THR - Earnings call 3 2024 | Thermon Group Holdings, Inc.

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Operator

Greetings. Welcome to the Thermon Group Holdings Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.I will now turn the conference over to Ivonne Salem, Vice President of FP&A and Investor Relations. Thank you.

You may begin.

Ivonne Salem

Darren. you, Thank thank Quarter and joining Fiscal today's Good Call. you Third Conference XXXX morning, for Earlier issued Form morning, section filed also this we on of with has release, available the been our which website. SEC Investor on our X-K is an and Relations earnings press

conform Additionally, for we that Call Conference QX call the call, this Generally can our items found in to Earnings the website IR under Principles. not Calendar discuss Accounting slides will do some IR News conference be and Accepted Events, XXXX.During

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

new President by Our be Bruce introduce and future forward-looking publicly might undertake of his would contemplated no as developments our might update whether as materially obligation or I Officer, except required any by actual information, Chief opening results for statements, like from result Thames, remarks. those a to differ otherwise, these and we law.Now forward-looking Executive to statements,

Bruce Thames

I'd introduction of story. who Thermon, for good thank and especially for with a our Ivonne, quick and you, of you thank start joining may today. us here to everyone, like those you Well, morning,

from reliable As a countries we're heating customers solutions providing diversified to technology world innovative in safe, a XX on company, facilities X industrial in mission-critical and process continents. leader industrial

with call, across applications around enabling electrification.As instrumental is decarbonization of wide the the energy transition our I'd including to pillars. to Vapor our quarter team forward to excellence through Thermon to a solutions Thermon their like range diverse performance. and strong the employees thank X to forward.Let's agnostic strategic Power to Slide and also begin and our customers end our commitment are welcome the their turn like technology serving look of going and I this in on for markets, success, Our now to globe we another our contributions would team

that execution in inaugural at our long-term discussed and decarbonization, capital Day strategy on and we diversification; installed X pillars: profitably base; creating first, of our we is As digitization through second, allocation. third, are disciplined value November, the based the Investor sustainable growing

installed our XX past we've a by technology delivering and mission-critical heating customers. substantial base process years, industrial solutions the developed to Over global

through help sustainability of long-term transition and of economy represent generating of a monitoring. of diversification, end reliable our and optimize solutions less and energy also key operations. controls solutions safe, these excellence.We're expand in through assist operational and initiatives we a us costs customers decarbonization, customers digitization Although through traditional capital our verticals, revenues facilitate circular energy the our enhanced drive This digital our process enabler than as and efficient facility, initial achieving serving efficiency, and margins electrification Through growth our strategic innovative critical a decarbonization, their our solutions, maintenance the objectives. to they are growth X% additional recurring across ensuring through drive increased market enables to

capital XXXX.Our having towards our and allocation decarbonization solutions and end our strategy our of by coupled technologies, XX% gas oil are X to efforts supporting core first commitment goal of outside is come fiscal the meaningful Our of and foundational with pillars. to approximately to of from making we're a disciplined diversify markets, our revenues the our progress digitization end

positions the pursue balance for is us sheet in flexibility align a strategy our and growth of organic strong business Vapor financial that gives great strategic reinvest to example with bolt-on Power in our we'll us to X. in our objectives. on that of Our acquisitions detail later. our of which lower acquisition, discuss more EBITDA.Turning action, more After of now to stated net -- Xx the remains to completion goal to X.Xx end leverage Slide debt that

coming in You market we've from executing up a the basis, gas approximately our is revenue X%, food markets. notably, while diversification revenue revenues with year. On end XX-month trailing significant can past our and of our up success the Most XX%. strategy over growth seen continued of with TTM diverse oil diversified progress from in and beverage see are XX% end markets end revenue XXX%

underscoring transition. and in energy Of particular note is Thermon's transit revenue revenue in in hydrogen the activity end facilitating growth in also applications. Our with has fuels, market with renewables rail market, the market where year-over-year XX%. expanded share The year-over-year; and along market, the alternative XX% ammonia the reflects up renewables role was significantly, commercial expansion increasing XX% up across the

Genesis of were pipeline U.S. $XXX to sector, awareness growing power in decarbonization provide the continue winter approximately winterize generators power activity operational over as -- become X% of with opportunities quarter, generations during million.We power associated revenues power as that has events. weather see their system the The generators to Network states choice of to This the use southern particularly across applications strong with assets. the

extreme like balance were initiatives. growth to augment pillar conditions.Turning our fund the reliably to strength to X. to able winter significant Uri of is very recent storm discuss most different remain of Texas to done great we with now use from teams work as in our to our during to service. were a outcome I'd our operate here the a example accelerate safely to in our the have utility had weather Slide winter storm inorganic and help where sheet This to in strategic action, and a organic XXXX customers companies third able testament growth back no fact, disruptions In operational

Our marks recent Power significant in decarbonization profitable advancing a our of for step forward strategy Vapor and growth through acquisition diversification.

