Thermal Energy International (TMG) investor relations material

Executive summary

• Achieved record Q3 revenue of $9.4 million (CAD 9.4 million) and record trailing 12-month revenue of $33.3 million, up 62% year-over-year for the quarter and 92% over three years, reflecting strong sales momentum in heat recovery and GEM business segments.

• Net income for Q3 improved to $338,000 (CAD 338,000), up $741,000 year-over-year, with trailing 12-month net income reaching $1.3 million; TTM net income increased to $1.66 million.

• Adjusted EBITDA for Q3 was $519,000 (CAD 519,000), up $686,000 year-over-year; TTM adjusted EBITDA rose to $2.1 million and $2.74 million.

• Maintained a strong balance sheet with virtually no debt, $4 million in cash, and $3.7 million in working capital, up over $1 million since year-end.

• Record TTM order intake of $31.3 million, up 26% for the quarter and 41% for the trailing 12 months, with backlog at $14.7 million at quarter-end and $16.3 million by April 27, 2026.

Financial highlights

• Q3 revenue grew 62%–68% year-over-year to $9.4 million; TTM revenue up 9%–92% over three years.

• Gross profit for Q3 was $3.5 million, with a gross margin of 37%; operating expenses for Q3 were $3.1 million, up $548,000 year-over-year, mainly due to a $402,000 increase in foreign exchange loss and inflationary pressures.

• Operating cash flow for the trailing 12 months was over $2.2 million, consistently exceeding net income; TTM operating cash flow before working capital changes was $2.77 million.

• Share buybacks totaled $500,000 for 3.6 million shares.

• For the nine months ended February 28, 2026, revenue grew 15% to $26.5 million, with gross profit up $2 million.

Outlook and guidance

• Management expects continued growth and execution of strategy, supported by a strong balance sheet, increased engineering capacity, and investments in sales, marketing, and engineering yielding improved margins and faster project delivery.

• Order backlog as of February 28, 2026, stood at $14.7 million, with efficient conversion to revenue; order intake for the quarter was $8.7 million, up 26% year-over-year.