THR

Thermon Group Reports Record Revenue in Q4 2024

Thermon Group Holdings, Inc. (NYSE:THR) has reported its consolidated financial results for the fourth quarter of fiscal year 2024, showing significant growth and achievement. In the fourth quarter of 2024, Thermon produced record revenue of $127.7 million, marking a 4% increase from the same period in 2023. The net income also saw a substantial increase of 31%, reaching $10.1 million. However, the adjusted EBITDA experienced a slight decline of 6% to $23.6 million, attributed to planned investments to support the long-term strategy.

For the entire fiscal year 2024, Thermon reported record revenue of $494.6 million, a 12% increase from the previous year, with net income growing by 53% to $51.6 million. The company also achieved a significant milestone by increasing revenue from non-oil and gas end markets to comprise 68% of the total revenue, positioning itself closer to the 70% revenue diversification target two years ahead of schedule.

The company's gross profit for the fiscal year amounted to $211.6 million, representing a 14% increase, and the gross margin expanded by approximately 80 basis points to 42.8%. Bookings for the fiscal year reached $472.1 million, indicating a 3% increase from the previous year.

Thermon's fourth quarter results also reflected the impact of its recent acquisition of Vapor Power, with sales attributable to the acquisition amounting to $10.9 million. Excluding the contribution from Vapor Power, organic sales in the fourth quarter decreased by 5%, driven by a slowdown in oil and gas end markets, partially offset by growth in diversified end markets and investments in decarbonization and electrification projects.

The company's balance sheet remained strong and flexible, with available liquidity at the end of the quarter totaling $141.3 million. The net debt-to-adjusted EBITDA ratio increased to 1.2x from 0.8x in the prior year period, driven by the acquisition of Vapor Power.

Looking ahead to fiscal 2025, Thermon expects revenue to be in the range of approximately $527 million to $553 million, representing a year-over-year growth of 9% at the midpoint. The adjusted EBITDA for fiscal 2025 is anticipated to be approximately $112 million to $120 million, reflecting an 11% growth at the midpoint of the range.

Thermon's successful execution of its strategy and the achievement of record results in fiscal 2024 position the company for continued growth and value creation for its shareholders in the coming year.

For more details, the company's senior management team will be discussing the results during a conference call, which will also be webcast and accessible on Thermon's investor relations website.

Thermon Group Holdings, Inc., headquartered in Austin, Texas, is a global leader in industrial process heating solutions, providing safe, reliable, and mission-critical industrial process heating solutions.

The market has reacted to these announcements by moving the company's shares -2.4% to a price of $34.05. For more information, read the company's full 8-K submission here.

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