Thermal Energy International (TMG) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record revenue of $25.9 million, up 23% from 2023 and 63% from 2022, with strong growth across all product categories and business lines.

• Record EBITDA of $2.0 million, up $260,000 from 2023 and $2.7 million from 2022, despite significant reinvestments in growth, production capacity, personnel, and technology.

• Net income reached $1.0 million, an increase of $262,000 year-over-year and over $2.8 million from two years ago.

• Order intake hit a record $29.5 million, up 8% from last year and 150% from two years ago.

• Order backlog at year-end was $18.7 million, up 43% year-over-year and 282% from two years ago, growing to $21.3 million by September 2024.

Financial highlights

• Q4 2024 revenue was $7.5 million, down 8% year-over-year due to lower GEM sales, but annual GEM sales reached their highest ever and heat recovery and non-GEM equipment sales increased.

• Q4 2024 gross profit was $3.1 million, down 18% from the prior year, mainly from decreased GEM sales.

• Q4 2024 EBITDA was $422,000 and net income was $290,000, both lower than Q4 2023 due to tough comparables.

• Cash and cash equivalents at year-end were $7.0 million, up from $3.0 million last year; working capital rose to $3.5 million.

• Debt reduced by $900,000 to $2.4 million at year-end.

Outlook and guidance

• Positioned for continued profitable growth, both organically and through accretive acquisitions, with significant opportunity among top ten corporate accounts at only 5% penetration.

• Strong order backlog and robust project development agreement (PDA) activity support future momentum.

• Global energy efficiency investment trends and increased customer interest expected to drive further demand.