10-Q - Thermon Group Holdings, Inc. (0001489096) (Filer)

Thu, Nov 7, 6:21 PM (242 days ago)

Thermon Group Holdings, Inc. (THR) reported a decline in revenue for the quarter ended September 30, 2024, with sales of $114,648,000, down 7% from $123,659,000 in the prior year. The decrease was attributed primarily to a 37% drop in "Over time" project revenue, particularly in the US-LAM segment, despite a 12.1 million contribution from the acquisition of Vapor Power. Gross profit also fell to $50,912,000, maintaining a gross margin of 44.4%. Operating income decreased by 30% to $15,203,000, driven by increased selling, general, and administrative expenses, as well as restructuring costs related to operational efficiencies. Net income was $9,494,000, down 36% year-over-year, with an effective tax rate of 26.8%. Cash flow from operations improved significantly to $21,221,000, reflecting better management of working capital. The company continues to focus on strategic acquisitions, including the recent purchase of F.A.T.I., enhancing its product offerings and market reach. However, uncertainties remain regarding future capital expenditures and market conditions, particularly in the context of ongoing economic fluctuations and potential raw material shortages.