Thermon (THR)
NYSE:THR
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Thermon Group Holdings
(NYSE:THR)
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Rating:68Neutral
Price Target:
$67.00
▲(23.46% Upside)
Action:Downgraded
Date:05/30/26
The score is supported most by solid underlying profitability and balance sheet strength, plus a constructive earnings call with raised guidance and improving orders/backlog. It is held back by expensive valuation (high P/E), weakened recent free-cash-flow momentum, and only mixed near-term technical signals (below the 20-day average with neutral RSI/Stoch).
Positive Factors
High Margins & Profitability
Sustained high gross and EBITDA margins indicate strong pricing power and engineering-led differentiation. Margin durability supports reinvestment in R&D, capacity expansion and cushions earnings versus project timing volatility, underpinning multi‑year cash generation potential.
Negative Factors
Slowing Revenue Growth
Deceleration in top-line growth reduces the margin of error for executing expansion initiatives and increases reliance on new product commercialization or M&A to restore historical growth rates, lengthening the time to achieve higher operational leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
High Margins & Profitability
Sustained high gross and EBITDA margins indicate strong pricing power and engineering-led differentiation. Margin durability supports reinvestment in R&D, capacity expansion and cushions earnings versus project timing volatility, underpinning multi‑year cash generation potential.
Read all positive factors
Thermon Group Holdings Key Performance Indicators (KPIs)
Thermon Group Holdings (THR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend YieldN/A
Average Volume (3M)741.36K
Price to Earnings (P/E)45.1
Beta (1Y)1.01
Revenue Growth7.64%
EPS Growth-14.82%
CountryUS
Employees1,416
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.35
Shares Outstanding32,939,693
10 Day Avg. Volume858,210
30 Day Avg. Volume741,355
Financial Highlights & Ratios
PEG Ratio-2.46
Price to Book (P/B)3.07
Price to Sales (P/S)3.09
P/FCF Ratio50.39
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue3.95
Enterprise Value/Gross Profit8.72
Enterprise Value/Ebitda23.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.26
Revenue Forecast (FY)$557.05M
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, controlli...
How the Company Makes Money
Thermon makes money by selling engineered heat-tracing and temperature-maintenance solutions and the associated lifecycle services required to design, install, operate, and maintain those systems in industrial facilities.
Key revenue streams typi...
Thermon Group Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
Overall the call was decidedly positive: management reported record revenue, profitability, orders and bookings, raised FY2026 guidance, and highlighted strong balance sheet and several high-potential organic growth initiatives (liquid load banks, medium voltage heaters, LNG/midstream opportunities). Key risks discussed include protracted large project conversion timelines (shifting some revenue into FY2027), early-stage commercialization risk for new product lines (medium voltage heaters backlog remains small vs pipeline), increased near-term investments and normal seasonal margin variability. On balance, highlights and material financial improvements outweigh the noted execution timing and early-stage risks.Positive Updates
Record Company Results & Raised Guidance
Company reported record revenue, profitability, and bookings for Q3 and raised full-year FY2026 guidance: revenue guidance $516M–$526M (≈5% growth at midpoint) and adjusted EBITDA guidance $114M–$120M (≈7% growth at midpoint).
Negative Updates
Protracted Large Project Conversion Timelines
Management noted many large project orders have longer execution timelines and are expected to convert more meaningfully in FY2027, creating timing risk for revenue recognition in the near term.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Company Results & Raised Guidance
Company reported record revenue, profitability, and bookings for Q3 and raised full-year FY2026 guidance: revenue guidance $516M–$526M (≈5% growth at midpoint) and adjusted EBITDA guidance $114M–$120M (≈7% growth at midpoint).
