Thermon Group Holdings, Inc. (THR) Bundle
A Brief History of Thermon Group Holdings, Inc.
Thermon Group Holdings, Inc., a leader in industrial heating solutions, has undergone significant changes and growth through its operations across various global markets. As of 2024, the company has established itself as a critical player in the chemical and petrochemical, oil and gas, and power generation industries.
Company Overview
Founded in 1954, Thermon specializes in providing heating solutions, including heating cables, systems for temperature maintenance, and other related products. The company operates through four primary segments: the United States and Latin America (US-LAM), Canada, Europe, Middle East and Africa (EMEA), and Asia-Pacific (APAC).
Recent Financial Performance
For the three months ended September 30, 2024, Thermon reported total sales of $114.6 million, a decrease of 7% from $123.7 million in the same period of 2023. The gross profit for this period was $50.9 million, reflecting a gross margin of 44.4% compared to 44.0% in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Sales | $114,648,000 | $123,659,000 |
| Gross Profit | $50,912,000 | $54,458,000 |
| Net Income | $9,494,000 | $14,730,000 |
| Effective Tax Rate | 26.8% | 24.4% |
For the six months ended September 30, 2024, the company reported total revenues of $229.8 million, slightly down from $230.5 million in the prior year. The decrease in revenue was attributed mainly to a significant decline in over-time sales, which are generally linked to large customer projects.
Segment Performance
Thermon's revenue distribution across its segments for the six months ended September 30, 2024, is as follows:
| Segment | Revenue (YTD 2025) | Revenue (YTD 2024) |
|---|---|---|
| United States and Latin America | $118,848,000 | $117,294,000 |
| Canada | $75,216,000 | $71,472,000 |
| Europe, Middle East and Africa | $16,870,000 | $23,088,000 |
| Asia-Pacific | $18,840,000 | $18,694,000 |
Acquisition of Vapor Power
In fiscal 2024, Thermon acquired Vapor Power, which contributed approximately $25.9 million to the company's revenue for the year-to-date period ending September 30, 2024. This acquisition has strategically enhanced Thermon’s offerings in the heating solutions market.
Operational Challenges
Despite the positive contributions from the acquisition, Thermon faced operational challenges, including a 24% decrease in over-time sales due to reduced activity from large customer projects. The company has also implemented cost-cutting measures, including a reduction in force affecting 68 employees across its segments as part of its restructuring efforts.
Debt and Liquidity
As of September 30, 2024, Thermon reported long-term debt of $143.2 million, reflecting increased borrowing to support its operational and strategic initiatives. The company had $37.0 million in cash and cash equivalents, with an additional $92.8 million available under its revolving credit facility.
| Debt Metrics | Value |
|---|---|
| Long-Term Debt | $143,169,000 |
| Cash and Cash Equivalents | $37,000,000 |
| Available Credit | $92,800,000 |
Thermon continues to navigate the challenges of the industrial heating market while leveraging its recent acquisitions and restructuring initiatives to enhance operational efficiency and profitability.
A Who Owns Thermon Group Holdings, Inc. (THR)
Ownership Structure
As of 2024, Thermon Group Holdings, Inc. (THR) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The total number of shares outstanding is approximately 33,755,279.
Major Shareholders
The following table outlines the major shareholders of Thermon Group Holdings, Inc. as of September 30, 2024:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 10.4% |
| The Vanguard Group, Inc. | 2,900,000 | 8.6% |
| Dimensional Fund Advisors LP | 2,200,000 | 6.5% |
| Invesco Ltd. | 1,800,000 | 5.3% |
| Other Institutional Investors | 15,000,000 | 44.5% |
| Individual Shareholders | 8,355,279 | 24.8% |
Institutional Ownership
Institutional ownership is significant, with major institutions holding a combined total of around 45% of the shares. This indicates a strong interest from institutional investors in Thermon Group Holdings, Inc.:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 10.4% |
| The Vanguard Group, Inc. | 2,900,000 | 8.6% |
| Dimensional Fund Advisors LP | 2,200,000 | 6.5% |
| Invesco Ltd. | 1,800,000 | 5.3% |
| Other Institutions | 15,000,000 | 44.5% |
Recent Changes in Ownership
In the recent fiscal period, Thermon Group Holdings, Inc. has seen fluctuations in share ownership due to the repurchase of shares under an authorized program, which amounted to approximately 75,752 shares at a weighted average price of $30.35.
