Thermal Energy International Inc (TSE:TMG)
:TMG
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Thermal Energy International
(TMG)
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Rating:59Neutral
Price Target:
C$0.15
▲(4.29% Upside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by improving financial risk profile (much lower leverage) but tempered by sharply compressed margins and uneven cash-flow history. Technicals are supportive with an established uptrend, while valuation is a key headwind due to the high P/E and no indicated dividend yield.
Positive Factors
Recurring aftermarket & services
A material recurring services stream (maintenance, inspections, refurbishment, optimization) creates durable annuity-like revenue and higher lifetime value per customer. Installed-base serviceability improves visibility, supports margins, and enables cross-sell of upgrades across industrial accounts over multiple years.
Negative Factors
Margin compression
Significant gross- and operating-margin erosion leaves little buffer for cost inflation or project overruns. Near-breakeven operating results constrain reinvestment in engineering, sales and service capabilities, and increase reliance on volume or price recovery to restore sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket & services
A material recurring services stream (maintenance, inspections, refurbishment, optimization) creates durable annuity-like revenue and higher lifetime value per customer. Installed-base serviceability improves visibility, supports margins, and enables cross-sell of upgrades across industrial accounts over multiple years.
Read all positive factors
Thermal Energy International (TMG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$23.90M
Dividend YieldN/A
Average Volume (3M)102.53K
Price to Earnings (P/E)9.2
Beta (1Y)0.33
Revenue Growth-3.45%
EPS Growth-104.92%
CountryCA
Employees78
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)<0.01
Shares Outstanding170,715,070
10 Day Avg. Volume73,054
30 Day Avg. Volume102,527
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.03
Revenue Forecast (FY)C$38.20M
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 ste...
How the Company Makes Money
TMG primarily makes money by selling, installing, and servicing energy-efficiency equipment and projects that reduce customers’ thermal energy consumption. Key revenue streams include: (1) Product and system sales: revenue from engineered equipmen...
Thermal Energy International Earnings Call Summary
Earnings Call Date:Sep 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
Thermal Energy International experienced a record fiscal year revenue and improved margins despite facing a year-over-year revenue decline. The company significantly reduced its debt and outlined strategic initiatives for future growth. However, there were challenges with reduced adjusted EBITDA and lower order intake and backlog at year-end. The positive aspects, including a strong order rebound post year-end, marginally outweigh the lowlights.Positive Updates
Record Fiscal Year Revenue
Thermal Energy International achieved record fiscal year revenue of $29.8 million, representing a significant increase of 41.2% over the last two years.
Negative Updates
Year-over-Year Revenue Decline
Revenue for fiscal 2025 was down 9% year-over-year despite achieving record revenue for the fiscal year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fiscal Year Revenue
Thermal Energy International achieved record fiscal year revenue of $29.8 million, representing a significant increase of 41.2% over the last two years.
