Thermal Energy International (TMG) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $29.8 million for fiscal 2025, with Q1 2026 order intake reaching a record $11.3 million, positioning for a strong second half of fiscal 2026.

• Q4 gross margin improved to 53.9% and adjusted EBITDA margin to 5.8%.

• Net income and adjusted EBITDA declined year-over-year, with net income for the year at $158 thousand.

• Significant debt reduction, with only $329,000 remaining at year-end and $3.6 million repaid over three years.

• Strategic initiatives underway to drive sales growth and margin improvement, including indirect sales channels and European expansion.

Financial highlights

• Fiscal year revenue reached $29.8 million, up 41.2% over two years and 15% year-over-year.

• Q4 revenue was $6.8 million, down 9.3% year-over-year.

• Adjusted EBITDA for the year was $1.1 million, down from $2.0 million in the prior year.

• Cash and working capital at year-end were $2.8 million and $2.4 million, respectively.

• Order backlog as of September 22, 2025, reached a record $24.3 million.

Outlook and guidance

• Revenues for fiscal 2026 expected to be weighted toward the second half due to timing of large projects.

• Strategic focus on higher-margin standardized equipment, expanding sales channels, and European market entry.

• Anticipates improved profitability and scalability from recent business reinvestments.

• Most revenue from $7.5 million in previously announced orders expected in H2 2026.

• Order intake for the 12 months ended May 31, 2025, was $21.8 million.