THR - Earnings call transcript Q2 2022 | Thermon Group Holdings, Inc.

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Operator

Greetings. Welcome to the Thermon Earnings Conference Call for Quarter two of 2022. [Operator Instructions] And please note that this conference is being recorded. I will now turn the conference over to your host, Kevin Fox, Chief Financial Officer.

You may begin.

Kevin Fox

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

Additionally, QX call be XXXX. our this found IR Calendar conference News website under Events, for Earnings the on slides can IR Conference Call

will conform call, we discuss to accepted the that not some During do principles. generally accounting items

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

we those publicly as results may required materially actual differ or except statements, obligation developments of otherwise, new by result by update as a be no from may forward-looking these and any Our forward-looking whether law. undertake to contemplated statement information, future

Thames, to opening I'd President Now remarks. the Bruce Chief our Executive turn over call for like and Officer, his to

Bruce Thames

our financial Kevin details to CFO, and your my additional Thank here on is you good everyone We staying following call listening you, provide our safe for We joining in and Thermon. health. is Fox, remarks. QX hope in Kevin, and performance appreciate interest our morning. good conference

two with a XX% quotations, the particularly of now year, is momentum over year. of followed that and in by quarter of $XX on the up increase through over quarter pleased million. growth at XX% very in large sequentially. in period the robust a up second sharp were prior pleased results. currency record, building prior to end year-over-year $XXX with basis. the onetime included constant year the material quarters contract million, booking was order we're market a over Backlog the first XX% third-party which labor up the Overall, Revenues Turning year XX% were We prior XX% and historical excess

XX% As disciplined a to The for raising are result, we line continued sales annual of spending with projections. year. at management in second guidance has around consecutive be this also the and cost SG&A quarter with team

in and quotation invest to secured we are continue new we As seeing our have Genesis our for network order. growing second strategic our initiatives, log a

self-healing technology-enabled Just operators. include the in developing a markets awareness reminder, addressed wireless, be and strategic is as diversification network real-time will and this platform. IIoT-enabled strategic It a mesh provides to that this end strategic X these maintenance later situational of initiatives is markets. software call. All of part key Other supervisory an of platforms

to the by in were quarter. an productivity project in chain labor utilization isolated completed the in overcome in to a improvement The which and points quarter, resulted to shortages address efforts on late supply execution in XXX $X.X 'XX. Our related over sequential operational margins masked and FY first COGS challenges was basis impact million gross

and mitigate labor acute. shortages While have the chain more taken has team become broadened supply actions disruptions largely to

The gross materials, shortages These the team supply adept of margins issues come been by chain the have service to challenges raw negatively seen XXX to expect the resiliency at transportation customers our improve Our exceptional further higher the from but brand. temporary points in impact very in have level the to continues to to quarter. our approximately to on team Thermon and has material work deliver price combined basis of minimize higher due material costs customers, our inflation, these impact substitutions we navigating costs. to

versus We QX QX in second will increases quarter year are believe lower $X.XX to $XX.X seeing pricing the effect of global power in EBITDA, began Despite in million supply from challenges half EPS quarter. enacted was the revenue. delivered quarter, gross and $X margins, inflationary year in a in team in and fiscal late the an the largely have million offset increases on in marketplace in the million year. up Adjusted adjusted the the associated flat and prior price the $XX.X this share chain prior late

of our a to Turning end markets. discussion now

of We this late an enter heating speed in 'XX our QX and FY of began momentum end gaining in positive as we season. a acceleration seeing are markets that is

in we as the second returned North in of levels show recovery positive levels seeing to activity, we levels not particularly signs yet spending to certain regions maintenance While business half pre-COVID of approach are year America. of have in the continues the pre-COVID

of the four presentation, to As reinforce page key couple the like to look would on we a chart points. of I

sectors. and XX% of roughly the outside are markets First, our gas of end oil

end more greater and gas economies, bridge our fuel much sectors XX% a growth natural chemical, petrochemical represents which are of being power driven class by than the the as is of markets oil developing the outlook these of and emergence and our middle robust to With than markets tied the power. Second, only upstream XX% chemical, revenues. gas petrochemical, natural now and across

be pipeline. projects our has The expertise in a growth on in owners, building all focused and from during renewables, been end We additional team million the investments just long biofuels market. hydrogen technology of market projects signs the the process $X of under secured list across are Working we seeing appear our with also to in downstream positive quarter skewed towards verticals. in

