a the priority. update changed, my our in last top lot the additional Thermon. you our and for our was and and which and Jay good Kevin conference and suppliers work We Thank our you, employees, in will me appreciate continued and performance remarks. CFO staying everyone good information morning. safety joining remains Peterson, communities interest provide on with live your in is a hope health. We in financial of after security has listening we safe call and our customers, but Since February,
As to supplier for our to business and a remained we support open to customers. continue critical infrastructure, global
been others, coordination management since to possible we leading home we being has and crisis all manufacturing in are operating safety February, customers’ local implemented global site team our our additional adopted operate PPE, staggered needs. travel, health to sanitation response while our Our locations, for safely work response responsive areas our Like to ensure from suspended policies, have able that and business employees. and many frequent of common where enhanced communications shifts, with
these with customers. our challenging industry team cash of In focus SG&A reduce an to are values during to I the commitment, and our I global big the and do thank innovation environment Thermon you continue for a how I you thank the the Before customers in for they our exemplifying results, they company opportunity and address know to serve our collaboration wanted take steps care, and the very safety of everything cost the COVID-XX will leading for $XX times. fiscal cost-out reduction over and will to needed been year in access business. an just structure pandemic, align on our level broad-based basis. $XX cost if by active These to took the preservation. have actions to annualized and million has value incoming the to ensure early We our stages on million of
year by have XXXX. XX% million addition, over to In capital $X budgets cut fiscal we in
us scenarios confidence. have modeled range a that We give also of
to positioning this for the financial weather contraction recovery. the cash in strength the have and business growth We while
markets in and in to impact reduced XXXX, had our While of the community that the it’s and and lasting months. the in environment, important remain COVID-XX our Despite near-term an the imbalance strengths the XX supply long-term acute business Thermon’s current operating now to uncertainty QX XX impact XXXX in year the budgets investment capital the of operating will has QX of a over intact. have to late crisis model old fiscal next demand remind
industrial global high We brand of the leading heating. are breadth and are process the well-positioned of our niche value solutions within
example, USX industry ultra-high product and our standards heat we trace three which extends other addition and trace self-regulating heater, performance have recently leading an fourth our As to in launched our in introductions quality new temperature quarter.
product and base plus long-lasting have around In to we Greenfield have global streams. councils our the we a base, as our we programs world. the grow revenue customers key Over our existence, account XX to management built the of sales with ensure and loyal lines years and initiated established well and installed both MRO/UE have relationships global as maintain for across order our installed regions facilitate collaboration
both quarter. heating process are our in and fruit team results fourth revenue The the and continue people impact expertise to we development positive those we investments high barriers technology and the the offerings growth of in product our business, in locations. to combination of bear engineering hazardous in entry, mission-critical invest starting of in to sequentially year-over-year investments and the with especially see our research our For with recent and
foundation budgets challenged commodity modern mention world supply few life. customers just current the and chemicals, the for maintenance the our operating with a by maybe energy to transportation, pricing, While and that are COVID-XX and restrictions the
of to intensity resumes, business. low us to capital cash to allow too As during This activity will XX and us key continue prior enabled the business reopen that so MRO/UE and positive flows the maintenance business to is begins resilience next to has our combined cash downturns generate generate model will the over with our world months.
in entering with position means strength. generated $XX a XXXX, FY flow, we revolving million EBITDA adjusted from million credit. In net of year cash million ratio million an in free paid debt, in additional down this $XX current with X.Xx Our debt are in of finished the cash, $XX we period difficult and to $XX
dislocation at in discretionary in combined of oil the reduce our commodity would I as budgets QX, operating COVID-XX and XX results. fiscal next starting in challenging like has observed for to on reach unprecedented now gas as we supply to weaker economy We and least turn markets conditions recover. QX While global the our market oil spending anticipate until well the the prices beginning months. equilibrium March to impact capital our and demand customers’ and
a and slowdown combined see revenue QX in began discretionary reminder, to spending weak As fiscal COVID-XX, in gain historical end rage of Hemisphere Thermon’s million lower down in $XX Western due a the the revenue XXXX, begin impact the expected our in and slowdown our year that but began ‘XX. quarter. be of momentum of second spending, in would before at this a to late fiscal a lower late Mach. our forecasted the capital with of anticipated quarter short-term QX to was we our a to that relative year to XX% half reverse first in in We in COVID-XX fiscal
cost points points taken operational backlog, to including prior up not result shift XXX the cost actions they basis Africa we Europe, down revenue $X impacted growth significantly decline, million year. QX volume a basis environment moving EBITDA and associated While modest the our our base, with region were address new was negatively to gross were was one-time from execution XXXX. and and in lower in due reflect was we in have responsible yet year-over-year, a margins in by does by adjustments for adjustment to XX lower the base quarter. Adjusted of XX% leader which Middle The down fiscal Europe’s stronger volume combination starting East, the of largely forward. see a that
