Q1 2026 Thermon Group Holdings Inc Earnings Call
Greetings, and welcome to the spare months. Earnings conference call q1. Fiscal year 2026.
At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Ivonne Salem, Vice President of FP.
A and IR. Thank you, Ivonne. You may begin.
Good morning and thank you for joining thermal groups. First quarter fiscal 2026 results conference call,
Leading the call today, our CEO Bruce stains and Chief Financial Officer. John shot.
Earlier this morning, we issued an earnings press release which has been filed with the SEC on Form 8K.
And it's 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, calendar earnings conference call q1 2026.
We have reconciled those items to the most comfortable Gap 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 4 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. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments, or otherwise.
Except as it 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, followed by a financial update and review from our CFO, Jan Schott.
Bruce will then wrap up our prepare remarks with an update on our business Outlook.
At the conclusion of this prepared, remarks, we will open the line for questions with that. I will turn the call over to Bruce.
Well, thank you Ivonne and good morning to everyone joining us on the call today.
At a high level. I'm pleased to report that the team delivered resilient performance in the first quarter as they navigated a complex and rapidly evolving Market landscape.
the outcomes, we achieved underscore the strength of our long-term vision, and strategic initiatives, which are intentionally focused on driving a higher quality, more profitable Revenue, mix
Combined with proactive tariff mitigation efforts, these actions enabled us to achieve gross margin improvement, over prior year, affirming the effectiveness of our operational framework and the agility of our organization.
However, the strength in our margin performance was offset by a year-over-year decline in revenues that was largely attributable to Temporary delays and backlog conversion and project execution timing.
Factors we fully expect will translate into realized Revenue in the upcoming quarters.
Additionally, we experienced some softness in our incoming order rates following Liberation Day, which we anticipated as a risk coming into our fiscal year and factored into our full-year guidance.
As we tracked our bookings Trends through the quarter, we saw a sharp decline in the daily order rate in late April.
through May followed by notable recovery to more normalized levels in June,
On a positive note, order momentum has continued to build through the end of July.
While the current market dynamics, particularly surrounding global trade, presents near-term, unpredictability our strategic, focus and operational discipline have us. Well equipped to harness renewed momentum as conditions stabilized.
We remain confident in our strategic positioning to benefit from several very long-term secular growth drivers,
This positioning, when combined with our robust approach to gross margin enhancement, sets a strong foundation for sustained growth and value creation for our stakeholders.
With that as a backdrop, I'll begin my commentary with the first quarter highlights.
As I just discussed our first quarter, revenues were impacted by roughly 10 million, in delayed backlog conversion, which contributed to the 5% decline from prior year.
These delays which stem from short-term supply chain challenges and an unanticipated production delay caused by a capital Improvement project are not indicative of loss Revenue opportunity. They're simply a matter of timing.
Our robust backlog, which continues to grow positions us, well, to recognize these revenues in the quarters ahead.
In the year.
Additionally, our total bid pipeline was up 43% at quarter end boosted by The Vapor power acquisition and driven by activity across several key and markets, including chemical, petrochemical power and nuclear LNG and Renewables, based on these factors, we remain confident that we're well positioned to generate solid long-term organic growth.
As noted, I was very pleased with the team's execution to deliver strong gross margin performance during the quarter, which was up 30 basis points from last year, despite the volume declines and impact of tariffs. The gross margin improvement was a direct function of our strategic shift toward higher margin, Opex revenues across diverse markets, as well as our tariff mitigation measures, which included actions like pre-buying materials, shifting of sourcing and production, and price increases, which began to take effect very late in Q1.
And finally, our disciplined financial management enabled us to maintain our strong balance sheet with leverage of just 1 times that quarter, which provides us the flexibility to execute on our growth strategy, both organic and inorganic, while opportunistically returning capital to our shareholders.
Our m&a pipeline remains active, and we continue to search for opportunities to deploy Capital to augment our strategic growth initiatives.
During the quarter, we returned nearly 10 million in capital through our share repurchase program and we will continue balancing Capital allocation between opportunistic. Share repurchases and growth Investments with a focus on driving returns for our shareholders.
Before I turn it over to Jan, I'd like to take some time to discuss several strategic initiatives that were very excited about and expect will be key contributors to our growth, in the coming quarters and years. These include an emerging opportunity in the data center Market, Rail and Transit. And our most recent acquisition fee,
Turning now to slide 6.
