Thermal Energy International (TMG) Q1 2026 earnings summary

Executive summary

• Q1 revenue was the second-best ever, lower than last year but significantly higher than two and three years ago.

• Achieved record Q1 order intake of $11.9 million, up over four times last year's Q1 and 323% year-over-year, with order backlog rising 37% to $18.5 million at quarter end.

• Significant progress in the pharmaceutical sector, with four major heat recovery project orders totaling $15 million over two years and $5.1 million in Q1 2026 from a leading global company.

• Continued reduction of debt, with $3.7 million repaid since May 2022 and only $200,000 remaining, scheduled for full repayment by January 2026.

• Maintained profitability with Adjusted EBITDA of $350,000 and net income of $166,000 in Q1, and strong operating cash flow.

Financial highlights

• Q1 revenue was $6.9 million, up 32% from Q1 2024 and 114% from Q1 2023, but down 19% year-over-year.

• Trailing 12-month revenue reached $29.2 million, up 86% over three years.

• Net income for Q1 was $166,000; trailing 12-month net income was $1.13 million.

• Adjusted EBITDA for Q1 was $350,000; trailing 12-month Adjusted EBITDA was $2.13 million.

• Operating cash flow for the trailing 12 months was $1.1 million.

Outlook and guidance

• Majority of Q1 order revenue expected to be recognized in the second half of fiscal 2026, indicating a back-end loaded revenue year.

• Record order intake and backlog position the company for strong growth in the remainder of the fiscal year.