Thermon Q3 revenue up 9.6%, beats estimates

Overview

• Industrial process heating firm's Q3 revenue grew 9.6%, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company raised full-year fiscal 2026 guidance citing strong bookings momentum

Outlook

• Thermon raises full-year fiscal 2026 revenue guidance to $516-$526 mln

• Company expects full-year adjusted EBITDA of $114-$120 mln

• Thermon anticipates full-year adjusted EPS of $2.05-$2.19

Result Drivers

• LARGE PROJECTS - Revenue growth driven by increased large project activity, especially in Europe, related to electrification and decarbonization initiatives

• DIVERSIFICATION STRATEGY - Growth supported by diversification initiatives focusing on decarbonization, digitization, and diversification across key markets

• NEW PRODUCT DEVELOPMENT - Successful development and shipment of liquid load bank testing solutions within six months, demonstrating agility

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $54.00, about 16.9% above its February 4 closing price of $46.19

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nACS6HZP1a

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