How did Thermon Group's revenue and expenses perform in Q3 2025?

Thermon Group's revenue and expenses in Q3 2025 showed a decline in revenue but a significant increase in net income and earnings per share (EPS), highlighting the company's strategic focus on diverse end markets and recurring revenue streams.

1. **Revenue Performance**:
- Thermon Group reported a revenue of $134.4 million for Q3 2025, representing a decrease of 1.5% compared to the same period in the previous year.
- This decline in revenue was due to lower contributions from project-related business, which was offset by growth in diverse end markets and a focus on maintenance and repair spending.
2. **Net Income and EPS**:
- The company's net income increased by 17.1% to $18.5 million compared to the previous year's Q3.
- Earnings per diluted share (EPS) were $0.54, reflecting a 16% increase from the same period in the previous year.
3. **Expenses and Profit Margins**:
- Gross profit for the quarter was $62.1 million, with a gross margin of 46.2%, indicating efficient cost management.
- Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $31.8 million, representing a 3.3% increase from the previous year.
- Adjusted EBITDA margin stood at 23.7%, reflecting the company's strategic initiatives to improve profitability.
4. **Operational Highlights**:
- New orders amounted to $138.6 million, marking an 11.4% increase, which supports future revenue growth.
- The book-to-bill ratio was 1.03x, indicating a healthy backlog and potential for continued performance.
- Thermon Group maintained a strong balance sheet with a net leverage ratio of 1.1x as of December 31, 2024.

In conclusion, Thermon Group demonstrated resilience in Q3 2025 with a strong net income and EPS, despite a slight decline in revenue. The company's strategic focus on diverse end markets, recurring revenue streams, and operational excellence have contributed to improved profitability and cash flow.