Thermal Energy International (TMG) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 revenue of $9.4 million (CAD 9.4 million) and record trailing 12-month revenue of $33.3 million, reflecting strong operational performance and sales momentum.

• Order intake rose 26% for the quarter and 41% for the trailing 12 months, reaching a record $31.3 million.

• Operational leverage and investments in engineering drove sharp improvements in adjusted EBITDA and net income, reversing previous declines.

• Maintained a robust balance sheet with virtually no debt, strong cash, and working capital positions.

• Major repeat business secured, including a $3.2 million order from a frozen food company and a $1.5 million order from a building materials company.

Financial highlights

• Q3 revenue increased 62%–68% year-over-year to $9.4 million; trailing 12-month revenue up 9% to $33.3 million.

• Adjusted EBITDA for Q3 was $519,000–$820,000, up significantly year-over-year; trailing 12-month adjusted EBITDA reached $2.1 million–$2.74 million.

• Net income for Q3 was $338,000–$520,000, up sharply year-over-year; trailing 12-month net income reached $1.3 million–$1.66 million.

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

• Ended the quarter with $4 million in cash and $3.6–$3.7 million in working capital.

Outlook and guidance

• Investments in sales, marketing, and engineering are yielding results, with further benefits expected in fiscal 2026.

• Management expects continued growth, supported by a strong financial base and healthy order backlog.

• Order backlog as of April 27, 2026, stood at $16.3 million, with efficient conversion to revenue.

• Anticipates positive impact from rising and volatile natural gas prices, especially in North America.