We Believe unprecedented investments. In the data center Market, represent an emerging growth opportunity for Thurmont.
According to an independent study, the global load Bank Market was roughly 280 million in 2024. With growth projections, to 445 million in. 2032 representing a 4.8%, compounded annual growth rate,
With the Advent of AI and liquid cooled data centers, the demand for liquid load Banks to provide both thermal and electrical loads to test. Critical cooling systems and power infrastructure has rapidly grown
Based upon management estimates. We believe the current market opportunity for liquid load banks will grow from an estimated 84 million in 2024 to 386 million in 2032, which represents a compounded annual growth rate of 21%.
To serve this growing Market.
Thermon launched the new pontus and Poseidon load banks on July 28th of this year.
As data centers shift from are to liquid cooling. We believe that the opportunity for Thurmont Legacy Solutions, like heat, tracing environmental, heaters immersion heaters, tubing bundles and removable heating blankets grows. Accordingly, it's early. But we're already seeing a growing pipeline of project activity with new prospective customers that we anticipate will translate into meaningful growth in this segment for years to come.
Turning now to slide 7, The Rail and Transit Market is another vertical that we're extremely excited about.
The infrastructure investment and jobs act representing the largest Federal investment in public transportation in US. History has provided a very favorable demand environment.
With higher levels of government funding to modernize public transit and passenger rail systems.
We're seeing strong order momentum with the rail and Transit, backlog doubling over the last 12 months.
Based on these strong order Trends and the longer term opportunity. In this market segment, we're deploying capital and resources to provide to, to rapidly, expand capacity, to support this growing opportunity.
October of last year, has quickly become our fastest growing acquisition and we continue to be very excited by the opportunity set for this business.
Fante strategically positions us to take advantage of the growing electrification market across Europe.
While we've seen a shift in US policy that is stalled investment.
The electrification market in Europe is experiencing solid growth.
We're seeing strong order momentum, with our backlog doubling in just the last 6 months, along with a solid pipeline of high-probability opportunities going forward.
We're extremely encouraged by these opportunities which highlight the strengths of our diversification strategy.
Looking at our ability to leverage our technologies across high-growth verticals, such as data centers, transit systems, and electrification.
Positions us to capitalize on Dynamic market trends and deliver sustainable shareholder value.
This highlights the Ingenuity and dedication of our team whose Relentless pursuit of Excellence allows us to consistently deliver safe reliable and Innovative therm thermal solutions for our customers.
the successes we see today, underscore our differentiated position in the industry and reinforce our confidence in the path forward
With that, I'll turn it over to Jan, who will provide a more detailed review of our first quarter results. Before I wrap up with some remarks on our financial Outlook?
Again, thank you Bruce and good morning everyone. I will review the financial results for the quarter given update on working capital and free cash flow, and conclude with comments on the balance sheet and liquidity.
moving now to slide 8,
I will start with our first quarter operating highlights.
Revenue in the first quarter was 108.9 million a year-over-year, decrease of 5%.
Including revenue contributed from fees in the first quarter, organic revenue decreased 11%.
Our Opex revenues were 93.3 million during the first quarter, a decrease of 4% compared to last year.
Excluding the contributions from Fati Opex revenues decreased 11% from the same period last year.
Due to the delayed backlog conversion, as well as the impact of the Tariff uncertainty.
Opex revenues represented 86% of total revenues for the quarter.
Large projects, Revenue was 15.6 million during the first quarter down 11% from last year.
While we noted some improvement in large project bookings last quarter, many of these remain in the engineering phase.
and we continue to see project schedules shift to the right.
Based upon the current schedules. We anticipate that execution will begin in quarter 2.
Carrying through the balance of the year.
Our gross profit was 48 million during the first quarter, a decrease of 5% compared to the first quarter last year. As the revenue decline was partially offset by more, favorable Revenue, mix and tariff. Mitigation measures, including pricing benefits.
As a result.
Gross margin was 44.1% during the first quarter up from 43.8% last year. Owing to improved profitability and Opex sales price and productivity enhancements.