Europe list for we have our to This wins. a hydrogen in pilot add quarter, secured to plant growing another of order green

to close material the by expected business, are have production fiscal we our yet of opportunities year hydrogen not a green end. While and part that multiple blue of in

rail million of margins part related a As opportunities America attractive and and also our transit the in over North to some $X multiyear rail of additional at over transit $XX horizon. contracts Currently, the secured quarter. on growing significant backlog our during we in business, with is million

Moving trailing of XX-month on period for $XXX exceeded first in presentation. of quarters. year million a five the orders five basis, to time slide prior On the the

XX% the X.XX During year $XXX at current XX% exceeding over the the quarter, period. with orders of and 'XX period, levels, was backlog sequentially. million year Book-to-bill up prior prior pre-COVID XX% grew strong FY up over times were

capital note, recovering 'XX. and positive is orders in our incoming increase had end As beginning in that markets quotation in six have signs across activity quarters. positive into many and year fiscal projects book-to-bill CapEx Higher a year the later in backlog, particularly translate we larger seven fiscal a last of of will that in execution very the with likely are bookings growing

in half the Kevin? We over in gas Pennsylvania, like review results. Storm and Gulf pass seen in CFO, customers infrastructure. states more impact Coast and address the season. We've are are other advance next provide I our also sectors winterization natural on Texas hand legislation in detailed along now had response heating would of Uri to a like quarter following first effects as the Kevin financial taking it Fox, to seeing the Winter Uri of Texas Winter the and to to power storm winterization the also the positive power to actions

Kevin Fox

third-party X region We greater plus versus in X% up and $XX with Bruce. prior booked while Current our and from million a contributed quarter in the this over $X project regions volume. the Revenue with on growth This XX-month materials. in project customer strong you, onetime labor by a for was large our basis. prior APAC year, the XX% of quarter a Thank XX% impact due multinational contract the than FX. X smallest worth year of the includes continued all Canada government COVID-related in lower quarter, tailwind quarter and in contracted were regions, chemicals million revenue million above again lockdowns a Latin America, from current India period. to over and trailing down EMEA U.S. XX% $X Revenues

figures the continue contract complete both provide appropriate next. will revenue year-over-year ensure to We is comparisons, until this and year to

end are the types these While lower range. desired margins our of for contracts of typically on

our we secured incremental how Thermon's fiscal typically On this viewed as these offering second value-added our the implement enhance for another broad Pricing grows in relationship. base but of down relationships company. went from profitable a and within on a TTM trough. revenues start installed network. increases site, to example quarter, maintenance When already basis, drive is and days and have We COVID growth effect our into induced work to like XX takes in materials the the are X% emerge aggregate,

the in see So our half. hit second of impact we that to expect

inflecting business have year's the to are levels still yet of plenty to back are While we to see we happy pre-COVID in run last lows, room recovery. this off and not

we Reported by of few margins in is a X the cycle and investment a Commission, spending items. beginning the Texas the discrete gross driven Senate were the Railroad Storm to the seeing standards customer quarter believe Bill are there related and Commission maintenance to Public upgrades, of the Utilities soon ahead. Uri finalized and and passage with be multiyear in XX%, We Winter by

those materials times see continue of and factors manufacturing on through chain points cumulative factors or prices, QX. labor productivity. basis impact in business these supply in impact global of to higher commodity the First, and margins availability the impacted XXX of lead we approximately longer by inflation raw our the challenges Cumulatively, shortages, gross limited

by had basis large mentioned Second, points. large lower-than-expected in margins margins, including the gross project onetime XXX quarter, we contracts another with the earlier, impacted which multiple

the basis cost fiscal or for execution of on-site we to sold that as isolated on in year Finally, in quarter XXX in we project related took work. million an points $X.X charge 'XX completion the goods operational near of completed

to and to in million a of the project. immaterial and a will periods charges financial properly reporting. prior due internal 'XX disclose due and We QX over respectively, controls $X.X sold 'XX, underreported in charges XX-Q goods this same million related of represent QX to correction reflect afternoon as and costs policies in identified cost to our lack of weakness control our also designed to an These error rework material an $X.X

rework implementing for the to our large We and of are anticipate end year. in controls remediation prior the over fiscal current process of enhanced project reserves

margins gross we the second half by our will we As the project, impacted forward continue to be remain look onetime strong. year, will underlying to business the of expect but the

line price from of our increases offset will to to We manufacturing, will expect mix productivity bottom produces drive incremental and season favorable accretive revenue challenges materials begin typically that are supply chain improved line. the a and demand the top heating