X footprint high on emissions coil in these where specialty supercritical incorporating a and boilers steam. generators efficiency By industrial compact electric while and sectors, our as ability and The very gas.Second, our we're to and customers evaluate require eliminating meets extremely it with exposure beverage, from we and to all applications with such addressable long-term our tube control products gas and into the can decarbonization processes food pressure temperature XX recycling, little greenhouse in and enhancing electric portfolio acquisition our criteria, markets revenues at an plastics to site.The steam generate business electrode years.As and XX% to used high-growth boilers electrode are our X hot approximately and coil over and general outlined expands steam years approximately the profile our here, growth aligns you improved opportunities see and on grown Power diversifying the resistance, based over exposure oil to has tube adjusted XX%. potential opportunities Day, generators. of an EBITDA XX% strategy last margin with it include X.First, with commercial at steam XX water by Vapor of we the Investor and As provide next electrification this boilers compounded supercritical annual rate portfolio,

as system, stated business averages. historical level of improve business margin meet EBITDA significantly XX January we in XX% of to months. the of at over the calendar believe above the addition, over profile X, can In our XXXX the XX% had we Thermon a By implementing revenue backlog further next projections goal

impact near-term anticipate results importantly, XX positive months. to to acquisition the in a accretive be we have As EPS to GAAP the first and

positions of economics, the $X have markets. to going identified million.Based of to businesses at team positioned win end new across global market in more well collaboration feel upon a range in Thermon included a believe in Power, energy X role transition at Thermon with each combination pivotal the one channels the skilled accelerating least these to diverse initial the been We feedback, over at play or Vapor not Although qualified cleaner with sources of X these valued opportunities forward. we through further opportunities,

this at sheet goals end X.Xx the of our stated balance following earlier, our debt noted net As EBITDA acquisition. lower at to adjusted remains leverage

additional bandwidth to for Slide various on which pipeline the study strategy. problems Vapor actionable.Turning to X, illustrating result, and complementary this become As a our now customer execute that technologies how we applications. case may capacity a management example, have financial have details both solutions long-term while in opportunities our Thermon engineered Vapor to In provides supporting solve and Power Power challenging

X circular project, or at produce of These -- customer, used supercritical plastics Vapor other heaters Power production. of economy. is and steam freeze same extremely Korean that to break be Caloritech chemical and to to true generates feedstock chemicals.By company to constructing this to numerous tracing this are Korean provides a the also of steam the a convert Thermon a then results. extreme footprint customer original the feedstock plastics crack the chemicals are facility able see plastics applications convert waste production we and protection process products meters a a waste plant On original recycling in down process can the Vapor compact heat chemical boiler at our petrochemical is temperature steam providing and to third XX,XXX the plastics blocks. for a plastics Modulatic other into in pressures now designing There where over supercritical in generator, quarter provide using to is building to XXXX or lines. required.Turning deliver to a and Here, into virgin maintenance back very for immersion pressures the and Slide for transfer be temperature plastic temperatures a fiscal used high Power type and

of and In OpEx $XXX.X market quarter, strong double-digit see growth team activity we U.S., contracted projects CapEx resilient growth X% year-over-year associated maintenance. revenue while an large Thermon the generated in from by Asia, of year-over-year. the record quarter, driven This to Europe recurring continue increase and year-over-year, revenue the with XX% million, Canadian

year-over-year EBITDA flow Our weakness quarter. due margins volume with saw to points material by a mix exceptionally largely prior basis, million profitability and X% by market growth to was over year million. as fall the XXX cash EPS year, sales XXX was improved to reductions. from inventory the an was in period. prior $X.X impact decline points volume year-over-year productivity.On basis lower continued of adjusted and gross due increase basis and $XX.X an the growth, an improving by margin Free and a share, adjusted This in XX% to to a Canadian of grow we up negative GAAP offset warm due the DSOs price $X.XX with

growth, year-over-year and is TTM basis, Kevin? are book-to-bill turn our our a year of the our On I'd were the million, the in-depth a bookings which represents book-to-bill to X% Finally, XX% ratio bookings our our quarter. and call for results. to down supporting financial year-over-year, in like more X.XXx was Xx, full that, Kevin review over forecast.With $XXX