Adjusted ebitda was 21.2 Million during the first quarter down from 23.2 Million last year.
a decrease of 9% due to the revenue decline combined with continued investments, in growth initiatives,
Adjusted evaa margin was 19.5% during the first quarter down from 20.1%. Last year. As the improved gross margins were offset by lower volumes and a modest increase in sgna due in part to the Fati acquisition.
Gap earnings per share for the quarter was 26, Cents up 4% from 25 cents in the prior year.
Adjusted earnings per share was 36 Cents down 5% from 38 cents last year.
The decline was primarily driven by lower sales volumes and increased sgna expenses partially offset by improved. Gross margins and reduced interest expense.
And we're down 19% organically.
orders were down, across each geography, particularly in APAC, due to Terra
while bookings were generally, weaker across the board, we did see some pockets of strength in commercial
LNG and as Bruce already, discussed Rail and Transit.
Our first quarter booked to bill was 1.11 times, which was flat from the prior year.
Backlog increased 13% organically due to the positive book-to-bill ratio in the quarter, combined with project execution timing.
Turning to performance by geography.
Year-over-year, sales and US. Lamb and Canada declined by 17% and 8%. Respectively, primarily due to delayed backlog conversion and reduced customer demand amid ongoing Market uncertainty related to tariffs
in contrast Amia delivered, strong growth with Revenue more than doubling.
The driven by solid performance and our organic business, and a 6.8 million contribution from the fatty acquisitions.
APAC Revenue was 6.6 million down from 9 million in the prior year, period, reflecting softer demand in the region.
Moving to slide 9 for an update on our balance sheet and liquidity.
Working capital increased by 9% to $172 million at the end of the quarter, primarily driven by the fatty acquisition and higher inventory as we built stock for the fall heating season and purchased materials in advance of tariffs.
Tapx was 2.4 million during the quarter compared to 3.9 Million last year, which included Capital Investments to support growth initiatives in the prior year.
Free cash flow during the first quarter was 8.3 million down modestly from 8.7 Million last year.
We repurchased 9.8 million in shares during the first quarter, bringing our total shares repurchased since the start of fiscal 2025 to 30 million
As a reminder, in may we refreshed our repurchase authorization back to 50 million. So we currently have 44.5 million remaining under our current authorization.
We ended the quarter with net debt of 102.8 million and a net leverage ratio of 1.0 times.
We recently closed our 240 million credit facility which extends the maturity to July 2030.
In summary.
We maintained our strong financial discipline during the first quarter and continued to execute our balance Capital allocation strategy.
We remain focused on maintaining a strong balance sheet and ended the quarter with total cash and available liquidity of 130.8 million.
This liquid liquidity provides us with ample flexibility, to support our Capital, allocation needs and we will continue to prioritize Investments.
In our organic and inorganic growth.
While balancing opportunistic, share repurchases and debt reduction.
With that, I will turn the call over to Bruce.
Thank you Jan. And now if you'll all turn to slide 10.
We remain focused on navigating a dynamic global trade environment with discipline and agility. We're very pleased with our results. During the first quarter, our tariff mitigation efforts were a key factor enabling us to drive gross margin improvement, despite the revenue weakness and tariff headwinds.
With the announcements on August 1st, and questions regarding the details about how these new tariffs will be applied. We're currently assessing the impact to our business.
As we gain Clarity, I'm confident and our team's ability to quickly respond and minimize and mitigate any impacts going forward.
As you can see here, our outlook for fiscal 2026 remains unchanged from our initial expectations.
Particularly, as it relates to customer behaviors impacting demand.
Our guidance continues to assume the most recent and any future announcements.
Do not have a notable positive or negative impact on input costs.
Or customer sentiment and the recovery we've seen in order Trends is sustained.
While we were able to mitigate the impact of tariffs during the first quarter, we continue to see some margin risk for the balance of the year as a full impact of the tariffs is felt and we gain clear Clarity on the most recent announcement.
Based on these factors, we're reiterating our fiscal 2026 Financial guidance.
That calls for revenue in a range of $495 million to $535 million and adjusted EBITDA in a range of $104 million to $114 million.
While ongoing global trade Dynamics present challenges, we remain highly focused on effectively managing the factors within our control. We've made significant progress in our diversification growth strategy in recent years and are now strategically positioned to benefit from several powerful. Secular growth drivers, including reassuring electrification a decarbonization and power, and data centers.
