Thermon Group Holdings, Inc.THR
Thermon Group Holdings, Inc. Segments Disclosure
Segment Information
We maintain four reportable segments based on four geographic countries or regions in which we operate: (i) United States and Latin America ("US-LAM"), (ii) Canada, (iii) Europe, Middle East and Africa ("EMEA") and (iv) Asia-Pacific ("APAC"). Within our four reportable segments, our core products and services are focused on the following markets: general industrial, chemical and petrochemical, oil, gas, power generation, commercial, food and beverage, rail and transit, and other, which we refer to as our "key end markets."
We offer a full suite of products (heating units, electrode and gas-fired boilers, heating cables, industrial heating blankets and related products, temporary power solutions and tubing bundles), services (engineering, installation and maintenance services) and software (design optimization and wireless and network control systems) required to deliver comprehensive solutions to some of the world's largest and most complex projects. Our Chief Operating Decision Maker ("CODM") is our President and Chief Executive Officer. Our CODM uses the reported measure of segment profit or loss to assess segment performance and allocate resources to the segments informed by a strategic process to optimize value to our shareholders.
We measure the profitability of our consolidated entity using "Segment profit." Segment profit is sales reviewed by the CODM, less cost of sales and selling, general, and administrative expenses, adjusted. For purposes of this note, sales and expenses reviewed by the CODM are attributed to segments on the basis of the business unit of record. Sales as stated on our consolidated statements of operations and comprehensive income is based on the legal entity of record.
We transact business frequently between our legal entities through intercompany transactions. These transactions result in intersegment sales and costs recognized. We account for such transactions using our transfer pricing methodology and intercompany transactions are eliminated upon consolidation.
| For the year ended March 31, 2026 | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
Sales(1) | $ | 263,288 | $ | 163,838 | $ | 71,556 | $ | 37,581 | $ | 536,263 | |||||||||||||||||||
Adjustments(1) | 17,851 | (23,073) | 1,122 | 4,100 | — | ||||||||||||||||||||||||
| Sales reviewed by the CODM | $ | 281,139 | $ | 140,765 | $ | 72,678 | $ | 41,681 | $ | 536,263 | |||||||||||||||||||
Less:(2) | |||||||||||||||||||||||||||||
| Cost of sales | 150,554 | 75,394 | 42,425 | 24,834 | 293,207 | ||||||||||||||||||||||||
Selling, general, and administrative expenses, adjusted(3) | 64,087 | 24,163 | 22,004 | 11,950 | 122,204 | ||||||||||||||||||||||||
| Segment profit | $ | 66,498 | $ | 41,208 | $ | 8,249 | $ | 4,897 | $ | 120,852 | |||||||||||||||||||
| Reconciliation to Income before provision for income taxes: | |||||||||||||||||||||||||||||
| Deferred compensation plan (expense)/income | $ | (599) | |||||||||||||||||||||||||||
| Depreciation and amortization | (22,466) | ||||||||||||||||||||||||||||
Other unallocated enterprise expense(4) | (27,048) | ||||||||||||||||||||||||||||
| Interest expense, net | (7,995) | ||||||||||||||||||||||||||||
| Other income/(expense) | 1,482 | ||||||||||||||||||||||||||||
| Income before provision for income taxes | $ | 64,226 | |||||||||||||||||||||||||||
| Supplementary data | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
| Intersegment revenue | $ | 46,892 | $ | 21,106 | $ | 2,779 | $ | 3,041 | $ | 73,818 | |||||||||||||||||||
| For the year ended March 31, 2025 | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
Sales(1) | $ | 256,006 | $ | 158,969 | $ | 45,320 | $ | 37,912 | $ | 498,207 | |||||||||||||||||||
Adjustments(1) | 13,497 | (16,024) | 1,790 | 737 | — | ||||||||||||||||||||||||
| Sales reviewed by the CODM | $ | 269,503 | $ | 142,945 | $ | 47,110 | $ | 38,649 | $ | 498,207 | |||||||||||||||||||
Less:(2) | |||||||||||||||||||||||||||||
| Cost of sales | 142,200 | 80,886 | 27,648 | 24,577 | 275,311 | ||||||||||||||||||||||||
Selling, general, and administrative expenses, adjusted(3) | 64,352 | 21,812 | 15,489 | 10,944 | 112,597 | ||||||||||||||||||||||||
