Thermal Energy International (TMG) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of CAD 8.7 million (USD 8.7 million), up 22%–108% year-over-year, and record trailing 12-month revenue of CAD 30.7 million, more than double from two years ago.

• Profitability declined due to lower-margin product mix and significant investments in growth initiatives, including plant, personnel, and technology.

• Maintained positive operating cash flow and a strong balance sheet, with cash flow from operations used to reduce debt and increase working capital.

• Investments in headcount, digitization, and a new UK plant are expected to drive future growth, with most benefits anticipated in fiscal 2026 and beyond.

• Order backlog rose to CAD 18 million (USD 17.9 million) by January 27, 2025, supporting a strong future revenue pipeline.

Financial highlights

• Q2 2025 revenue reached CAD 8.7 million (USD 8.7 million), up 22%–108% year-over-year.

• Trailing 12-month revenue was CAD 30.7 million (USD 30.7 million), up 102% from the prior year.

• Q2 2025 EBITDA was CAD 270,000 (USD 270,000), down from CAD 830,000 (USD 830,000) a year ago; trailing 12-month EBITDA was CAD 1.6 million (USD 1.57 million), down from CAD 3.2 million (USD 3.23 million) prior year.

• Q2 2025 net income was CAD 28,000 (USD 28,000), down from CAD 486,000 (USD 490,000) last year; trailing 12-month net income was CAD 672,000 (USD 670,000), down from CAD 2.1 million (USD 2.14 million) previous year.

• Cash and cash equivalents at quarter end were CAD 2.8 million (USD 2.8 million); working capital was CAD 3.7 million; debt was CAD 1.9 million.

Outlook and guidance

• Investments in plant, people, and technology are expected to drive growth, with most benefits anticipated in fiscal 2026 and beyond.

• Order intake for the first half of fiscal 2025 was CAD 10.1 million (USD 10.1 million), with backlog rising to CAD 18 million (USD 17.9 million) by January 27, 2025.

• Management remains optimistic about the project pipeline and expects continued momentum.