Justin Ages's questions to Thermon Group Holdings (THR) leadership • Q1 2026
Question
Justin Ages from CJS Securities asked for elaboration on the strong demand drivers for the Foti acquisition and requested an update on capital allocation priorities, particularly regarding the M&A pipeline and share buybacks.
Answer
President, CEO & Director Bruce Thames attributed Foti's success, including a doubled backlog since its acquisition, to strong demand from electrification initiatives in Europe and the Middle East, amplified by integration into Thermon's global sales channels. SVP & CFO Jan Schott reiterated that the capital allocation strategy prioritizes inorganic growth through an active M&A pipeline, followed by opportunistic share repurchases. She noted debt reduction is a lower priority given the company's low 1.0x leverage.