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Dec 31, 2023
Thermon Q3 2024 Earnings Report
Thermon reported record revenue, net income, and EPS growth with strategic capital deployment.
Key Takeaways
Thermon reported a strong Q3 2024 with a 12% increase in revenue to $136.4 million and an 88% increase in net income to $15.8 million. EPS increased by 86% to $0.46, and non-GAAP adjusted EPS increased by 13% to $0.59. The company closed the acquisition of Vapor Power and raised its full-year Fiscal 2024 revenue and EPS guidance.
Record revenue of $136.4 million, a 12% increase year-over-year, driven by growth in US-LAM, Europe, and Asia Pacific.
GAAP EPS increased by 86% to $0.46 and record non-GAAP adjusted EPS of $0.59, a 13% increase.
Net income increased by 88% to $15.8 million, and Adjusted EBITDA increased by 3% to $30.7 million.
Bookings were $124.4 million, a 1% contraction, with a book-to-bill ratio of 0.91x.
Thermon
Thermon
Forward Guidance
Thermon is raising its full-year Fiscal 2024 revenue guidance to approximately $490 - $500 million and adjusting full-year Fiscal 2024 GAAP EPS guidance to approximately $1.42 - $1.50 per share, with Adjusted EPS of approximately $1.76 - $1.84 per share.
Positive Outlook
- Full-year Fiscal 2024 revenue guidance raised to approximately $490 - $500 million.
- Full-year Fiscal 2024 GAAP EPS guidance adjusted to approximately $1.42 - $1.50 per share.
- Adjusted EPS guidance of approximately $1.76 - $1.84 per share.
- Strategic acquisition of Vapor Power accelerates diversification and decarbonization efforts.
- Team continued to perform well in the third quarter of the fiscal year as we executed the strategy presented at our investor day in November.
Challenges Ahead
- Challenges in both mix and timing in the fourth quarter.
- Backlog, excluding the Vapor Power acquisition, was $158.8 million as of December 31, 2023, representing a $5.9 million decrease, or 4%, as compared to Q3 2023 backlog of $164.7 million.
- Orders in Q3 2024 were $124.4 million compared to $126.0 million in Q3 2023, a decrease of $1.6 million, or 1%.
- The net debt-to-Adjusted EBITDA ratio was 1.5x as compared to 1.1x in the prior year period, due to the financing of the Vapor Power acquisition
- Working capital increased by 23.7% to $190.3 million during Q3 2024.