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- **Revenue and Profit Growth**: Q2 revenue up 15% YoY to $131.7 million, adjusted EBITDA surging 29% to $30.6 million. Gross margin improved to 46%.
- **Strategic Wins**: 
  - **Data Center**: $30 million quote log for liquid load banks, first 20-unit order secured.
  - **Decarbonization**: $10 million orders for medium-voltage heaters, targeting 17% CAGR market.
- **Execution Momentum**: 41% YoY growth in large CapEx projects, with 17% YoY backlog expansion.
- **Financial Strength**: 1.0x net leverage, $129 million liquidity, and $36 million shares repurchased YTD.
- **Guidance Update**: Full-year 2026 revenue raised to $506-527 million, EBITDA to $112-119 million.

**【CEO Summary Section】**
- **Revenue Growth and Margin Expansion**: Q2 revenue reached $131.7 million (15% YoY), with adjusted EBITDA up 29% to $30.6 million. Gross margin improved to 46% (vs. 44% YoY), driven by pricing, tariff mitigation, and operational efficiency.
- **Strategic Initiatives**: 
  - **Digitization**: Genesis Network installed circuits grew 48% to 86,000, enabling predictive maintenance and energy efficiency across industrial, commercial, and data center solutions.
  - **Decarbonization**: Medium-voltage heaters (Quantum line) secured $10 million in orders, targeting high-growth markets like Europe with 17% CAGR to 2030.
  - **Data Center Diversification**: Liquid load banks (Poseidon/Pontus) achieved $30 million in quotes, with first order for 20 units. Market projected at $386 million by 2032 (21% CAGR).
- **Backlog and Execution Momentum**: Backlog up 17% YoY, with 41% growth in large CapEx projects (e.g., North American LNG). Fiscal 2026 guidance raised to $506-527 million revenue and $112-119 million EBITDA.

**【CFO Financial Commentary】**
- **Financial Health**: 
  - Free cash flow: $4.4 million (down 34% YoY due to inventory build).
  - Net debt: $110 million (1.0x leverage), with $129 million liquidity.
  - Share buybacks: $6 million Q2, $36 million YTD.
- **Revenue Mix**: 
  - OpEx (81% of revenue) grew 10% YoY, driven by F.A.T.I. and industrial solutions.
  - Large projects (19% of revenue) up 41% YoY, offsetting lower-margin execution.
- **Geographic Performance**: 
  - USLAM: +8%, Canada: +10%, EMEA: +100%, APAC: -4% (China trade policy headwinds).

**【Q&A Highlights】**
- **Large CapEx Execution**: 2 LNG projects moved to execution, with 140% YoY growth in LNG pipeline. Diversified end markets (chemical, power) also showing execution momentum.
- **Gross Margin Dynamics**: Higher large project mix (19% vs. 13% YoY) weighed on gross margin, but EBITDA margin expanded to 23.2% (vs. 20.8% YoY).
- **New Product Pipeline**: 
  - Data center load banks: 0 revenue Q2, but $30 million quote log and 20%+ market share target.
  - Medium-voltage heaters: 2 orders in process, scaling capacity in North America and Europe.
- **Inorganic Growth**: Active M&A pipeline, prioritizing bolt-ons aligned with 3D strategy (decarbonization, digitization, diversification).

Thermon Group Holdings, Inc. (THR) Q2 2026 Earnings Call Transcript

- **Resilient Q1 Results**: 5% revenue decline offset by 30bps gross margin improvement to 44.1%, driven by higher-margin OpEx sales and tariff mitigation.
- **Backlog Strength**: +27% YoY backlog, 43% bid pipeline growth, and $10M delayed revenue set to convert in Q2+.
- **Strategic Growth**: Data center liquid load banks targeting $386M market (21% CAGR), rail/transit backlog doubling, and F.A.T.I. acquisition driving European electrification growth.
- **Financial Flexibility**: 1.0x leverage, $130.8M liquidity, and $9.8M share buybacks in Q1.
- **Q2+ Outlook**: Pricing to offset tariffs, gross margin stabilization, and 20-25% market share target for data center load banks.

**【CEO Summary Section】**
- **Resilient Q1 Performance**: Despite a 5% YoY revenue decline ($10M delay in backlog conversion), gross margin improved by 30 basis points to 44.1% due to higher-margin OpEx sales and tariff mitigation.
- **Strong Backlog Growth**: Backlog up 27% YoY, with a 43% increase in bid pipeline driven by Vapor Power and activity in chemical, LNG, and renewables.
- **Strategic Initiatives**: 
  - **Data Centers**: Launched liquid load banks (Pontus/Poseidon) targeting $386M market by 2032 (21% CAGR). Early pipeline building with potential 20-25% market share.
  - **Rail/Transit**: Backlog doubled YoY, with capacity expansion underway.
  - **F.A.T.I. Acquisition**: Backlog doubled in 6 months, driven by European electrification trends.
- **Financial Discipline**: 1.0x net leverage, $130.8M liquidity, and $9.8M share buybacks in Q1.

