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1. Company Snapshot

1.a. Company Description

Thermon Group Holdings, Inc.provides engineered industrial process heating solutions for process industries worldwide.Its products include electric heating products, such as air heaters and heating accessories, boilers and calorifiers, controlling and monitoring solutions, heat tracing systems, tank heating systems, thermostats, tubing bundles, and system accessories, as well as strip, tubular, immersion, and process heaters; and gas heating products, including enclosure and explosion proof gas catalytic heaters, gas fired blowers, and gas heating accessories that comprise regulators, valves, mounting brackets, and battery cables.


The company also offers specialty products, which include CEMS and analytical systems, commercial construction products and services, control panels, engineered products, compressed gas scrubbing systems, temporary power solutions, and snow clearing devices for rail track and switch equipment; and steam heating solutions comprising heat transfer compounds, steam heated bundles, steam supply and condensate return lines, steam tracing solutions, steam trace accessories, and tank heating products.In addition, it provides design engineering solutions that include design optimization studies, product selection assistance, and computer-generated drawing packages; energy audit services; procurement and project management services; procurement and project management services; turnkey construction installation; recurring facility assessment or audit; maintenance services; and technical support services.The company offers its solutions to chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, transportation, food and beverage, pharmaceutical, and mineral processing industries, as well as data centers, semiconductor facilities, and other markets through a network of sales and service professionals, and distributors.


Thermon Group Holdings, Inc.was founded in 1954 and is headquartered in Austin, Texas.

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1.b. Last Insights on THR

Thermon Group Holdings, Inc.'s recent performance was negatively impacted by a 5.4% decline in Q1 revenue, falling to $108.9 million. The company's quarterly earnings of $0.36 per share missed estimates, and adjusted EBITDA decreased by 8.6% to $21.2 million. Management cited delayed backlog conversion, which pushed back roughly $10 million in revenue, as a key challenge. Despite this, the company confirmed its full-year 2026 guidance and reported a solid backlog growth. Additionally, Thermon introduced new products, including Poseidon and Pontus Liquid Load Banks.

1.c. Company Highlights

2. Thermon Group's Q2 FY2026 Earnings: A Strong Performance

The Thermon Group's second-quarter fiscal 2026 results demonstrated exceptional performance, with revenues increasing 15% year-over-year to $131.7 million. The company's adjusted EBITDA margin was 23.2%, up from 20.8% last year, driven by a 29% increase in adjusted EBITDA to $30.6 million. Earnings per share (EPS) came in at $0.55, beating analyst estimates of $0.36. The strong financial performance was fueled by a 41% growth in large project revenue to $24.7 million, primarily driven by two significant North American LNG projects.

Publication Date: Nov -23

📋 Highlights
  • Revenue and EBITDA Growth:: Q2 revenue rose 15% YoY to $131.7M, adjusted EBITDA increased 29% to $30.6M.
  • Guidance Raise:: Full-year revenue guidance raised to $506–$527M (4% growth at midpoint), adjusted EBITDA guidance to $112–$119M (6% growth at midpoint).
  • Data Center Opportunity:: Secured first 20 Poseidon units order, $30M quote log in liquid load bank market (21% CAGR to $386M by 2032).
  • LNG Momentum:: Large project revenue up 41% YoY to $24.7M from LNG projects; LNG pipeline grew 140% YoY with 5 projects in total.
  • Digitization Growth:: 50% growth in digitization solutions to 58,000, driving win rates and expansion into 4 markets (industrial, commercial, rail, load banks).

Growth Drivers and Pipeline

The company's diversification strategy is paying off, with the data center market presenting a significant growth opportunity. Thermon secured its first order for 20 Poseidon liquid load bank units and has a quote log totaling roughly $30 million. The liquid load bank market is projected to grow at a 21% CAGR from $84 million in 2024 to $386 million by 2032. The LNG pipeline is up 140% year-over-year, indicating robust activity in the LNG market, with 5 projects in the pipeline, 2 of which have moved to execution.

