Thermon Q4 2025 Earnings Report
Key Takeaways
Thermon achieved record revenue and Adjusted EBITDA in fiscal 2025, driven by strong fourth-quarter results with increased revenue, gross profit, and net income. The company saw significant order momentum and ended the year with a higher backlog, positioning it well for fiscal 2026 despite macroeconomic uncertainties.
Fourth-quarter revenue increased by 5% to $134.1 million.
Gross profit rose by 13% to $59.4 million in the fourth quarter, with a gross margin of 44.3%.
Net income for the quarter increased by 68% to $17.0 million, resulting in $0.50 EPS.
New orders in the fourth quarter were up 19% at $138.8 million, leading to a book-to-bill ratio of 1.04x and a 29% higher backlog compared to the prior year.
Thermon
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Thermon Revenue by Segment
Forward Guidance
For fiscal year 2026, Thermon is providing guidance with expected revenue between $495 million and $535 million and Adjusted EBITDA between $104 million and $114 million, reflecting a broad range of potential outcomes due to macroeconomic uncertainty.
Positive Outlook
- Entering fiscal 2026 with bookings momentum.
- Strong backlog provides a solid foundation.
- Favorable trends in several key growth verticals identified.
- Lean and efficient operating platform in place.
- Well positioned for long-term success with current strategy.
Challenges Ahead
- Broader macroeconomic backdrop remains uncertain.
- Volatile trade environment creates uncertainty.
- Predicting the outcome of tariff and trade situation is challenging.
- Potential impact on input costs from tariffs and trade situation.
- Potential impact on demand from tariffs and trade situation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income