Thermon Group Holdings Inc. Reports Strong Q3 2026 Results
Thermon Group Holdings Inc. (NYSE: THR) disclosed its financial performance for the third quarter of fiscal 2026 on February 5, 2026. The company reported record revenue, profitability, and bookings, prompting an upward revision of its full‑year outlook.
Key Financial Highlights
| Metric | Q3 2026 | YoY Change |
|---|---|---|
| Revenue | $147.3 million | +9.6 % |
| Gross profit | $68.7 million | +10.5 % |
| Gross margin | 46.6 % | – |
| Net income | $18.3 million | –1.1 % |
| Earnings per diluted share (EPS) | $0.55 | – |
| Adjusted net income (non‑GAAP) | $21.9 million | +15.3 % |
| Adjusted EPS (non‑GAAP) | $0.66 | – |
| Adjusted EBITDA (non‑GAAP) | $35.6 million | +11.9 % |
| Adjusted EBITDA margin | 24.2 % | – |
| New orders | $158.2 million | +14.1 % |
| Book‑to‑bill ratio | 1.1 x | – |
| Backlog | – | +10 % |
| Net leverage ratio | 0.8 x | – |
Management Commentary
President and CEO Bruce Thames highlighted several drivers of the quarter’s performance:
- Revenue growth: 10 % increase attributed to momentum in large‑project business, effective pricing, and consistent customer spending.
- Profitability: Adjusted EBITDA rose 12 % and margin exceeded 24 %, reflecting disciplined cost management and execution of Thermon’s business system initiatives.
- Bookings and backlog: New orders grew 14 % and the book‑to‑bill ratio remained at 1.1x, reinforcing the company’s strong positioning in key end markets such as data centers, power generation, and LNG.
- Strategic focus: The 3‑Ds strategy—Decarbonization, Digitization, and Diversification—continues to deliver growth, especially in electrification and decarbonization trends in Europe.
Based on these results, Thermon has raised its full‑year 2026 guidance.
Earnings Beat Consensus Estimates
The company’s earnings per share of $0.55 surpassed analyst expectations by $0.08, while revenue exceeded forecast estimates. The consensus price‑earnings ratio for Thermon is 26.84, and the stock closed at $46.19 on February 3, 2026, within its 52‑week range of $23.05 to $49.61.
Market Context
Thermon is a diversified industrial technology firm headquartered in San Marcos, United States, that specializes in engineered thermal solutions for process industries. It serves sectors requiring freeze protection, temperature and flow maintenance, environmental monitoring, and surface snow and ice melting. The company went public on May 5, 2011, and trades on the New York Stock Exchange under the ticker THR. Its market capitalization is approximately $1.55 billion.
The latest earnings release underscores Thermon’s continued ability to generate robust top‑line and bottom‑line growth while maintaining healthy margins and a solid backlog, positioning it for sustained performance in the industrial equipment sector.