Financial Guidance and Balance Sheet

The company raised its full-year 2026 financial guidance, with revenue expected to be in the range of $506 million to $527 million, representing 4% growth at the midpoint. Adjusted EBITDA guidance was raised to a range of $112 million to $119 million, representing 6% growth at the midpoint. Thermon ended the quarter with net debt of $110 million and a net leverage ratio of 1.0x, maintaining a strong balance sheet and ample financial flexibility to execute on its strategic priorities.

Valuation and Outlook

With a P/E Ratio of 18.91 and an EV/EBITDA ratio of 10.78, the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 3.9%. The company's strong balance sheet, diversified growth opportunities, and robust pipeline position it well for future growth. The digitization effort and new initiatives in data center and medium voltage markets are expected to contribute to future growth, with the company prioritizing organic growth initiatives while also considering inorganic growth opportunities.

3. NewsRoom

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Thermon Group (THR) Is Up 19.07% in One Week: What You Should Know

Nov -11

Source: zacks.com

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Thermon Group Holdings, Inc. (THR) Q2 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Thermon Group (THR) Q2 Earnings and Revenues Top Estimates

Nov -06

Source: zacks.com

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Thermon Reports Second Quarter Fiscal 2026 Results

Nov -06

Source: accessnewswire.com

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Thermon Schedules Second Quarter Fiscal 2026 Earnings Conference Call - November 6, 2025

Oct -30

Source: accessnewswire.com

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Thor Energy jumps on uranium waste deal

Oct -23

Source: proactiveinvestors.co.uk

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3 Instruments Stocks Set to Ride on Industrial Automation Thrust

Oct -07

Source: zacks.com

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Thor Energy shares rise on deal to sell Molyhil stake to Tivan

Sep -16

Source: proactiveinvestors.co.uk

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Highly Engineered Industrial Process Heating Solutions

Expected Growth: 10%

Thermon Group Holdings, Inc.'s highly engineered industrial process heating solutions drive 10% growth, fueled by increasing demand for energy efficiency, rising adoption of electrification in industrial processes, and growing need for reliable and precise temperature control in industries such as oil and gas, chemical processing, and power generation.

7. Detailed Products

Heat Tracing Solutions

Thermon's heat tracing solutions provide reliable and efficient heat management for various industrial processes, ensuring optimal temperature control and process optimization.

Thermal Insulation Solutions

Thermon's thermal insulation solutions provide high-performance insulation for pipes, tanks, and equipment, reducing heat loss and energy consumption.

Electrical Heat Tracing Systems

Thermon's electrical heat tracing systems provide reliable and efficient heat management for various industrial applications, ensuring optimal temperature control and process optimization.

Steam Tracing Solutions

Thermon's steam tracing solutions provide efficient and reliable heat management for various industrial processes, ensuring optimal temperature control and process optimization.

Temperature Measurement and Control Systems

Thermon's temperature measurement and control systems provide accurate and reliable temperature monitoring and control for various industrial applications.

8. Thermon Group Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Thermon Group Holdings, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative heating solutions.

Bargaining Power Of Customers

Thermon Group Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Thermon Group Holdings, Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the heat tracing and heating solutions market. New entrants would need to invest heavily in research and development, manufacturing, and marketing to compete with established players like Thermon Group Holdings, Inc.

Intensity Of Rivalry

The heat tracing and heating solutions market is highly competitive, with several established players competing for market share. Thermon Group Holdings, Inc. faces intense competition from companies like nVent Electric plc and Pentair plc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.93%
Debt Cost 3.95%
Equity Weight 73.07%
Equity Cost 9.74%
WACC 8.18%
Leverage 36.85%

11. Quality Control: Thermon Group Holdings, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graham

A-Score: 5.1/10

Value: 3.3

Growth: 7.9

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

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Enerpac Tool

A-Score: 5.1/10

Value: 4.5

Growth: 7.8

Quality: 6.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

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Thermon

A-Score: 4.6/10

Value: 5.2

Growth: 5.8

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Twin Disc

A-Score: 4.2/10

Value: 6.1

Growth: 4.8

Quality: 3.6

Yield: 1.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

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Hurco

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 3.4

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.12$

Current Price

39.12$

Potential

-0.00%

Expected Cash-Flows