- Thermal Energy International (TSXV:TMG), an energy efficiency technology stock, posted record quarterly and year-over-year revenue in Q2 2025 ended November 30, 2024
- The company supplies energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies
- Thermal Energy stock is down by 35.71 per cent year-over-year but remains up by 100 per cent since 2020
Thermal Energy International (TSXV:TMG), an energy efficiency technology stock, posted record quarterly and year-over-year (YoY) revenue in Q2 2025 ended November 30, 2024.
Revenue grew 22 per cent YoY to a record C$8.7 million primarily because of increased sales from heat recovery projects, partially offset by decreased sales from GEM steam traps.
Gross profit decreased by 18 per cent YoY to C$2.9 million because of a change in product mix.
Operating expenses fell by C$139,000 YoY thanks to an increase in foreign exchange gains. R&D increased by C$107,000 driven by higher activities in the quarter.
EBITDA reached C$270,000, down from 830,000 YoY, while net income reached C$28,000, down from C$486,000 YoY, because of product mix and increased investments in future growth.
Cash and working capital ended the quarter at about C$2.8 million and C$3.7 million, respectively.
Orders received came to C$7.3 million, entailing a backlog of C$12.9 million, which is down by 26 per cent from C$17.5 million YoY. Approximately C$5 million in new orders subsequent to the quarter bring the backlog to C$17.9 million as of January 27, 2025.
Thermal Energy International has been net income profitable over the past eight quarters and has generated consistent revenue growth from C$15.35 million in fiscal 2021 to C$25.88 million in fiscal 2024.
Leadership insights
“Our turn-key heat recovery business drove record-high revenue for both the quarter and the trailing twelve months (TTM) ended November 30, 2024,” William Crossland, Thermal Energy International’s chief executive officer, said in a statement. “This was the second consecutive quarter that we reached a new all-time high for quarterly and TTM revenue. While we remained profitable, the change in product mix, together with the significant investments we have been making to grow the business, reduced our profitability.
Over the last two years, we have invested heavily in the future growth of the business. These investments include a new, much larger U.K. production facility, 18 new staff, a new accounting and ERP system, and the development of our custom mobile project identification app, which we launched this quarter. These investments have added about C$2.3 million to annual costs but, as expected, we have yet to see most of the corresponding benefits. Although our order intake for the second quarter was lower than a year ago, it marked a sharp increase compared to the first quarter, and we received a further C$5 million in orders subsequent to quarter end, increasing our order backlog to C$17.9 million as of January 27, 2025. Given the relative size of our typical heat recovery turn-key projects, order intake has always been lumpy but our pipeline and the value of projects in paid development with customers remains as strong as ever.
Finally, we are proud of our continued ability to strengthen our balance sheet with cash flow from operations. Cash at quarter end was impacted by temporary changes in working capital items but cash flow from operating activities (excluding changes in working capital items) remained positive, and over the last two years we have reduced debt by C$1.8 million and increased working capital by C$1.9 million from internally generated cash flow.”
About Thermal Energy International
Thermal Energy International 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) is down by 23.40 per cent on the news trading at C$0.18 per share as of 10:33 am ET. The stock is down by 35.71 per cent year-over-year but remains up by 100 per cent since 2020.
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(Top photo of Thermal Energy International’s Flu-Ace heat recovery system: Thermal Energy International)
