THR - Earnings call transcript Q4 2021 | Thermon Group Holdings, Inc.

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Operator

Greetings ladies and gentlemen, and welcome to the Thermon Group Holdings Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, that this conference is being recorded. I will now turn the conference over to our host Kevin Fox, Chief Financial Officer. you. Thank

begin. may You

Kevin Fox

filed Good Relations fourth thank this quarter earnings available has issued Diego. X-K on today's is of and morning for our fiscal an also been which release, XXXX conference the press the morning you, SEC you Form Investor and on joining we with section Thank call. Earlier website.

investor fiscal summary of achievements in 'XX. We a have our includes also presentation, which updated our ESG

Generally Accepted that During to the do discuss items we Principles. call, not Accounting will some conform

during We at the regarding forward-looking this annual most measures like to the to refer release. accordance we have for impact filed addition to with GAAP comparable for call company. substitute of that the non-GAAP a uncertainties certain in the measures reconciled those recent in report our may the the our our with regarding items could future financial to forward-looking quarterly our GAAP. you measures results. in as SEC remind statements, information reported that including and statements risks Please should These earnings I'd and tables be considered report of most not end and make press performance more

With contemplated may otherwise, except Officer. any obligation as may by and results from we Chief information, our from President required undertake or turn developments that, as law. Bruce new will opening future statement, comments Executive forward-looking differ actual a we materially whether to statements and Our forward-looking to these update those Thames, no publicly result the by of be

Bruce Thames

call challenging I'd for on CFO our very our is in here good year Kevin reflect in remarks. financial Thermon. listening a and QX performance fiscal to everyone provide We on take your joining and few a my to year interest Kevin XXXX. following additional moments like full to information new health. our safe and in you you, Thank morning. staying hope good We and appreciate conference Fox, is

far year the impressed how worst the global to economy every faced were the in the with kept priority demand in the the in safety industry. oil the the employees of responded As began, destruction world challenges, by of and worst pandemic and the obstacle. and Despite and this years with team as customers XXX that our have and health were top I been the endeavor. successful They has history

to of the addition virus, had workforce In is year, in incidents fiscal the industry. in among no transmissions and recordable zero the we the best having lost-time which

year operations. reduce we which, serving The team core our by $XX the commit manufacturing values able our XX% and driving in the is and addition, improvements savings to million the to million care, business in In structural, was customers costs our on preservation, while achieve and value of SG&A exemplifying an collaborate. laser-focused team was of while $X.X additional in believe continuous restructure

opportunities. Finally, strategically future on focus the drove year environmental of team success. value high heating in lines heightened positioning the business revenue for the globalization on of remained base focused process on the a installed capitalizing product MRO/UE our and we In

capitalize developing and major network we in-market We in performance new envelope opportunities; markets, software nine industry. self-healing underway also in wireless the a three new but the to from shifts first. Network, pandemic for diversification ranging to Last immediacy putting in deftly the customers long-term the industry technology-enabled business while the heating years global the balancing our on creation, now of of the that maintenance. mesh the and launched not We products, pushed come. for key solutions of and Genesis of electrification light strategy like least, the drive trace value to supervisory safety believe will team downturn these to the thank and around entire would I opportunities growth the and and the with Thermon this industry revisit globe

We deliver 'XX. in fiscal Turning line year the with QX now XX% revenues expectations with decline year million in from results. FY $XXX year finished 'XX the to to full revenue, a

performance number both cost will solid were EBITDA of in operating below there and that expectations. that resulting the later impacted items a While the quarter, items in unusual sold SG&A, on details margins fell was of underlying more provide in Kevin, goods call. these

$XX.X offset EBITDA prior for expectations fell down in of business year year. continued adjusted year, $X.XX fiscal debt from down during result, share Decisive below 'XX. the from costs year, down to year a the the impact As generate cash actions paying the XX.X% million year. was markets. manage Throughout in decline flow of the a full in in fiscal cash of Full EPS million help with year, $XX.X XX% million the the adjusted negative to end $XX

a our to now discussion Turning markets. of end

see of calls We that end optimism. markets for are in beginning our to some signs improvements cautious

see sequential and in improvements above the are While to January seasonality spending we maintenance activity, variants we yet resurgence of have occurred beyond a not in to caused pre-COVID returned cases. despite lockdowns continue that that in levels normal as

