Thermon Group Holdings, Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same periods in the previous fiscal year. For the three months ended September 30, 2024, total sales were $114.6 million, down 7% from $123.7 million in 2023. For the six months, sales slightly decreased to $229.8 million from $230.5 million. The decline in revenue was attributed to reduced activity from large customer projects, particularly in the US-LAM and EMEA segments, and foreign exchange impacts totaling approximately $1.9 million.

Gross profit for the quarter was $50.9 million, a decrease of 7% from $54.5 million in the prior year, while gross profit for the six months was $101.3 million, down from $101.8 million. Income from operations fell significantly, with a 30% decrease to $15.2 million for the quarter and a 22% decrease to $28.9 million for the six months. Net income for the three months was $9.5 million, down 36% from $14.7 million, and for the six months, it decreased to $18.0 million from $25.7 million.

The company’s total current assets remained relatively stable at $275.0 million as of September 30, 2024, compared to $274.6 million at the end of March 2024. However, cash and cash equivalents decreased from $48.6 million to $37.0 million during the same period. Total liabilities also decreased from $292.9 million to $271.2 million, while total equity increased from $474.9 million to $490.3 million.

Strategically, Thermon completed the acquisition of Vapor Power International, LLC on December 29, 2023, for an adjusted total purchase price of approximately $106.0 million, funded through cash and credit facilities. Additionally, on October 2, 2024, the company acquired Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. for approximately $13.8 million, enhancing its product offerings in electric heating solutions. The company also enacted cost-cutting measures affecting 68 employees in April 2024, resulting in restructuring charges of $2.7 million for the six months ended September 30, 2024.

The company’s financial position as of September 30, 2024, included $37.0 million in cash and cash equivalents, with $92.8 million available under its revolving credit facility. The effective income tax rate for the six months was 25.0%, up from 23.8% in the previous year. Overall, Thermon continues to navigate challenges in revenue generation while pursuing strategic acquisitions to bolster its market position.