D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
On Monday, Kansas City Capital’s analyst Jonathan Braatz maintained a Perform rating on Thermon Group Holdings (NYSE:THR), highlighting the company’s modestly improving operating environment for fiscal 2026. According to InvestingPro data, the company currently trades near its 52-week low, with a market capitalization of $915 million and maintains strong financial health with a current ratio of 2.56. Despite Thermon Group reporting quarterly results that fell short of expectations, the analyst noted potential for increased revenue and earnings in the coming fiscal year.
Thermon Group disclosed adjusted earnings per share (EPS) of $0.56, slightly below the $0.59 reported in the same quarter last year and under Kansas City Capital’s estimate of $0.61. The adjusted EPS figure excluded a $3.0 million gain from the sale of a facility in Denver. The company’s revenue for the quarter was $134.4 million, a 1.5% decrease from the previous year and below the estimated $146.4 million. Organic revenues saw an over 11% decline after excluding $13.3 million in acquired revenue.
The analyst pointed out that Thermon Group continues to experience weakness in project-related business, with Large Project (Over-Time) revenues plummeting almost 45% in the quarter to $18.6 million, a trend consistent with the first nine months of the year. However, a shift in business mix toward more maintenance and repair activities, which comprised 86.2% of Q3 revenues compared to 75.3% the previous year, coupled with enhanced productivity, allowed the company to achieve a gross margin of 46.2%, surpassing last year’s 42.1% and the 43.9% estimated by Kansas City Capital. This performance aligns with the company’s trailing twelve-month gross margin of 43.89%, as reported by InvestingPro.
Despite these improved gross margins, gross profits still fell over $2 million below expectations, significantly contributing to the earnings shortfall. The analyst’s commentary reflects a cautious but slightly optimistic outlook for Thermon Group’s performance in the near future, acknowledging both the challenges and improvements the company faces. For deeper insights into Thermon Group’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively through InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Thermon Group Holdings Inc . reported mixed results for Q2 2025, with a 7.4% decrease in revenue to $115 million, largely due to a significant 51% reduction in large project revenues which fell to $17.5 million. However, operational expenditure revenues showed resilience, increasing by 10% to $97.2 million. Despite challenges, total orders rose by 13% to $131.1 million, and the order backlog increased by 29% to $214.9 million. In line with its strategic efforts, Thermon completed the acquisition of F.A.T.I. for €12.5 million to expand its Eastern Hemisphere presence. Adjusted EBITDA fell to $23.8 million, but free cash flow improved to $6.7 million, with plans to reduce debt by $20 million to $30 million in fiscal 2025. Revenue guidance for fiscal 2025 has been adjusted to between $495 million and $515 million, with adjusted EBITDA projected at $105 million to $110 million. These recent developments underscore Thermon’s ongoing efforts to navigate market shifts and capitalize on future opportunities.
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