What were the key takeaways from Thermon Group’s earnings call?

What factors drove the changes in Thermon Group's revenue and profit?

What does Thermon Group do and what are its main business segments?

What is the market's earnings forecast for Thermon Group next quarter?

What is Thermon Group's latest dividend and current dividend yield?

What guidance did Thermon Group's management provide for the next earnings period?

Did Thermon Group beat or miss consensus estimates last quarter?

What is Thermon Group's gross profit margin?

- **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).

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