Thermon Group Touts Revenue Rise In Q4 Amid Market Challenges, Sets FY25 Goals

Thermon Group Holdings, Inc. THR shares are trading lower after it reported a fourth-quarter FY24 revenue increase of 4% Y/Y to $127.7 million, beating the consensus of $126.66 million.

Revenue was driven by sales growth across diversified end markets and decarbonization projects.

Thermon delivered bookings of $117.0 million, with 73% of orders in diversified end markets and a book-to-bill ratio of 0.92x.

The company achieved gross profit growth of 2% to $52.4 million, with a margin of 41.0%, a contraction of approximately 110 basis points Y/Y, in the quarter.

Adjusted EBITDA fell 6% Y/Y to $23.6 million, owing to planned investment to support long-term strategy.

Adjusted EPS stood at $0.34, down 17% Y/Y, beating the consensus of $0.32.

At the end of the quarter, the company had an available liquidity of $141.3 million, which includes $48.6 million in cash and cash equivalents and $92.7 million available under credit agreements.

Outlook: Thermon expects FY25 revenues of $527 million-$553 million vs. consensus of $550.1 million, representing growth of 9% at the midpoint.

The company projects adjusted EPS of $1.90-$2.06 vs. street view of $1.95.

Bruce Thames, President and CEO, said, “As we look ahead to Fiscal 2025, while we expect the operating environment to remain dynamic, the Thermon team will be laser-focused on realizing continuous improvement, implementing our strategy and creating long-term value for our shareholders.”

Price Action: THR shares are down 1.39% at $34.40 at the last check Wednesday.