Thermal Energy International (TMG) AI Stock Analysis

• Market Cap: C$24.85M
• Dividend Yield: N/A
• Average Volume (3M): 102.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -3.45%
• EPS Growth: -104.92%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 171,401,300
• 10 Day Avg. Volume: 73,054
• 30 Day Avg. Volume: 102,527
• PEG Ratio: -3.12
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 0.71
• P/FCF Ratio: -12.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): C$38.30M

• Rating: 45 Neutral
• Price Target: C$0.15 ▲(4.29% Upside)

Thermal Energy International's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant challenges in profitability and cash flow generation, which are reflected in its negative P/E ratio and bearish technical indicators. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Improved leverage (moderate debt)

A TTM debt-to-equity of 0.36 indicates improved leverage versus prior periods, reducing interest burden and financial stress. Lower leverage supports funding of project work and capital expenditures without over-reliance on debt, enhancing multi-month financial flexibility.

Healthy gross margins

A stable ~41% gross margin points to resilient unit economics and cost control in core thermal systems. Durable gross margins provide a buffer to absorb SG&A and support reinvestment in product development and service capabilities, underpinning longer-term profitability potential.

Diverse revenue streams & partnerships

Multiple income streams—equipment sales, installations, maintenance, partnerships and performance-based contracts—create recurring and project-based cash inflows. This diversification and government/partner access supports scaling into larger projects and steadier revenue over several months.

Negative Factors

Declining revenue trend

TTM revenue decline of -5.44% signals weakening demand or contract timing issues. Sustained top-line contraction reduces scale benefits, pressures fixed-cost absorption, and limits resources for R&D and sales expansion, posing a durable headwind to margin recovery and growth execution.

Material cash generation deterioration

A near-200% drop in free cash flow growth and a 0.20 OCF-to-net-income ratio indicate weak cash conversion. Poor cash generation restricts funding for projects, maintenance of service offerings, and reduces buffer for cyclical downturns, increasing reliance on external financing over months.

Negative profitability and shareholder returns

Negative net margin and ROE show the company is not currently converting operations into shareholder value. Persistent unprofitability impairs capital allocation, deters investment, and makes sustaining growth initiatives harder without operational improvements or margin restoration over the medium term.

Thermal Energy International Business Overview & Revenue Model

Company Description

Thermal Energy International Inc. engages in the development, engineering, and supply of pollution control products, heat recovery systems, and condensate return solutions in North America, Europe, and internationally. Its products include GEM steam traps; FLU-ACE, a direct contact condensing heat recovery system that recycles the heat lost through the boiler flue gas exhaust; DRY-REX, a low temperature biomass dryer; indirect contact heat recovery equipment; boiler economizers under the HeatSponge brand; wet and dry steam accumulators; electricity co-generation solutions; turn-key thermal energy solutions; and water treatment products and services. It serves food and beverage, pulp and paper, hospital, pharmaceutical, chemicals and petrochemicals, and other industry sectors. Thermal Energy International Inc. was incorporated in 1991 and is based in Ottawa, Canada.

How the Company Makes Money

TMG generates revenue through multiple streams, including the sale of its thermal energy systems and solutions, which are tailored to meet the specific needs of various industries. Additionally, the company earns income from installation services and ongoing maintenance contracts for its systems. Strategic partnerships with key industry players and government agencies facilitate access to larger projects and funding opportunities, enhancing TMG's market presence. Furthermore, TMG may benefit from performance-based contracts, where revenue is tied to the energy savings achieved through their solutions, aligning their earnings with the success of their offerings.

Thermal Energy International Financial Statement Overview

Summary

Thermal Energy International faces financial challenges with a high debt-to-equity ratio and negative cash flows, despite stable gross profit margins. The company struggles with inconsistent revenue growth and liquidity issues, indicating a need for strategic improvements.

Income Statement

Thermal Energy International's income statement shows mixed performance. The gross profit margin has been relatively stable, indicating efficient cost management. However, the net profit margin has been volatile, with recent declines in net income. Revenue growth has been inconsistent, with a recent negative growth rate, suggesting challenges in expanding sales.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The return on equity has been positive but declining, reflecting reduced profitability on shareholder investments. The equity ratio is relatively low, suggesting limited financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating liquidity challenges. Although there was a significant improvement in free cash flow growth recently, the overall cash flow position remains weak. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.16M	―	29.78M	25.88M	21.09M	15.91M
Gross Profit	11.65M	―	12.34M	12.45M	9.57M	6.73M
EBITDA	901.52K	―	798.31K	2.14M	1.76M	-716.46K
Net Income	-58.38K	―	73.17K	929.50K	717.96K	-1.92M
Balance Sheet
Total Assets	13.49M	―	11.95M	16.79M	13.51M	9.60M
Cash, Cash Equivalents and Short-Term Investments	4.29M	―	2.80M	6.97M	2.81M	2.46M
Total Debt	1.37M	―	1.59M	3.89M	4.73M	5.31M
Total Liabilities	9.69M	―	8.38M	13.37M	11.59M	8.55M
Stockholders Equity	3.78M	―	3.57M	3.46M	1.97M	1.08M
Cash Flow
Free Cash Flow	1.69M	―	-1.75M	5.02M	1.33M	-1.99M
Operating Cash Flow	1.76M	―	-1.67M	5.40M	1.41M	-1.64M
Investing Cash Flow	-68.11K	―	-77.73K	-376.89K	-77.70K	-351.93K
Financing Cash Flow	-2.49M	―	-2.41M	-1.06M	-1.04M	357.56K

Thermal Energy International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMG, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TMG.

