Thermal Energy's First Quarter Results Highlighted by Record Revenue and Growing Profitability
Thermal Energy International reported record financial results for Q1 2025 (ended August 31, 2024). Revenue increased 63% year-over-year to $8.5 million, driven by strong turn-key heat recovery projects. The company achieved EBITDA of $0.6 million (up 33%) and net income of $0.3 million (up 91%). The order backlog stood at $13.5 million at quarter-end, rising to $18.4 million by October 28, 2024. Trailing twelve-month revenue reached a new high of $29.2 million, up 26% year-over-year, despite increased operating expenses from growth investments.
Thermal Energy International ha riportato risultati finanziari record per il primo trimestre del 2025 (chiuso il 31 agosto 2024). I ricavi sono aumentati del 63% rispetto all'anno precedente, raggiungendo 8,5 milioni di dollari, grazie a forti progetti chiavi in mano di recupero termico. L'azienda ha ottenuto un EBITDA di 0,6 milioni di dollari (in aumento del 33%) e un reddito netto di 0,3 milioni di dollari (in aumento del 91%). Il portafoglio ordini si attestava a 13,5 milioni di dollari alla fine del trimestre, salendo a 18,4 milioni di dollari entro il 28 ottobre 2024. I ricavi degli ultimi dodici mesi hanno raggiunto un nuovo massimo di 29,2 milioni di dollari, in aumento del 26% rispetto all'anno precedente, nonostante l'aumento delle spese operative a causa degli investimenti per la crescita.
Thermal Energy International reportó resultados financieros récord para el primer trimestre de 2025 (que finalizó el 31 de agosto de 2024). Los ingresos aumentaron un 63% en comparación con el año anterior, alcanzando 8.5 millones de dólares, impulsados por fuertes proyectos llave en mano de recuperación de calor. La empresa logró un EBITDA de 0.6 millones de dólares (un aumento del 33%) y un ingreso neto de 0.3 millones de dólares (un aumento del 91%). La cartera de pedidos se situó en 13.5 millones de dólares al final del trimestre, aumentando a 18.4 millones de dólares para el 28 de octubre de 2024. Los ingresos en los últimos doce meses alcanzaron un nuevo máximo de 29.2 millones de dólares, un aumento del 26% en comparación con el año anterior, a pesar del aumento de los gastos operativos debido a las inversiones en crecimiento.
Thermal Energy International는 2025년 1분기(2024년 8월 31일로 종료) 기록적인 재무 실적을 보고했습니다. 수익은 전년 대비 63% 증가하여 850만 달러에 달했습니다. 이는 강력한 턴키 열 회수 프로젝트에 의해 촉진되었습니다. 회사는 EBITDA 60만 달러를 달성했으며(33% 증가) 순이익 30만 달러를 기록했습니다(91% 증가). 분기 종료 시 주문 잔고는 1350만 달러였으며, 2024년 10월 28일까지 1840만 달러로 증가했습니다. 지난 12개월 동안의 수익은 2920만 달러로 새로운 최고치를 기록했으며, 이는 전년 대비 26% 증가한 수치입니다. 이는 성장 투자로 인한 운영 비용 증가에도 불구하고 이룬 성과입니다.
Thermal Energy International a annoncé des résultats financiers record pour le premier trimestre 2025 (qui s'est terminé le 31 août 2024). Les revenus ont augmenté de 63 % par rapport à l'année précédente, atteignant 8,5 millions de dollars, soutenus par de forts projets de récupération de chaleur clés en main. L'entreprise a réalisé un EBITDA de 0,6 million de dollars (en hausse de 33 %) et un bénéfice net de 0,3 million de dollars (en hausse de 91 %). Le carnet de commandes s'élevait à 13,5 millions de dollars à la fin du trimestre, atteignant 18,4 millions de dollars d'ici le 28 octobre 2024. Le chiffre d'affaires des douze derniers mois a atteint un nouveau sommet de 29,2 millions de dollars, en hausse de 26 % par rapport à l'année précédente, malgré l'augmentation des dépenses d'exploitation liées aux investissements de croissance.
