Thermon shares surge on record bookings, raised 2026 guidance
Industrial heating solutions provider beats quarterly expectations and lifts full-year outlook on strong demand
Thermon Group Holdings delivered its strongest quarterly performance in company history, reporting record revenue and bookings that prompted the industrial heating solutions provider to raise its full-year fiscal 2026 guidance.
The Austin-based manufacturer reported third-quarter revenue of $147.3 million, up 9.6 percent from the prior year and exceeding analyst estimates of $138.3 million. Adjusted earnings per share reached $0.66, a 17.9 percent year-over-year increase that topped consensus expectations by 13.4 percent.
More significantly for investors, Thermon achieved a new milestone with bookings of $158.2 million—a 14.1 percent surge that marked the highest quarterly orders in the company's history. The robust order flow drove a book-to-bill ratio of 1.1x, indicating more incoming business than products shipped during the period. The company's backlog, representing future revenue, climbed 10.1 percent to $259.4 million as of December 31, 2025.
"We achieved a record third quarter with the highest revenue, profitability, and bookings in Thermon's history, reflecting strong end-market demand and global execution," said Bruce Thames, President and CEO. Thames highlighted momentum in large projects, effective pricing actions, and consistent customer spending as primary drivers of the performance.
Buoyed by the quarter's strength, Thermon increased its fiscal 2026 outlook across all metrics. The company now projects revenue between $516 million and $526 million, lifting the bottom end of its previous range of $506 million to $527 million. Adjusted EPS guidance rose to $2.05 to $2.19 per share, up from the prior $2.00 to $2.15, while adjusted EBITDA expectations increased to a range of $114 million to $120 million.
The performance reflects Thermon's strategic positioning within growing industrial markets. The company's "3-Ds" strategy—focused on Decarbonization, Digitization, and Diversification—has yielded particular success in data centers, power generation, and liquefied natural gas infrastructure. European electrification and decarbonization initiatives have created new opportunities for medium voltage heaters, while the bid pipeline expanded 8 percent sequentially.
Analysts maintain a positive outlook on the stock, with three Buy ratings and one Hold among covering firms. The consensus price target of $50 implies approximately 8 percent upside from current levels around $46, though some analysts have noted the stock's elevated valuation relative to growth projections. Thermon currently trades at a trailing price-to-earnings multiple of 27 times, above its forward multiple of 22 times.
Thermon shares, which have gained approximately 7 percent over the past two weeks, have ranged between $23.05 and $49.61 over the past 52 weeks. The stock's recent advance reflects growing investor confidence in the company's ability to capitalize on secular trends in industrial energy efficiency and process heating. With a market capitalization of approximately $1.56 billion and institutional ownership exceeding 100 percent of the float, Thermon has attracted significant attention from portfolio managers seeking exposure to industrial automation and energy transition themes.
Looking ahead, management expressed confidence in the business outlook based on sustained large-project activity and favorable secular growth trends. The company also noted progress in new product development, including the successful shipment of its first liquid load bank testing units within six months of development—a testament to its innovation capabilities in serving evolving customer needs.