Thermal Energy International (TMG) investor relations material

Executive summary

• Achieved record Q3 revenue of CAD 9.4 million, up 62% year-over-year, and record trailing 12-month revenue of CAD 33.3 million, driven by strong performance in heat recovery projects and GEM business.

• Order intake rose 26% for the quarter and 41% for the trailing 12 months, reaching an all-time high of CAD 31.3 million.

• Adjusted EBITDA for Q3 was CAD 519,000, up CAD 686,000 year-over-year; trailing 12-month adjusted EBITDA nearly doubled to CAD 2.1 million.

• Net income for Q3 was CAD 338,000, up CAD 741,000 year-over-year, reversing previous declines.

• Cash and working capital increased by over CAD 1 million since year end, reaching CAD 4 million and CAD 3.7 million, respectively.

Financial highlights

• Q3 revenue increased 62% year-over-year to CAD 9.4 million; trailing 12-month revenue up 92% from three years ago.

• Gross profit for Q3 was CAD 3.5 million, with a gross margin of 37%.

• Operating expenses rose, mainly due to foreign exchange losses, inflationary pressures, and one-time technology investments.

• Operating cash flow for the trailing 12 months exceeded CAD 2.2 million, consistently outpacing net income.

• Ended Q3 with CAD 4 million in cash (up 41% from year-end) and CAD 3.7 million in working capital (up 53%).

Outlook and guidance

• Management expects continued execution of growth strategy, supported by a strong balance sheet and increased engineering capacity.

• Investments in sales, marketing, and engineering are expected to continue supporting growth, with benefits already materializing in improved project delivery and margins.

• Management remains optimistic about future order intake, especially as energy price volatility may drive demand.

• No immediate capacity constraints; current staffing is sufficient to handle further growth.