Thermal Energy International (TMG) investor relations material

Executive summary

• Achieved record highs for order intake, revenue, and profitability in fiscal 2026, with Q4 revenue increasing by 3.9% year-over-year and strong growth in North America.

• Strategic investments in sales, marketing, and engineering over the past two years began to yield top-line and profitability benefits.

• Ended the year with a robust balance sheet and significant order backlog.

• Net income for the year reached $1.34 million, up 86% year-over-year.

• Adjusted EBITDA for the year was $1.9 million, with Q4 at $247,000.

Financial highlights

• Q4 2026 revenue: $7.1 million, up 3.9% year-over-year; full-year revenue: $33.6 million, up 12.7%.

• Gross profit for the year reached $14.2 million, up 15% year-over-year.

• Adjusted EBITDA for Q4: $247,000; full-year adjusted EBITDA: $1.9 million, or $2.08 million excluding a one-time employer obligation adjustment.

• Operating cash flow for the year was $2.07 million, with cumulative operating cash flow of $7.3 million over four years.

• Net income for Q4 2026 was $221,000.

Outlook and guidance

• Strategy focuses on scalable solutions, standardized equipment packages, and indirect sales channels in North America and Europe.

• Europe identified as a major growth opportunity, with plans to support from the U.S. before shifting to European manufacturing.

• No plans for significant expansion of the internal team; focus remains on leveraging prior investments.

• Management expects continued growth driven by repeat business and expansion with multinational customers.

• Initiatives underway to make solutions more scalable and attractive for decarbonisation opportunities.