Thermon (THR) Investor presentation summary

Strategic overview and vision

• Focused on industrial process heating, temperature maintenance, environmental monitoring, and temporary power distribution solutions, aiming to be the world leader in industrial process heating solutions.

• Strategic pillars include profitable growth of installed base, decarbonization, digitization, diversification, and disciplined capital allocation.

• Emphasizes operational excellence, innovation, and a strong culture of care, commitment, and collaboration.

Financial performance and highlights

• Trailing twelve months revenue reached $522M with a gross margin of 45.4% and adjusted EBITDA margin of 22.6%.

• Adjusted EPS was $2.13, with free cash flow of $55M and net leverage at 0.8x.

• Q3 FY26 revenue grew 10% year-over-year, adjusted EBITDA increased 12%, and orders rose 14% with a book-to-bill ratio of 1.1x.

• Backlog increased 10% to $259.4M, and free cash flow for Q3 was $13.1M, up 56% year-over-year.

Business mix and growth drivers

• OPEX sales represent 83% of revenue, providing stable, high-margin recurring income, while CAPEX projects contribute to growth.

• Product innovation, such as liquid load banks and medium voltage heaters, is driving 5-7% additional growth.

• Digitization strategy is expanding, with the Genesis Network installed base growing 51% in FY26.

• Diversification efforts have reduced oil & gas exposure from 58% to 28%.