**【CFO Financial Commentary】**
- **Revenue**: $108.9M (-5% YoY), with OpEx sales at 86% of total. Large projects down 11% due to delayed execution.
- **Profitability**: Adjusted EBITDA $21.2M (-9% YoY), margin 19.5% (down 60bps). GAAP EPS $0.26, up 4% YoY.
- **Liquidity**: Free cash flow $8.3M. $44.5M remaining under $50M share buyback authorization.
- **Geographic Performance**: EMEA revenue +114% YoY (including F.A.T.I.), U.S./LAM down 17%, APAC down 30%.

**【Q&A Highlights】**
- **Production Delays**: Capital project and supply chain issues resolved; delayed revenue to convert in Q2+.
- **Data Center Opportunity**: Liquid load banks used for thermal/electrical testing in liquid-cooled data centers. Early 2026 revenue expected, with 20-25% market share target.
- **Gross Margin Outlook**: Pricing to offset tariffs by Q2, with gross margin stabilization in H2.
- **M&A Pipeline**: Active pipeline, with focus on inorganic growth alongside share buybacks.
- **F.A.T.I. Momentum**: $17M+ Q1 shipments, backlog doubling since acquisition, targeting European electrification and LNG export facilities.

Thermon (THR)-7 Aug 25-2026 Q1 Earnings call transcript

- **Q4 Strong Execution**: 3% organic growth, 29% backlog expansion, and 22.7% EBITDA margin. 
- **LNG Recovery**: $80M pipeline, 50%+ oil & gas bookings YoY. 
- **Tariff Headwinds**: $16M-$20M cost impact, offset by pricing by late Q2. 
- **FY26 Guidance**: $495M-$535M revenue, cautious demand outlook. 
- **Cash Position**: $137M liquidity, $20M share buybacks in FY25.

**【CEO Business Overview】**
- **Q4 Organic Growth**: 3% year-over-year, driven by LNG market recovery and 4 consecutive quarters of positive book-to-bill (1.04x in Q4). 
- **Backlog Expansion**: Total backlog up 29% YoY (20% organic), fueled by LNG projects (5 major awards) and diversified end markets. 
- **Margin Improvement**: EBITDA margin expanded 423bps to 22.7%, benefiting from operational excellence and favorable revenue mix. 
- **Financial Discipline**: Ended FY25 with net leverage <1x, repurchased $14M shares, and made $14.5M debt repayments. 

**【CFO Financial Highlights】**
- **Q4 Revenue**: $134.1M (+5% YoY), with OpEx revenues at 83% of total. Adjusted EBITDA of $30.5M (+29% YoY). 
- **Free Cash Flow**: $52.9M for FY25, despite $5M one-time ERP investment. 
- **Capital Allocation**: $20M share buybacks, $14.5M debt paydown, and $50M refreshed repurchase authorization. 

**【2026 Outlook】**
- **Revenue Guidance**: $495M-$535M (3.5% midpoint growth). Adjusted EBITDA: $104M-$114M. 
- **Tariff Impact**: $16M-$20M gross cost headwind, partially offset by pricing actions. 
- **Timing Assumptions**: Mitigation efforts to fully offset costs by late Q2, with demand cautious in back half. 

**【Key Q&A Takeaways】**
- **LNG Momentum**: $80M pipeline opportunities, with 50%+ oil & gas bookings YoY. 
- **Tariff Mitigation**: 60-day lag in pricing effectiveness, net impact $4M-$6M in FY26. 
- **Data Center Growth**: Developing load bank solutions, with rail/transit backlog up to $36M. 
- **Competitive Position**: 50% U.S. production, diversified global footprint, and 2% China revenue exposure.

Thermon Group Holdings, Inc. (THR) Q4 2025 Earnings Call Transcript

- **Revenue beat by $200M**: Q3 $12.5B (+18% YoY), North America orders +25%.
- **$1B AI R&D investment**: Accelerating generative models commercialization.
- **Margin expansion**: 16.5% operating margin (vs. 14.5% last year).
- **China recovery**: Cloud bookings up 10% QoQ after regulatory freeze.
- **2024 guidance**: 15-18% growth, >16% margins, $2B buyback.

**【CEO Opening Remarks】**
- Q3 revenue reached $12.5B, up 18% YoY, exceeding guidance by $200M.
- North America orders surged 25% YoY, driven by AI infrastructure spending.
- Announced $1B+ investment in generative AI R&D over next 2 years.

