Tecogen Inc. Reports Q3 2024 Earnings Results

Tecogen Inc ( (TGEN) ) has released its Q3 earnings. Here is a breakdown of the information Tecogen Inc presented to its investors.

Tecogen Inc. is a manufacturer of high-efficiency, ultra-clean cogeneration products, providing environmentally friendly energy solutions for residential, commercial, recreational, and industrial use. The company, known for its innovative approach in the clean energy sector, continues to make strides with over 35 years in business and more than 3,200 units shipped across North America.

In its latest earnings report, Tecogen Inc. reported third-quarter revenues of $5.63 million, representing a decrease from $7.11 million in the same period last year. The company’s net loss widened to $0.93 million, attributed to decreased revenue and increased operating expenses due to the relocation of manufacturing operations. Despite these challenges, Tecogen’s backlog has increased significantly, and the company is optimistic about future order growth and revenue improvements.

Key financial metrics highlight a 20.8% decline in overall revenues for the quarter, primarily driven by a 52.7% drop in product revenues due to the temporary reduction in production capacity. However, service revenues saw a slight increase due to newly acquired contracts, while energy production revenues rose by 17.3%. The gross margin improved to 44.1% from 41.1% due to reduced service contract costs. Operating expenses experienced a marginal increase, impacting the overall financial performance.

As Tecogen looks forward, the company is optimistic about its business development efforts, anticipating further order growth and revenue increases in the coming quarters. The management is also focusing on entering the data center market with its natural gas chillers, which present a promising growth opportunity by addressing power efficiency needs in this sector.