Thermal Energy Achieves Record Revenue and Improved Profitability in Second Quarter

Core Insights - Thermal Energy International Inc. reported record revenue and gross profit for Q2 2026, with a significant increase in adjusted EBITDA, highlighting strong operational execution and demand for its solutions [2][5][6] Financial Performance - Revenue for Q2 2026 reached $10.2 million, a 17% increase year-over-year, driven by heat recovery projects and GEM [5][6] - Gross profit also hit a record of $4.0 million, resulting in a gross margin of 39%, up from 33% in Q2 2025 [4][5] - Adjusted EBITDA surged by 202% to $814 thousand, while net income rose dramatically by 2,133% to $618 thousand compared to the same quarter last year [6][8] - Operating expenses increased by $605 thousand due to one-time costs and higher salary expenses, but were offset by increased revenues [7][10] Order Backlog and Business Outlook - The order backlog as of November 30, 2025, was $15.0 million, a 16% increase from the previous year, with orders received in Q2 totaling $5.9 million [11][12] - Subsequent to the quarter end, the company secured an additional $6.5 million in new orders, raising the current backlog to $21.5 million as of January 26, 2026 [12] Balance Sheet and Financial Health - The company reported a cash position of $2.0 million and working capital of $3.4 million at the end of the quarter, with negligible bank debt after repaying $130 thousand on a term loan [4][6]