Thermon (THR) Q4 2026 earnings summary

Executive summary

• Fourth quarter revenue rose 11% year-over-year to $148.3 million, driven by large project activity and strong demand in power, electrification, and select energy markets.

• Full-year revenue reached a record $536.3 million, up 8% year-over-year, with adjusted EBITDA margin improving to 22.3%.

• Net income for Q4 dropped 84% to $2.7 million due to higher SG&A expenses, while adjusted net income for the quarter was $18.3 million, down 3%.

• The pending merger with CECO Environmental is expected to close in June 2026, creating a larger, high-growth company.

Financial highlights

• Q4 gross profit increased 10% to $65.3 million; gross margin was 44.0%.

• Q4 adjusted EBITDA rose 5% to $32.1 million; adjusted EBITDA margin was 21.6%.

• Full-year adjusted net income grew 11% to $70.5 million; adjusted EPS was $2.15, up 15%.

• Free cash flow for the year was $32.9 million, down from $52.9 million in the prior year.

• Backlog at year-end was $254.9 million, up 6% year-over-year.

Outlook and guidance

• No financial guidance provided due to the pending CECO merger.

• Management expects to benefit from secular trends such as onshoring, decarbonization, and data center growth.