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• A specialized Schneider Electric or Honeywell for industrial heating solutions.
• The Parker Hannifin of industrial heating and temperature control.

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Major Products of Thermon (THR)

• Heat Tracing Systems: Comprehensive solutions, including electrical cables, steam tracing components, and advanced control systems, designed to maintain process temperatures or prevent freezing in industrial piping, tanks, and instrumentation.
• Industrial Process Heating Equipment: A range of electric heaters, such as immersion, circulation, and custom-designed systems, utilized for heating gases, liquids, and solids in diverse industrial applications.
• Temperature Measurement & Control Products: Instruments like thermocouples, RTDs, and electronic controllers that provide accurate temperature sensing and precise regulation for critical industrial processes.
• Integrated Project Solutions & Services: Engineering, design, project management, installation, and maintenance services for their heat tracing and process heating systems, offering a complete solution from concept to commissioning.

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Thermon (symbol: THR) is a global provider of industrial process heating solutions, primarily selling to other companies (B2B) rather than individuals.

According to its latest SEC filings, including its 2023 Form 10-K, Thermon explicitly states that it does not have a significant concentration of customers. This means no single customer accounted for more than 10% of its consolidated revenues in recent fiscal years. Therefore, Thermon does not identify specific "major customers" by name.

Instead, Thermon serves a diverse range of companies across several industrial end markets and customer types globally. Its customer base can be broadly categorized as:

• Engineering, Procurement, and Construction (EPC) Companies: These firms are responsible for designing, building, and managing large-scale industrial projects. They integrate Thermon's heating solutions into new facilities or upgrades for their end-user clients.
• End-User Operators in various heavy industries: These are the companies that own and operate the industrial facilities where Thermon's products are used for critical process heating, temperature maintenance, and freeze protection. Key industries include:
  • Oil and Gas (Upstream, Midstream, and Downstream): Companies involved in the exploration, production, processing, and transportation of crude oil, natural gas, and refined products. Examples of major public companies in this sector include ExxonMobil (symbol: XOM), Chevron Corporation (symbol: CVX), Shell plc (symbol: SHEL), and BP p.l.c. (symbol: BP).
  • Chemical and Petrochemical: Manufacturers of chemicals, plastics, and other petrochemical products. Examples include Dow Inc. (symbol: DOW) and LyondellBasell Industries N.V. (symbol: LYB).
  • Power Generation: Utilities and independent power producers operating various types of power plants, including fossil fuel, nuclear, and renewable energy facilities. Examples include Duke Energy Corporation (symbol: DUK) and NextEra Energy, Inc. (symbol: NEE).
  • Food and Beverage: Large-scale industrial food processing and beverage production facilities requiring precise temperature control.
  • Pharmaceutical and Life Sciences: Companies involved in drug manufacturing and biopharmaceutical processes where controlled temperatures are critical.
• Distributors, Representatives, and Original Equipment Manufacturers (OEMs): These partners sell Thermon's products to smaller end-users, for maintenance, repair, and operations (MRO) business, or integrate Thermon's components into their own manufactured equipment.

The public companies listed as examples above are representative of the *types* of customers Thermon serves within those industries, rather than an exhaustive list of Thermon's direct major customers, which are not individually disclosed due to its diversified customer base.

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Bruce A. Thames, President and Chief Executive Officer

Bruce Thames joined Thermon in April 2015 as Executive Vice President and Chief Operating Officer and was promoted to President and Chief Executive Officer in April 2016. Before joining Thermon, he served as Senior Vice President and Chief Operating Officer of TD Williamson from 2012, a company specializing in solutions for pressurized piping systems. He held various roles at TD Williamson since 2005, including Vice President, North America, and Vice President and General Manager, Eastern Hemisphere. Mr. Thames began his career at Cooper Industries (formerly Intool) for twelve years in product engineering, marketing, and operations. He then spent time at GE Energy (formerly Dresser Flow Solutions) from 2002 to 2005, primarily as Director of North American Operations and Product Director for Ball Valves globally.