| Segment profit | $ | 62,951 | $ | 40,247 | $ | 3,973 | $ | 3,128 | $ | 110,299 | |||||||||||||||||||
| Reconciliation to Income before provision for income taxes: | |||||||||||||||||||||||||||||
| Deferred compensation plan (expense)/income | $ | (452) | |||||||||||||||||||||||||||
| Depreciation and amortization | (22,339) | ||||||||||||||||||||||||||||
Other unallocated enterprise expense(4) | (7,751) | ||||||||||||||||||||||||||||
| Interest expense, net | (10,325) | ||||||||||||||||||||||||||||
| Other income/(expense) | 687 | ||||||||||||||||||||||||||||
| Income before provision for income taxes | $ | 70,119 | |||||||||||||||||||||||||||
| Supplementary data | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
| Intersegment revenue | $ | 48,900 | $ | 16,571 | $ | 1,954 | $ | 2,944 | $ | 70,369 | |||||||||||||||||||
| For the year ended March 31, 2024 | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
Sales(1) | $ | 256,293 | $ | 155,319 | $ | 45,301 | $ | 37,716 | $ | 494,629 | |||||||||||||||||||
Adjustments(1) | 11,057 | (15,394) | 1,626 | 2,711 | — | ||||||||||||||||||||||||
| Sales reviewed by the CODM | $ | 267,350 | $ | 139,925 | $ | 46,927 | $ | 40,427 | $ | 494,629 | |||||||||||||||||||
Less:(2) | |||||||||||||||||||||||||||||
| Cost of sales | 144,713 | 83,453 | 28,213 | 26,686 | 283,065 | ||||||||||||||||||||||||
Selling, general, and administrative expenses, adjusted(3) | 57,224 | 22,324 | 13,984 | 10,994 | 104,526 | ||||||||||||||||||||||||
| Segment profit | $ | 65,413 | $ | 34,148 | $ | 4,730 | $ | 2,747 | $ | 107,038 | |||||||||||||||||||
| Reconciliation to Income before provision for income taxes: | |||||||||||||||||||||||||||||
| Deferred compensation plan (expense)/income | $ | (1,231) | |||||||||||||||||||||||||||
| Depreciation and amortization | (18,837) | ||||||||||||||||||||||||||||
Other unallocated enterprise expense(4) | (11,599) | ||||||||||||||||||||||||||||
| Interest expense, net | (8,845) | ||||||||||||||||||||||||||||
| Other income/(expense) | 1,148 | ||||||||||||||||||||||||||||
| Income before provision for income taxes | $ | 67,674 | |||||||||||||||||||||||||||
| Supplementary data | US-LAM | Canada | EMEA | APAC | Total | ||||||||||||||||||||||||
| Intersegment revenue | $ | 39,784 | $ | 18,162 | $ | 1,371 | $ | 3,363 | $ | 62,680 | |||||||||||||||||||
(1) - "Sales" are attributed to the reportable segment on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services. The sales reviewed by the CODM are attributed based on the business unit which made the sale. The adjustments shown above represent these differences. Therefore, we have adjusted the sales reviewed by the CODM to reconcile such Sales.
(2) - The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3) - Selling, general, and administrative expenses, adjusted (non-GAAP), represents the Selling, general, and administrative expenses less depreciation expense, other unallocated enterprise expense, and impairment and other charges.
(4) - Other unallocated enterprise expense includes miscellaneous corporate costs not allocated, such as stock-based compensation, miscellaneous gain/loss on sale of assets and other. The fiscal 2024 amounts include charges associated with the Russia Exit.
We do not provide segment asset information to our CODM, and as such, we do not have a segment assets measure. The following table represents our capital expenditures by reportable segment:
| March 31, 2026 | March 31, 2025 | ||||||||||
| Capital expenditures, by reportable segment | |||||||||||
| United States and Latin America | $ | 6,014 | $ | 4,347 | |||||||
| Canada | 6,223 | 5,114 | |||||||||
| Europe, Middle East and Africa | 1,331 | 285 | |||||||||
| Asia-Pacific | 363 | 503 | |||||||||
| $ | 13,931 | $ | 10,249 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 21, 2026 | Showing above |
| 2025 | May 22, 2025 | |
| 2024 | May 29, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 26, 2022 | |
| 2021 | May 27, 2021 | |
| 2020 | Jun 1, 2020 | |
| 2019 | Jun 12, 2019 | |
| 2018 | May 30, 2018 | |
| 2017 | May 30, 2017 | |
| 2016 | May 31, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.