Thermon | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 131.72 M

Revenue: As of FY2026 Q2, the actual value is USD 131.72 M, beating the estimate of USD 119.43 M.

EPS: As of FY2026 Q2, the actual value is USD 0.45, beating the estimate of USD 0.2625.

EBIT: As of FY2026 Q2, the actual value is USD 22.04 M.

United States and Latin America (US-LAM) Segment

• Sales: $63.8 million in Q3 2025, up 8.4% YoY. Point in time revenue increased by 1.8%, and Over time revenue increased by 29.0%.
• Cost of Sales: $38.3 million in Q3 2025.
• SG&A Expenses: $15.3 million in Q3 2025.
• Segment Profit: $17.9 million in Q3 2025.

Canada Segment

• Sales: $40.4 million in Q3 2025, up 9.6% YoY. Point in time revenue increased by 11.5%, and Over time revenue increased by 4.8%.
• Cost of Sales: $16.7 million in Q3 2025.
• SG&A Expenses: $5.8 million in Q3 2025.
• Segment Profit: $9.2 million in Q3 2025.

Europe, Middle East, and Africa (EMEA) Segment

• Sales: $18.1 million in Q3 2025, up 100.0% YoY, driven by the contribution from F.A.T.I.
• Cost of Sales: $9.8 million in Q3 2025.
• SG&A Expenses: $5.4 million in Q3 2025.
• Segment Profit: $3.1 million in Q3 2025.

Asia-Pacific (APAC) Segment

• Sales: $9.5 million in Q3 2025, down 4.1% YoY. Point in time revenue decreased by 7.8%, and Over time revenue increased by 2.4%.
• Cost of Sales: $5.8 million in Q3 2025.
• SG&A Expenses: $3.0 million in Q3 2025.
• Segment Profit: $1.5 million in Q3 2025.

Consolidated Financial Metrics

• Total Sales: $131.7 million in Q3 2025, up 15% YoY.
• Gross Profit: $61.1 million in Q3 2025, up 20% YoY.
• Operating Expenses: $39.5 million in Q3 2025, up 12% YoY.
• Net Income: $15.0 million in Q3 2025, up 58% YoY.
• Operating Cash Flow: $18.2 million for the six months ended September 30, 2025.
• Free Cash Flow: $12.7 million for the six months ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue its focus on strategic acquisitions, such as the F.A.T.I. acquisition, to strengthen its market position and expand its product offerings. The company also aims to secure more new facility project bids and generate more revenue from facility maintenance, repair, and operations or upgrades from its existing and future installed base.
• Non-Core Business: The company is exploring opportunities in emerging segments and new markets to diversify its revenue streams and reduce dependency on traditional markets.
• Priority: The company emphasizes disciplined cost management, strategic investments in growth initiatives, and maintaining a strong balance sheet to support its long-term growth objectives.