as the just more Gulf on and a the of chemical, to execution, plant a Coast. projects of we economies, stages that of and markets markets to are end growth capitalize by across biodiesel revenues. the XX% presentation, petrochemical, the award four with these the numerous on power. various are our oil, gas our robust our sectors we for With and to middle than and a natural tied chart the natural gas XX% which developing to of petrochemical well of bridge planning than emergence shift look in page of represents class outlook greater linkage power biofuels, As to fuel With chemical, now recent evidenced as the much positioned upstream see you on is and can

examples with and of an include significant mine for couple transit and in US. award transit, opportunities a as beverage potential, coming see in recent on years. and environmental growth a Eurasia cab we here commercial sizable diverse in more award and heating markets addition, such the copper a rail for project In end in favorable A food the in heating

the X presentation. of Slide on Moving to

quarter were orders in was and prior a the trailing period times X% the down on the XX-month from year basis, with While year-over-year. XX% period X.XX backlog book-to-bill XX% for the growing

and have quarter restrictions, over maintain shown growth year we the maintenance prior need orders are commodity critical to not activity signs by markets yet enabling assets. increased customer period, end the with While seeing increases, to our price later positive in in access facilities the relaxed driven

in will next hand fiscal Based it Kevin? winter order customers 'XX our prior anticipate to and their power growth upon I factors, in that we of to financial heating year Uri provide We Coast also the and in as create year the natural believe to advance these QX year Gulf CFO, the opportunities season. Texas the sectors winter winterized assets along a like storm Fox, and in quarter detailed results. Kevin would over over review more the of period. of now gas

Kevin Fox

the down currency region the on regions continued in positive call $XX.X the Thanks, margins all our the came with Bruce. execution primarily continues period. a Thermon was versus point basis. to revenues EMEA for the flat, guided multiple the was revenue On contracting XX% of quick of and up We was half fourth large in with of the our middle million trailing the was and XX% region had full XX-month range only to was year. growth Pricing the minor year-over-year constant XX% with due year. projects and perspective, $X.X a about a EMEA in respectively. down turn in a on APAC decrease basis, XX% From year-over-year. we down other Revenue a with on was headwind with down XX%, year-over-year previous be tailwind, XX% a regional FX to Canada previous FX range. million, right a only USLAM with $XX million quarter million $XX

down about first think progression in the we in the year, the we through were down XX% and second half half. As XX%

fiscal year showed we've year-over-year gas the a the the quarter the during to difficult items call to in the be pandemic oil time in for disruptions positive orders Hemisphere. inflection recent of restrictions While positively months. growth the at to in and weeks Western XX.X% six was the 'XX combination and specific due global COVID-XX bookings and TTM across March to appears an seen spending of markets, particularly first Maintenance first in as out. easing, in are came access the few new Margins facility board. increasing a are the trending with a quarter

a for in increase operational First, item related of accounted $X.X in incremental which to period. we've expense non-US execution had estimated project, to our the expenses an million

analyze would margins start XX.X%, incurred When QX that impact, our rapid few the we been outages point million for account to of us winter operations basis to We losses we by to XXXX were adjusting a reduction Uri variances impacted Accounting we in have due storm San decline inventory quarter. Texas and basis comparison the a Manufacturing from power Marcos, to our business of and mix. February. a yet gets other XX%, due versus XXX XX.X% observations in that When as points. QX these XXX apples-to-apples $X.X additional for were within productivity historical in items, the but headwind. have position, of also approximately employees expenses a for negative the average of to have margins

the XX%, larger not a in greenfield the in averages, were weaker margins some but the executed. notch of to a greenfield headwind the XX% margins above are offset mix XX-XX our versus being performance slightly above in was MRO/UE quarter projects traditional to of the timing split, the While due greenfield. enough MRO/UE business historical versus slight legacy

at was closely the and versus As the our XX.X% watching I be basis as points the above were quarter appears cost backlog gaining in end is pricing average XXX about Margins mentioned momentum. of inflation to price previous quarters. five earlier, up which the of we're March, in

a million had of year $X.X we continuous $X.X target reminder, delivered million. a and the As in we improvement from

fiscal expect to contribute in approximately improvement initiatives $X million 'XX. We continuous