We're in an extremely strong financial position with more than sufficient Financial flexibility to continue pursuing. Our strategic priorities, including the discipline, allocation of capital, all with an ongoing focus on generating, the long-term value for our shareholders,
That completes our prepared remarks, and we're now ready for the question and answer portion of our call.
Thank you. We will now be conducting a question-and-answer session.
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1 moment, please, while we pull for questions.
Thank you. First question comes from the line of Brian drab with William Blair please proceed
Hi, good morning, thanks for taking my questions. Um, first morning, I I just wanted to ask on I think he said there was a a capital Improvement in productivity Improvement projects that um led to some production, delays did you, did you say um is that in the past now? Or the timing of
Uh, getting that resolved and then the the orders that were delayed when when those would ship.
Yes, uh, yeah, Brian. We did have a capital improvement project that took one of our value streams down about twice as long as we had anticipated in the first quarter. It's now up and fully operational, and it's back to running at historical throughput levels. Again, we would expect those revenues to convert in Q2 and in the balance of the year.
Um we also do have some supply chain disruption that uh impacted another value stream and those have been fully resolved as well.
Okay, got it. And so I, I know you talked about 10 million in uh, you know, delayed revenue. Is that is, is that a different, um, issue or or, you know, how how what's the amount of Revenue, those associated with that Capital Improvement?
Delay.
But the supply chain Improvement, uh, in the capital. Um,
Excuse me. The supply chain disruptions in the capital project are roughly 60% of that 10 million. The balance is more in Project execution and timing in the quarter.
Got it. Okay, perfect. Thank you and. Can we talk a little bit about the the liquid load Bank opportunity uh, in Data Center?
I I guess um, maybe just at the moment, could could you just spend a a little time, just describing what the product is that you're shipping. I know you had a press release on this recently but just maybe it'd be worth just explaining um briefly what the what the product is. I don't think it's super intuitive for everybody.
And how, what is your order book looking like and or pipeline looking like for that type of activity and like going going in, you know, a year from now, like, what, what sort of the revenue opportunity for that?
Business line.
Question. So, first and foremost, uh, liquid load Banks.
are actually, um,
They're actually.
They're based on a boiler technology but essentially, they are used to provide both thermal and electrical loads.
To test the effectiveness, uh, of the cooling systems in these new liquid uh data liquid cooled data centers.
They also provide an electrical load so that our customers can test.
uh, the electrical, um,
Power Distribution Systems in those data centers. So,
historically they had largely just used, uh, inductive uh, and um,
Resistive load Banks.
Our technology allows them to proest. Not only the electrical load, but the thermal loads on those systems as well. And, and the move from are cooled to liquid. Cooled, has created the demand for these systems.
As we look forward, uh, the pipeline of opportunity is building. We're just now have just launched these products only a couple of weeks ago. So it's still very early.
Uh, but we're building that pipeline of opportunities. We're out, uh, talking to customers.
And uh, different types of end users and channels in the market.
Uh, but we would expect over time to be able to build, uh, 20 to 25% market share, uh, in this, in this growing opportunity.
And and those numbers I covered in the prepared remarks and are outlined in the um, in the slide, we have in the investor materials.
Okay, thanks very much and then maybe just 1 more question. Um, can you can you comment, uh, you know, more specifically on on gross margin expectations for the next quarter and and the and the balance of the year?
Yeah, so first of all, as I said earlier, we're pleased with the results in the first quarter. You know, our Outlook had been uh, a little more pessimistic given the uh, the impact we anticipate in in tariffs. Uh, we do expect there to be some margin headwinds, in in Q2 and Beyond. The good news is we're beginning to see pricing come through uh by the end of the second quarter. Our uh new prices should be in full effect and uh, we feel like those are adequate to position us. Well to fully offset
Uh, the uh, the impact of tariffs as we know it today, uh, in the back half of the year. So overall, our our view of performance in q1 is positive. Uh, we do see there could be some potential headwinds in Q2 and our our uh, expectations. Are that pricing uh will all set cost in the back half of the year, uh, on a trailing 12 basis. I think we're sitting at about 44.8%
Uh, growth margins. I would think by the end of the year, we should be trending in that same uh Direction.
Oh, okay. All right. That's very helpful. Thanks, Bruce.
Thank you.
Thank you. Our next question comes from the line of Justin H with CTS and securities.
Please proceed.
