Thermal Energy International Inc. (TSXV: TMG) has reported record annual revenue and net income for its fiscal year ended May 31, 2026, marking what the company describes as a milestone year for financial performance. Annual revenue climbed 12.7% to $33.6 million, while net income rose 749.4% to $1.3 million. The results, released September 22, 2026, also showed record order intake of $30.0 million, a figure investors may be watching closely as an indicator of near-term pipeline strength.

Key Points

  • Thermal Energy International Inc. (TSXV: TMG | OTCQB: TMGEF | FSE: EUW)
  • Fiscal 2026 annual revenue reached a record $33.6 million, up 12.7% year-over-year
  • Net income grew 749.4% to $1.3 million; Adjusted EBITDA rose 83.5% to $1.9 million; order backlog stood at $18.9 million as of September 21, 2026
  • Investors may be watching order backlog growth and continued multinational customer expansion for signals of sustained momentum

Fiscal 2026 Full-Year Revenue and Profitability Hit New Highs for Thermal Energy

For the twelve months ended May 31, 2026, Thermal Energy posted record revenue of $33.6 million, driven by increased order intake across heat recovery projects and GEM equipment sales. Gross profit rose 14.6% to $14.1 million, with gross margin improving to 42.2% from 41.4% in the prior year, attributed to a favourable product mix shift and improved margins on heat recovery projects. Adjusted EBITDA grew 83.5% to $1.9 million, while net income of $1.3 million compared to $158 thousand in fiscal 2025. The company also repaid $328 thousand in bank debt and repurchased 3.6 million shares, returning approximately $500 thousand to shareholders.

Fourth-Quarter Results Reflect GEM Sales Growth and One-Time Cost Pressures

Fourth-quarter revenue increased 3.9% to $7.1 million, primarily driven by higher GEM revenue. However, gross margin contracted to 48.7% from 53.9% a year earlier due to lower margins on GEM and heat recovery projects. Operating expenses included a $293 thousand group incentive and a one-time employer obligation adjustment of $149 thousand, partially offset by $386 thousand in foreign exchange gains. Adjusted EBITDA for the quarter was $247 thousand, compared to $397 thousand in the same quarter of fiscal 2025. The release states that without the one-time employer adjustment, full-year Adjusted EBITDA would have been the highest in company history.

Post-Year-End Order Backlog Surges to $18.9 Million on New Customer Awards

Thermal Energy ended fiscal 2026 with an order backlog of $11.8 million, down 7.9% from the prior year-end figure of $12.9 million. However, the company received $7.1 million in new orders subsequent to May 31, 2026, bringing the backlog to $18.9 million as of September 21, 2026. The company noted that repeat business from existing customers across multiple sites, regions, and technologies contributed to the post-year-end backlog growth. Cash on hand stood at $3.3 million with working capital of $3.7 million as at May 31, 2026, compared to $2.4 million in working capital a year earlier.