Moving to and on the SG&A. next quick slide discussion a

believe 'XX $XX as expenses a non-recurring bad of cumulatively $X immaterial cost QX to restructuring. none which related out well costs line. related basis, from figures debt was SEC from a can execution by TTM individually. items and million run reduction per $X.X the In million excludes and largest around various a million. the back $XX of that be customer. quarter, we On fiscal of a of On specific of number million, basis, we approximately QX administrative you million benefit will had SG&A 'XX in being start the $X.X reported as expense SG&A total rate as than we with any which marketing, period. were by a definition out million, of comparison $XX.X $XXX,XXX First, reserves deferred then we with or The from see 'XX our and compensation million non-qualified larger our items impacted engineering the general results that Other reported $X.X to was depreciation

right effort the side and last sales at result to We 'XX with collective primarily by the year come expect challenges expected Adjusted in year. increases million through our restructuring of $XX.X the million temporary back to offset increase of the more the will by reductions page compensation. coming of QX despite an driven disappointing the response travel the $X.X Ultimately, reopen through result XX.X% the EBITDA incentive in and it's be of and year, full as P&L short-term of previous is of economies actions. Those a sales. year of manage or full impact or cost on X%

adjusted in However, average in highlight, $X.XX we to per adjusted return levels. That per full On for and 'XX under of the GAAP our EPS basis, of the share with Reconciliation over scenario quarters our gross we per operating were share we with customer quarter takes even a spending cost position. tables generate a combination the continue $X.XX the fiscal coming was negative pre-pandemic will $X.XX on or structure the significantly page to changes believe in Not EBITDA historical press the year, to the to longer have to improved drive above at fully per margins where with $X.XX growth reference. share. year share. wanted provided adjusted was will last business release EPS but EPS GAAP EPS diluted

a slide, 'XX and a commented opportunities basis. we sequential improve previously our management saw on our in had reduction and capital sheet to around Next QX inventory working significant balance

is the down X% year-over-year overall in since While QX. driving inventory working the and up balance million is capital, inventory increase $XX

down of As in $XX.X million, debt of million so in a the in reminder, heating season, this the quarters to Total was year. to would by second before were generation year debt we adjusted half flat completed model. EBITDA advance paydown inherent that we adjusted generally build asset-light the $XXX.X increase expect in QX. again inventory reducing coming our the decline X EBITDA driven to to Net slightly we QX. finished flow times, We reduce in in million $XX at business the incremental balance, debt kept so able cash of organic to although, our ratio the

expect to new comp also in takes have We some as delever CapEx periods $X.X business the early million, investment prepared in turnaround million includes year. calendar fiscal fleet XXXX a we rental to to Canada budgeted recovery in in of hold, which will during but offset low 'XX, fiscal power continue the be the the benefit was was for some our that year. $X temporary demand cut a the by particularly

our taxes; This the ratio loss, benefit but optional leverage before back on remains top in still coming the results pre-tax have tax region. impact A opportunities, in tax the look M&A cash We previous the capital reduction US allocation on our million. with tax operating paydown the rules would debt $XX of year along to a any see and likely quarter by $X.X continue impacted hand monitor impacted could also in us of priority. losses that potentially Therefore, rate quarters. which enabled We for carry note million decrease taking of number for GILTI was action. to the potential net the in full quick

to the fiscal XX% be continue Going effective around in forward, we rate 'XX. expect tax to

to an update wanted guidance, on present perspective the Bruce provide I first strategy over the to in few on Before some it months 'XX I and hand role. to new

fiscal development that a impacted structure accelerating maintenance as have leverage positive, we operating volume is While COVID, Book-to-bill will markets cost on is continue our end to product by process to new optimistic is be 'XX. spending are return, we starting recovers. cautiously sustainable and drive our

been model. to the simplify, We Bruce, is fiscal there continue team control. to energy externally the all, While QX, to teams focused and in asset-light the in challenge the but our of lot year and increasing on internally My we driving on adapted our a it we sheet plan margins were what long-term and that, a automate world especially changes can attractive many parts as and remains attractive our cash an focus that strategy. and for update I'll It's balance generate quickly of business to 'XX. for a sustainable moving leadership improving we encountered. with across we passionate to a this result colleagues year back both, committed markets, growth and strong to goals profitability difficult on the for and and achieving renewed are and enter The returns our year with execute you investors' turn capital. on gross

Bruce Thames

All right. Thank you, Kevin.