Kevin Fox

Bruce. Thanks,

Moving Slide from an warm QX against team deliver fiscal during performance The strong financial ongoing on challenging and year-over-year impacts X. global continued to the comps XXXX to the quarter, even third results exceptionally fall. Thermon

a particularly quarter, continued roughly flat reminder, our due in seasonality. As orders in while is across down and America with steady to million strong was remained incoming other strongest year-over-year. typically quarter spending regions, Demand fiscal be third the of demand to $XXX U.S., the Canada. Latin EMEA, Customer in

expanding we end totaled our also units and reporting revenue diversify year-over-year and strongest-performing in across in America XX-month to updated $XX sector and initiative from in beverage of Trailing project orders our reached X rail growth the which orders revenues.Large XX% the and was totaled and full quarter region to regional maintenance the market orders Vapor during decarbonization believe acquisition power, our growth. orders, of million, and third were supports guidance. the end saw the markets. renewables, the was no impact terms million, reported Vapor million, driven sustained XX%, business indicative Power the million, power, food rate up There of commercial in quarter end markets against U.S.-Latin double-digit execution the year-to-date excluding be X into end of the with revenue in million, cyclical quarter, primarily diversified customer less for our continues year markets.Year-to-date $XXX with Power, we highest increase up our of $XXX demand and XXXX prior total, transit our from $XX fiscal small revenue repairs was while year, X%. revenue XX% commercial to by projects activity. a of Revenue the $XXX chemicals In

higher environmental just our EBITDA our end amortization due adjusted we Vapor business the spending. some it the on of diluted impact of OpEx markets, sourced modeling customer in was to shy comparatively XX XX% currently shortfall to EPS both line. metric a lower growth, of Bruce Adjusted details our orders. a while of mix product and and the Power goal of Adjusted incremental shift we focus lines an sales. increase to by X% margins profitable rep came achieved XX% by by moderating X if digitization warmer slower-than-anticipated quarter seasonally impacted in that a shifting quarter. the mix dropping basis, evidenced by investments year, the saw bottom also results. growth X quarters heat in the winter from On remains overall lines on share pronounced Over from to decreased add pro EBITDA EBITDA decarbonization, increased fiscal this include a XX% our Canada to on of a [ our volume typically heating in XXXX.Adjusted of quarter most away the a amidst plan we months and as revenues with year CapEx XX.X% fiscal which have per XXXX. is end incoming are most our the of ongoing trailing XX%. that to line diversified we cyclical quarter, with first I shifting of macroeconomic our executing have The volatility point-in-time within by months, our million strategic the margin the profitable tracing with of $XX rate trailing XX estimating to customer impacted year-over-year in spending, and revenues our as downturn as year-over-year note, spending diversification percentage expectations Through mix additional quick fiscal of from margin Product this ] in projects $X.XX quarter's to provided a of levels continue initiatives regions.Spending wanted indicative is diversification our approximately in forma acquisition, we would the of Vapor updated revenue from more Power $X.XX

represented mix growth will we While updated continue Slide preliminary long-term we believe in that product shift negative which the Vapor half to stood the the believe to acquired business about balance increased At also XX% future.On to million, fourth Vapor quarter for Vapor. will will quarter, sheet, to the to including increase debt continue a the Power. impact sheet, deliver the our with the from from also end the acquired we of Power. related strategy the balance profitable in quarter, year-over-year the XX%, cash that our due at which represents XX, $XX diversify $XXX of was of cover cash million. acquisition This Total of

on half $X see income the X.Xx Power $XX the significant in at strong business for additional million XX% year-over-year. X.Xx CapEx into to have our in upturn later was We the AP payments cash the capacity million a compared range stronger of the in strategic extends as This of within enter to ratio issue to incremental XX%. seasonally Note large and reducing on flow target cash XX% we additional $XX the our debt quarter. quarter. prior the first $XXX the of million, back an should due cash today some conversion, details acquisition.Turning to flow. inventory EBITDA acquisition the quarter, is we ratio to we and of XX-Q a X spend long-term particularly approximately capital flow free expense was free for XX-month $X.X and quarter to emerge.Working of year was period for in be was Vapor increase expect Vapor period. XXXX. cycles fiscal the of in higher the reflecting million interest million, up of net increase sales Net growth cash capital the of that third resulted as a nice Xx, related Power, still in percentage trailing generation adjusted This coming in the Working opportunities further volume a Please was in per collection typical projects will of to growth approximately X.Xx

in with first pleased performance are our XXXX. X strong the We of quarters fiscal

model.Looking testament remain targets we we to continue mix our Investor at We regions, outlined business while achieving of to continue to from our markets the ahead some experience fiscal growth the and to to across XXXX and is which end long-term beyond, resiliency control headwinds a last costs product absorbing while committed we Day. quarter will of Canada, in our the

