Shares of Thermon Group Holdings (THR) plunged 7.56% in pre-market trading on Thursday following the release of its fiscal 2026 first-quarter results. The industrial process heating solutions provider reported disappointing revenue figures and faced challenges in backlog conversion, leading to a significant sell-off.

Thermon's Q1 revenue came in at $108.9 million, representing a 5.4% year-over-year decline and falling significantly short of analysts' expectations of $122.5 million. The company attributed approximately $10 million of the revenue shortfall to backlog conversion delays caused by supply chain issues and production setbacks. CEO Bruce Thames acknowledged these challenges, stating, "We experienced a backlog conversion shortfall that delayed approximately $10 million in revenue recognition into future quarters."

Adding to investor concerns, Thermon's adjusted EBITDA of $21.2 million also missed analysts' estimates. The company cited tariff-related market uncertainty as a factor in reduced customer demand and lower revenue. Despite these setbacks, Thermon maintained its full-year 2026 guidance, projecting revenues between $495 million and $535 million, and adjusted earnings per share between $1.77 and $1.99. However, this outlook failed to assuage investor worries in the short term, as reflected in the pre-market stock plunge. The market's reaction suggests that investors are skeptical about the company's ability to overcome its current challenges and meet its full-year targets.