Thermon Group Holdings Stock Earnings Reports

Thermon reported Q1 FY2026 revenue of $108.9M, down 5% year-over-year (organic down 11% excluding F.A.T.I.), primarily due to approximately $10M of delayed backlog conversion from short-term supply-chain issues and a capital-improvement production delay. Backlog remains strong (management cited +27% year-over-year; CFO noted +13% organic growth) and the total bid pipeline was +43%, aided by the F.A.T.I. acquisition. Gross margin improved to 44.1% (up ~30 bps) driven by a shift to higher-margin OpEx revenue, tariff mitigation actions (prebuys, sourcing shifts, price increases) and productivity; adjusted EBITDA declined to $21.2M (down 9%) and adjusted EPS was $0.36 (down 5%). Orders were softer (reported -5%, organic -19%) with APAC and U.S. LAM under pressure from tariff-related uncertainty; EMEA delivered strong growth, helped by F.A.T.I. Free cash flow was $8.3M; net debt $102.8M with net leverage ~1.0x; cash and available liquidity $130.8M. The company repurchased ~$9.8M of stock in the quarter and has ~$44.5M remaining on its $50M authorization. Management reiterated FY2026 guidance: revenue $495M–$535M and adjusted EBITDA $104M–$114M, while flagging continued near-term uncertainty from evolving global tariff actions. Strategic highlights: launch of Pontus and Poseidon liquid load banks targeting a fast-growing liquid-cooled data center market (management targets ~20–25% long-term share), ramping investment/capacity for rail & transit where backlog doubled over 12 months, and strong early growth from the F.A.T.I. acquisition driven by electrification demand in Europe and the Middle East.