Finally, entire to Thermon delivering to team it long-term extend hard my like our dedication for commitment our for that, would gratitude Bruce. value shareholders.And turn to I to and customers with over their to work, the I'll back

Bruce Thames

Thank you, Kevin.

now Turning XX. to Slide

quarter per weaker our while with increased our range.Adjusted fiscal guidance to adjusting we've $X.XX is for range to enter factoring we revised This acquisition year million the to conditions takes negative $XXX of As winter at $XXX warm that had Vapor the exceptionally gross both first share. $X.XX of Canadian have the a the impact success share in per contribution of margins. on quarters into guidance year, range X in to the XXXX. we're account a million million being from $X.XX the and for had a full combined macroeconomic the of last fiscal fiscal to our the of year, growth XX% to EPS being implying full guidance from revenue the midpoint is $X.XX million Revenue range guidance $XXX of lowered $XXX year, the of Power

an drivers intact. to believe headwind, a and anomaly these long-term factors create remain the While the we mid- was X weather near-term growth

fiscal you in our and goals.As markets. goals we'd points. mission-critical remain global Our a as to end leading heating XX across confident year leave the and we we stands process on Thermon solutions out today working, with following strategy technology XX, key Slide -- conclude diverse achieving strategic like providing brand, is

sustainable and innovative solutions and excellence, significant advantages products of stakeholders. create value differentiated our operational competitive Our all are for

and our Our the tied cycles, Through gross recurring the well through optionality. aftermarket to drive extensive transition energy decarbonization sheet, a opportunity franchise our high-margin the featuring global remains technology, and industrial existing resilient that customer and providing revenue. installed flexibility capture significant resilient to and high economic positioned long-standing vast we're relationships, a Thermon generates leverage with heat.With through electrification balance business of strong coupled model, margins, low capital-light base

deliver organic As evidenced with Thermon able to to solutions, business.In acquisition, generated exceptional again increase the cash around we're entire above to diversified once our by and the thank the Vapor heating Power our and expand commitment end the growth deploy our performance needs. to markets opportunities beyond and unwavering portfolio exposure safety the like to to energy I'd decarbonization and team to transition dedication customers' fulfilling closing, of

the ahead we achievements create shareholders.Operator, we'd can XXXX take Looking value to now we to the beyond, fiscal our I'm as deliver last attain continue for questions. collective excited growth profitable sustained and quarter to of about like to

Operator

[Operator come William with first Instructions] questions Blair. of the Drab line Our Brian from

Brian Drab

and $X million. Street million. guidance I then, my quarter, ask, the in wanted expectations And the revenue came $X raised just the midpoint about to forecast in you above third first by the year, for by full about above

Power got the the Vapor quarter. for fourth So then, incorporate acquisition we've and to --

the revenue? -- actually guess, just internal So it I'm Or did your like for to quarter revenue listening third didn't wondering, quarter call just third the your is my sounded expectation? -- even I'm question, meet beat I actually just today, maybe expectation first because your trying to

Kevin Fox

quarter. We of with quarter. between I'll that Brian, are walk is right QX maybe third QX inconsistent but starting maybe margins in up it I second, a well on right sequentially Street being know, to $XX as fourth lower-margin the quarter. and being with alluding on of flat is that's through expectations the to and revenue some there that you seasonality would QX bit budget million gross the we both product if Kevin. roughly there pieces was in normal warmer Canada, winter anomaly little quarter. you well. a the had of revenue in in third X, if QX. about down. we see were were [ of kind the down.So QX through the focus the some line to couple What guide, in shifted ] volume we the to Maybe little flowing We a of to drive year, with was I, and a fourth and the with weakness towards last we for mix combined a there. of and on those this But to But a I Bruce, couple $XX pieces that be little then the bit bit think about going think the is million Vapor as peak there a point products

