Thermon Group Holdings Reports Strong Fiscal 2025 Growth

By Hao Liu • Thursday, May 22 15:21 • Permanent Link

Thermon Group Holdings, Inc. has reported its fourth quarter and full-year fiscal 2025 results, demonstrating solid growth and performance. In the fourth quarter of fiscal 2025, the company achieved a revenue of $134.1 million, representing a 5% increase from the prior year period. The gross profit for the quarter was $59.4 million, marking a 13% increase, with a gross margin of 44.3%. Net income for the quarter was $17.0 million, a substantial 68% increase from the previous year, equivalent to $0.50 earnings per share (EPS).

For the full fiscal year 2025, Thermon reported a revenue of $498.2 million, a 1% increase from the prior year. The gross profit for the full year was $222.9 million, showing a 5% increase, with a gross margin of 44.7%. The net income for the full year was $53.5 million, a 4% increase from the prior year, translating to $1.57 EPS.

Adjusted net income (non-GAAP) for the full fiscal year 2025 was $63.8 million, a 3% increase, with $1.87 adjusted EPS (non-GAAP). The company also reported adjusted EBITDA (non-GAAP) of $109.2 million for the full year, signifying a 5% increase, with an adjusted EBITDA margin (non-GAAP) of 21.9%.

Thermon's management highlighted its successful integration of acquisitions, strong performance despite market challenges, and a return to organic growth. The company's strategic priorities for fiscal 2026 include continuing its growth strategy, expanding into emerging markets, and maintaining prudent capital allocation.

The company's balance sheet, liquidity, and cash flow also demonstrated strength, with a net leverage ratio of 0.9x, ample financial flexibility, and a strong free cash flow generation. Additionally, the company repurchased $20 million in common shares during the fiscal year 2025.

Looking ahead to fiscal 2026, Thermon provided financial guidance, with revenue expected in the range of $495 million to $535 million and adjusted EBITDA in the range of $104 million to $114 million.

Following these announcements, the company's shares moved 0.21%, and are now trading at a price of $29.18. For the full picture, make sure to review Thermon's 8-K report.

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