Jan L. Schott, Senior Vice President and Chief Financial Officer

Jan L. Schott will join Thermon as Senior Vice President and Chief Financial Officer, effective October 14, 2024, bringing over 30 years of global financial, commercial, and operational experience in the energy sector. Previously, Ms. Schott was Executive Vice President and Chief Financial Officer of TG Natural Resources, where she was responsible for several multi-billion dollar financings and oversaw the integration of a $3.0 billion acquisition. She also served as Chief Financial Officer of Texas Crude Energy LLC and managed the successful implementation of a new ERP system. Earlier in her career, Ms. Schott was Chief Financial Officer at Goodrich Petroleum Corporation (NYSE:GDP) and held senior financial and accounting roles at APA Corporation (NASDAQ:APA).

Roberto Kuahara, Senior Vice President, Global Operations

Roberto Kuahara joined Thermon in February 2022 as Senior Vice President, Global Operations. Prior to Thermon, he was the Vice President of Manufacturing and Supply Chain, Continuous Improvement and EHS for SPM Oil & Gas, Inc., a subsidiary of Caterpillar, Inc. From 2011 to February 2021, Mr. Kuahara held various positions at the oil and gas division of Weir Group plc, until its sale to Caterpillar, Inc. in 2021.

David Buntin, Senior Vice President, Thermon Heat Tracing

David Buntin joined Thermon in January 2017 as Senior Vice President of Research and Development and was promoted to Senior Vice President, Thermon Heat Tracing in May 2019. He has over 20 years of experience in developing and commercializing new products and technologies. Before joining Thermon, he served as Chief Operating Officer for Enovation Controls, where he led a global multi-disciplinary team.

Ryan Tarkington, Senior Vice President, General Counsel and Corporate Secretary

Ryan Tarkington joined Thermon in February 2019 as General Counsel and Corporate Secretary. From 2011 to 2019, Mr. Tarkington held various roles with international companies in the offshore drilling industry, including Senior Counsel for Rowan Companies plc, Associate General Counsel for Paragon Offshore plc, and Senior Counsel for Transocean Ltd.

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1. Exposure to Cyclical Industries and Economic Uncertainty: Thermon's business is significantly affected by the cyclical nature of the industries it serves, such as energy, oil, gas, and chemical processing. Economic uncertainty, particularly in these industries, can lead to reduced capital spending by customers, which in turn impacts Thermon's financial performance. The company's reliance on large projects, which tend to be more cyclical than maintenance and repair revenues, can also cause volatility in earnings, especially during economic downturns.
2. Market Competition and the Need for Continuous Innovation: Thermon operates in a competitive industry where technological innovation and cost efficiency are crucial differentiators. The company must continuously invest in research and development to maintain its market position and adapt to the evolving needs of its customers.
3. Trade Tariffs and Supply Chain Volatility: Thermon has encountered challenges due to global trade tariffs, which have increased its cost structure. There is a risk that the company may not be able to mitigate raw material shortages or pass on increased costs, including those from tariffs and supply chain disruptions, to its customers. This inability could adversely affect its operational results.

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Thermon (symbol: THR) operates primarily in the industrial process heating market, with key products and services addressing several significant addressable markets globally.

Main Products and Services Addressable Markets:

• Electric Heat Tracing (EHT): The global Electric Heat Tracing (EHT) market was valued at approximately USD 2.22 billion in 2024 and is projected to reach USD 3.82 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 7.00% during the forecast period. Other estimates place the global Electric Heat Tracing market at USD 2.96 billion in 2024, projected to grow to USD 4.34 billion by 2029 at a CAGR of 7.9%. Another source valued the global Electric Heat Tracing market at USD 3.3 billion in 2023 and anticipates growth to USD 6.76 billion by 2032 with an 8.3% CAGR.

