Thermal Energy Achieves Record Revenue in Second Quarter
Thermal Energy International reported record revenue of $8.7 million in Q2 2025, representing a 22% increase compared to Q2 2024. The company's turn-key heat recovery business drove this growth, marking the second consecutive quarter of all-time high quarterly revenue.
Despite revenue growth, profitability decreased due to product mix changes and increased investments in business growth. EBITDA was $0.3 million with net income of $28 thousand. The company's cash position stood at $2.8 million with working capital of $3.7 million at quarter end.
Order intake for Q2 was $7.3 million, with the order backlog reaching $12.9 million as of November 30, 2024, and increasing to $17.9 million by January 27, 2025. The company has invested in growth initiatives including a new UK production facility, 18 new staff, a new ERP system, and the CREST mobile project identification app, adding approximately $2.3 million to annual costs.
Thermal Energy International ha riportato ricavi record di $8.7 milioni nel secondo trimestre del 2025, con un aumento del 22% rispetto al secondo trimestre del 2024. Il business della recupero di calore chiavi in mano dell'azienda ha guidato questa crescita, segnando il secondo trimestre consecutivo con ricavi trimestrali record.
Nonostante la crescita dei ricavi, la redditività è diminuita a causa dei cambiamenti nel mix di prodotti e degli investimenti crescenti nella crescita aziendale. L'EBITDA è stato di $0.3 milioni con un utile netto di $28.000. La posizione di cassa dell'azienda si è attestata a $2.8 milioni con un capitale circolante di $3.7 milioni alla fine del trimestre.
Gli ordini acquisiti per il secondo trimestre sono stati di $7.3 milioni, con l'ammontare degli ordini in sospeso che ha raggiunto $12.9 milioni al 30 novembre 2024, aumentando a $17.9 milioni entro il 27 gennaio 2025. L'azienda ha investito in iniziative di crescita, tra cui una nuova struttura produttiva nel Regno Unito, 18 nuovi membri dello staff, un nuovo sistema ERP e l'app per l'identificazione dei progetti mobili CREST, aggiungendo circa $2.3 milioni ai costi annuali.
Thermal Energy International reportó ingresos récord de $8.7 millones en el segundo trimestre de 2025, lo que representa un aumento del 22% en comparación con el segundo trimestre de 2024. El negocio de recuperación de calor llave en mano de la empresa impulsó este crecimiento, marcando el segundo trimestre consecutivo de ingresos trimestrales históricos.
A pesar del crecimiento de los ingresos, la rentabilidad disminuyó debido a cambios en la mezcla de productos e inversiones crecientes en el crecimiento del negocio. El EBITDA fue de $0.3 millones con un ingreso neto de $28,000. La posición de efectivo de la compañía se situó en $2.8 millones con un capital de trabajo de $3.7 millones al final del trimestre.
La recepción de pedidos para el segundo trimestre fue de $7.3 millones, con el backlog de pedidos alcanzando $12.9 millones al 30 de noviembre de 2024, y aumentando a $17.9 millones para el 27 de enero de 2025. La compañía ha invertido en iniciativas de crecimiento que incluyen una nueva planta de producción en el Reino Unido, 18 nuevos empleados, un nuevo sistema ERP y la aplicación móvil de identificación de proyectos CREST, añadiendo aproximadamente $2.3 millones a los costos anuales.
Thermal Energy International는 2025년 2분기에 $8.7백만의 기록적인 수익을 보고했으며, 이는 2024년 2분기 대비 22% 증가한 수치입니다. 회사의 턴키 열 회수 사업이 이 성장을 이끌었으며, 이는 사상 최고의 분기 수익을 기록한 두 번째 연속 분기입니다.
수익 증가에도 불구하고, 제품 믹스의 변화와 사업 성장에 대한 투자 증가로 인해 수익성이 감소했습니다. EBITDA는 $0.3백만이며, 순이익은 $28,000였습니다. 분기 말 회사의 현금 보유고는 $2.8백만, 운영 자본은 $3.7백만이었습니다.
2분기 동안의 주문 수치는 $7.3백만이었으며, 주문 잔고는 2024년 11월 30일 기준으로 $12.9백만에 달했고, 2025년 1월 27일에는 $17.9백만으로 증가했습니다. 회사는 영국의 새로운 생산 시설, 18명의 새로운 직원, 새로운 ERP 시스템, CREST 모바일 프로젝트 식별 앱 등 성장 이니셔티브에 투자했으며, 연간 비용에 약 $2.3백만이 추가되었습니다.
Thermal Energy International a annoncé des revenus records de $8,7 millions au deuxième trimestre 2025, représentant une augmentation de 22 % par rapport au deuxième trimestre 2024. L'activité de récupération de chaleur clé en main de l'entreprise a stimulé cette croissance, marquant le deuxième trimestre consécutif de revenus trimestriels historiques.