MRO/UE versus wanted XX filing last of of on is we year-to-date our the point-in-time and to decade's that installed work more recognized representative believe Note are revenue in engineering in for attention product improvement Overtime On are whereas aligned the whereas page, revenues generally also our XX% introduced XX% only over has the draw the have inception. to base a acceleration business. your spending of of which greenfield since XX% it revenues the representative built our the available have Point-in-time material of again a we time total XXX% project versus we sales. next only and longer framework the this of over revenues disaggregation installation quarterly previous of of where term different the with as legacy point-in-time represented value was grew including revenues and viewed heat incorporated the quarter quarter our the benefit basis, Revenues highlights is services, IPO. customer of or This XX%. of revenues revenue construct global an we tracing over

the the was which to end look We at of greenfield versus XX% the and and prior will mix year. Page MRO/UE XX% year X, continue respectively, SG&A. in XX% On through versus provide XX%, greenfield we MRO/UE

a On how dioxide deduction prior believe from volumes The $XXX,XXX to wage a basis, back million and sustainable expense, that was cost $X.X target the and a bad customers. an As SEC get have $X current for to in our subsidy GAAP was of of per in second $X.XX emergency on to refinancing more the a yield we results unit share. But invest we we EMEA million a which start Adjusted $XX.X expenses is year. million adjusted our prior safe process. the add a or maintenance in the initiatives discipline of $XX of we season rate we announced EBITDA water is was vapor debt of items Adjusted the administrative This $X.XX from sales. the includes harmful EPS R&D beginning, $X.X methane due destruction half are strategic million XX.X% of carbon that includes we In example was debt quarter, XX% approximately methane to with share, million technology-enabled below and selling, for year for yielding of cost our Thermon taking higher is while sales. continued to EBITDA general markets. action team impacting diversification heating future run the This in in continues per and to the of an spending year, projected quarter Canadian positive for manage will our up depreciation our developing converts deduct EnviroDyne reminder, $XX.X over million. mostly are profitability decrease region. versus of recently presentation of combination EPS we this the year. improved at emissions as and revenue. SG&A expenses The from investing slide. or reported and our in

their of next the and and million sheet page, group floor consisting Term revolving to has USD our I wanted our tax of currently the quarter a to of and million facility. previous refinanced $X update wanted cash XX, our to pricing yielding placing expense equivalent $X.XX of some December of Term I million no for debt is We million, in realize lender benefits. debt XXXX. savings support. able current year. X.XXx, XX collaboration XX is thank cost cash On around over will be X.XX%, a savings Canadian to new $XXX and The Canada, we the per as a puts We previous may in of the our refinancing A covenant B balance debt an be of additional September, per expense interest blended interest the reduced completed equivalent The into net share. grid The facility versus X.XXX% By but credit expanded USD a ending X.Xx debt-to-EBITDA cost flow. and the

in it acquisition growth have evaluate holiday inorganic is our also the an as We event we required options.

of XX quarter EBITDA of prior net the as adjusted to debt year Xx. versus X.Xx the results, and was With September

free We million, continue to $X.X only with cash positive generate was line in flow of quarterly $X.X expectations. cash CapEx quarter. in flows the million with

will and expect no a potential our inorganic growth generally stronger to cash, and offset opportunities. trends are volume second better expectations costs. priorities, new pricing generator we Combination no we debt be second There while evaluate of year the expect input continue half, the heating the season allocation Our to of down and supports of half to is capital positive to we in and impact this different. rising we quote, pay revenue order for changes and our see

it of capital inorganic over the as back we we base to our our we on We in lower business. will wanted turn a while the manage investing provides and update an continue Bruce I'll long-term to opportunistically opportunity how growth cost have the strategic now for the costs initiatives, view pursue to provide growth. funds that structure flexibility with to