**【CFO Financial Highlights】**
- GAAP EPS of $1.25 vs. $1.10 consensus; Non-GAAP EPS $1.42 (up 12% YoY).
- Operating margin expanded 200bps to 16.5% due to cost optimization.
- Free cash flow $3.2B, up 35% YoY; plans $2B share buyback.

**【Q&A Key Takeaways】**
- China cloud business rebounding 10% QoQ after regulatory headwinds.
- AI chip supply chain secured for H2, no foundry constraints.
- 2024 guidance: 15-18% revenue growth, >16% operating margin.
- Customer LLM usage up 4x YoY, enterprise AI adoption accelerating.

Thermon Group Holdings, Inc. (THR) Q3 2025 Earnings Call Transcript

Thermon (THR)-7 Nov 24-2025 Q2 Earnings call transcript

Thermon (THR)-7 Aug 24-2025 Q1 Earnings call transcript

Thermon Group Holdings Inc (THR) Q4 2024 Earnings Call Transcript

- **Revenue Growth**: Q3 2024 revenue $136.4M (+12% YoY), driven by U.S., Europe, and Asia. Full year guidance raised to $490-500M (midpoint +12%).
- **Strategic Acquisition**: Vapor Power acquisition to contribute $10-12M in Q4, with 69% of TTM revenue from diversified end markets (vs. 70% 2026 goal).
- **Margin Challenges**: Gross margin decline (319bps YoY) due to lower-margin product mix and Canadian weakness. EBITDA $30.7M (+2% YoY).
- **Pipeline Strength**: TTM bookings $488M (+12% YoY), quote activity $248M (record Q3), pipeline >$200M.
- **Electrification Growth**: Vapor Power's 18% CAGR 2019-2023, targeting 24% EBITDA margin. Unique electric boiler tech positions for decarbonization trends.


**【Management Opening Remarks】**
- Ivonne Salem introduced the call, emphasizing the availability of slides and non-GAAP measures reconciliation. She reminded investors of forward-looking statements' risks.
- Bruce Thames highlighted Thermon's role as a global leader in industrial process heating, serving 85 countries. He welcomed Vapor Power employees and outlined the company's strategic pillars: profitably growing the installed base, decarbonization/digitization/diversification, and disciplined capital allocation.

**【CEO Strategic Pillars & Acquisitions】**
- **Installed Base Growth**: 66% of TTM revenue from diversified end markets (e.g., food & beverage +209%, renewables +55%). Decarbonization applications contributed 4% of Q3 revenue, with a $200M pipeline.
- **Diversification**: Vapor Power acquisition ($10-12M Q4 contribution) expands electric boiler portfolio, targeting electrification and decarbonization. Pro forma diversified end market revenue reached 69% (vs. 70% 2026 goal). Thermon's business system aims to lift Vapor Power's EBITDA margin to 24% from 20%.
- **Capital Allocation**: Post-acquisition leverage at 1.5x (target 1.5x-2x), enabling further M&A. Vapor Power's 75% non-oil/gas revenue aligns with diversification strategy.

**【CFO Financial Review】**
- **Q3 2024 Results**: Revenue $136.4M (+12% YoY), driven by U.S., Europe, and Asia. Adjusted EBITDA $30.7M (+2% YoY). GAAP EPS $0.46 (+86% YoY). Free cash flow improved $4.6M YoY due to DSO reduction and inventory management.
- **Margins & Challenges**: Gross margin decline (319bps YoY) due to lower-margin product mix (e.g., material sales) and Canadian weakness (-446bps). Sequentially, bookings fell 1% YoY, book-to-bill 0.91x, with TTM bookings $488M (+12% YoY).
- **Balance Sheet**: Cash $55M, debt $213M (+61% YoY due to Vapor Power). Net debt/EBITDA 1.5x. Interest expense ~$1.6M/Q.

**【Q&A Highlights】**
- **Revenue & Guidance**: Q3 revenue in line with internal expectations, but margin pressure from Canada and product mix. Full year guidance raised to $490-500M (midpoint +12%), with $10-12M Vapor Power contribution. Organic growth ~10% (excluding acquisition).
- **Backlog & Pipeline**: TTM bookings $488M (+12% YoY). Quote activity $248M (record Q3), pipeline >$200M. Canada weakness expected to persist, but global diversification mitigates risk.
- **Vapor Power Growth**: 18% CAGR 2019-2023, targeting 24% EBITDA margin. Unique electric boiler tech (e.g., electrode steam generators) positions for electrification trends. Early synergies with Thermon channels identified ($1M+ opportunities).
- **Canadian Market**: Macro weakness (high interest rates, inflation) impacting industrial spending. Thermon's diversified end markets (72% TTM non-oil/gas) cushioned the decline.


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