Shares of Thermon Group Holdings (NYSE: THR), a leading provider of industrial process heating solutions, soared 5.90% in pre-market trading on Thursday after the company reported better-than-expected earnings for the third quarter of fiscal 2025, driven by robust order growth and productivity improvements.

For the quarter ended December 31, 2024, Thermon reported adjusted earnings of $0.56 per share, beating analyst estimates of $0.55 by 1.82%. Revenue came in at $134.35 million, missing expectations of $138.91 million by 3.28%, primarily due to continued weakness in large project revenue.

Despite the revenue decline, the company's adjusted EBITDA rose 3.3% year-over-year to $31.8 million, reflecting the benefits of its strategic focus on recurring revenue streams from maintenance and repair activities. The adjusted EBITDA margin expanded to 23.7% from 22.5% in the prior year period, driven by productivity enhancements and a more favorable revenue mix.

One of the key highlights for Thermon was the strong order growth, with third-quarter orders increasing 11.4% year-over-year to $138.6 million, supported by a record backlog of $235.6 million, up 48.4% from the prior year. The company attributed this momentum to its diverse end-market exposure and strategic investments in growth initiatives.

Bruce Thames, President and CEO of Thermon, stated, "We are well positioned to benefit from our initiatives while customer CAPEX spending recovers. These revenue streams carry higher margins, and this more favorable revenue mix, when combined with the benefits of our productivity improvements, resulted in a third-quarter Adjusted EBITDA margin of 23.7%, demonstrating the opportunity in our business as we progress towards our long-term profitability targets."

Thermon confirmed its full-year guidance, expecting revenue in the range of $495 million to $515 million and adjusted EPS of $1.77 to $1.89. The company's management expressed confidence in its ability to execute on its strategic priorities, including growing its installed base, diversifying end-market exposure, operational excellence, and disciplined capital allocation.