Read all positive updates
Company Guidance
Management raised fiscal 2026 guidance to revenue of $516–$526 million (midpoint $521M, about 5% growth at the midpoint) and adjusted EBITDA of $114–$120 million (midpoint $117M, ~7% growth at the midpoint), which implies an adjusted EBITDA margin near 22.5% at the midpoint; the outlook assumes current tariff structures remain in place and that the recent improvement in bookings and pipeline is sustained. The raise was driven by strong Q3 operating results and order trends — Q3 revenue was $147.3M (up 10% YoY), Q3 orders were $158.2M (up 14% YoY) with a book‑to‑bill of ~1.1x, backlog up 10%, Q3 adjusted EBITDA of $35.66M (up 12%) and a Q3 adjusted EBITDA margin of 24.2% (TTM margin nearly 23%) — and management noted ample liquidity (~$141M) and a net leverage ratio of 0.8x to support execution.Thermon Group Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 536.26M | 498.21M | 494.63M | 440.59M | 355.67M |
| Gross Profit | 243.06M | 222.90M | 211.56M | 185.13M | 140.12M |
| EBITDA | 89.74M | 102.78M | 95.36M | 74.33M | 54.45M |
| Net Income | 44.57M | 53.52M | 51.59M | 33.67M | 20.09M |
Balance Sheet | |||||
| Total Assets | 830.58M | 755.45M | 767.74M | 649.63M | 636.67M |
| Cash, Cash Equivalents and Short-Term Investments | 52.27M | 39.54M | 48.63M | 35.63M | 41.45M |
| Total Debt | 157.87M | 151.69M | 187.49M | 128.28M | 141.64M |
| Total Liabilities | 291.87M | 260.14M | 292.85M | 230.64M | 237.47M |
| Stockholders Equity | 538.71M | 495.31M | 474.89M | 418.99M | 399.20M |
Cash Flow | |||||
| Free Cash Flow | 32.86M | 52.87M | 54.94M | 48.26M | 23.53M |
| Operating Cash Flow | 46.80M | 63.12M | 65.95M | 57.71M | 28.75M |
| Investing Cash Flow | -13.08M | -14.97M | -109.52M | -44.55M | -4.53M |
| Financing Cash Flow | -17.32M | -56.42M | 56.53M | -13.46M | -22.66M |
Thermon Group Holdings Technical Analysis
Neutral
54.27
Price Trends
58.10
Positive
52.22
Positive
41.44
Positive
Market Momentum
2.21
Positive
46.32
Neutral
47.46
Neutral
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 54.27 is below the 20-day moving average (MA) of 65.79, below the 50-day MA of 58.10, and above the 200-day MA of 41.44, indicating a neutral trend. The MACD of 2.21 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THR.
Thermon Group Holdings Risk Analysis
Thermon Group Holdings disclosed 34 risk factors in its most recent earnings report. Thermon Group Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Thermon Group Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.98B | 33.61 | 14.30% | 1.49% | 4.62% | 31.96% | |
74 Outperform | $1.17B | 73.72 | 11.90% | ― | 19.01% | 61.65% | |
69 Neutral | $3.36B | 33.72 | 13.78% | 0.57% | 18.33% | 61.06% | |
68 Neutral | $2.01B | 45.09 | 8.48% | ― | 7.64% | -14.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $1.47B | 48.93 | 5.10% | 1.59% | -4.29% | -54.01% |
* Industrials Sector Average
THR
Thermon Group Holdings
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136.34%
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TNC
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Thermon Group Holdings Corporate Events
M&A TransactionsShareholder Meetings
Thermon Stockholders Approve Merger with CECO Environmental
Positive
May 28, 2026
On May 27, 2026, Thermon stockholders approved a merger agreement under which Thermon will become a wholly owned subsidiary of CECO Environmental Corp., with each Thermon share converted into either cash, CECO stock, or a mix of both, depending on...
Business Operations and StrategyFinancial Disclosures
Thermon Group Expands AI Data Center Load Bank Business
Positive
Apr 20, 2026
On April 20, 2026, Thermon Group Holdings reported surging demand for its liquid load bank solutions for liquid‑cooled data centers, driven by accelerating investment in artificial intelligence infrastructure. The company has entered the mar...
Business Operations and StrategyRegulatory Filings and Compliance
Thermon Group Updates Investor Presentation and Strategy Overview
Neutral
Mar 23, 2026
On March 23, 2026, Thermon Group Holdings, Inc. posted an updated investor presentation titled “THR Investor Presentation (Mar 2026)” on its investor relations website, providing shareholders and analysts with refreshed materials on th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.