If now strategy slide. the update you'll turn to

All Thank capitalize Slide for successfully the slide excuse you, petrochemicals. X to presentation. energy Thermon it's to or on Kevin. downturn the in has the and from reposition sector, Moving team on demand since in worked right; to growing this me X -- chemicals -- XXXX

revisited Board management With shift underway. and to events the on the strategy towards recent the our the some and decarbonization, of capitalize transitions have

going one the forward. applications. and traditional class industry recurring China onsite highly we Eastern as Thermon gas is steam will high focus significant Diversification Our area opportunities while revenue been creates growing chemical, the India, power. is Hemisphere streams. which believe for emerging installed markets particularly reduce the significant The countries for in electrification the to From existing and second in a replicate for middle solutions end of capitalize markets, technology transition growing effectively model focused in heating driver as our natural on that in on forward. markets the these our other using mine value growth installed for base demand to and of see on efforts, in of looking growth from our markets for has new to going petrochemical the and of identified the geographies accelerate base, many underway, We Asian expansion developing is

goal fiscal of has from basis. on business, XXXX. by markets more many in participated diversified other revenues targeting growing the less and oil gas generated historically, of end an these Thermon are of of such are of than XX% that segments We our but opportunistic end

the the process greater renewable direct and portfolio wind we historically and The include such focus, all of sectors well represent to include many shift opportunities food expansion as transit, energy beverage. promising With for other to commercial, power and growth. environmental concentrated and as with sources of increased and biofuels, that opportunity. as channel these touched solar Examples significantly rail overall power, heating of sales have growth and sectors represent

The We recent demand, control solutions, investments advanced committed R&D. invest we remain Even our third customer material area strategy that through cycle and in maintained downturn identified is heating connected new spent technology-enabled of on technologies and product X.X% the and to to include smart maintenance. science. prudent revenue the development in with

One and enables launches total well of from safety product the ownership. With Genesis improve our and maintenance. recurring nine IoT troubleshooting revenues reducing Network Genesis opportunities creates predictive of for while as platform cost reliability, to year, last as the software capabilities, customers new

solutions capture improve and from our our end to relationship All customers strengthen recurring the abilities the of these with revenues installed further base.

Slide XX, on guidance for to Turning 'XX. now fiscal

the forward, of improvements we profitability operational to business. maintain overall laser the Going driving positively a focus impact on

in the increases the line savings combined offset year. the SG&A than improvement, to the in increases any price on expenses savings We are while continuous expansion meaningful inflationary with committed to cost in more anticipate year. EBITDA through will cost delivering $X holding million margin drive We

solutions, product commercialization investing to to strong With growth of our We new in new these commitment going the drive strategic in development and pipeline a the remains in X.X% dedicated business and forward. initiatives also year. with are approximate an remain steadfast our of efforts revenues fiscal to committed to

current the does are the of million conclusion, believe we and of for business year. In quarter range expenses When consistent year more are historic profitability full the reinstating representative this revenue nor to guidance 'XX. flow expectations for underlying our fiscal the are of for million not $XXX the 'XX remains, level the our results isolated, do a environment cash $XXX of unusual the underlying to I it performance. in change in While uncertainty model are fiscal our with strength quarter's

year the in will significant in operating generate performance show work done fiscal 'XX. leverage in year We 'XX, and fiscal expect improvements financial

We stronger, have customers a our more to serving value pandemic. end initiatives, long-term and as for operational for business to pause and our markets the By and I'd Diego Thermon profitable focusing talented and our to portion back to emerge team that strategic our call. now remains from is well positioned committed this on a our creating turn it over emerge like customers Q&A of shareholders.

Operator

The with state will you. conducting your Securities. comes this at question. Please, Rosenblatt we time from question Thank session. question-and-answer Scott be a And first Graham [Operator Instructions]

Scott Graham

Bruce Yes, morning, hi, Kevin. good and

Bruce Thames

morning, Scott. Good

Scott Graham

million, it that really So, isolated Just hoping still in guys kind the was the is, shed what little million situation is an maybe a unbundle be bit you're why execution, unusual was In $X.X particular, really big the items particular I some on happened that number $X.X going understand to just it and able and obviously you million. million but of or I here. would avoid even $X.X doing it's light hit was $X.X -- which to that on from of large? us the happening forward more help

Bruce Thames

Kevin, recurring some isolated want -- this Scott, some drove forward. exceptional we -- -- million. that on the we not I'll that outside unusual in time a items expenses. But $X.X going which of one of Bruce, protocols, material and is we months you essentially contract US had winter had very foresee touch in it had if and it's other and just jump the to and the $X.X We maybe on million. be a one-time during is warranty we It's large the that it rework in done to COVID this was do I'll -- Yes, project had during