Board of Directors and Executive Ownership
Executive officers and board members also hold shares in the company, contributing to the overall ownership landscape. The following table summarizes the shareholdings of key executives:
| Executive/Director | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Bruce Thames (CEO) | 150,000 | 0.44% |
| Jan Schott (CFO) | 100,000 | 0.30% |
| Board Members (Aggregate) | 200,000 | 0.59% |
Summary of Financial Performance
As of the six months ended September 30, 2024, Thermon reported revenues of $229,774,000, with a net income of $18,005,000. The company's financial performance continues to attract interest from both institutional and retail investors, reinforcing its position in the market.
Thermon Group Holdings, Inc. (THR) Mission Statement
Company Overview
Thermon Group Holdings, Inc. (THR) specializes in process heating solutions and offers a comprehensive suite of products and services designed for various industries. The company operates through four reportable segments: United States and Latin America (US-LAM), Canada, Europe, Middle East and Africa (EMEA), and Asia-Pacific (APAC).
Mission Statement
As of 2024, Thermon's mission statement emphasizes their commitment to delivering innovative and reliable heating solutions that enhance operational efficiency and safety for their customers. The company aims to provide unmatched service and support to their clients while focusing on sustainability and advanced technologies.
Financial Performance
In the six months ended September 30, 2024, Thermon reported total revenues of $229.8 million, a slight decrease from $230.5 million in the same period of the previous year. The company's sales for the three months ended September 30, 2024, were $114.6 million, down from $123.7 million in the prior year.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $229.8 million | $230.5 million |
| Net Income | $18.0 million | $25.7 million |
| Gross Profit | $101.3 million | $101.8 million |
| Operating Income | $28.9 million | $37.1 million |
| SG&A Expenses | $62.3 million | $59.1 million |
| Effective Tax Rate | 25.0% | 23.8% |
Segment Performance
Thermon's revenue composition by segment for the six months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| US-LAM | $118.8 | 51.7% |
| Canada | $75.2 | 32.8% |
| EMEA | $16.9 | 7.4% |
| APAC | $18.8 | 8.2% |
Strategic Focus
Thermon is committed to several strategic initiatives as part of its mission, including:
- Decarbonization efforts to reduce carbon footprints in operations.
- Diversification of product offerings to meet evolving market demands.
- Digitization strategies aimed at improving operational efficiencies and customer engagement.
Market Position and Future Outlook
As of September 30, 2024, Thermon reported a backlog of $214.9 million, up from $186.1 million at the end of March 2024. This increase indicates a positive outlook for future revenue generation, driven by ongoing projects and customer commitments.
With a focus on innovative solutions and sustainability, Thermon's mission statement reflects its dedication to being a leader in the process heating industry, addressing the needs of its customers while managing operational efficiencies and environmental responsibilities.
How Thermon Group Holdings, Inc. (THR) Works
Company Overview
Thermon Group Holdings, Inc. (Ticker: THR) operates in the industrial heating sector, providing products and services for the chemical, petrochemical, oil and gas, and power generation industries, among others. The company specializes in heating solutions for various applications, including pipeline heating, process heating, and freeze protection.
Financial Performance (2024)
For the six months ended September 30, 2024, Thermon reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Sales | $229,774 |
| Cost of Sales | $128,430 |
| Gross Profit | $101,344 |
| Selling, General & Administrative Expenses | $62,347 |
| Income from Operations | $28,938 |
| Net Income | $18,005 |
| Net Income per Share (Basic) | $0.53 |
| Effective Tax Rate | 25.0% |
Revenue Breakdown
Revenue disaggregation for the three months ended September 30, 2024, is summarized below:
| Region | Point in Time Revenue (in thousands) | Over Time Revenue (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| United States and Latin America | $44,606 | $14,258 | $58,864 |
| Canada | $26,433 | $10,438 | $36,871 |
| Europe, Middle East and Africa | $4,954 | $4,074 | $9,028 |
| Asia-Pacific | $6,286 | $3,599 | $9,885 |
| Total | $82,279 | $32,369 | $114,648 |
Segment Performance
For the six months ended September 30, 2024, the segment performance is detailed below:
| Segment | Sales (in thousands) | Change (%) |
|---|---|---|
| United States and Latin America | $118,848 | — |
| Canada | $75,216 | 5% |
| Europe, Middle East and Africa | $16,870 | -27% |
| Asia-Pacific | $18,840 | — |
Cash Flow Statement
For the six months ended September 30, 2024, the cash flow from operating activities is as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Income | $18,005 |
| Depreciation and Amortization | $11,137 |
| Net Cash Provided by Operating Activities | $21,221 |
| Net Cash Used in Investing Activities | ($5,749) |
| Net Cash Used in Financing Activities | ($13,659) |
| Change in Cash | $2,267 |
Balance Sheet Highlights
As of September 30, 2024, Thermon’s balance sheet was as follows:
| Assets | Amount (in thousands) |
|---|---|
| Total Assets | $761,532 |
| Total Current Assets | $275,019 |
| Total Liabilities | $271,245 |
| Total Equity | $490,287 |
Key Challenges and Strategic Initiatives
Thermon has faced challenges including a decrease in over time sales, largely due to reduced activity in large projects. The company has been actively pursuing strategic initiatives such as:
- Acquisition of Vapor Power, contributing $25.9 million to revenue in YTD 2025.
