Thermon Group announces executive transition, consulting deal

Thermon Group Holdings, Inc. (NYSE:THR), a manufacturer in the electrical industrial apparatus sector with a market capitalization of nearly $1 billion and annual revenue of $492 million, has disclosed the forthcoming retirement of Mark Roberts, Senior Vice President of Thermon Heating Systems and Engineering.

According to InvestingPro data, the company maintains strong financial health with a robust gross profit margin of 44%. Roberts, who is also a current named executive officer, will retire effective June 30, 2025.

In preparation for his departure, Thermon Group has entered into a Transition and Consulting Agreement with Roberts, which was formalized on February 18, 2025. This agreement outlines that Roberts will serve as an independent consultant to the company from the transition date until June 30, 2026. During this consulting period, he will provide advice and counsel as needed.

As part of the agreement, Roberts will be compensated at a rate of $240 per hour. Additionally, he will maintain vesting rights for various stock units granted in June 2023 and June 2024, contingent upon his continued service through the end of the consulting term. The agreement also stipulates that the post-termination exercise period for his outstanding stock option awards will begin after the consulting expiration date.

This transition plan ensures an orderly handover of responsibilities and retains Roberts’ expertise for an additional year post-retirement. The agreement will terminate if either party opts to end the consulting period, except for any unpaid hourly fees for services rendered prior to termination.

InvestingPro analysis shows the company is currently trading at Fair Value, with additional ProTips highlighting its strong liquidity position and moderate debt levels. Discover more insights about Thermon Group in the comprehensive Pro Research Report, available with an InvestingPro subscription.

In other recent news, Thermon Group Holdings reported adjusted earnings per share (EPS) of $0.56, which fell short of last year’s $0.59 and below the $0.61 estimate by Kansas City Capital. The company also disclosed quarterly revenue of $134.4 million, a 1.5% decline from the previous year and under the estimated $146.4 million.

Organic revenues decreased by over 11% when excluding $13.3 million in acquired revenue. Kansas City Capital’s analyst, Jonathan Braatz, maintained a Perform rating on Thermon Group, noting a modestly improving operating environment for fiscal 2026 despite the current earnings shortfall.

The company experienced a significant 45% drop in Large Project (Over-Time) revenues, aligning with trends observed in the first nine months of the year. However, Thermon Group’s shift towards maintenance and repair activities, which made up 86.2% of Q3 revenues, helped achieve a gross margin of 46.2%, exceeding last year’s 42.1% and Kansas City Capital’s estimate of 43.9%.

Despite the improved gross margins, gross profits were over $2 million below expectations, contributing to the earnings miss. The analyst acknowledged both the challenges and improvements faced by Thermon Group, indicating a cautious yet slightly optimistic outlook for the company’s future performance.

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