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Sep 30
Thermon Q2 2026 Earnings Report
Thermon reported strong second quarter fiscal 2026 results, exceeding expectations with significant revenue and profitability growth, driven by strategic execution and an improved business environment.
Key Takeaways
Thermon delivered exceptional second quarter fiscal 2026 results, with revenue increasing by 14.9% to $131.7 million and Adjusted EBITDA rising by 28.6% to $30.6 million. The company's gross margin expanded to 46.4%, and diluted EPS grew by 60.7% to $0.45. This strong performance led to a raised full-year guidance, reflecting effective strategy, business model resilience, and operational execution.
Revenue increased by 14.9% year-over-year to $131.7 million, driven by improved spending trends and positive momentum from the F.A.T.I. acquisition.
Gross profit rose by 20.0% to $61.1 million, with gross margin expanding to 46.4% due to strong revenue growth, efficient execution, and tariff mitigation.
Adjusted EBITDA increased by 28.6% to $30.6 million, resulting in an Adjusted EBITDA margin of 23.2%, a 240 basis point improvement from the prior year.
Diluted EPS grew by 60.7% to $0.45, and Adjusted EPS increased by 44.7% to $0.55, reflecting strong profitability and effective cost management.
Thermon
Thermon
Thermon Revenue by Segment
Revenue by Segment
OPEX Sales Revenue
CapyFin.comCAPEX Sales Revenue
CapyFin.com Forward Guidance
Thermon is raising its full-year Fiscal 2026 guidance, anticipating revenue between $506 million and $527 million, Adjusted EBITDA between $112 million and $119 million, GAAP EPS between $1.62 and $1.77, and Adjusted EPS between $2.00 and $2.15, driven by strong backlog and strategic initiatives.
Positive Outlook
- Full-year Fiscal 2026 revenue guidance raised to $506 million to $527 million.
- Adjusted EBITDA guidance raised to $112 million to $119 million.
- GAAP EPS guidance raised to $1.62 to $1.77 per share.
- Adjusted EPS guidance raised to $2.00 to $2.15 per share.
- Strong visibility into the second half of the fiscal year due to 17% year-over-year backlog growth and ramping large projects.
Challenges Ahead
- The broader macroeconomic environment remains dynamic, posing potential uncertainties.
- Timing variability in project awards could impact order activity.
- The company's ability to mitigate tariffs and execute margin improvement initiatives is crucial for achieving guidance.
- Achieving the higher end of the guidance depends on continued strong execution and favorable market conditions.
- Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income