Thermon Group Holdings Inc. (THR)
NYSE:THR
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Thermon Group Holdings
(NYSE:THR)
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Rating:82Outperform
Price Target:
$54.00
▼(-2.30% Downside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong financial quality (expanded margins, healthy cash generation, and very low leverage) and supportive technical momentum. Recent raised guidance and strong order/backlog trends further strengthen the outlook, while the main constraint is a relatively rich valuation (P/E ~28.9) alongside some execution/timing risks tied to large projects and newer product ramps.
Positive Factors
Margin Expansion & Profitability
Thermon has materially improved margins via pricing, Thermon business system productivity and operating leverage. Sustained gross margins in the mid-40s and higher adjusted EBITDA margins create durable earnings power that can fund investments and weather cyclical revenue swings.
Negative Factors
Slowing Revenue Growth
Top-line growth has slowed from prior multi-year expansion to near-flat year in FY2025. Over the next 2–6 months this increases reliance on margin expansion, aftermarket and new-product conversion to sustain earnings growth and raises sensitivity to execution slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Thermon has materially improved margins via pricing, Thermon business system productivity and operating leverage. Sustained gross margins in the mid-40s and higher adjusted EBITDA margins create durable earnings power that can fund investments and weather cyclical revenue swings.
Read all positive factors
Thermon Group Holdings (THR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend YieldN/A
Average Volume (3M)488.14K
Price to Earnings (P/E)16.6
Beta (1Y)1.08
Revenue Growth3.08%
EPS Growth35.81%
CountryUS
Employees1,416
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.66
Shares Outstanding32,866,352
10 Day Avg. Volume258,796
30 Day Avg. Volume488,145
Financial Highlights & Ratios
PEG Ratio4.47
Price to Book (P/B)1.90
Price to Sales (P/S)1.88
P/FCF Ratio17.76
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit8.19
Enterprise Value/Ebitda18.03
Forecast
1Y Price Target
$51.00Price Target Upside-7.73% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.25
Revenue Forecast (FY)$554.42M
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 primarily by selling engineered heating solutions and related services to industrial customers. Key revenue streams include: (1) Product sales: Revenue from electric heat tracing cables and components, steam tracing solutions, ...
Thermon Group Holdings Key Performance Indicators (KPIs)
Thermon Group Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 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
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 522.01M | 498.21M | 494.63M | 440.59M | 355.67M | 276.18M |
| Gross Profit | 237.20M | 222.90M | 211.56M | 185.13M | 140.12M | 116.87M |
| EBITDA | 107.78M | 102.78M | 95.36M | 74.33M | 54.45M | 30.26M |
| Net Income | 58.80M | 53.52M | 51.59M | 33.67M | 20.09M | 877.00K |
Balance Sheet | ||||||
| Total Assets | 816.70M | 755.45M | 767.74M | 649.63M | 636.67M | 617.88M |
| Cash, Cash Equivalents and Short-Term Investments | 46.86M | 39.54M | 48.63M | 35.63M | 41.45M | 40.12M |
| Total Debt | 173.15M | 151.69M | 187.49M | 128.28M | 141.64M | 161.40M |
| Total Liabilities | 278.00M | 260.14M | 292.85M | 230.64M | 237.47M | 239.01M |
| Stockholders Equity | 538.70M | 495.31M | 474.89M | 418.99M | 399.20M | 378.87M |
Cash Flow | ||||||
| Free Cash Flow | 54.73M | 52.87M | 54.94M | 48.26M | 23.53M | 22.16M |
| Operating Cash Flow | 68.21M | 63.12M | 65.95M | 57.71M | 28.75M | 30.29M |
| Investing Cash Flow | -13.53M | -14.97M | -109.52M | -44.55M | -4.53M | -7.83M |
| Financing Cash Flow | -44.32M | -56.42M | 56.53M | -13.46M | -22.66M | -28.20M |
Thermon Group Holdings Technical Analysis
Positive
55.27
Price Trends
49.48
Positive
43.90
Positive
35.71
Positive
Market Momentum
1.29
Negative
60.46
Neutral
87.08
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 55.27 is above the 20-day moving average (MA) of 50.34, above the 50-day MA of 49.48, and above the 200-day MA of 35.71, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.76B | 16.64 | 11.42% | ― | 3.08% | 35.81% | |
69 Neutral | $1.81B | 23.68 | 13.26% | 1.49% | 3.19% | 31.51% | |
68 Neutral | $1.01B | 62.02 | 11.90% | ― | 16.04% | 75.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $3.25B | 308.57 | 7.68% | 0.57% | 18.51% | -28.69% | |
53 Neutral | $1.40B | 30.90 | 6.96% | 1.59% | -2.24% | -48.77% |
* Industrials Sector Average
THR
Thermon Group Holdings
55.27
30.37
121.97%
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39.20
118.93%
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215.03%
SXI
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272.43
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Thermon Group Holdings Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Thermon Group Announces $2.2 Billion Merger With CECO
Positive
Feb 24, 2026
On February 23–24, 2026, CECO Environmental Corp. and Thermon Group Holdings entered into a definitive stock-and-cash merger agreement valued at about $2.2 billion, creating a combined industrial platform focused on environmental, thermal an...
Business Operations and StrategyFinancial Disclosures
Thermon Group Posts Record Q3 Results, Raises Outlook
Positive
Feb 5, 2026
On February 5, 2026, Thermon reported record third-quarter fiscal 2026 results, with revenue up 9.6% year-on-year to $147.3 million, gross profit rising 10.5% and adjusted EBITDA increasing 11.9% to $35.6 million, while adjusted net income climbed...
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.