full-year bookings reached $535.7M (1.08x book-to-bill).

Outlook and guidance

• FY26 revenue guidance: $495M–$535M (up to 7.4% YoY); adjusted EBITDA: $104M–$114M; adjusted EPS: $1.77–$1.99.

• Margin headwinds expected in H1 2026 due to tariffs, with price increases mitigating impact in H2; guidance assumes current tariff levels and macro uncertainty.

• CAPEX planned at 2.5%–3.0% of revenue; effective tax rate ~26%.