Malgré la croissance des revenus, la rentabilité a diminué en raison de changements dans le mix de produits et d'investissements accrus dans la croissance de l'entreprise. L'EBITDA était de $0,3 million avec un revenu net de $28 000. La position de trésorerie de l'entreprise s'élevait à $2,8 millions avec un fonds de roulement de $3,7 millions à la fin du trimestre.
Les commandes pour le deuxième trimestre s'élevaient à $7,3 millions, avec un carnet de commandes atteignant $12,9 millions au 30 novembre 2024, et augmentant à $17,9 millions d'ici le 27 janvier 2025. L'entreprise a investi dans des initiatives de croissance, y compris une nouvelle usine de production au Royaume-Uni, 18 nouveaux employés, un nouveau système ERP et l'application mobile d'identification des projets CREST, ajoutant environ $2,3 millions aux coûts annuels.
Thermal Energy International meldete Rekordumsätze von $8.7 Millionen im zweiten Quartal 2025, was einem Anstieg von 22% im Vergleich zum zweiten Quartal 2024 entspricht. Das schlüsselfertige Geschäft zur Wärmegewinnung des Unternehmens trieb dieses Wachstum voran und markierte das zweite aufeinanderfolgende Quartal mit einem Rekordumsatz.
Trotz des Umsatzwachstums sank die Rentabilität aufgrund von Änderungen im Produktmix und erhöhten Investitionen in das Unternehmenswachstum. Das EBITDA betrug $0.3 Millionen mit einem Nettogewinn von $28.000. Die liquide Mittel des Unternehmens beliefen sich auf $2.8 Millionen, mit einem Working Capital von $3.7 Millionen zum Quartalsende.
Die Auftragseingänge für das zweite Quartal betrugen $7.3 Millionen, wobei der Auftragsbestand am 30. November 2024 $12.9 Millionen erreichte und bis zum 27. Januar 2025 auf $17.9 Millionen anstieg. Das Unternehmen hat in Wachstumsinitiativen investiert, darunter eine neue Produktionsstätte im Vereinigten Königreich, 18 neue Mitarbeiter, ein neues ERP-System und die CREST-App zur Identifizierung mobiler Projekte, was jährlich etwa $2.3 Millionen zu den Kosten hinzufügte.
- Record quarterly revenue of $8.7 million, up 22% year-over-year
- Six-month revenue increased 40% to $17.1 million
- Working capital improved to $3.7 million
- Order backlog grew to $17.9 million as of January 27, 2025
- Positive cash flow from operations
- Net income declined to $28 thousand from $486 thousand in Q2 2024
- EBITDA decreased to $270 thousand from $830 thousand year-over-year
- Gross margin decreased to 33% from 49% in Q2 2024
- Operating expenses increased due to $2.3 million in annual growth investments
- Cash position decreased to $2.8 million from $3.4 million
Revenue for trailing four quarters also at record high
Ottawa, Ontario--(Newsfile Corp. - January 28, 2025) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, today reported its financial results for the second quarter ended November 30, 2024. All figures are in Canadian dollars.
Q2 2025 Highlights:
(Compared to Q2 2024)
Revenue increased
22% to a record$8.7 million EBITDAi of
$0.3 million and net income of$28 thousand were lower due to product mix and increased expenses due to investments made in the future growth of the businessCash position of
$2.8 million was lower due to temporary fluctuations in working capital itemsWorking capital was
$3.7 million at quarter endOrder intake was
$7.3 million Order backlogii was
$12.9 million as at November 30, 2024, and$17.9 million as at January 27, 2025
Overview
"Our turn-key heat recovery business drove record high revenue for both the quarter and the trailing twelve months ("TTM") ended November 30, 2024," said William Crossland, Thermal Energy CEO. "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 UK production facility, 18 new staff, a new accounting and ERP system, and the development of our custom mobile project identification app ("CREST"), which we launched this quarter. These investments have added about
"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
Summary Financial Results
| In thousand except % data | Three months ended Nov. 30, 2024 | Three months ended Nov. 30, 2023 | Six months ended Nov. 30, 2024 | Six months ended Nov. 30, 2023 |
| Revenue | ||||
| Gross profit | ||||
| Gross margin | ||||
| Operating expenses | ||||
| Net income | ||||
| EBITDAiii | ||||
| Cash position | ||||
| Working capital | ||||
| Orders received | ||||
| Order backlogiv as of November 30 | 17,500 |
Financial Review for the Second Quarter Ended November 30, 2024
Second quarter revenue grew
Operating expenses were
The Company had EBITDA of
At the end of November, cash and working capital balances were approximately
Financial Review for the Six Months Ended November 30, 2024
For the six months ended November 30, 2024, revenue was
Operating expenses amounted to
R&D expense increased by
The Company achieved EBITDA of
Business Outlook and Order Summary
Orders received ("Order Intake") during the second quarter totalled
The Company also received
Full financial results including Management's Discussion and Analysis and accompanying notes to the financial results are available on www.sedarplus.ca and investors-thermalenergy.com/en/financial-overview.
