Thermon Group Holdings (THR) AI Stock Analysis

• Market Cap: $879.53M
• Dividend Yield: N/A
• Average Volume (3M): 184.42K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.28
• Revenue Growth: -2.16%
• EPS Growth: 9.41%
• Country: US
• Employees: 1,416
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 33,065,020
• 10 Day Avg. Volume: 199,728
• 30 Day Avg. Volume: 184,422
• 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: 1.19
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 10.28
• 1Y Price Target: $30.00
• Price Target Upside: 13.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $27.00 ▲(2.00% Upside)

Thermon Group Holdings shows strong profitability and operational efficiency, but faces challenges in revenue growth and cash flow generation. The technical indicators suggest a bearish trend, and while the valuation is reasonable, the lack of a dividend yield limits its appeal. The earnings call presents a mixed outlook with strategic initiatives offset by immediate challenges.

Positive Factors

Backlog and Orders

Backlog increased 29% and orders increased 14%, indicating positive momentum.

Industry Activity

Management is seeing increased activity in LNG, electric boilers, and the data center industry.

Negative Factors

Large-Project Revenue

Large-project revenue remained muted, down 5% year-over-year.

Revenue Performance

First-quarter revenue of $109 million was down 11% organically year-over-year and below the consensus estimate of $123 million.

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: Neutral
• Last Price: 26.47
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 26.47 is above the 20-day moving average (MA) of 26.09, below the 50-day MA of 27.25, and below the 200-day MA of 28.29, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	51.72	3.93%	0.66%	-5.41%	17.47%
TNC	70 Neutral	$1.53B	25.84	9.51%	1.42%	-0.38%	-44.93%
GRC	69 Neutral	$1.14B	22.01	13.70%	1.73%	2.60%	51.33%
Sector *	65 Neutral	$2.63B	16.52	15.18%	3.64%	2.55%	45.29%
THR	63 Neutral	$879.53M	17.01	10.88%	―	-2.16%	9.41%
HI	55 Neutral	$1.76B	―	-1.50%	3.47%	-7.93%	91.44%
NNE	35 Underperform	$1.34B	―	-28.84%	―	―	―

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.

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.

Thermon Group Holdings Amends Credit Agreement with JPMorgan

On July 24, 2025, Thermon Group Holdings, Inc. entered into a Second Amended and Restated Credit Agreement with several lenders and JPMorgan Chase Bank, N.A. This agreement, which amends a prior credit agreement from September 2021, includes a $115 million revolving credit facility and a $125 million term loan facility, both secured and set to mature on July 24, 2030. The facilities will be used for refinancing existing debt and general corporate purposes. The agreement includes financial covenants, security interests, and guarantees by various subsidiaries, enhancing the company’s financial flexibility and operational capabilities.

Thermon Group Appoints New COO to Drive Growth

On July 1, 2025, Thermon Group Holdings announced the appointment of Thomas Cerovski as Senior Vice President and Chief Operating Officer. Cerovski, who has been with Thermon since 2019, will focus on executing the company’s strategic pillars to drive growth in decarbonization, digitization, and diversification. His extensive experience in the energy and industrial sectors positions him to lead Thermon in its next phase of growth, aiming to enhance shareholder value and expand the company’s installed base for recurring revenue.

Thermon Group Reports Strong Fiscal 2025 Results

On May 22, 2025, Thermon Group Holdings announced its fourth-quarter and full-year fiscal 2025 results, reporting significant financial growth. The company achieved a 5% increase in fourth-quarter revenue and a 68% rise in net income, reflecting strong performance and strategic acquisitions. Throughout fiscal 2025, Thermon successfully integrated acquisitions, expanded its market presence, and maintained a robust financial position, with a focus on decarbonization, digitization, and diversification strategies. The company enters fiscal 2026 with strong bookings momentum and a solid backlog, despite macroeconomic uncertainties.