QX the coronavirus our despite Asia-Pacific early in to the the impact growth the to show XXXX of in was due region, in down decline. QX was able XX% but fiscal
the Turning greatly now our impacted other refining to We markets, by XX end of to bifurcated the our demand upstream markets. to price anticipate and see transportation be related oil impacting take fuels COVID-XX protracted and and to the most months many XX into with end factors for overhang markets discussion recovery the are of rebalance those downstream fuels oil. transportation industrial timing. to We supply will and of
capital refining grown and Downstream budgets. impacted, that downstream not but XXXX The the capital foresee bulk budgets have our XX% have cut capital or been is revenues, the the is projects the cuts such markets our to delayed upstream primarily XX% or upstream certain companies less numerous by have petrochemical being last end-market on with in the have percentage international cancelled. that we being of petrochemical since we downturn, exposure have focused geographies, those budgets a yet sector. where that or been business of downturn smaller approximately largest in more passed We fiscal FID of and XX% oil business repositioned representing portfolio by during the
demand facilities to for the from in seeing Here first COVID-XX the and contraction fuels. decline restrictions in a to we quarter inability are due maintenance access spending due transportation to sharp
chemical overall spending As due released to later. various rebounds. expect restrictions planning in to markets stages LNG more the budgets execution. is of number environment positioned The demand spending budges quickly sector economy lifted maintenance the We current slowed to of projects and emerging restrictions. weather better has market midstream petrochemical with to a deferred spending follow maintenance and we to with economic first recover recovering be are The COVID-XX anticipate the recovers, as and capital and
the agriculture, renewable markets heating mentioned wide-ranging and recover new more are mid-term. demonstrates expect have markets. was offer away end-markets restrictions reaching continue in we end-markets. within an booked a in order short-term. and to short-term Canada. Transportation quickly that call paint, and be do continue year to rail expand revenue, dynamics impacted in given and to the However, remain and light current polymers, should etcetera to backlog, a projects opportunity suffered the U.S. there to process the opportunities more diversify of in which are negatively a The offer installed quarter Power global are as to fourth lifted. have base our number stand their especially projects last than especially our from nuclear in large These the We steady impact multiyear include and mass-transit opportunity we our in
I update of the to wanted external our the provide an Given on operations. backdrop markets,
reduced current the on were or April a Other executive effective right-size invest were expenses fee We significantly and profile proactive following continuing the travel in services implemented to cost with other eliminated. of like X. business. director have while reductions and discretionary taken focus future With salary conditions to contractor actions expenses, market third-party our our operating
we in expect we in While and our difficult XXXX, million And similar above QX. We priority for in a approximately force May, unfortunately that invest us reduce fiscal the projects and Africa our delayed decision the in the we of new XXXX were in X X.X% months. to revenues research to American by over the other we the made in which and lower spending $XX to reduction levers in decision expenses pipeline. release made a on execute to exhausted, believe X in will to the see continue fiscal XX products development environment North helped follows East demand XX Middle Europe, actions right-size for next over business fiscal after
these level of In to actions costs cost have been our to incoming operating align the addition expenses, reduced with around capacity variable business.
initiatives XXX We goals for annual have margins. point gross in set improvement to basis incremental deliver improvement an continuous
don’t provide While did first for provide I time, intend on formal quarter. our update to want this we an guidance fiscal to at XXXX
Thermon conducted in Orders power solutions. customers in significant and the reduced primary days, both pandemic and impacted oil time. the in quick for are Greenfield demand the not The business. with to at current XX% to backlog. to-date in maintenance of broader customer health our March, in which XX our due turn safety the hold limits impacted business capital business the our only Since gas, from first XX% took this our than budgets a work fiscal amount and precautions last being cancellations early of the has approximately less sectors Our sites particularly with seen down operating have been any MRO/UE and minimum chemical place our many has significantly quarter and in Greenfield turn at
be and work, local deferred we are to upgrade or on will delayed and As and expect maintenance loosened those get economies back completed restrictions spending repair site. return health
fiscal XXXX with quarter line for plan the incoming lower weak rate. assumes in Our a first order
EBITDA the cash for margins will begin expect out year. a have the budget our positive We to impact contribute actions of reduced to moderate free cost CapEx lower the on adjusted flow we and will executed volume
plans year internal progresses, reevaluate update conditions and as we the As to you our continue will appropriate. versus market
we will and markets cash next Thermon normal. in the near-term specific cycle. to we the current business financial generate emphasize important a that stronger, Before I turn cost, business is over manage the believe commodity to to to profitable emerge call control despite external as cover manage pressures, to the it’s to I value well-positioned and generate firmly Jay liquidity the the through adjust items, that more this
We committed of will those customers Jay? and safety continuing is have meet a demands. I pause are at that the health Jay our there over hard current standards it for work executing high hand great shareholders to and our team that delivering the for while environment to and financials. to and plans,
