Thermal Energy International (TMG) investor relations material

Executive summary

• Achieved record quarterly revenue of $10.2 million (CAD 10.2 million), up over 18% year-over-year, the highest in company history, driven by strong heat recovery project execution and increased GEM sales.

• Adjusted EBITDA reached $814 thousand (CAD 814,000), more than tripling year-over-year; net income surged to $618 thousand (CAD 618,000), a twentyfold increase.

• Maintained a strong balance sheet with $2.0 million in cash, $3.4 million in working capital, and virtually no bank debt.

• Order backlog reached $21.5 million as of January 26, 2026, up 20% year-over-year, reflecting robust demand.

• Strong operating cash flow and significant debt reduction since May 2022.

Financial highlights

• Q2 revenue grew over 17% year-over-year to $10.2 million, with both heat recovery projects and equipment sales contributing.

• Gross profit reached a record $4.0 million, with gross margin improving to 39% from 33% a year ago.

• Operating expenses for Q2 were $1.9 million to $3.2 million, up $605,000 year-over-year, including one-time costs and higher salary expenses.

• Trailing twelve-month net income was $2.14 million, with operating cash flow for the trailing twelve months at $1.6 million before changes in working capital.

• Adjusted EBITDA for Q2 was $814 thousand, with TTM Adjusted EBITDA reaching $3.23 million.

Outlook and guidance

• Despite accelerated project completions, full-year expectations remain unchanged, with a strong second half anticipated.

• Management expects the downward trend in trailing twelve-month EBITDA and net income to reverse soon.

• Early traction with the streamlined HeatSponge turnkey offering and strong order intake position the company for continued growth.

• Order backlog as of January 26, 2026, stood at $21.5 million, indicating strong future revenue visibility.