Press Releases

Strongest Quarter in More Than Two Years

Financial results for the quarter ended February 28, 2023. Third quarter highlighted by profitable growth across all product categories.

OTTAWA, ONTARIO – April 25, 2023 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSX-V: TMG, OTCQB: TMGEF), an innovative cleantech company and global provider of proprietary energy and carbon emissions reduction solutions to some of the world’s largest corporations, has announced its financial results for the quarter ended February 28, 2023. All figures are in Canadian dollars. 

Quarter-End Highlights:

  • Revenue: $5.6 million for the quarter, $12.9 million year-to-date

  • EBITDAi: $816 thousand for the quarter, $558 thousand year-to-date

  • Net income: of $524 thousand for the quarter, $(251) thousand year-to-date

  • Cash and working capital balances are $4.3 million and $2.2 million respectively

  • Order intake: $4.0 million for the quarter, $22.1 million year-to-date

  • Order backlogii: $16.2 million as at February 28, 2023 compared to $5.6 million at the same time last year, increasing to $18.5 million as of April 20, 2023


“Strong, growing demand for our energy efficiency solutions translated to our best quarterly results in over two years,” said William Crossland, Thermal Energy CEO. “Our revenue for the third quarter was our highest quarterly revenue since before the pandemic, while our gross profit and EBITDA were the highest in two years. Importantly, we had strong performance across the business, with both Custom Equipmentiii and Turn-key Projects delivering profitable growth in the quarter.” 

“Fiscal 2023 is on course to be a strong turnaround year for Thermal Energy. Our order intake for the first nine months is the highest ever recorded, exceeding that from a year ago by 165%, and we have a robust and growing business development pipeline. With our proven solutions, solid balance sheet, and recent investments in our team, Thermal Energy is well-positioned to be the energy efficiency partner of choice for multinational companies seeking a compelling payback while achieving their net-zero and other sustainability targets.”

Summary Financial Results

In thousand except % data

Three months ended February 28, 2023

Three months ended  February 28, 2022

Six months ended  February 28, 2023

Six months ended  February 28, 2023


$5,603   $3,491 $12,884  $11,447

Gross profit



$5,737 $4,825

Gross margin

46.7%  42.1%  44.5% 42.2%

Operating expenses

$1,938 $2,277 $5,565 $6,269

Net loss

$524 $(894) $(251)  $(1,689)


$816 $(648) $558  $(962)

Cash position

$4,259  $2,294  $4,259  $2,294

Working capital

$2,180  $1,492  $2,180  $1,492

Orders received

$3,969  $1,831 $22,072  $8,228

Order backlog ii as of February 28

$16,200 $5,600 $16,200 $5,600

Third Quarter 2023 and Year-to-Date Financial Review

Quarterly revenue and gross profit for the quarter increased by $2.1 million, or 61% and $1.2 million, or 78% respectively mainly due to increased revenues from both GEM and heat recovery projects. Operating expenses were $339 thousand less than last year mainly due to reduced staff training and professional fees resulting in savings of $138 thousand, reduced acquisition cost in the amount of $82 thousand, the increase in foreign exchange gains of $119 thousand. As a result, the net income for the quarter was $1.4 million more than last year and EBITDAi was $1.5 million better than last year. 

For the nine months ended February 28, 2023, revenue was $12.9 million, up about 13% from last year. The increase in revenues was mainly due to increased revenue from custom equipment sales. Gross profit for the first nine months was $5.7 million, about 19% higher than last year due to the increased revenue compared to the same period of prior year. Operating expenses incurred for the first three quarters amounted to $5.6 million, $704 thousand less than last year mainly because of reduced headcount and staff recruiting fees, training, and professional fees resulting in savings of $433 thousand, reduced Sofame related acquisition costs in the amount of $188 thousand, a recovered credit loss previously recorded in the amount of $78 thousand due to the collection on the doubtful account, and an increase in foreign exchange gains of $169 thousand, all offset by the reduction of wage subsidies received by $163 thousand. As a result, net loss and EBITDA were improved by $1.4 million and $1.5 million respectively. 

