Thermon Group Holdings (NYSE: THR) reported Q2 EPS of $0.29, $0.08 better than the analyst estimate of $0.21. Revenue for the quarter came in at $102.9 million versus the consensus estimate of $92.03 million.

Q2 2020 highlights, as compared to the three months ended September 30, 2018 ("Q2 2019"), include:

• Revenue of $102.9 million, an increase of 14% compared to $90.2 million
• Fully diluted GAAP earnings per share ("EPS") was $0.21 per fully diluted common share, an increase of $0.11 compared to $0.10
• Non-GAAP Adjusted EPS was $0.29 per fully diluted common share, an increase of $0.07 compared to $0.22
• Sequential improvement in Gross Margin of 360 basis points as compared to the three months ended June 30, 2019 ("Q1 2020")
• Generated $26.7 million of cash provided by operating activities, an increase of $20.4 million as compared to $6.3 million

"We are pleased with the results in the second quarter and continue to see the impact of Thermon's differentiated offering in our year-over-year revenue growth. We are starting to realize the benefits of our pricing increases and cost reduction initiatives, as these factors contributed to a 360 basis point sequential improvement in gross margins as compared to first quarter. Additionally, we were able to generate over $24.5 million in free cash flow during the quarter, while reducing our Net Debt to Adjusted EBITDA ratio to 2.0x. We are continuing to execute our new product development plans and expect to launch five additional products before the end of our fiscal year. I'm proud of what the Thermon team has achieved so far this year as we continue to deliver results for our customers, shareholders and employees," said Bruce Thames, Thermon's President and Chief Executive Officer.

Outlook

We continue to expect 2% to 4% revenue growth in Fiscal 2020 relative to Fiscal 2019, and we continue to expect margin improvements due to a more typical mix of Greenfield versus MRO/UE business, implemented price increases and ongoing cost reduction initiatives. We currently believe our net debt to Adjusted EBITDA ratio will be approximately 1.5x by the end of Fiscal 2020, excluding the impact of any potential M&A activity.

For earnings history and earnings-related data on Thermon Group Holdings (THR) click here.