Thermon Group Holdings (THR) AI Stock Analysis

• Market Cap: $906.31M
• Dividend Yield: N/A
• Average Volume (3M): 248.29K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.26
• Revenue Growth: -2.16%
• EPS Growth: 9.41%
• Country: US
• Employees: 1,416
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 33,065,020
• 10 Day Avg. Volume: 263,108
• 30 Day Avg. Volume: 248,288
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 10.28
• 1Y Price Target: $31.50
• Price Target Upside: 14.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: $30.00 ▲(9.45% Upside)

Thermon Group Holdings' overall score reflects strong profitability and strategic positioning, offset by challenges in revenue growth and cash flow. Technical indicators suggest cautious sentiment, while valuation remains reasonable. Earnings call insights highlight both resilience and operational challenges.

Positive Factors

Strong Gross Margin Performance

The improvement in gross margin reflects Thermon's strategic shift towards higher-margin revenues and effective cost management, enhancing long-term profitability.

Increased Backlog and Bid Pipeline

The significant increase in backlog and bid pipeline indicates strong future demand and potential revenue growth, supporting Thermon's market position.

Successful Launch of New Products

The launch of new products in the growing data center market positions Thermon to capture emerging opportunities, driving long-term growth.

Negative Factors

Revenue Decline and Backlog Conversion Delays

The decline in revenue and backlog conversion delays can hinder Thermon's ability to meet financial targets and affect cash flow stability.

Challenges in APAC Region

The decline in APAC revenue due to softer demand and tariff uncertainties poses a risk to Thermon's geographic diversification and revenue stability.

Decreased Adjusted EBITDA

The decrease in adjusted EBITDA reflects challenges in maintaining profitability amid revenue declines and growth investments, impacting financial health.

Thermon Group Holdings Business Overview & Revenue Model

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.

How the Company Makes Money

Thermon generates revenue primarily through the sale of its heating solutions, which include electric heat tracing systems and components. The company also earns money from providing installation, maintenance, and engineering services related to its products. Key revenue streams include direct sales to large industrial clients, long-term service agreements, and recurring revenue from maintenance contracts. Additionally, Thermon often collaborates with major engineering and construction firms for large-scale projects, which enhances its market reach and drives further sales. The growth in the oil and gas sector, along with increasing demand for energy-efficient heating solutions across industries, significantly contributes to Thermon's earnings.

Thermon Group Holdings Financial Statement Overview

Summary

Thermon Group Holdings demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow management. Despite an increase in liabilities, the improved debt-to-equity ratio and strong equity growth mitigate potential risks.

Income Statement

Thermon Group Holdings exhibits strong revenue growth with a notable increase in total revenue from $276.2M in 2021 to $498.2M in 2025. Gross profit margins remain consistently healthy, averaging around 45%. The EBIT and EBITDA margins have shown steady improvement, reflecting enhanced operational efficiency. The net profit margin has also improved, demonstrating effective cost management. Overall, the income statement portrays a solid growth trajectory with robust profitability metrics.

Balance Sheet

The company's balance sheet indicates a stable financial position with a consistent increase in stockholders' equity, growing from $346.4M in 2020 to $495.3M in 2025. The debt-to-equity ratio has improved over time, suggesting a reduction in leverage risk. The equity ratio has remained robust, indicating a strong capital structure. However, the total liabilities have increased, which should be monitored for potential risks. Overall, the balance sheet is solid with a positive trend in equity growth and manageable leverage.

Cash Flow

Thermon Group Holdings has demonstrated strong cash flow management, with free cash flow consistently positive and growing from $22.1M in 2021 to $52.9M in 2025. The operating cash flow to net income ratio indicates effective conversion of earnings to cash. The free cash flow to net income ratio also reflects a strong cash generation capability. Despite some fluctuations in capital expenditures, the company's cash flow position remains healthy and supports ongoing operational and investment needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	491.98M	498.21M	494.63M	440.59M	355.67M	276.18M
Gross Profit	220.51M	222.90M	211.56M	185.13M	140.12M	117.24M
EBITDA	101.97M	102.78M	95.36M	74.33M	54.45M	30.26M
Net Income	53.59M	53.52M	51.59M	33.67M	20.09M	877.00K
Balance Sheet
Total Assets	765.34M	755.45M	767.74M	649.63M	636.67M	617.88M
Cash, Cash Equivalents and Short-Term Investments	36.53M	39.54M	48.63M	35.63M	41.45M	40.12M
Total Debt	151.45M	151.69M	187.49M	128.28M	141.64M	161.40M
Total Liabilities	256.03M	260.14M	292.85M	230.64M	237.47M	239.01M
Stockholders Equity	509.31M	495.31M	474.89M	418.99M	399.20M	379.16M
Cash Flow
Free Cash Flow	52.45M	52.87M	54.94M	48.26M	23.53M	22.16M
Operating Cash Flow	61.20M	63.12M	65.95M	57.71M	28.75M	30.29M
Investing Cash Flow	-13.42M	-14.97M	-109.52M	-44.55M	-4.53M	-7.83M
Financing Cash Flow	-61.06M	-56.42M	56.53M	-13.46M	-22.66M	-28.20M

Thermon Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THR, the sentiment is Positive. The current price of 27.41 is above the 20-day moving average (MA) of 26.12, above the 50-day MA of 26.63, and below the 200-day MA of 27.94, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 83.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THR.

Thermon Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLIO	73 Outperform	1.80B	53.06	3.83%	0.66%	-5.41%	17.47%
THR	70 Outperform	$906.31M	17.36	10.88%	―	-2.16%	9.41%
GRC	69 Neutral	1.18B	22.57	13.03%	1.65%	2.60%	51.33%
TNC	64 Neutral	1.49B	25.70	9.31%	1.46%	-0.38%	-44.93%
HI	56 Neutral	1.74B	-96.85	-1.19%	3.66%	-7.93%	91.44%
NNE	35 Underperform	1.93B	-49.14	0.00%	―	0.00%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Thermon Group Holdings Corporate Events

Thermon Group Reports Q1 Fiscal 2026 Revenue Decline

On August 7, 2025, Thermon Group Holdings announced its first-quarter fiscal 2026 results, reporting a revenue decline of 5.4% to $108.9 million compared to the previous year. Despite challenges such as delayed backlog conversion and market uncertainty due to tariffs, the company remains optimistic about its long-term growth prospects, driven by strong backlog growth, strategic margin improvements, and favorable demand trends in key markets.

The most recent analyst rating on (THR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.

Thermon Group Re-elects Directors and Ratifies KPMG

During the 2025 annual meeting held on July 28, Thermon Group Holdings announced the re-election of several directors, including John Clarke, Linda Dalgetty, and others, with varying levels of support. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified, and the compensation of the company’s named executive officers was approved on a non-binding advisory basis.

The most recent analyst rating on (THR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.