Core Viewpoint - Thermal Energy International Inc. reported a strong order intake in Q1 2026, with a 37% year-over-year increase in order backlog, indicating positive long-term growth despite a decrease in revenue for the quarter [2][5][9]. Financial Performance - Q1 2026 revenue decreased by 19% year-over-year to $6.85 million, primarily due to lower revenues from heat recovery projects, but still represented a 32% increase compared to Q1 2024 and a 119% increase compared to Q1 2023 [3][4][5]. - Gross profit for the quarter was $3.19 million, down 9.5% from the previous year, while gross margin improved to 47% from 42% [3][4]. - Operating expenses decreased by $207 thousand year-over-year, mainly due to favorable foreign exchange changes [6]. - The company reported a net income of $166 thousand and an Adjusted EBITDA of $350 thousand for the quarter [5][6]. Order Intake and Backlog - The order intake for Q1 2026 was $11.86 million, marking a 323% increase compared to the same quarter last year, the highest order intake for any first quarter in the company's history [5][8]. - The order backlog at the end of the quarter was $18.5 million, a 37% increase from the previous year, and grew to $20.8 million by October 27, 2025 [5][9]. Debt Management - The company repaid $130 thousand in long-term debt during the quarter, with a remaining balance of only $200 thousand at quarter end [5][7]. - Since the end of fiscal 2022, the company has repaid a total of $3.7 million in acquisition and COVID-related debt, with plans for full repayment by January 2026 [2]. Cash Position - As of August 31, 2025, the company had a cash position of approximately $4.29 million and working capital of $2.74 million [7].