Bruce Thames

XX. you, now you Thank like I'd turn Kevin. Slide to to

As that growth to in traditional we our beyond markets. to business, diversification above markets end technology-enabled in forward, drive maintenance developing to as base end we move markets, of -- and see strategic and of grow growth our platforms addition

to countries greater augmented rate compress price projected on any and requirements. are points years. over plan while content developing our achieve markets. localization lead Xx countries grow we local capitalize footprint by Looking times XX that this than To geographic leveraging of to Developing on meeting opportunity, developed at at next a the regional

transit. of rail diverse solution strategic is to and initially addition commercial, to our opportunities The opportunity, X markets diversification more beverage and second heating complement potentially markets. heat and and environmental food of has The to positions build the we meaningful are process our platforms. set of most important targeting The markets three end tracing end created in are

gains have we network tools platform, productivity assets. Genesis additional enhancing our digital maintenance share. and grow in streamline value we abilities enhancing the opportunities of an product our awareness portfolio improving subscription-based reliability and leverages control MRO channels, of While drive basis. see building while the opportunities. Above X.X% our software online are the to and in markets participated We maintenance real-time to historically, revenue situational an from enabled on of three safety, customer expanding providing incremental Technology platforms, sales X% productivity and training to hardware, market services, these our is sale excellence capture beyond and annual these growth full our initiative and to our operational strategic targeted to program

grow we years. over the to top also to the rate at next SG&A line While of expand margins anticipate EBITDA half the leveraging several

to margins the continue We fiscal XXXX. in range EBITDA target XX% in

Slide now XX. Turning to

we see both business. forward we 'XX, path solid As growth margin FY line to top expansion for a look this EBITDA and for

and believe XX that to next are we recover First, months. positioned we gain well as markets the our over end share grow

to initiatives additional of end beyond drive Second, will our our opportunities above historical and growth strategic provide markets. that

Finally, our fund will growth the opportunities to ability balance organic our cash and efforts strategic augment three generate sheet a platforms. to strong inorganic across

we a X more business see this shareholders. to value double clear for next a years EBITDA creating while over margins, the significant result, path than expanding As

XX% see projected You efforts of can market sectors. with end and being end these gas the to oil the of markets also approximately outside impact our our mix of

the our coming continue provide in quarters. the will on updates efforts and We to corresponding results

the to fiscal year 'XX. Turning remainder of guidance now for the

revenue the guidance variants, COVID-XX underway. We with adapting recovery in how the factor of Going the markets to is time range year capitalize to from a range us have the well second well new raise to to end for environment seeing world of limiting to million the million pleased forward, $XXX chain. this that much supply with million robust that we're to and year positioned $XXX more on the is half Thermon We're $XXX confidence is largely will new a that be related second believe the $XXX million. given

our and supply focused resiliency teams the our minimize on to customers However, chain are any impact on business.

Our to through our customer generate continue cash the model, proven to relationships cycle. business with strong ability combined and our flow demonstrate long-standing unique

growing have top growth drive We markets. in EBITDA line to margins a strategy expanded and in diverse end sound

create team while a have business to to very value long-term shareholders. customers our repositioning talented We remains serving for this that committed our

Looking ahead, to turn pause the John portion over to I'd very back like our bright for Thermon Q&A now future. it and has a of call.

Operator

Instructions] the question from with you. [Operator Thank comes Our first Blair. Drab William of line Brian

You may proceed with question. your

Brian Drab

Bruce Kevin. and Hi, question. Thanks taking for my

Bruce Thames

Good morning.

Brian Drab

to start Can on what revenue? like already products the for it Morning. your bit that a hear today. there. I'd when like it have that's start you elaborate are? really products more of about renewables mean, you just market that to some generate specific of touched market? to you beginning sounds What - Obviously, is just it little those outlook the some of that does And on meaningful maybe I to. the applications great

Bruce Thames

Yeah.

So - really we is it's there. products. of traditional many Even common you're into processing biodiesel converting And most one our of I organic to that spoke the biofuels. specifically products matter, you're though

production are And so very the processes similar.

say, applications. would same use products the really types use we we So refining a in of typical,

might the heat certainly, environmental heaters, heating. cases, we well climate facilities in the the tracing, as depending location also provide and of on So then as immersion and some

wind, sum then renewables, heating So the If in around well cell nasal nasal those would and to well typically wind heaters be be the - tend heaters warming as warming particularly for itself. for we're as air for kind at other the immersion that would also looking oil as the of forced biofuels.

kind of to two So applications the and solar be tend those wind be applications in less. would

Brian Drab

that And the plant? Okay. of Is same hydrogen some like...

Bruce Thames

Yeah.

of into use molecule we a processes split parts, and heating to its the basically component hydrogen, actually hydrogen immersion for So those lot water oxygen.

extensively So - used in And pretty process. are those that

Brian Drab

would the markets, same those I your into end typically competitors in traditional bump that in you well? you And the, markets guess, as do

Bruce Thames

That's correct.