Um, appreciate the color on the data centers, can you, uh, elaborate on the strong demand that you're seeing at tati? And you know what has changed since uh, the fiscal fourth quarter, the last report?
Yeah, Justin. So
First of all, we we did on the fourth quarter, we talked about just the strong demand environment.
Uh we've seen that continued. Uh as as we noted in uh prepared remarks, the backlog, there as lit, literally doubled since we. Um closed that deal on October of 2nd of of last year. Uh they had a very good uh first quarter in shipments and and bookings were quite strong, uh North Coast 7 million and in the first quarter. So, you know, we're seeing very strong demand and the pipeline of opportunities. There is, is quite strong as well.
The bulk of this is really related to electrification opportunities in in Europe in the Middle East.
Been hydrocarbon based to Electric to reduce, uh, scope 1 emissions. So, that has been a very positive trend on the European continent and we're seeing the same uh, in the Middle East. Uh and a couple of these opportunities that they've secured have been related to uh LNG, uh export uh, um, liquefaction and Export facilities as well, very large heaters for those applications. So again, we're seeing quite strong demand due to a couple of different Market drivers there for Phi. I think the big impact has been taken uh that business. Plugging it into therms uh Global sales network and being able to effectively develop and closed opportunities. Uh, through Thurmont sales channels uh to really build that backlog over the last 7 or 7 or 8 months.
That that's helpful. Thanks. Bruce and then
um,
Jen, maybe you could elaborate on the capital allocation priorities. I know you you touched on it in the prepared remarks but just hoping to see you know an update on if there's anything in the m&a funnel or how you're approaching to our BuyBacks, any more color, there would be helpful, please.
Sure. Um, thanks Justin uh the m&a pipeline is is still very active and you know, as we've stated before we'll continue to look for opportunities, to complement our strategy. Um, you know, besides, I think, you know, that'll be something that we're focused on. I think we have done some uh, uh, organic Investments. So looking more for inorganic Investments. Um, we'll also continue with our share repurchase program. Um, you know, that would be if we, uh, if we don't have opportunities to prioritize growth. Um, so, you know, that's always something that, uh, you know, we've done, when we can buy back shares at attractive levels, if there's nothing, um, or we don't have anything that, you know, really, that's attractive in the m&a pipeline or that we think we can, uh, execute on. Um, so we think we have lots of flexibility there and then, you know, I think we're in a good spot with our with our debt. Um, so they'll, you know, the last part of that would just be debt reduction. But at 1 point there were times
It's really hard to allocate any free cash flow there.
Thank you, Jen. I appreciate it.
Sure.
Thank you as a reminder to ask a question. Please press star 1.
Our next question comes from the line of Chip Moore with Ross, mkm, please proceed.
Hi, thanks for taking question. Um, apologies, I hopped on a few minutes late, so I'm not sure if you just so just just wondering, um, on the heat Trace side,
Pipeline on on large projects. What you're seeing, you know, there's been some big fids out there and and just just any, uh, any color there.
Yeah, chip. Good morning. Yeah. So on the pipeline of opportunities as I noted, uh, you know, we've seen some nice growth year-over-year. It's about about 43%. Um, some of the large project, bookings were weaker in the quarter, but uh as we talked about the Cadence of booking says improved. And we're seeing some very positive Awards. Uh, that we we've received here uh, in early in Q2 uh and the pipeline of opportunities. Uh again looks looks to be robust
Uh we have secured uh some orders in uh, you know, Rail and Transit and q1. There's been some key uh LNG wins. Uh that have been, you know, larger uh, projects in scope. And certainly, uh, we we've had uh, some opportunities and downstream oil which we've secured in.
Uh, in the first quarter, uh, as well. I think the key thing to note is as our backlog is up 27% year-over-year. And we, you know, 13% organically we've seen a big increase in our just the engineering load today. And, and we're Staffing up to be able to, uh, be able to respond and get those projects designed and, and, um, and be able to convert that to bills and material and ultimately Drive Revenue. So that has contributed to the revenue delays in q1. Uh, we've seen that those projects, uh, begin to translate to revenue in Q2, and we would expect that, uh, through Q3 and Q4 in the back, half of the year, I think coming in, uh, we had made some assumptions around, tariffs and demand and the like, and timing of projects.