And the the X%. guide about if midpoint, look so, is yes, plus you at

expectations, So little driven softer Canada. and is that of being really that organically, than to lot we're bit is by maybe thinking a be going QX a

there So pieces year. guys but triangulate you just of a wanted to back I are know that out kind there, the the half you get of as I for few

Brian Drab

No, that's helpful.

then or raised the $XX in million midpoint the expectation third from mean, quarter million line by you've and roughly with your X%. $XX guidance I and got you So volume Vapor

that could a little might -- I Is that yes, or of that, it, about. the $X call I out softness $X [ there's there, million well fourth quarter. in million think So maybe, ] took see you

Kevin Fox

one, Yes, on you're right Brian. that

it. got You

Brian Drab

Yes.

Yes. Okay.

working the Okay. any slightly us would any backlog on And to last you 'XX. been to? there in you got sequentially maybe you visibility view the that some little any must early, maybe who's I a down projects couple someone budget know that ticking too mean, fiscal it's quarters. what But concern have are has say -- you fiscal but to XXXX the Can backlog major for And bit? I of has give be ticked in down

Bruce Thames

Bruce. this Brian, is Yes,

a we backlog. bookings comments saw couple year-over-year. of And this make in our X% contract quarter, about of kind I'll on Just

factor in volumes was that So a our were pretty substantially. certainly

One we've implemented operational many, that So products a our are market-leading. couple as happen. not our our lead most if of now times seen things in programs we've is of excellence

And in come so, factories. the of down velocity just backlog our that we're because seeing

the other seeing So level, that's shipment being that that's of decline. the a incoming kind component backlog piece of order it.Certainly, our below rates of

As a things strong we We our strong of activity look, couple Anything business. of for And over million really quote note, quarter. have $XXX quoted the $XXX of our we during to is extremely pipeline opportunities million opportunities. has grown. was a pipeline, our actually

we than but are a anomaly. in next we as for an year, to -- would So what And kind see -- weather was had we've we seeing to think of into ahead, probably in I been the expected. growth seen of we the go some overall our looking certainly, activity we the of coming originally to think kind up. as And begin we're has of Canada what fourth itself we did quarter. And kind look weaker expect plan deceleration certainly, into pick

Kevin Fox

Brian, a I just maybe add color on markets well. as little end might

split as year-to-date. in We're double-digit and the of initiatives, well. line in If the think you that's actually diversified that on versus if fairly kind year-to-date, diversified oil are growth gas declined still strategy up. and orders the about growth diversification on maybe in between and about oil with orders those you rate gas has markets seeing the end that's an basis, substantial it but markets, And rate think right

are we bit we a Maybe of the backlog weather some business. peak, half I think historically off to, is up, as is in still leading think if maybe I in it to Bruce the the or softness expected. to where are future, a little the still in the we're the yes that quotes bit But that pipeline alluded expected healthy, really be. the attractive than little pushing look indicators little less margin a up, So back was but seeing want

Bruce Thames

Yes.

acquisition, mean, with us year I Power nice some guess, deliver organically. But we I coming see Vapor next growth slower up, it to positions growth it year. really the in the So to wrap

Brian Drab

in 'XX. numbers Can in put growth than Slower for...? on that fiscal 'XX you

Bruce Thames

we'll we're [ ] building do now, later. no, No, that budgets and

Kevin Fox

Yes.

Brian Drab

Okay. up of what revenue release. type But I midpoint? I guess the growth at organic look the back to fiscal with you'd at end need the 'XX,

organic? If Is you said that that.

Bruce Thames

'XX release the midpoint. I ] [ -- XX% think, at is

Brian Drab

Okay.

Bruce Thames

And back about X% for out then to Vapor.

organic So growth we're XX% talking in roughly. 'XX, about

Brian Drab

Right.

Okay.

level. somewhat got I it. So coming high off very from a

Okay.

Bruce Thames

yes. Yes, Correct.

Brian Drab

now. last gross And me it anything And already. quarter? margin for you in the for if say Okay. about there you're you Is can said then that sorry, fourth question expecting the

Kevin Fox

not all the sorry, I'm a if about I QX, sudden. QX. margins something gross of I going to be with to in product reverse think look we macro, in The think, think Brian, QX, that fairly guide fairly we in QX expect implies if at the the in you mix that that's think saw where I would consistent in as saw consistent we we are. we drivers Canada

Brian Drab

Got it.

Okay.

