NYSE$THR
Thermon Group Holdings Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Produced revenue growth, improved gross margin, and achieved record non-GAAP adjusted EPS.
Thermon reported a strong second quarter with a 24% increase in revenue and a significant improvement in profitability. The company's performance was driven by robust customer demand in the Western Hemisphere, while Europe faced challenges due to geopolitical events and higher energy costs. Thermon is raising its fiscal year 2023 revenue and earnings guidance due to continued strong market demand.
- Revenue increased by 24% to $100.6 million, driven by sales growth in the US, Canada, and Latin America.
- Gross margin improved to 45.7% compared to 39.0% due to higher volume, favorable mix, pricing realization, and operational efficiency.
- GAAP EPS was $0.33, and non-GAAP adjusted EPS reached a record $0.38, primarily due to margin improvement and cost control.
- Net income increased by 2,203% to $11.0 million, and adjusted EBITDA increased by 92% to $21.9 million, driven by volume growth and prudent cost management.
Headline financials
Revenue & EPS history
Thermon · Revenue · Quarterly
$101M
Forward guidance
Thermon is raising its annual guidance for fiscal year ending March 31, 2023. The company expects revenue to be approximately $405-$420 million, including $18 million of revenue contribution from the Powerblanket acquisition. GAAP EPS is expected to be approximately $1.08-$1.17 per share, with Adjusted EPS to be approximately $1.30-$1.39 per share.
Tailwinds
- Continued strength in the Western Hemisphere
- Operational excellence program
- Disciplined capital allocation priorities
- Improved cash flow in the second half
- Profitable growth throughout Fiscal 2023
Headwinds
- Contraction in Europe
- Geopolitical instability in Russia and Ukraine
- Sanctions by the U.S. and Canadian governments and European Union
- Global supply chain constraints
- Seasonality
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q2 2023
-0.3%
Avg return
Earnings day
+1.6%
Avg return
5 days after
+2.7%
Avg return
30 days after
53%
34 / 64 earnings
Positive
+13.3%
Q2 2014
Best reaction
-24.9%
Q3 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +3.1% | +3.6% | — | |
| Q3 2026 | +5.6% | +8.8% | -2.0% | |
| Q2 2026 | +11.2% | +22.2% | +33.0% | |
| Q1 2026 | -11.2% | -8.9% | -9.5% | |
| Q4 2025 | -0.5% | -6.9% | -7.2% | |
| Q3 2025 | -1.6% | +12.9% | +5.9% | |
| Q2 2025 | -3.4% | +0.1% | +8.6% | |
| Q1 2025 | -0.2% | -3.4% | -5.1% | |
| Q4 2024 | -0.1% | -7.7% | -11.8% | |
| Q3 2024 | -24.9% | -21.9% | -16.1% | |
| Q2 2024 | +11.2% | +14.7% | +13.1% | |
| Q1 2024 | -7.3% | -5.3% | -0.2% | |
| Q4 2023 | +1.2% | +0.3% | +11.2% | |
| Q3 2023 | +3.7% | +13.6% | +18.8% | |
| Q2 2023 | +3.2% | +8.4% | +17.8% | |
| Q1 2023 | +4.3% | +7.0% | +8.7% | |
| Q4 2022 | +2.5% | +1.5% | -5.4% | |
| Q3 2022 | +2.0% | +3.3% | -0.3% | |
| Q2 2022 | +0.8% | -1.2% | -9.3% | |
| Q1 2022 | +3.8% | +2.7% | -4.0% | |
| Q4 2021 | -10.7% | -9.0% | -6.6% | |
| Q3 2021 | +1.8% | +7.2% | +35.8% | |
| Q2 2021 | +5.7% | +25.4% | +55.5% | |
| Q1 2021 | -2.4% | +0.4% | -11.4% | |
| Q4 2020 | -11.2% | +5.1% | -11.5% | |
| Q3 2020 | -14.7% | -13.3% | -25.8% | |
| Q2 2020 | +8.5% | +7.5% | +4.5% | |
| Q1 2020 | -7.0% | -5.1% | -7.3% | |
| Q4 2019 | +5.9% | +7.6% | +15.3% | |
| Q3 2019 | +2.6% | +3.3% | +13.0% | |
| Q2 2019 | -0.4% | -4.9% | -3.4% | |
| Q1 2019 | +3.4% | -0.2% | +6.9% | |
| Q4 2018 | -8.7% | -4.8% | -3.0% | |
| Q3 2018 | +3.0% | +3.0% | +9.3% | |
| Q2 2018 | +4.4% | +3.4% | +2.7% | |
| Q1 2018 | -3.3% | -3.3% | -7.2% | |
| Q4 2017 | -13.2% | -13.5% | -10.1% | |
| Q3 2017 | -0.5% | +1.4% | -3.3% | |
| Q2 2017 | -0.5% | +2.0% | +6.2% | |
| Q1 2017 | -5.4% | -1.5% | -2.5% | |
| Q4 2016 | +10.7% | +9.5% | +4.5% | |
| Q3 2016 | -2.3% | — | — | |
| Q2 2016 | -7.7% | — | — | |
| Q1 2016 | -3.6% | — | — | |
| Q4 2015 | -1.9% | — | — | |
| Q3 2015 | +7.6% | — | — | |
| Q2 2015 | +10.7% | — | — | |
| Q1 2015 | +9.1% | — | — | |
| Q4 2014 | +1.0% | — | — | |
| Q3 2014 | -5.4% | — | — | |
| Q2 2014 | +13.3% | — | — | |
| Q1 2014 | +0.2% | — | — | |
| Q1 2011 | -0.9% | — | — | |
| Q4 2013 | -5.1% | — | — | |
| Q3 2013 | -6.3% | — | — | |
| Q2 2013 | -6.3% | — | — | |
| Q1 2013 | +1.6% | — | — | |
| Q4 2012 | +0.0% | — | — | |
| Q3 2011 | +1.3% | — | — | |
| Q3 2012 | +1.3% | — | — | |
| Q2 2011 | +0.3% | — | — | |
| Q2 2012 | +0.3% | — | — | |
| Q4 2011 | +1.8% | — | — | |
| Q1 2012 | +1.8% | — | — | |
| Q4 2010 | — | — | — |
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