Thermal Energy International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRN	63 Neutral	C$36.34M	16.00	10.00%	―	-30.45%	―
TMG	45 Neutral	C$24.85M	-483.33	-1.51%	―	-3.45%	-104.92%
WATR	45 Neutral	C$4.93M	-2.21	―	―	-68.14%	-209.09%
QST	45 Neutral	C$11.11M	-7.28	-7.42%	―	87.15%	47.74%
ACT	43 Neutral	C$562.73M	-33.93	-114.59%	―	-33.91%	-40.26%
SHRC	42 Neutral	C$12.31M	-3.14	―	―	14.18%	-29.19%

Thermal Energy International Corporate Events

Thermal Energy Elevates BEI Founder to EVP to Drive North American and European Expansion

Thermal Energy International has appointed Vincent Sands as Executive Vice President while he continues to serve as president of its wholly owned subsidiary Boilerroom Equipment Inc., a unit he founded and helped build into a consistently profitable business. In his expanded role, Sands will lead the rollout of a new indirect sales channel strategy leveraging BEI’s established network of independent manufacturers’ representatives across North America and oversee the push of BEI’s HeatSponge condensing heat recovery economizer technology into Europe, moves aimed at accelerating growth by broadening distribution of standardized products such as GEM Trap solutions and capitalizing on high energy costs and carbon-reduction priorities in European markets.

The most recent analyst rating on (TSE:TMG) stock is a Hold with a C$0.11 price target. To see the full list of analyst forecasts on Thermal Energy International stock, see the TSE:TMG Stock Forecast page.

Thermal Energy Secures $1.5 Million Repeat Business Order for Heat Recovery Project

Thermal Energy International has secured a $1.5 million repeat business order from a global building materials company to install four HeatSponge boiler economizers at a second site. The deal underscores the client’s trust in Thermal Energy’s technology, strengthens the company’s market presence, and sets the stage for potential collaborations in other facilities for energy efficiency and emissions reduction.

The most recent analyst rating on (TSE:TMG) stock is a Hold with a C$0.11 price target. To see the full list of analyst forecasts on Thermal Energy International stock, see the TSE:TMG Stock Forecast page.

Thermal Energy Secures $3.2 Million Heat Recovery Order

Thermal Energy International has secured a $3.2 million turnkey heat recovery order from a leading multinational frozen food company, marking their second project with this client. This order highlights Thermal Energy’s growing influence in the food and beverage sector, which is committed to reducing carbon emissions. The project is expected to be completed within twelve months and reflects the company’s ability to provide high-impact sustainability solutions, potentially enhancing their market position and offering significant financial and environmental benefits to stakeholders.

The most recent analyst rating on (TSE:TMG) stock is a Hold with a C$0.11 price target. To see the full list of analyst forecasts on Thermal Energy International stock, see the TSE:TMG Stock Forecast page.

Thermal Energy International Grants Stock Options to Enhance Management Incentives

Thermal Energy International Inc. has announced the grant of 3,334,000 stock options to its officers and directors as part of its remuneration and incentive program. This move is expected to align the interests of the management with those of the shareholders, potentially impacting the company’s operational dynamics and market positioning positively.

The most recent analyst rating on (TSE:TMG) stock is a Hold with a C$0.12 price target. To see the full list of analyst forecasts on Thermal Energy International stock, see the TSE:TMG Stock Forecast page.

Thermal Energy Secures Major Arctic Heat Recovery Project

Thermal Energy International Inc. has secured a $1.6 million order to supply eight custom-engineered HeatSponge heat recovery units to a remote Arctic mining operation. This project, one of the largest in Boilerroom Equipment Inc.’s history, highlights the company’s innovative engineering capabilities and logistical expertise, as the units must withstand extreme conditions and be transported via standard cargo aircraft. The project demonstrates Thermal Energy’s strategic focus on large-scale opportunities and its commitment to solving complex energy challenges in demanding environments.

Thermal Energy Secures $1.5 Million in Repeat Business from Global Nutrition Company

Thermal Energy International Inc. has secured $1.5 million in orders for two turnkey heat recovery projects from a global nutrition company, marking the seventh and eighth projects with this client. This new business highlights Thermal Energy’s ongoing relationship with the multinational, having generated approximately $13.6 million in business since 2019, and underscores the company’s growth potential in energy efficiency and carbon reduction initiatives across multiple sites worldwide.

Thermal Energy International Achieves Record Q1 Order Intake Amidst Revenue Dip

Thermal Energy International reported a record-breaking order intake of $11.9 million for the first quarter of 2026, marking a 323% increase compared to the previous year. Despite a 19% decrease in revenue to $6.9 million, the company maintained profitability and reduced its long-term debt significantly, positioning itself well for future growth with a strong order backlog and financial stability.

Thermal Energy International Achieves Record Q1 Order Intake Amid Revenue Dip

Thermal Energy International reported a record order intake of $11.9 million for the first quarter of 2026, marking a 323% increase compared to the previous year. Despite a 19% decrease in revenue to $6.9 million, the company remains profitable with a net income of $166 thousand and an adjusted EBITDA of $350 thousand. The order backlog increased by 37% to $18.5 million, positioning the company well for future growth. The company has also made significant progress in debt repayment, with expectations of continued strong performance in the latter half of the fiscal year.

Thermal Energy International to Release Q1 2026 Financial Results

Thermal Energy International Inc. announced it will release its fiscal 2026 first quarter financial results on October 28, 2025, before market open. The company will host an earnings conference call and webcast to discuss the results, providing stakeholders an opportunity to engage with management. This announcement is part of Thermal Energy’s ongoing efforts to maintain transparency with investors and stakeholders, reflecting its commitment to delivering financial and environmental value through its energy efficiency solutions.