Brian Drab

Okay.

that congratulations the margin that. $XX is the the more beyond that on that what's You timing And like is mentioned of was opportunity? of you balance potentially What revenue? order, million recognition And for million it there And that? recognized. think $X the the of balance gross overall sounds do

Bruce Thames

Yeah.

And million to profile. million $XX fiscal be opportunities year. $XX above projected that. beyond we've are to within at the additional So those would margin we and definitely a expect There better

but heat we materials, supplied to This have actually direct process kind panels that some all lower this and additional range profile Just pre-commissioning end in is to the already is really customer. of installation, post see of commissioning in material and work margin we final labor the all of expected note, then just and tracing, the on on our opportunities revenues. for start-up The during projects. and around

Kevin Fox

Maybe there's half Brian, between I XQ either and it's little out between is just versus the the half, way XQ, this Kevin. And XQ more could year. on a of not, balance a The margins. round maybe but to don't the be on bias maybe and timing the it think in

Brian Drab

going sure it's that to or just make that So Is just as recognize to delivered, the understand, been there... is you're -- installed? have I it's so materials revenue but

Bruce Thames

We that the or material material recognized was years We sold sold -- years outright. the X ago. X X outright,

final just pre-commissioning stages is start-up. this - of at pre-commissioning construction, So

Brian Drab

now? that's… is that service this Maybe installation you're revenue So and recognizing

Bruce Thames

Correct. Correct.

Brian Drab

of end be like of margin-type range greenfield the XX%, range, so end the revenue? say lower XX% you like lower is this And could gross when like

Kevin Fox

here of and end of having of of content range when the lower probably of the you with Brian, lower any we the that not a range. especially some the think get even the where the materials, spectrum, think should done there's projects end

Brian Drab

about it Right. service you. you. Right. installation. a I lot but wasn't got I second, for in here yes, got correctly And a I of -- I then understand. And I you. got right, -- thinking then It's

downstream, petrochem, the in can impact much you order this. it et markets, could oil and kind like wanted if cetera? you the granularity this strength petrochem, that rank with to of ask you And midstream, could could quarter, as I So markets on way, any more see saw the give I granularity gas, of just end give including as the the you end

Bruce Thames

Yeah.

kind when -- supply, - a -- the So the There's resin are rank have seen it We've doubled. strongest. by chemical I - of literally petrochemical, prices far, tightness in

So had pulled we're also we're really being being for been time really now and of more advanced. to to activity. shelved those down seeing levels projects capital some And of starting maintenance return see facilities pre-COVID that period

really been And that's the maintenance So seen power. strongest. would rank, power. would I strong be and spending pretty some recovering also second We've

here over storm to the And we to Some of particularly is related last pretty expected look and winter at several just years. Hemisphere that's significantly to sector. America North see the but power in in also demand year. if broadly, Texas, related in the we overall strong significant power more demand grow the as growth opportunities next certainly, power Eastern

I midstream of kind Those -- we're and think seeing gas are that, would more kind natural of to opportunities. being we I beneath for resurrected look as natural LNG also would gas. demand

global for think LNG and of order to and driving more actually liquefaction gasification kind requirements is of actually levels, actually up I that's pre-COVID in above demand. meet it

small, some would and way CapEx. much then probably the maintenance, say, seeing kind the where would those the have of although the see weakest opportunities. opportunities. I certainly of noted rail business. is It's those we nice we So And growing, part be our of as sector, actually but are as upstream not far transit in really renewables, strongest some I top markets

Brian Drab

- as know normalize, even gross sure - have next you year I correctly. to can headwind couple details big quarters of that, you're I the Great. what Thank you. from but much number more. granularity now that of how as commented and margin you I next factors, and all willing, want But into expecting a going to right just And margin, just give to I'm things can for Gross as make one just understood hopefully? forecast, you're ask

