Thermon Group Holdings delivered a solid QQ1 2025 performance, anchored by the Vapor Power acquisition which contributed approximately $13.9 million of revenue and materially expanded the company’s top-line trajectory. Total revenue rose 8% year-over-year to $115.1 million, aided by Vapor Power, while organic revenue declined about 5% as large-capital projects remained weak. The company continued to pivot its mix toward OpEx (maintenance, repair, and other recurring spend), which accounted for roughly 85% of first-quarter revenue, contributing to a higher-margin revenue profile and more predictable cash flows. Excluding Vapor Power, OpEx revenues grew about 4% organically, underscoring Thermon’s deep-installed base and recurring revenue advantage. Backlog stood at $198.5 million, with organic backlog down about 10% excluding Vapor Power, reflecting a shift in mix toward OpEx-driven work that flows in and out of backlog more rapidly. Adjusted EBITDA was $23.2 million (margin 20.2%), supported by favorable mix toward higher-margin OpEx revenue, offset by higher labor content in certain contracts and ongoing investments in strategic initiatives. Free cash flow generated in the quarter was $8.8 million, and net debt declined to about $120–$133 million with a leverage ratio approximately 1.1x, highlighting Thermon’s rapid deleveraging post-Vapor Power integration. Management framed the results within a strategy of growing the installed base, broadening end-market exposure, and advancing decarbonization opportunities, which now total over $320 million in the sales pipeline (roughly 30% of total opportunities). Looking ahead, the company maintained full-year FY2025 guidance, projecting revenue of $527–$553 million (including Vapor Power revenue of $55–$59 million), adjusted EBITDA of $112–$120 million, and adjusted EPS of $1.90–$2.06, with revenue expected to skew to the back half of the year as large-project decisions normalize. In management commentary, Thermon highlighted a robust project pipeline, improving bid activity (book-to-bill turning positive for the first time in quarters), ongoing cost-savings from the manufacturing consolidation program, and a continued emphasis on MRO and diversified end markets as the core driver of earnings resilience. Investors should monitor the pace of large-capex project conversions, Vapor Power capacity expansion, decarbonization order flow, and the evolution of the M&A pipeline as catalysts for the FY26 target trajectory.