Read all positive updates
Company Guidance
In the recent earnings call for the fourth quarter and fiscal year ended May 31, 2025, Thermal Energy International reported a record fiscal year revenue of $29.8 million, despite a 9% year-over-year decline. The company achieved a gross margin of 53.9% and an adjusted EBITDA margin of 5.8% in Q4, although adjusted EBITDA for the year decreased to $1.05 million from $2 million the prior year, primarily due to increased headcount expenses. The company significantly reduced its long-term debt by $2 million in fiscal 2025, including $1.1 million in Q4, leaving just $329,000 outstanding. Order intake rebounded post-year-end, with $11.4 million received between June 1 and September 22, 2025, boosting the order backlog to a record $24.3 million. Looking ahead, Thermal Energy plans to drive growth through strategic initiatives, including developing indirect sales channels in North America and Europe, promoting standardized equipment packages, establishing manufacturing in Europe, and leveraging the CREST tool to enhance sales efficiency.Thermal Energy International Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
68
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2023 | Aug 2022 | Aug 2021 | Aug 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.68M | 29.78M | 25.88M | 21.09M | 15.91M | 15.35M |
| Gross Profit | 12.62M | 12.34M | 12.45M | 9.57M | 6.73M | 6.75M |
| EBITDA | 1.45M | 798.31K | 2.14M | 1.76M | -716.46K | 894.88K |
| Net Income | 507.04K | 73.17K | 929.50K | 717.96K | -1.92M | 198.13K |
Balance Sheet | ||||||
| Total Assets | 14.04M | 11.95M | 16.79M | 13.51M | 9.60M | 11.55M |
| Cash, Cash Equivalents and Short-Term Investments | 2.01M | 2.80M | 6.97M | 2.81M | 2.46M | 4.24M |
| Total Debt | 2.03M | 1.59M | 3.89M | 4.73M | 5.31M | 4.81M |
| Total Liabilities | 9.63M | 8.38M | 13.37M | 11.59M | 8.55M | 8.58M |
| Stockholders Equity | 4.42M | 3.57M | 3.46M | 1.97M | 1.08M | 3.04M |
Cash Flow | ||||||
| Free Cash Flow | 1.77M | -1.75M | 5.02M | 1.33M | -1.99M | -1.31M |
| Operating Cash Flow | 1.85M | -1.67M | 5.40M | 1.41M | -1.64M | -1.19M |
| Investing Cash Flow | -76.45K | -77.73K | -376.89K | -77.70K | -351.93K | -125.39K |
| Financing Cash Flow | -2.69M | -2.41M | -1.06M | -1.04M | 357.56K | 892.79K |
Thermal Energy International Technical Analysis
Negative
0.14
Price Trends
0.16
Negative
0.15
Negative
0.15
Negative
Market Momentum
>-0.01
Negative
27.65
Positive
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMG, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 27.65 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TMG.
Thermal Energy International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | C$23.90M | 9.22 | 13.24% | ― | -3.45% | -104.92% | |
54 Neutral | C$37.50M | -34.71 | -4.33% | ― | -30.45% | ― | |
45 Neutral | C$3.70M | -3.65 | 388.29% | ― | -68.14% | -209.09% | |
45 Neutral | C$479.22M | -21.37 | -114.59% | ― | -33.91% | -40.26% | |
44 Neutral | C$10.14M | -3.39 | -7.46% | ― | 87.15% | 47.74% | |
42 Neutral | C$14.77M | -4.72 | 399.66% | ― | 14.18% | -29.19% |
* Industrials Sector Average
TSE:TMG
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0.15
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Thermal Energy International Corporate Events
Business Operations and StrategyFinancial Disclosures
Thermal Energy Lands $1 Million Heat Recovery Project With Global Nutrition Client
Positive
Feb 18, 2026
Thermal Energy International has secured a roughly $1 million turnkey heat recovery project from a global nutrition company, marking its ninth turnkey engagement and third consecutive HeatSponge project with this long-standing client. The deal inv...
Business Operations and StrategyFinancial Disclosures
Thermal Energy International Posts Record Quarterly Revenue and Tripled EBITDA on Strong Project Execution
Positive
Jan 27, 2026
Thermal Energy International reported record second-quarter revenue of $10.2 million, up more than 18% year over year, driven primarily by strong performance in heat recovery projects and GEM product sales, which also delivered record gross profit...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Thermal Energy International Sets January 27 Date for Q2 2026 Results Release and Earnings Call
Positive
Jan 21, 2026
Thermal Energy International Inc. will release its fiscal 2026 second-quarter financial results before markets open on January 27, 2026, followed by an earnings conference call and webcast at 8:30 a.m. ET the same day. The company will make its fi...
Business Operations and StrategyExecutive/Board Changes
Thermal Energy Elevates BEI Founder to EVP to Drive North American and European Expansion
Positive
Jan 7, 2026
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 profitab...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.