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Sep 30, 2024

Thermon Q2 2025 Earnings Report

Reported a revenue decline of 7.4% due to headwinds in large project revenue, but was partially offset by the Vapor Power acquisition. Adjusted EBITDA margin was 20.8% and net income was $9.5 million.

Key Takeaways

Thermon reported second quarter fiscal year 2025 results with a revenue of $114.6 million and net income of $9.5 million, or $0.28 earnings per diluted share (EPS). The company's new orders increased by 12.6% to $131.1 million, resulting in a book-to-bill ratio of 1.14x. The company is lowering its 2025 revenue guidance to a range of $495 million to $515 million, but expects 2025 Adjusted EBITDA in a range of $105 million to $110 million and Adjusted EPS in a range of $1.77 to $1.89.

Revenue decreased by 7.4% to $114.6 million.

Net income decreased by 35.4% to $9.5 million, or $0.28 EPS.

New orders increased by 12.6% to $131.1 million, with a book-to-bill ratio of 1.14x.

The company is lowering its 2025 revenue guidance to a range of $495 million to $515 million.

Total Revenue
$115M
Previous year: $124M
-7.3%
EPS
$0.38
Previous year: $0.49
-22.4%
Book-to-bill Ratio
1.14
Previous year: 0.94
+21.3%
Net Leverage Ratio
1.3
Gross Profit
$50.9M
Previous year: $54.5M
-6.5%
Cash and Equivalents
$37M
Previous year: $30.5M
+21.3%
Free Cash Flow
$6.7M
Previous year: $600K
+1016.7%
Total Assets
$762M
Previous year: $664M
+14.7%

Thermon

Thermon

Forward Guidance

The company is lowering its 2025 revenue guidance to a range of $495 million to $515 million, which includes contribution from recent acquisitions. However, given strong execution and strict financial discipline, the company expects 2025 Adjusted EBITDA in a range of $105 million to $110 million and Adjusted EPS in a range of $1.77 to $1.89.