Quarter end cash and working capital balances were $4.3 million and $2.2 million respectively.

Business Outlook and Summary

Orders received (“Order Intake”) during the third quarter of $4 million were 117% higher the same quarter of last year. Year-to-date Order Intake for the first three quarters of the fiscal year was $22.1 million. As a result, the Company ended the quarter with an order backlog of $16.2 million, up 189% from the $5.6 million at the same time last year. 

The Company defines its Order Backlog as the value of projects for which purchase orders have been received, but that have not yet been fully reflected as revenue in the Company’s published financial statements. 

The Company has also received $2.3 million in new orders subsequent to the February 28, 2023, quarter-end bringing the current order backlog to $18.5 million as of April 20, 2023. A list and description of recent order highlights is available on page 16 of the Management’s Discussion and Analysis filed today. 

Full financial results including Management’s Discussion and Analysis and accompanying notes to the financial results are available on and 

Readers are encouraged to subscribe to TEI News to receive strategic news and updates directly to their inbox.

  • i EBITDA represents earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense. See note below about non-IFRS measures.
  • ii Order backlog represents any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company’s published 
    financial statements. See note below about non-IFRS measures.
  • iii Custom equipment refers to indirect contact heat recovery solutions (HEATSPONGE and SIDEKICK), and condensate return system solutions (GEMTM steam traps). 
    Turn-key solution refers to direct contact heat recovery solutions (e.g., FLU-ACE®)


For media enquiries contact:
Thermal Energy International Inc.
Canada: 613-723-6776
UK: +44 (0)117 917 2179

For investor enquiries:
Thermal Energy International Inc.

Notes to editors

About Thermal Energy International Inc.

Thermal Energy International Inc., ranked as one of Canada’s Top Growing Companies in 2021, 2020 and 2019, is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our customers include many Fortune 500 and other leading multinational companies across a wide range of industry sectors. 

Thermal Energy is a fully accredited professional engineering firm and by providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique turnkey projects with significant financial and environmental benefits for our customers. 

Thermal Energy's proprietary products include: GEM™ - Steam traps, FLU-ACE® - Direct contact condensing heat recovery, HEATSPONGE – Indirect contact condensing heat recovery systems, and DRY-REX™ - Low temperature biomass drying systems. 

Thermal Energy has engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. TEI’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. 

For more information, visit our company website at and follow us on Twitter and LinkedIn.


This press release contains forward-looking statements relating to, and amongst other things, based on management’s expectations, estimates and projections, the anticipated effectiveness of the Company’s products and services, the timing of revenues to be received by the Company, the anticipated effects of COVID-19 on the business, backlog and revenue, the expectation that orders in backlog will become revenue, the anticipated benefits of the Company’s current efforts at training and business improvement efforts, opportunities for growth, the Company’s belief that it can capitalize on opportunities, the size of markets and opportunities open to the Company and expectations that order intake will bounce back. Information as to the amount of heat recovered, energy savings and payback period associated with Thermal Energy International’s products are based on the Company’s own testing and average customer results to date. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company’s products, statements about the expected environmental effects and cost savings associated with the Company’s products and statements about the Company’s ability to cross-sell its products and sell to more sites are forward looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company’s control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of the Company’s control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company’s customers and factors inherent in the customer’s facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company’s products and on the expected environmental effects and cost savings expected from the Company’s products. Any customer’s willingness to purchase additional products from the Company and whether orders in the Company’s backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company’s control, including but not limited to the customer’s perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company’s business as described in the Company’s most recent Management’s Discussion and Analysis available at 

EBITDA and backlog are non-IFRS financial measures, do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other companies. Please refer to the Company’s most recent Management’s Discussion and Analysis available at www.SEDAR .com for more details about these non-IFRS financial measures. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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