Kevin Fox

is Yes, Brian, Kevin. this

points due margins, things seen projects, to chain. And in got pricing above the XXX supply second the in back to the XXX we think due the I to on the side XXX-ish That kind XX% roughly range. of chain XXX large charge think going basis We the pieces. then the points, impact there We've have quarter. basis of half. an I is you gets supply think another outlined on the on you've

certainly margins. to as we the traditional of XX% here. a So drag think we contract, I spoke those structure be that. back of on to But a just think there's type large that's given to historical the path margins going

there of And the business today. a a is there's chain should on think so can productivity, this but date, the little next that we're bit SG&A think kind confident there. structurally of term, to where got here pricing. is percent offset from back you certainly, or longer little business say being EBITDA, think XX%. is about remain more by not of I large a And about that quarters increase Having that on projects. if path generate margins, pluses in average, low supply we we a you've would XXs I drag above the trending So a think X we volume bit a on

but So XX, just the we operating XX in grow. the not months, leverage the continues here, months as strong think there's some pretty next to next X business XX,

large through gross margins, due of little can way again, the X in bit with quarters pricing. on specifics that work as your kind of just lag onetime you into -- supply getting without we'll think But some to of completed. that challenges chain the - I project So have gets a next a the here

Brian Drab

it. Got

headwind doable price after increases, maybe but you heard -- is in my XX-ish like that... Is hearing just that XX% So maybe with I'm just a the make couple large term? of project second or to hundred is obtainable And point then the XX-plus related basis even beyond projects half. in I like go I'll sure mid mind, what the let I longer I

Kevin Fox

Brian? in Yes, that’s absolutely the You're gift catch. the drag, right

Brian Drab

Thank you. Okay.

Operator

[Operator City Jon question the comes from Instructions] Braatz Kansas line Our with of Capital. next

proceed with may question. You your

Jon Braatz

Good morning, Bruce, Kevin.

Bruce Thames

Jon. Morning,

Jon Braatz

because the do the sort supply the fully of points? everything back drag chain to on, need worse. and you so the you're XXX issues you that point and think margin XXX so basis equal, gross year -- recovering that of nothing the end to of Or this Would Returning to - speak? pricing and being time, fiscal basis gets would by more will else

Kevin Fox

the the to guess, little really experts to when XXX, more half. of inflation and quarter embedded other the certainly bit the call that. the there. to now. a a I if pricing in meet kind we do that maybe Fed it in ability little the John, when be I look good will. way, drive pretty good on we call vast a But on think the I you recovery of at bit a a in when more of Yeah. in second able home, think But feel aren't related half second maybe some of year. making broadly, think we is gets field, to to the ability And that's want don't half others that mitigate the in I of the There's on feel second about in question, I I ultimately, pricing the three going to of at right think ton I it think if out we it's pricing look transitory market the at majority inflation about actually is. how demand of And

Jon Braatz

that's charge the project in some that a be Kevin, related say, difficulty? you second the been did small causing half, And will there Okay. to

Kevin Fox

That's roughly have took immaterial the charge to quarter, in current to in is Jon. million. What I alluding we going So periods. this corrections prior we're was $X.X

$X.X that's Yes. million. that roughly be QX then will of was 'XX, QX $XXX,XXX. another And 'XX, that So

no charges related we this future at project. that So that to time expect

Jon Braatz

on. been is and in All terms lot sequestration Thermon? energy, opportunity that in right. Is for carbon carbon green and renewable Bruce, there of - of And about there's capture, and talk a area right. there so All

Bruce Thames

we carbon technology are that viable unit. but in and it converts are and about converts and great Also, application of is. there. heard we it and our applications Yeah, has where gathering Kevin actually mention methane, our out of methane gas, is And And kind one of solution. to it is oil there, water. that myriad to you a really capture COX are kind not a really natural certainly those There customers fields the those gas of connected opportunities. there solutions It's destruction of

carbon capture at looking start and we when opportunity reduction. another even actually that's So

Jon Braatz

right. All Okay.

Okay. reference begin of you be degree the you the you big State Bruce, do there Very it, will significant are coming impact to good. talked result think as regulations -- Texas you bill -- made bill? there any the horizon Thermon think anything a I And on as Or changes but to on will -- that know to regarding that

Bruce Thames

already directly related We was to assets. Yes. of are -- year seeing the our improvements to growth winterize order infrastructure in this part

seeing we're business. our of So that already impact in the

Jon Braatz

very Okay, it. much. all Thanks right. Appreciate

Bruce Thames

Thank you, Jon.

Operator

call I we to At for back the closing the this question-and-answer Bruce over turn reached of now end any session. time, the remarks. have And will

Bruce Thames

for right. you, thank joining the John, Thank and of your enjoy your rest today. here all All in you I day. interest and Thermon, appreciate

Operator

conference. today's concludes This

you lines time. participation, disconnect day.+ great at have Thank this a may your You for your and

Thermon (THR) 14 Nov 212022 Q2 Earnings call transcript