- Cost-cutting measures including a reduction in workforce and facility consolidation.
- Investment in decarbonization and digitization strategies.
How Thermon Group Holdings, Inc. (THR) Makes Money
Revenue Streams
Thermon Group Holdings, Inc. generates revenue primarily through two main categories: Point in time revenue and Over time revenue.
- Point in time revenue: This revenue is recognized when control transfers to the customer, primarily related to product sales. For the six months ended September 30, 2024, Point in time revenues were $159.0 million, accounting for 69% of total sales.
- Over time revenue: This category includes revenues from projects requiring engineering or installation services. For the same period, Over time revenues amounted to $70.7 million, representing 31% of total sales.
Financial Performance
For the six months ended September 30, 2024, Thermon's total sales were $229.8 million, a slight decrease from $230.5 million in the same period of 2023.
| Metric | 2024 (YTD) | 2023 (YTD) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Sales | $229.774 million | $230.548 million | $(774,000) | — |
| Cost of Sales | $128.430 million | $128.781 million | $(351,000) | — |
| Gross Profit | $101.344 million | $101.767 million | $(423,000) | — |
| Net Income | $18.005 million | $25.668 million | $(7.663 million) | (30%) |
Segment Performance
Thermon operates through four geographical segments: United States and Latin America (US-LAM), Canada, Europe, Middle East and Africa (EMEA), and Asia-Pacific (APAC). The performance of these segments for the six months ended September 30, 2024, is outlined below.
| Segment | Sales (2024) | Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| US-LAM | $118.848 million | $117.294 million | $1.554 million | 1% |
| Canada | $75.216 million | $71.472 million | $3.744 million | 5% |
| EMEA | $16.870 million | $23.088 million | $(6.218 million) | (27%) |
| APAC | $18.840 million | $18.694 million | $0.146 million | 1% |
Cost Structure
Thermon's cost of sales includes raw materials, labor costs, and other manufacturing expenses. For the six months ended September 30, 2024, the cost of sales was $128.430 million, which represents a slight decrease from $128.781 million the previous year.
Operating Expenses
Selling, general and administrative expenses (SG&A) for the six months ended September 30, 2024, reached $62.347 million, compared to $59.144 million in 2023, reflecting an increase of $3.203 million or 5%.
| Expense Type | 2024 (YTD) | 2023 (YTD) | Change ($) | Change (%) |
|---|---|---|---|---|
| SG&A Expenses | $62.347 million | $59.144 million | $3.203 million | 5% |
| Amortization of Intangible Assets | $6.799 million | $4.614 million | $2.185 million | 47% |
| Restructuring Charges | $2.723 million | $0.885 million | $1.838 million | 208% |
Acquisition Impact
The acquisition of Vapor Power contributed significantly to Thermon's revenue. For the six months ended September 30, 2024, it added approximately $25.9 million to the revenue stream, helping to offset declines in organic sales.
Net Income and Profitability
Net income for the six months ended September 30, 2024, was $18.005 million, down from $25.668 million in the same period in 2023, marking a decrease of 30%. The effective tax rate for this period was 25.0% compared to 23.8% the previous year.
Future Outlook
As of September 30, 2024, Thermon reported a backlog of $214.9 million, indicating potential future revenue from contracts already secured.
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Resources:
- Thermon Group Holdings, Inc. (THR) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Thermon Group Holdings, Inc. (THR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Thermon Group Holdings, Inc. (THR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.