Thermon Group Holdings, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2026, ending September 30, 2025. The company achieved sales of $131.7 million, a 15% increase from $114.6 million in the same period last year. Gross profit also rose by 20% to $61.1 million, resulting in a gross margin of 46.4%, up from 44.4% a year earlier. Net income for the quarter was $15.0 million, or $0.45 per diluted share, reflecting a 58% increase compared to $9.5 million, or $0.28 per diluted share, in the prior year.
The company’s performance was bolstered by the acquisition of Fabbrica Apparecchiature Termoelettriche Industriali (F.A.T.I.), which contributed approximately $6.9 million in revenue during the quarter. Thermon also noted that demand for its products increased, particularly in the U.S. and Latin America (US-LAM) and Europe, Middle East, and Africa (EMEA) segments, with EMEA revenue doubling year-over-year. However, the Asia-Pacific (APAC) segment experienced a decline of 4.1% due to ongoing uncertainties in global trade policies.
Operationally, Thermon reported a total backlog of $251.3 million as of September 30, 2025, up from $240.3 million at the end of the previous fiscal year. The company’s inventory levels increased to $111.0 million, reflecting preparations for the upcoming heating season and securing materials in anticipation of tariffs. The workforce remained stable, with no significant changes in employee headcount reported.
Looking ahead, Thermon expressed optimism about its growth trajectory, driven by strategic initiatives, including further integration of F.A.T.I. and ongoing investments in technology and personnel. The company plans to maintain its focus on expanding its market presence and enhancing operational efficiencies while managing its debt levels, which included $14.7 million outstanding under its revolving credit facility as of the end of the quarter. The effective tax rate for the period was 25.3%, slightly lower than the previous year, attributed to a favorable shift in earnings to lower tax jurisdictions.
About Thermon Group Holdings, Inc.
Thermon Group Holdings, Inc. provides engineered industrial process heating solutions, including heat tracing, process heating, boilers, and related services. Serving diverse markets such as energy, chemical, power, and transportation globally, it offers products, engineering, installation, and software for complex projects. With a focus on innovation, safety, and sustainability, Thermon leverages a broad product portfolio, global manufacturing, and long-term customer relationships to maintain industry leadership.
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