- Thermal Energy International (TSXV:TMG) posted record annual revenue of C$29.8 million for fiscal 2025, driven by strong heat recovery project sales
- Q4 gross profit rose 17.3 per cent to C$3.7 million, despite a 9 per cent drop in revenue, thanks to improved margins and higher GEM product sales
- Order backlog surged to C$24.3 million post-year-end, following a record-breaking C$11.3 million in Q1 order intake for fiscal 2026
- Thermal Energy stock (TSXV:TMG) last traded at $0.15
Thermal Energy International (TSXV:TMG) announced its financial results for Q4 and fiscal year ended May 31, 2025.
The global provider of innovative energy efficiency and carbon emission reduction solutions achieved a record annual revenue of C$29.8 million, marking a 15 per cent increase over the previous fiscal year. This growth was primarily driven by higher revenues from heat recovery projects, although partially offset by a decline in GEM trap sales, which had benefited from record orders in the prior year.
This content has been prepared as part of a partnership with Thermal Energy International Inc. and is intended for informational purposes only.
Despite the revenue milestone, gross profit for the year dipped slightly by 1 per cent to C$12.3 million, attributed to lower margins on heat recovery projects and reduced GEM revenue. Operating expenses rose to C$11.5 million, up C$715,000 year-over-year, largely due to increased headcount and inflation-related cost pressures. R&D expenses also climbed by C$137,000, reflecting expanded research activities.
Thermal Energy reported adjusted EBITDA of C$1.1 million and net income of C$158,000 for the fiscal year.
Q4 2025 highlights
Q4 Revenue was C$6.8 million, down 9 per cent from the same period last year, mainly due to lower sales from heat recovery projects and indirect contact heat recovery equipment. However, gross profit rose 17.3 per cent to C$3.7 million, driven by improved margins and stronger GEM revenue.
Operating expenses for the quarter increased by C$630,000, impacted by a C$345,000 foreign exchange loss and C$285,000 in general operating cost increases due to team expansion. R&D expenses decreased by C$85,000 due to reduced activity during the quarter.
The company posted Adjusted EBITDA of C$397,000 and net income of C$224,000 for the quarter, compared to C$422,000 and C$290,000, respectively, in Q4 of the prior year.
As of May 31, 2025, Thermal Energy held C$2.8 million in cash and C$2.4 million in working capital.
Management’s take
“While our revenue was down in the fourth quarter, our quarterly gross profit and Adjusted EBITDA margins improved, and we still achieved our highest fiscal year revenue ever,” William Crossland, Thermal Energy’s CEO, said in a news release. “But the big story for us is that, after suppressed levels of order intake throughout fiscal 2025, our order intake in the first quarter of fiscal 2026 reached C$11.3 million — which is the highest first quarter intake in our history and four times what we had in the first quarter of last year.”
Strong start to fiscal 2026
Thermal Energy reported C$4.8 million in order intake during Q4, ending the year with an order backlog of C$12.9 million, down from $18.7 million a year earlier. However, momentum has surged post-year-end, with C$11.4 million in new orders received, bringing the current backlog to C$24.3 million as of September 22, 2025.
Notably, the company recorded C$11.3 million in Q1 order intake for fiscal 2026, the highest ever for any Q1 in its history—four times higher than the same quarter last year.
About Thermal Energy International
Thermal Energy International Inc. supplies energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. The company’s portfolio is highlighted by proprietary and proven technology that can recover up to 80 per cent of energy lost in typical boiler plant and steam system operations.
Thermal Energy stock (TSXV:TMG) last traded at $0.15 and though it has fallen 23 per cent since the year began, it has risen 20 per cent over the past three months.
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