Thermon Group Holdings Inc (THR) Reports 23% Revenue Increase in Q2 2024
Thermon Group Holdings Inc (NYSE:THR) reported a 23% increase in revenue, reaching a record $123.7 million in Q2 2024.
Net income rose by 34% to $14.7 million, and adjusted EBITDA increased by 27% to $27.7 million.
EPS grew by 33% to $0.43, and non-GAAP adjusted EPS rose by 30% to a record $0.49.
The company raised its FY 2024 revenue and EPS guidance.
On November 2, 2023, Thermon Group Holdings Inc (NYSE:THR), a global leader in industrial process heating solutions, released its consolidated financial results for the second quarter of the fiscal year ending March 31, 2024 (Q2 2024). The company reported record revenue of $123.7 million, a 23% increase driven by sales growth in the US, Europe, and Asia Pacific. Net income rose by 34% to $14.7 million, and adjusted EBITDA increased by 27% to $27.7 million. EPS grew by 33% to $0.43, and non-GAAP adjusted EPS rose by 30% to a record $0.49.
Financial Performance and Highlights
Thermon's Q2 2024 results were driven by volume growth and effective cost management. The company achieved a gross profit of $54.5 million, a 19% increase, and a gross margin of 44.0%. Bookings reached $116.4 million, a 22% increase, driven by 73% of orders in diversified end markets.
Thermon's CEO, Bruce Thames, commented on the results:
This was another excellent quarter for Thermon, with record revenue, gross profit and non-GAAP adjusted EPS. The results are a testament to the strong execution of our strategic initiatives and our global teams ability to operate effectively in a dynamic environment."
Balance Sheet and Cash Flow
Thermon maintained a strong balance sheet during Q2 2024, with a net debt-to-Adjusted EBITDA ratio of 0.8x, compared to 1.4x in the prior year period. Gross outstanding debt decreased by $32.9 million to $110.6 million. Available liquidity at the end of the quarter totaled $100.6 million, including $30.5 million in cash and cash equivalents and $70.1 million available under credit agreements.
Outlook
Thermon's CFO, Kevin Fox, stated:
Our team's outstanding performance in the second quarter of the fiscal year built on the momentum from the first quarter. This, combined with our balanced outlook for the second half of our fiscal year, allows us to raise our full year Fiscal 2024 revenue guidance to approximately $478 - $498 million. We are also raising full year Fiscal 2024 GAAP EPS guidance to approximately $1.59 - $1.69 per share, with Adjusted EPS of approximately $1.84 - $1.94 per share."
Thermon's strong Q2 2024 results and raised guidance reflect the company's successful execution of its strategic initiatives and its ability to navigate a dynamic market environment.
Explore the complete 8-K earnings release (here) from Thermon Group Holdings Inc for further details.
This article first appeared on GuruFocus.
