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Dec 31, 2022

Thermon Q3 2023 Earnings Report

Reported a strong third quarter with revenue up 21% and raised full year guidance.

Key Takeaways

Thermon reported a strong Q3 2023 with revenue up 21% driven by sales growth in the US, Canada and Latin America. Record non-GAAP adjusted EPS increased by 41% due to margin improvement and cost control. The company raised its full year guidance due to continued strong market demand.

Revenue increased by 21% driven by sales growth in the US, Canada and Latin America.

Record non-GAAP adjusted EPS increased by 41% due to margin improvement and cost control.

Adjusted EBITDA increased by 45% driven by volume growth and prudent cost management.

Bookings increased by 40%, the highest quarterly bookings since IPO.

Total Revenue
$122M
Previous year: $101M
+21.4%
EPS
$0.52
Previous year: $0.37
+40.5%
Backlog
$165M
Adjusted EBITDA
$29.8M
Working Capital
$154M
Gross Profit
$50.5M
Previous year: $40.7M
+23.8%
Cash and Equivalents
$35.4M
Previous year: $32.6M
+8.7%
Free Cash Flow
$17.6M
Previous year: $2.43M
+624.3%
Total Assets
$650M
Previous year: $626M
+3.8%

Thermon

Thermon

Forward Guidance

For the fiscal year ending March 31, 2023, Thermon expects revenue will be approximately $429-$437 million and GAAP EPS to be approximately $1.11-$1.15 per share, with Adjusted EPS to be approximately $1.55-$1.59 per share.

Positive Outlook

  • Continued strength in the Western Hemisphere
  • Operational excellence program
  • Disciplined capital allocation priorities
  • Solid cash flow
  • Profitable growth throughout the remainder of Fiscal 2023

Challenges Ahead

  • Contraction in Europe
  • Potential impact to the Russia Exit at closing
  • Geopolitical events
  • Higher energy costs
  • Uncertainty related to the Russia Exit