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Jun 30, 2024

Thermon Q1 2025 Earnings Report

Thermon's financial performance was marked by revenue growth and strategic progress.

Key Takeaways

Thermon reported a 7.7% increase in revenue to $115.1 million and an adjusted EBITDA increase of 5.0% to $23.2 million. The company benefited from its diversified end markets and the acquisition of Vapor Power, while also focusing on operational excellence and disciplined capital allocation.

Revenue increased by 7.7% to $115.1 million, driven by Vapor Power acquisition and growth in OPEX revenue.

Adjusted EBITDA increased by 5.0% to $23.2 million, supported by contributions from Vapor Power.

New orders increased by 11.5% to $127.2 million, resulting in a book-to-bill ratio of 1.1x.

Free cash flow was $8.8 million, an improvement of $10.7 million year-over-year, due to disciplined capital efficiency.

Total Revenue
$115M
Previous year: $107M
+7.7%
EPS
$0.38
Previous year: $0.4
-5.0%
Gross Margin
43.8%
Book-to-bill Ratio
1.1
Previous year: 1.12
-1.8%
Adjusted EBITDA Margin
20.2%
Gross Profit
$50.4M
Previous year: $47.3M
+6.5%
Cash and Equivalents
$49.1M
Previous year: $33.2M
+48.0%
Free Cash Flow
$8.8M
Previous year: -$1.92M
-558.1%
Total Assets
$757M
Previous year: $657M
+15.2%

Thermon

Thermon

Forward Guidance

Thermon reiterated its full-year Fiscal 2025 financial guidance, expecting improved momentum in the second half of the fiscal year.

Positive Outlook

  • Expect improved momentum in the second half of the fiscal year.
  • Benefit from balanced revenue model.
  • Continue to build market-leading positions across legacy and growth-centric end-markets.
  • Realize improved operational efficiencies.
  • Realize benefits of scale.

Challenges Ahead

  • Customer spending on large projects remains uneven over the near-term.