Titan Logix (TLA) Q2 2024 earnings summary

Executive summary

• Q2 revenue rose 15% YoY to $1.75M as tanker OEMs maintained peak production capacity; core business performance improved.

• Q2 net earnings were $244,716 versus $90,236; six-month results were a net loss of $159,896 versus net earnings of $504,920.

• Growth priorities include entering refined fuels and chemical markets, modernizing connected software, and developing next-generation products.

Financial highlights

• Six-month revenue increased 8% YoY to $3.26M from $3.03M.

• Q2 gross profit was $822,546 versus $799,152; gross margin fell to 47% from 53%. Six-month gross profit was $1.60M versus $1.64M, with margin at 49% versus 54%.

• Product R&D expenses rose to $247,463 in Q2 from $34,698 and to $513,121 for six months from $48,704, supporting diversification and growth initiatives.

• Q2 EBITDA was $28,029 versus $189,932; six-month EBITDA was a loss of $31,749 versus $545,569.

Outlook and guidance

• Similar Q3 demand is expected for TD100 products in crude and used oil, following stable Q2 tanker OEM production.

• Refined fuels pilot trials are planned for Q3 and Q4, lasting 3–5 months and equipping 1–5 trucks with TD100 systems and the Rack Control Module.

• Eight fleet customers are piloting T-Connect; the pilot base is expected to scale in Q3 and Q4 of fiscal 2024.