Thermal Energy International (TMG) Investor presentation summary

Market opportunity and value proposition

• Energy efficiency is positioned as the fastest, cheapest, and easiest way to reduce industrial carbon emissions, with a focus on thermal energy, which accounts for 90% of industrial energy use and where 50% is typically lost as waste heat.

• Proprietary solutions can recover up to 80% of lost thermal energy at industrial sites, offering high ROI and compelling payback periods.

• Suite of complementary, highly engineered technologies are delivered as turnkey projects or custom equipment, targeting blue chip multinational customers.

• Majority of orders come from top 10 corporate accounts, with significant repeat business and less than 10% total site penetration, indicating growth potential.

Financial performance and growth

• Record last four quarters (L4Q) revenue of $33.3M, up 92%, with Q2 and Q3 2026 showing 18% and 62% YoY growth respectively.

• Adjusted EBITDA for L4Q reached $2.74M, with recent quarters contributing $1.2M YoY growth; profitability in 2025 was impacted by reinvestments.

• Net income has been positive for the last three years, totaling $3.2M, with operating cash flow over the same period at $6.6M.

• Strong balance sheet as of February 2026: $4.0M cash, $3.7M working capital, no bank debt, and $0.5M returned to shareholders via share repurchases.

Strategic initiatives and future plans

• Streamlined HeatSponge turnkey offering launched, targeting larger, strategic opportunities with simplified installation and higher margins.

• Plans to establish HeatSponge manufacturing in Europe, develop indirect sales channels in North America and Europe, and promote standardized equipment packages.

• Growth strategy includes leveraging blue chip customer base, expanding product offerings, growing team and global presence, and pursuing accretive acquisitions.

• Acquisition targets must be accretive, have commercialized products with $2M–$20M revenue, and offer complementary market access.