Thermon Group Holdings, Inc.

Greetings and welcome to the Thurmond Group Holdings Third Quarter Fiscal 2026 Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to your host, Yvonne Salem, Vice President, FP&A, and IR. Thank you. You may begin.

Good morning, and thank you for joining Thermal Group's Third Quarter Fiscal 2026 Results Conference Call. Leading the call today are CEO Bruce Thames, Chief Financial Officer John Schott, and Chief Operating Officer Tom Sarofsky. Earlier this morning, we issued an earnings press release, which has been filed with the SEC on form 8K, and is also available on the investor relations section of our website. Additionally, the slides for this conference call can be found in our IR website under news and events, IR calendar earnings conference call, Q3, 2026. During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comfortable GAAP measures in the tables at the end of the earnings press release. These non-GAAP measures should be considered in addition to and not as a substitute for measures of financial performance reported in accordance with GAAP. I would like to remind you that during this call we might make certain forward-looking statements regarding our company. Please refer to our annual report and most recently quarterly report filed with the SEC for more information regarding our forward-looking statements, including the risks and uncertainties that could impact our future results. Our actual results might differ materially from those contemplated by these forward-looking statements. and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as might be required by law. Today's call will begin with remarks from our CEO, Bruce Thames, who will provide a review of our recent business performance, including an update on our strategic initiatives. Following Bruce, our Chief Operating Officer, Tom Sarofsky, will share an update on our progress and opportunities in the data center market and medium voltage heaters, which are two key components of our organic growth plans going forward. After Tom, our CFO, Jan Schott, will provide a review of our third quarter financial results. Bruce will then wrap up our prepared remarks with an update on our business outlook. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Bruce.

Thank you, Yvonne, and good morning to everyone joining us on the call today. I'll begin my commentary with our third quarter highlights, which you can find on slide four. I'm exceptionally proud to announce that we achieved record-breaking results in the third quarter, delivering the highest revenue, profitability, and bookings in our company's history. These outstanding outcomes are a testament to our unwavering commitment to executing our strategic initiatives and to the dedication and excellence demonstrated by our entire Thermon team across the globe. Our strategic actions have positioned us well to capitalize on significant secular trends that are reshaping the industrial landscape, including the growth of data centers, increasing demand for power generation, the global shift towards decarbonization, and accelerating electrification. We believe that our recent booking strength and pipeline growth illustrate improving macro conditions coupled with renewed capital project momentum that are reinforced by strong customer relationships, all supporting a positive outlook for the remainder of the fiscal year with momentum continuing into 2027. Now turning to our quarterly results in more detail. Our third quarter revenues were up 10% from last year, which combined with our solid margin execution resulted in a 12% increase in adjusted EBITDA. Our third quarter adjusted EBITDA margin was just over 24%, which brings our trailing 12 months adjusted EBITDA margin to nearly 23%, illustrating the strong earnings potential of our business. We remain committed to our Thermon business system initiatives and our margin priorities, and we're very pleased by our recent profitability conversion. While I'm encouraged by our third quarter operating results, I'm most excited about the strong order trends and the building momentum we're now seeing in our business. Orders in the third quarter increased by 14% year over year, resulting in a book-to-bill ratio of approximately 1.1 times, with our total bid pipeline up 8% at quarter end, with nearly 80% of these opportunities coming from our diversified end markets. Large project orders in the quarter were up approximately 60% year-over-year, driven by LNG project activity, midstream gas processing, and a large sustainable aviation fuels project in Asia, Much of this activity is tied to the value chain around natural gas for both power generation and LNG export facilities, as well as continued momentum in renewables in the eastern hemisphere. While these orders help grow our installed base, the execution timelines are more protracted than our flow business and will begin to convert in our fiscal 27th. The power sector is another area where we also believe Thermon is well positioned with offerings ranging from emissions monitoring solutions with our tubing bundle products to temperature management with our Genesis heat tracing control systems to auxiliary boilers for conventional and nuclear power generation. While early in what appears to be a large CapEx cycle, our pipeline of opportunities in this sector has now grown to $180 million up 58% year-over-year with over 60% of these opportunities in the U.S. market. Another area of emerging growth in the U.S. is in the reshoring of manufacturing, where customers are restarting shuttered facilities or expanding production in existing facilities across pharmaceuticals, chemicals, steel, and other industries. Last quarter, I highlighted that we received our first order for our new Poseidon liquid load bank solution. I'm pleased to report that we delivered these first units during the third quarter, and more importantly, we continue to see bookings and extremely strong quoting activity for our data center products. Tom Swarovski, our COO, will provide a more detailed update on the data center market later on this call. Another important driver during the quarter was the continued rebound in our large project business for the second consecutive quarter. As we've discussed on recent calls, our large capex order rates were improving, which led us to ramp up our engineering capacity to handle the increased project workload, including the launch of our new global engineering center in Mexico earlier this year. The increase in our engineering team has enabled us to move through the design phase on several large projects, which has translated to improve financial results in our large project business with a third quarter CapEx revenues up 37% versus the third quarter of last year. Based on our strong third quarter results, Combined with the building momentum and new orders and backlog growth, we're once again raising our guidance for fiscal 2026, which I will detail in my closing remarks. I'd like to now turn the call over to Tom Swarovski, our Chief Operating Officer, who will provide a more detailed update on the data center market and medium voltage heaters. Tom?