Kevin Fox

you've things a with EPC storm so. that reserve really customer, in Yes. into appropriate reserve getting in the impact lot residual, point time then rest we're And was things, which those bad P&L, in there right but to in the $X.X that the the Scott, it further million, take it's just ultimately at of for for EMEA SG&A, and winter a specific -- the there debt of was back felt got whether whether of timing, And region, back was to like time. items this certain little the resolved, the it's there

$XXX,XXX few end of individually, them the than of accumulation a I at none As but really were happened mentioned, just the here greater quarter. things of

more as those at as in unusual still us? performance forward to we certainly Scott, we expenses time to Difficulty]. here look limited stabilized we are expect the business, and back you think look normal with get So, I a things [Technical

Scott Graham

I'm… no, Yes,

Operator

Go ahead, sir.

Scott Graham

cost the us million? so that. I split $X.X $X.X you SG&A sales the of goes yes, So, Can between the essentially million of away, get and tell

Kevin Fox

Let's have well. would been cost about, let's to million, that base $X.X residual been it see, The would but you your have into call in about margins. as factor $XXX,XXX cost, gross need now

Scott. versus $X.X on versus SG&A, So, COGS $X million probably, million

Scott Graham

well in the of be one XXXX. was last margins to around both in of XXXX discussion expect your quarter as highlights And Okay. big you where as

XXXX? relate your margin, does more the being expectation the of this number quarter goal making kind to like improvement for basis sort quarter we push XXX that basis in through XXX trailing of just XX that So, points to does of basis sort a up for EBITDA points XXX plus months points EBITDA and of of margin aside December --

Bruce Thames

Scott. Yes,

on event, shared margin are in this my is expectations and I we quarter, view not script, that year 'XX expansions quarter an our trend last a As fiscal unchanged. and I this said based on

Scott Graham

basis is points. but that, Bruce, here points guidance saying to what was I'm Right. that XXX XXX basis

are you saying… So,

Bruce Thames

in December, unchanged. where on of Based XX trailing is as our view were the we

Scott Graham

unchanged? XX% view for your And is that on good. margin, 'XX plus, EBITDA Very

Bruce Thames

unchanged. Yes, that's That is correct.

Scott Graham

you. thank Okay,

Bruce Thames

Yes, no problem.

Operator

you. Thank

your next with comes state Blair. William Brian from question Your Please Drab question.

Brian Drab

detail, just I'm And to starting that thanks. Hi, you're said activity just the up. to you that? on believe with MRO just you that I'm know begin opening MRO. going up can picking I you elaborate you've see growth now seen the expecting don't MRO is I what year slides know time, it but there you so and in can for if quantify for you're what first for all MRO? some the

Bruce Thames

seen progression year. through a We've nice the

maybe pandemic think you this is but stays kind robust access limited as acute is you activity, I in facilities if maintenance really that to to demand. pretty just downturn. and -- off back building that QX, off MRO saw we Normally should claw there note XX% like and the a spending an demand we believe of said, I'd for maintenance. was our the drop really a unusual to for pent-up in us so we maintenance And

off were if the then around next we XX%. quarter XX%, progression So, XX% was I'm mistaken, not

I around think this XX%. we one finished

Europe, where saw lockdowns most gain we decrement negatively you India, is sales in the recall, through So March in of Particularly, those an MRO starting that year. January, -- prior those the March, inflection the saw MRO March. impacted those year-over-year the saw early we quarter the -- impacted actually Canada, to really all of momentum. but and negatively February thing our really that's a that, as in quarter we in impacted fourth growth month The in we've in now positive

right in trend the nice are we seeing direction. So, a

Brian Drab

seen May? Bruce. and you April And have MRO Thanks, in in of what terms Okay.

Bruce Thames

even speed. and seeing We maybe gain continue trend that are

Kevin Fox

a things currently places maybe the are start to globally, going further going previous Bruce made caveat would I as little an at India it's like opening you where that Brian, just And still little US, have the would are be a Canada, on underline like struggling. depend places geographies ahead, regionally to standpoint, around, obviously comments, look further like to behind are from

Year as in thesis kind the access in weeks change but demand. few it promising more But a view it's first certainly shown driven New by areas the that not up. of that it we are restrictions, So, underlying reinforces in the have it's opening necessarily

Brian Drab

and break in regions, quarter? And as great. regions some saw Okay, as of can -- the major the you're down talking the revenue then, long you about terms you what the in what in of orders

Kevin Fox

So, about positively. US let's EMEA revenues in were in should XX% previously, let's the the down quarter. XX%, the the that's XX% to a down in XX% plus actually APAC us XX% in quarter, I large Canada, get down mentioned US, down the and was up that see say Brian, projects quite

Brian Drab

Okay. EMEA, sorry, was again, what, EMEA?