Thermal Energy International berichtete über rekordverdächtige Finanzergebnisse für das erste Quartal 2025 (endet am 31. August 2024). Der Umsatz stieg im Jahresvergleich um 63 % auf 8,5 Millionen Dollar, unterstützt durch starke schlüsselfertige Wärmerückgewinnungsprojekte. Das Unternehmen erzielte ein EBITDA von 0,6 Millionen Dollar (plus 33 %) und einen Nettoeinkommen von 0,3 Millionen Dollar (plus 91 %). Der Auftragsbestand betrug am Quartalsende 13,5 Millionen Dollar und stieg bis zum 28. Oktober 2024 auf 18,4 Millionen Dollar. Der Umsatz der letzten zwölf Monate erreichte mit 29,2 Millionen Dollar ein neues Hoch, was einem Anstieg von 26 % im Jahresvergleich entspricht, trotz gestiegener Betriebskosten aufgrund von Wachstumsinvestitionen.
- Record quarterly revenue of $8.5M, up 63% YoY
- Net income increased 91% to $0.3M
- EBITDA grew 33% to $0.6M
- Order backlog up 17% YoY to $13.5M
- Strong cash position of $5.0M and working capital of $3.8M
- TTM revenue reached record $29.2M, up 26%
- Order intake decreased 15% to $2.8M
- Gross margin declined to 42% from 53% YoY
- Operating expenses increased by $603K YoY
- TTM net income decreased to $1.1M from $1.4M
Ottawa, Ontario--(Newsfile Corp. - October 30, 2024) - 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 first quarter ended August 31, 2024. All figures are in Canadian dollars.
Q1 2025 Highlights:
(Compared to Q1 2024)
- Revenue:
$8.5 million (up63% ) - EBITDAi:
$0.6 million (up33% ) - Net income:
$0.3 million (up91% ) - Cash and Working Capital:
$5.0 and$3.8 million respectively - Order intake:
$2.8 million (down15% ) - Order backlogii was
$13.5 million as at August 31, 2024 (up17% year-over-year) and increased to$18.4 million as at October 28, 2024
Overview
"We had an exceptional first quarter with record revenue and the strongest Turn-key Project revenue we've seen since before the pandemic," said William Crossland, Thermal Energy CEO. "The quarter marked the highest gross profit since our record-setting fourth quarter of fiscal 2023, which benefited from a very favourable product mix. Importantly, EBITDA and net income in the first quarter were also both up significantly from the first quarter of last year and when compared to the last two sequential quarters."
"While this is an exciting time for Thermal Energy, our revenues, especially from Turn-key Projects can be quite lumpy depending on the timing of projects. As such, management and the board tend to focus more on the trailing twelve months and longer-term results. In this regard, our record first quarter revenue propelled our trailing twelve months revenue to a new all-time high of
Summary Financial Results
| In thousand except % data | Three months ended Aug. 31, 2024 | Three months ended Aug. 31, 2023 | Trailing twelve months ended Aug. 31, 2024 | Trailing twelve months ended Aug. 31, 2023 |
| Revenue | ||||
| Gross profit | ||||
| Gross margin | ||||
| Operating expenses | ||||
| Net income | ||||
| EBITDAi | ||||
| Cash position | ||||
| Working capital | ||||
| Orders received | ||||
| Order backlogii as of August 31 |
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Financial Review for the First Quarter Ended August 31, 2024
First quarter revenue grew
Operating expenses for the quarter were
For the quarter, the Company had EBITDA of
At the end of August, cash and working capital balances were approximately
Financial Review for the Trailing Twelve Months ("TTM") Ended August 31, 2024
TTM revenue increased
TTM operating expenses increased by
$950 thousand for 9 new staff positions including two in sales and marketing, six in engineering and production and one in accounting and administration;$320 thousand as part of our "Architecture for Growth" program including our proprietary mobile ap and new global ERP and financial accounting software; and,$330 thousand for a new UK-based office and production facility.
Even with the
Business Outlook and Order Summary
Orders received ("Order Intake") during the first 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, October 30, 2024, 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/TMG2025Q1. 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 October 18, 2024.
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, 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 | ||||||
| August 31, 2024 $ | August 31, 2023 $ | |||||
| Total net income attributable to owners of the parent | 278,290 | 159,243 | ||||
| Total net income attributable to non-controlling interest | 31,182 | 2,587 | ||||
| Interest charge | 87,295 | 113,264 | ||||
| Interest revenue | (31,199 | ) | - | |||
| Income tax expense | 18,342 | 1,783 | ||||
| Depreciation and amortization | 103,425 | 84,133 | ||||
| Share based compensation | 65,306 | 53,319 | ||||
| EBITDA | 552,641 | 414,329 | ||||
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228305
FAQ
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