Thermon Group reported a resilient QQ1 2026 performance despite revenue headwinds from delayed backlog conversion. Revenue was $108.9 million, down 5% year over year on a reported basis, with organic revenue down ~11% excluding the contribution from the F.A.T.I. acquisition. The quarter delivered gross margin expansion to 44.1% (up 30 bps vs. last year) driven by a higher-margin OpEx revenue mix and tariff mitigation actions, even as tariffs created marginal margin headwinds. Adjusted EBITDA was $21.2 million (14.6% of revenue) and GAAP EPS was $0.26, with GAAP net income of $8.6 million. Book-to-bill was 1.11x and backlog rose 13% organically, while total bid pipeline grew 43% year over year, aided by the Vapor Power acquisition and strength across chemical, petrochemical, power, LNG and renewables. Management reaffirmed full-year guidance for 2026: revenue of $495–$535 million and adjusted EBITDA of $104–$114 million, noting ongoing tariff uncertainty and execution timing risk. Strategic initiatives remain a core differentiator: data center opportunity with the Pontus and Poseidon liquid load banks, a rail & transit expansion driven by government funding, and the rapid contribution from F.A.T.I. in Europe’s electrification push. The balance sheet remains sturdy (net leverage ~1.0x; net debt around $114.9 million; liquidity ~$130.8 million), supporting disciplined capital allocation including share repurchases and organic/inorganic growth investments. Near-term margin risk persists as tariffs are absorbed, but the company anticipates pricing actions to offset cost pressures in the back half of 2026, subject to macro and trade conditions.