Thermon Q1 revenue down 5.4%, misses estimates

Overview

• Thermon fiscal Q1 revenue declines 5.4% yr/yr, missing analysts' expectations

• Adjusted EBITDA of $21.2 mln misses analysts' estimates, per LSEG data

• Co repurchased $9.8 mln in shares

Outlook

• Thermon reiterates full-year 2026 revenue guidance of $495 mln to $535 mln

• Company maintains full-year 2026 EPS guidance of $1.35 to $1.57

• Thermon sees adjusted EBITDA for fiscal 2026 at $104 mln to $114 mln

• Company cites secular demand trends as positive drivers for future growth

Result Drivers

• BACKLOG CONVERSION DELAY - $10 mln revenue delayed due to supply chain issues and production delays, per CEO Bruce Thames

• TARIFF IMPACT - Tariff-related market uncertainty contributed to reduced customer demand and lower revenue

• BOOKINGS RECOVERY - Decline in orders in late April due to trade uncertainty, but recovery seen by end of July

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Thermon Group Holdings Inc is $36.00, about 21.6% above its August 6 closing price of $28.23

Press Release: ID:nACS26Zlfa