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Performance was driven by a record $1.064 billion in full-year orders, marking the first time the company surpassed the $1 billion threshold.
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Growth is being accelerated by a ‘super cycle’ in power generation and natural gas infrastructure, evidenced by the largest project win in company history at $135 million.
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Operational excellence initiatives maintained gross margins at the 35% target level despite seasonal headwinds, supported by a higher mix of short-cycle volumes.
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The company successfully navigated $25 million in revenue headwinds following the strategic divestiture of its global pump solutions business in early 2025.
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Strategic positioning in the semiconductor and industrial water sectors is yielding high-value international opportunities, particularly in water reuse and recycling applications.
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Management attributes the 57% adjusted EBITDA growth to improved G&A leverage and the successful integration of 2024 acquisitions.
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Raised 2026 organic revenue guidance to $925 million–$975 million based on ‘tremendous visibility’ from an $800 million record backlog.
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The $6.5 billion sales pipeline is expected to convert quickly, with over $270 million in orders already booked in the first two months of 2026.
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Management assumes a 55% weighting of revenue in the second half of 2026 as large-scale power projects transition from backlog to execution.
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The Thermon acquisition is expected to be accretive in year one, targeting $40 million in annualized run-rate synergies by the third year.
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Future margin expansion is dependent on the deployment of ’80/20′ productivity programs and the realization of supply chain leverage across the combined entity.
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The $2.2 billion Thermon merger will create a $1.5 billion revenue platform, shifting the business mix toward a more balanced 50/50 split between long-cycle projects and short-cycle recurring revenue.
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Pro forma net leverage is expected to be 2.5x at closing, which management considers a comfortable level for continued investment in growth.
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One-time costs of $800,000 were incurred for legal entity reductions to support an accelerating ERP migration and integration of previous acquisitions.
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The company realized a 25 basis point step-down in interest rates in Q4 and expects another 50 basis point reduction following the upsized Revolver Credit Facility.
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