Operator

the questions line with Capital. from Kansas Jon City come next of Braatz Our

Jon Braatz

anything bit beyond? weather you and into say could on little legs merely is let's it might Bruce, talk but there little or a about that bit weakness have Canada? touch 'XX weather, that, beyond a more obviously, The you there, is

Bruce Thames

just got a very policies. some macroeconomic Canada. in fiscal They've restrictive seeing are backdrop We weaker

like. of inflation impact some the of has has affected on of stickier. think, there the I their I their of And interest and little higher more been think the their mortgages structure just a kind rates, consumer based

business executing, expect do point, able back are I of and seen generate we to with in headwind been weakness that believe as decelerate, be our quarters.We in we we've that the and strategy, just to our some to grow we've bookings have Canadian growth. still So we that to go we it position but spite seen last couple we've market, of been able there the over a certainly, that our business, the

be growth while to little some organic of I additional going growth M&A slower growth think our Vapor a a as XXXX. But going organically. generate it's expect potentially in the going rates have we for So, the forward, to ability our said, bit we is nice on capacity so and fiscal to acquire headwind, Power

Jon Braatz

Okay.

faster in showed probably be job. XX% you type you What terms that, -- are of And growing differentiates I numbers across, what think are on boiler And differently assume, and pretty let's to margin when themselves? sets be growth it's industry look good industry. the nice. the would you've of than improvement, would that continued? them general, seen Power, done think and they're would Vapor you they On that the top that doing line that Okay. you and a say, -- the growth the in They've able apart revenue

Bruce Thames

Yes.

first they the steam electric-resistance Power So, generators well pressures.And that's supercritical a And on steam offer. how and actually of that some their really think, electrode and unique call, Well, very that I is then these growth. has of these great kind compact And here I of all of in one very mentioned some boilers achieved high addition, coil products they steam the all, fired and boilers. generators. question. those And And packages. tube niche have at generating gas are are as temperatures they as extremely Vapor

steam, that of electrode with being of that, boilers period hydrocarbon see And their a been boilers back from if traditionally you best look technology heaters. that for that at And driven electric by And doubled these of electrification. electrical lines. virtually boiler doubled that's time. electrification has generated And really driven has are over over than we in fired the more revenue by lot growth, which so, growth their been

eliminate to emissions to by generators gives traditional on boilers their site and gas the steam really ability electric. this converting customers fired So

next super. see big trend continuing, So couple frankly, Go thing that a of that's quite a decades.The the for ahead. was other we

Jon Braatz

No, go ahead, Bruce.

Bruce Thames

fired which down plastics high used crack for and illustrated waste in where those extremely gas temperature the take chemical supercritical their case here those applications recycling, steam can petrochemical this are parts constituent be The and for specialty required, plastics pressures then for that and are supercritical, used to the I generators, to manufacturing. back sold then

bringing the material So back really, that truly and to feedstock. raw down

what grow see business. some hydrocarbon enabled gas to boiler fired would and and are or unique maybe and fired that's those pretty really a above products typical them applications, So you in beyond

that Thermon. drive of our we going all, business very we'll Thermon previously. early we channels that bringing grow believe plugging the not with that continue we first opportunities digit are forward that's more it seeing they've independent But believe strategy. do network.Well, So really that that what are Thermon with we by double also to how seen signs into global fits certainly, of And our growth we can as

So system, margins growth say, that, we model. that upside to business, there other Thermon incremental operational can over some drive where the represents the then believe our business the on And the excellence program side hanging XX implementing next EBITDA from fruit by low we of months. that there's

this really with positioned fits it's see So that's what really well strategy quite and business, and well. our we

Jon Braatz

an terms I would such need the boiler, you Bruce, in sort I of of a calls first efforts that they're electrification that ahead make? if that step electric of everybody, to say at one Vapor, they're of be going

Bruce Thames

a have Yes, and without portfolio question, within certain nice solutions. and respected really They particularly temperatures pressures. sizes well range are a and of very of

So absolutely.

Operator

Thank you.

back closing floor to President now like for our Thames, We the session. question-and-answer end have turn I the Mr. reached over Bruce remarks. and CEO, to would of

Bruce Thames

right. us All your joining you listen, in for (sic) rest Darren Thank the today ]. Brian your Thermon. here you you, for thank all interest of and And [ day. Thank enjoy

Operator

Thank conclude participation. today's your does We you. teleconference. appreciate That

time. lines at this day. Enjoy may your the your You rest of disconnect

Thermon (THR) 1 Feb 242024 Q3 Earnings call transcript