Kevin Fox

XX% positive. Apologies;

Brian Drab

Plus XX%.

Okay, that could demand talk and thanks. And then gone that more longer that issue Freeze have -- can Have just in any driver go I could that term. The had you Texas demand two we or drive you and mentioned any seen questions. you February more any about and there place products? are for into into that going regulations to maybe are your place drive guess

Bruce Thames

Yes.

you you currently a going is I Several what are number opportunities of customers are and underway. on about any legislation natural but what laws the or and which Legislature had the -- there to gas bit that's I bills overall kind it included passed. have So, first mean impact a a those impact power, business new only it a was that the forward. in sure see widespread in compliance I of -- the with do can believe is I tell make see are they in a you session tell legislation to passed wait but that new near-term that the infrastructure a can't really is infrastructure. a can't they not of short-term to and to -- support. it will pass, of Texas end, have I was all, would large pretty tell also the positive significant do

-- some winter as upcoming customers but in seen of momentum are have would some that we we advance However, season. just in the gain business months last some the expect nice doing few to work, here

Brian Drab

fiscal is thanks. better. of Okay, Kevin. the the and 'XX comment get revenue fiscal and And could the for get we then and XXXX last maybe we're end comes But if range curious one you looking I'm in to to any for things just If then, to this. potential give on

Let's the EBITDA that given get structure revenue in million like and incremental improve? an what $XX in, margin things revenue something new would cost growth longer the incremental to on say really margins or incremental term the of you and if start type

Kevin Fox

XX% won't the the, would outline go questions there. maybe to improvements I of over a and previous the having we next but And the think over around out path long-term still unchanged. back months, about incremental longer themselves, EBITDA comments that of EBITDA kind think Brian, margins to we've that's If we to incremental those the term. XX to certainly speak on XX% put to kind range

-- certainly range intact it's a a of term as a incremental well, think XX% and to we -- the fully over fully adjacent, bump in EBITDA some and about accretive Like those I whether in product on this together after investments long all we're they'll well. XX% the business Bruce I trend. not the type think the be business, putting front on plans And of incremental the initiatives development, think new when end are opportunity as front the that it's us. of strategic these start of the think of is They channel, I the road, to still we quarter. but at think achievable to is not look that and I said, of go

Brian Drab

very Yes. you much. Thank Perfect, okay.

Kevin Fox

Thank you.

Operator

your [Operator Jon with Braatz City Instructions] Please Capital. from question question. Our Kansas state comes next

Jon Braatz

Kevin. Bruce, Good morning,

Bruce Thames

Good morning, Jon.

Kevin Fox

morning, Good Jon.

Jon Braatz

of you being from moving or would about it driven little you to electrification, Is conversion about new subject talk cost? tracing? could being sort it whatever an of be big steam? of going and by maybe this directly a are Is by opportunity ESG electrification steam this electric going you could -- to Bruce, driven how seeing great. heat a just this of more tracing, the projects the Anyways, a forward? could to steam using capital and say not And little secondarily, is possibility be that bit

Bruce Thames

electric decarbonization towards that actually still will gotten balance that been it's steam many years. of of we The the, that Jon, are electric, accelerate that and was from kind somewhere mid-XX% of believe shift efficient. the electric steam the The question. market to the for ESG, trend. had was more the Yes. great underway The market advantages moving What push is somewhere it's information we so to is range. the last of has in kind in

and have it's a lower control then -- of cleaner, level so certainly You maintenance. higher and

The initial the drivers. is that, seeing globally would outlay. the that that's a been underway. transition. that kind trend But be capital we're all just accelerate that those this kind are So, But of the setback we believe shifts will of just

Jon Braatz

Okay.

much. thank very Okay, you

Operator

back all for you. you. turn now for remarks. Thank to Thank today. That's Bruce questions I'll closing it the Thames

Bruce Thames

day. here you All appreciate your today. interest right, the of enjoy And rest We and joining all thank call Thermon, you, the Diego. in for your thank

Operator

Thanks. All Have This today's concludes conference. parties good disconnect. a may day.

Thermon (THR) 27 May 212021 Q4 Earnings call transcript