• Industrial Process Heating Solutions (Equipment): The global industrial process heating equipment market demonstrates various valuations across different reports. The global Process Heating Equipment Market was valued at USD 24.6 billion in 2024 and is projected to increase to USD 37.9 billion by 2035, growing at a CAGR of 3.99%. Another report indicates the global Industrial Process Heating System Equipment market size was valued at approximately USD 35.48 billion in 2023 and is forecast to reach USD 51.25 billion by 2030 with a CAGR of 5.4%. The Global Industrial Heating Equipment Market was valued at USD 24.9 billion in 2024. The Global Industrial Heaters Market size was approximately USD 37.2 billion by 2023.

Emerging Growth Areas:

• New Medium-Voltage Heater Product Line: This specific market is projected to grow from USD 87 million in 2023 to USD 263 million by 2030, representing a CAGR of approximately 17%.

• Data Center Market (Heating/Cooling Solutions): While a specific addressable market size for Thermon's data center heating/cooling solutions is not explicitly provided, the overall data center market is projected to grow at a 21% CAGR. Thermon is targeting a 20-25% market share in this area.

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Thermon (symbol: THR) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Electrification and Decarbonization Trends: Thermon is strategically positioned to benefit from global trends in electrification, decarbonization, and increased power demand. The company is providing energy transition solutions to existing customers and expanding its environmentally friendly product offerings. This includes significant inroads into the medium voltage heater market, capitalizing on the electrification mega-trend, with new products launched in 2024 and initial orders secured. The acquisition of Vapor Power in fiscal year 2024 also expanded its product portfolio and increased its total addressable market for decarbonization and electrification opportunities.
2. Expansion into New Strategic End Markets, particularly Data Centers: Thermon is actively diversifying into strategic end markets, with a notable focus on the rapidly expanding data center market. The company has completed prototype builds for its Poseidon and Pontus Liquid Load Bank solutions and has already secured its first order for 20 units. This move is anticipated to diversify revenue sources and support future growth as demand for solutions supporting global digitalization and AI infrastructure rises. The company's COO noted a growing quote log totaling approximately $30 million in this market.
3. Strategic Acquisitions: Acquisitions play a crucial role in Thermon's growth strategy by expanding its product offerings and geographic reach. Recent acquisitions, such as Vapor Power and F.A.T.I., have already contributed to revenue growth and are expected to strengthen Thermon's market position and drive further growth.
4. Growth in Recurring Revenue (OPEX Sales): Thermon is shifting its strategic focus towards higher-margin OPEX (operational expenditure) revenue streams, which are typically more stable and predictable. In Q3 2025, OPEX sales grew by 12.6% and represented 86.2% of total revenue, up from the low 70% range a few years ago. This focus on maintenance and repair spending provides more stable cash flows and reduces cyclical exposure, enhancing profitability.
5. Strong Backlog and Project Execution: Thermon has reported a strong and increasing backlog, which indicates future revenue potential. The company's backlog increased 17% year-over-year, positioning it well for the remainder of the fiscal year. Improved order momentum and the conversion of large CapEx projects from engineering to execution early in Q2 2025 are expected to continue driving revenue.

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Share Repurchases

• In March 2024, Thermon authorized a share repurchase program of up to $50 million through March 15, 2027.
• For the full fiscal year 2025 (ended March 31, 2025), the company repurchased $20 million in common shares.
• As of the end of Q2 fiscal 2026 (September 30, 2025), Thermon had repurchased $36 million in shares since the start of fiscal 2025, with $39 million remaining under its current authorization.

Outbound Investments

• Thermon recently expanded its portfolio through the acquisition of Vapor Power, which contributed $10.9 million in sales in Q4 fiscal 2024. This acquisition contributed to an increase in gross outstanding debt by $59.6 million.
• The company also made an acquisition of F.A.T.I., which contributed to revenue and incremental operating expenses in fiscal year 2025.

Capital Expenditures

• Capital expenditures were $3.1 million in Q2 fiscal 2026 (ended September 30, 2025), representing investments to support growth initiatives.
• In Q4 fiscal 2024 (ended March 31, 2024), capital expenditures were $3.1 million, a decrease of $1.2 million from the prior year period.
• Thermon experienced a contraction in large capital expenditure spending in fiscal 2025 but expects momentum in CapEx projects to continue through the balance of fiscal 2026.