Thermon posts record fiscal 2026 sales as $2.2B CECO merger nears

Thermon Group Holdings (NYSE:THR) reported record revenue for fiscal year 2026, driven by robust industrial process heating demand, even as one-time transaction costs tied to its upcoming merger temporarily compressed bottom-line profits.

The Austin, Texas-based industrial technology company generated net sales of $148.3 million for the fourth quarter of fiscal 2026, marking an 11% increase compared to the same period in the prior fiscal year.

Gross margin for the quarter came in at 44%, while adjusted EBITDA rose to $32.1 million, reflecting an adjusted EBITDA margin of 21.6%.

GAAP net income for the quarter dropped 84% to $2.7 million, largely impacted by advisory and operational expenses tied to corporate transactions.

For the full fiscal year 2026, Thermon’s total revenue increased 8% year-over-year to a record $536.3 million, up from $498.3 million in fiscal 2025.

Full-year adjusted EBITDA climbed to $119.6 million, yielding a 22.3% margin.

Cumulative GAAP net income for the fiscal year arrived at $44.6 million, down 17% from the previous year due to elevated selling, general, and administrative expenses.

The company closed the fiscal year with a healthy order pipeline, reporting an industrial backlog of $254.9 million, representing a 6% increase over the prior-year baseline.

Meanwhile, Thermon’s pending strategic combination with CECO Environmental remains on schedule.

The transaction, a stock-and-cash merger valued at approximately $2.2 billion, is expected to close in June 2026, subject to final shareholder approvals and customary closing conditions.

The combined entity will focus on integrated industrial environmental, air quality, and thermal management solutions.

Due to the imminent closing of the transaction, Thermon management has withdrawn its standalone financial guidance and will not host a corresponding quarterly earnings conference call with Wall Street analysts.