Revenue and profitability metrics (Q4 2024 vs. prior year):
- Revenue: $127.654 million, YoY +4.22%, QoQ -40.75% (per reported metrics).
- Gross Profit: $48.964 million, gross margin 38.36%, YoY -4.97%, QoQ -14.71%.
- Operating Income: $15.587 million, margin 12.21%, YoY +12.33%, QoQ -27.33%.
- EBITDA: $23.007 million, EBITDA margin 18.02%, YoY -6.00%.
- Net Income: $10.083 million, YoY +30.93%, QoQ -36.33%.
- EPS (GAAP): $0.30, diluted $0.29; Adjusted EPS: $0.34 for the quarter, up vs. prior year.
Full-year 2024 highlights:
- Revenue: $495.0 million, up ~12% YoY (about 10% organically).
- Backlog: $186.1 million, up 14% YoY (excluding Vapor Power, backlog contracted ~10% due to weaker large CapEx activity in Q4).
- Adjusted EBITDA: $104.0 million, margin ~21.1% (driven by higher volume and pricing, offset by Varied mix).
- Free cash flow: approximately $56 million for the year; cash flow from operations around $93–$95 million (as per reported data).
- Net debt to adjusted EBITDA: 1.2x at year-end, below the company’s target 1.5x–2.0x range.
Key operational and market indicators:
- Diversified end markets reached 68% of revenue by year-end 2024, approaching the 70% target set for 2026.
- Decarbonization revenue rose to $34 million (up 48% YoY).
- Vapor Power acquisition contributed $10.9 million in Q4 revenue and achieved 20% EBITDA; cross-selling opportunities emerged through Thermon’s established channels (e.g., a large university project valued at >$2 million in bookings).
- Installed base growth: Genesis network installations up over 200% in fiscal 2024.
- Cash generation and balance-sheet strength supported a $41 million debt paydown in Q4 and end-of-period cash of $50.4 million.
Guidance and outlook (FY2025):
- Revenue guidance: $527–$553 million (midpoint ~ $540 million; ~9% YoY growth).
- Adjusted EBITDA: $112–$120 million (midpoint ~ $116 million; ~11% YoY growth).
- GAAP EPS: $1.57–$1.73; Adjusted EPS: $1.90–$2.06 (midpoints imply ~8–9% YoY growth).
- Vapor Power expected to contribute roughly $46 million of organic growth at the midpoint of the range; Russian asset disposition remains a factor in organic growth modeling.
- Restructuring actions in Q1 FY2025 (rail and transit line consolidation; SG&A alignment) are expected to deliver ~$5.7 million of annualized savings, of which ~$4.3 million will be realized in FY2025.
- No additional M&A is assumed in the guidance; the balance sheet is expected to remain capable of funding bolt-on acquisitions if opportunities arise.
Takeaways for investors: Thermon demonstrates meaningful progress across diversification, decarbonization, and digitalization pillars, supported by robust FCF and improved leverage, even as near-term large CapEx activity remains lumpy. The Vapor Power integration provides cross-selling upside and geographic diversification, while the Trans Mountain pipeline development in Canada offers potential uplift to oil-and-gas-related revenue in 2025. The magnitude and timing of large-capex bookings remain the principal driver of near-term trajectory, with a more constructive second-half 2025 implied by the project backlog and CRM pipeline.