Thermon Group reports Q1 adjusted EPS 36c, consensus 36c

Reports revenue $108.9M, consensus $122.53M. “First quarter backlog conversion fell short of our expectations delaying roughly $10 million in revenue in the quarter; however, the actions we have taken to address these issues will enable these revenues to be recognized in the coming quarters, as evidenced by our solid backlog growth,” stated Bruce Thames, President and CEO of Thermon. “On a more positive note, our teams successfully executed our plan to mitigate the impact of tariffs in the first quarter, which combined with our strategic margin improvement initiatives, resulted in gross margin increasing 30 basis points over the prior year. While the landscape is everchanging, we remain confident in our team’s ability to successfully mitigate the cost headwinds created by the tariffs and continue executing on our Thermon business systems initiatives, keeping us on track to achieve our long-term profitability targets. The broader macroeconomic environment remains difficult to predict given the trade uncertainty, and as we expected, we saw a decline in incoming orders in late April that negatively impacted our organic bookings in the quarter. However, we began to see a recovery in our bookings cadence as we moved through the quarter and continued to build through the end of July. Importantly, we remain well positioned to benefit from several favorable secular demand trends driven by our decarbonization, digitization, and diversification growth strategy, as evidenced by our total bid pipeline which was up 43% at quarter end driven by strong demand in several key end markets, including chemical/petrochemical, power/nuclear, LNG, and renewables. Based on these favorable long-term demand drivers, combined with our strong backlog growth in the quarter, efficient margin execution, and bookings rebound, we remain confident in our outlook and are reiterating our full year fiscal 2026 guidance.”