Notice of Earnings Call and Webcast
Management of Thermal Energy will host an earnings call and webcast today, January 28, at 8:30 am ET. A question-and-answer session will follow management's prepared remarks, at which time qualified equity analysts will be able to submit questions via the webcast.
The live webcast will be available at https://bit.ly/TMG2025Q2. You may join the webcast via MS Teams on your computer, mobile app or room device. Please join the webcast approximately 15 minutes prior to the earnings call to ensure adequate time for registration and admittance to the webcast.
For more information, including dial-in information (audio only), refer to the Company's press release from January 15, 2025.
Readers are encouraged to subscribe to TEI News to receive strategic news and updates directly to their inbox.
ENDS
| For media enquiries contact: Thermal Energy International Inc. Canada: 613-723-6776 UK: +44 (0)117 917 2179 Marketing@thermalenergy.com | For investor enquiries: William Crossland President and CEO Thermal Energy International Inc. 613-723-6776 Investors@thermalenergy.com |
Notes to editors
About Thermal Energy International Inc.
Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. We save our customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to
Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, France, and Italy. By providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for our customers.
Thermal Energy's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG and on the OTCQB under the symbol TMGEF. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on Twitter at https://twitter.com/GoThermalEnergy.
Forward-Looking Statements
This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates and projections, the anticipated effectiveness of the Company's products and services, the timing of revenues to be received by the Company, the expectation that orders in backlog will become revenue, the anticipated benefits of the Company's current efforts at training and business improvement efforts, opportunities for growth, the Company's belief that it can capitalize on opportunities, the size of markets and opportunities open to the Company and expectations that order intake will bounce back.. Information as to the amount of heat recovered, energy savings and payback period associated with Thermal Energy International's products are based on the Company's own testing and average customer results to date. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company's products, statements about the expected environmental effects and cost savings associated with the Company's products and statements about the Company's ability to cross-sell its products and sell to more sites are forward looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of the Company's control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company's customers and factors inherent in the customer's facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company's products and on the expected environmental effects and cost savings expected from the Company's products. Any customer's willingness to purchase additional products from the Company and whether orders in the Company's backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company's control, including but not limited to the customer's perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company's business as described in the Company's most recent Management's Discussion and Analysis available at www.sedarplus.ca.
Non-IFRS Financial Measures
The Company believes the following non-IFRS financial measures provide useful information to both management and investors to better understand the financial performance and financial position of the Company.
EBITDA
Management believes that EBITDA (earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense) is a useful performance measure as it approximates cash generated from operations, before tax, capital expenditures and changes in working capital, and excludes impairment of intangible assets. EBITDA also assists comparison among companies as it eliminates the differences in earnings due to how a company is financed. EBITDA does not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other companies. There is no direct comparable IFRS measure for EBITDA.
A reconciliation of net income to EBITDA is shown below.
| Three months ended | Six months ended | |||
| Nov 30, 2024 $ | Nov 30, 2023 $ | Nov 30, 2024 $ | Nov 30, 2023 $ | |
| Total net income attributable to owners of the parent | 12,978 | 462,777 | 291,268 | 622,020 |
| Total net income attributable to non-controlling interest | 14,694 | 22,762 | 45,876 | 25,349 |
| Interest charge | 78,151 | 114,639 | 165,446 | 227,903 |
| Interest revenue | (12,739) | - | (43,938) | - |
| Income tax expense | 16,669 | 93,209 | 35,011 | 94,992 |
| Depreciation and amortization | 94,687 | 83,124 | 198,112 | 167,257 |
| Share based compensation | 65,306 | 53,319 | 130,612 | 106,638 |
| EBITDA | 269,746 | 829,830 | 822,387 | 1,244,159 |
Order Backlog
Order backlog is a useful performance measure that Management uses as an indicator of the short-term future revenue of our Company resulting from already recognized orders. The Company includes in "order backlog" any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company's published financial statements. It is important to note that once an order or partial order is recorded as revenue, the order backlog is reduced by the amount of the newly reported revenue. Order backlog does not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other companies.
For additional details on non-IFRS financial measures, please refer to the Company's most recent Management's Discussion and Analysis available at www.sedarplus.ca for more details about these non-IFRS financial measures.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
________________________
i EBITDA represents earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense. See note below about non-IFRS measures.
ii Order backlog represents any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company's published financial statements. See note below about non-IFRS measures.
iii EBITDA represents earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense.
iv Order backlog represents any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company's published financial statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238653
FAQ
What was Thermal Energy's (TMGEF) revenue growth in Q2 2025?
How much did TMGEF's order backlog increase by January 27, 2025?
What caused the decline in TMGEF's profitability in Q2 2025?
How much working capital did TMGEF report as of November 30, 2024?
What was TMGEF's gross margin in Q2 2025 compared to Q2 2024?