And loaded based on what we're seeing today. Uh, it looks to be a more typical Revenue distribution. We would expect with roughly 44, to 45% of revenues in H1, uh, and 55 to 56% of revenues and H2, and that's actually roughly the around the 5-year average for the business,
Appreciate the color Bruce and maybe if I can sneak in 1 more on data center, you know, obviously those uh growth numbers out there. We all know those are are huge. So interesting to see the the opportunity. I just wondering I I guess 1 on the load bank, I assume this comes on later, you know, in construction when when these facilities are coming online and then any thoughts on on go to market, do do you need a partner there or or um, you know some some proof points or how you're thinking about uh,
Market more aggressively, thanks.
Yeah, yes, so first of all, you're right, uh, these are used.
Uh, these are really used in 2 ways. 1 is they can be installed permanently.
In the facilities. And, and they're used, not only for startup, uh, and commissioning, uh, testing, but they're used throughout the life cycle of the asset, uh, as they do maintenance on their HVAC or the cooling systems. Uh, and also, as they expand those facilities, as new technologies, come in, all of those, uh, are opportunities, are requirements for additional testing. So, you can see part of this could be earlier in the construction phase. And then there is a lot of these that are used temporarily, uh, in the commissioning phase and we see that through, uh, rental houses, as well as, uh, other big, uh, hyperscalers. They'll have their own fleets of of this equipment. So, uh, it is, uh, later, uh, in the commissioning phase, um, uh, where we see these, uh, really, it's used.
Predominantly so later in the, the build cycle, uh, for the channels, the market we are, uh, going direct globally. Uh, but we do have uh, potential for new partners, in both the rental and Technology space that we're working on. Developing those relationships today.
Great. Um, appreciate the color, thanks very much.
Thank you.
Thank you. Our next question comes from the line of John Bratz with Kansas City Capital. Please proceed.
Good morning, Bruce Jan.
Good morning, a couple more questions on on the data center Market. Um and I think you maybe you answered it I'm on the not quite sure but
Would the customer be maybe the data center or...
The, uh, the manufacturer of the cooling system, uh, would you work in potentially in in, in conjunction, with the cooling provider?
Yes, so uh, it it's really both and and it depends on the specific.
Project in some cases, it could be uh, some of the hyperscalers and other cases. It's the, uh, HVAC contractor, that's responsible for the cooling system. And then, in some cases, we're actually going through a uh, rental channel uh, to provide these assets on site for the startup and commissioning phase. So there's really different channels to Market. And it depends on uh, really whether this is being installed permanently in the facility or being used, uh, just during the startup and commissioning phase to test the asset.
Okay. Well you know if if they if they continue to use it during the uh uh during the life of the data center it is it 1 uh 1 unit per data center, or does uh data centers acquire, uh, need multiple units.
Hundreds.
Pardon, these are hundreds of units. Okay, okay. So, um, what's out there now, uh, what how are the, um, data centers, uh, um, you know, using what are they using now? Uh, what's the sort of the competitive landscape, uh, uh, uh, in that, in this, uh, in this product area?
Strictly focused for power uh distribution testing. This is actually for thermal load testing as well as power testing and this is really emerged with the Advent of liquid, cooled data centers. So this is fairly new, uh, to the market. Okay? Okay. Okay, good. And, and I think you you addressed this earlier but, uh, you know, and and, and they best case scenario,
How quickly do you think we would begin seeing um some meaningful revenues uh, from this uh from this product, new product. Um, are we 6 months away? 9 months? Uh, any any, um,
Any, any indication from you?
Yes. So, um, you know, our goals are to begin to generate revenues from this in the back half of the year and begin to build the backlog going into fiscal 2027. Okay? Okay, will you? Will you separately, uh, note some of that, uh...
Some of those numbers.
To give us an idea. How how okay.
We will, as we, uh, as we begin to develop the pipeline, close orders and begin to ship. We'll highlight that on a going forward basis. Okay? Bruce, thank you very much.
Thank you.
Thank you. There are no further questions at this time. I'd like to pass the call back over to Bruce for any closing remarks.
Yeah, thank you Alicia. And thank you all for joining uh today. Uh, we appreciate your interest, uh, and Thermon and, uh, if we look forward to speaking you with you, if we don't talk to you, uh, before the next call, so thank you all and enjoy the rest of your day.
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