Thermal Energy International CEO Provides Letter to Shareholders
Rhea-AI Summary
Thermal Energy International (OTCQB: TMGEF) issued a shareholder letter summarizing fiscal 2026 and progress on strategic initiatives. The company reported record fiscal 2026 order intake of $29.9 million, a 27% year-over-year increase, driven by demand from pharmaceutical, food and beverage, and building materials customers and strong interest in its streamlined HeatSponge turnkey offering.
Thermal Energy has repaid more than $3.9 million of term loans since May 2022 and recently finished repaying its existing term loans, while drawing about US$240 thousand to finance new HeatSponge equipment. The strategy focuses on standardized equipment packages, simplified turnkey projects, and heat pump integration, alongside building indirect sales channels via independent manufacturers’ representatives in North America and Europe, and expanding HeatSponge manufacturing into Europe. The company also highlighted its CREST scoping tool as a key sales accelerator and noted expanded investor outreach through recent roadshows and climate-focused conferences.
Positive
- Record order intake of $29.9 million in fiscal 2026, up 27% year over year
- Debt reduction of more than $3.9 million in term loans repaid since May 2022, with existing term loans now fully repaid
- Approximately $5 million in simplified HeatSponge turnkey project orders in fiscal 2026, plus a further $250 thousand order in June
- Introduction of heat pump integration in turnkey projects, which for some sites more than doubles usable recovered heat
Negative
- North American sales leadership change, with Vice President of Sales Ken Hardon no longer with the company following a sales team reorganization
News Market Reaction – TMGEF
In the Jul 23 session, TMGEF gained 1.19%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Ottawa, Ontario--(Newsfile Corp. - July 23, 2026) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) (FSE: EUW) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, today provided the following letter to shareholders from its CEO, William Crossland. All figures are shown in CAD unless indicated otherwise.
Dear Shareholders,
With fiscal 2026 now behind us, I am pleased to share with you a couple of milestones as well as an update on the strategic initiatives we announced last September during our fiscal 2025 year-end earnings call. I will start with the two milestones.
First, we finished fiscal 2026 (our year ended May 31, 2026) with total order intake of
Second, over the past few years, we've used our operating cash flow to strengthen our balance sheet, maintaining healthy cash reserves and a solid working capital position while aggressively reducing debt. After repaying more than
Update on Strategic Initiatives
Last September, we set out a focused plan to scale the business and drive continued profitable growth. This plan included four core elements:
- Introducing some new products and service extensions based on our existing technologies, including
- Standardized equipment packages;
- Simplified turnkey projects; and
- Heat pump integration;
- Developing extensive indirect sales channels in both North America and Europe;
- Establishing HeatSponge manufacturing in Europe; and,
- Supercharging both direct and indirect sales with our Carbon Reduction & Efficiency Scoping Tool ("CREST") platform.
Work is underway to develop a line of standardized, pre-engineered equipment packages for smaller or less complex projects that Independent Manufacturers' Representatives ("IMR") can sell from a line card along with their other products and services. In parallel, we launched a streamlined HeatSponge turnkey offering that gives our internal team the opportunity to pursue larger, more strategic HeatSponge opportunities on a quicker, more repeatable basis. This initiative is already gaining traction: we previously announced roughly
Another exciting driver of our recent and potential growth that we have not discussed much previously, is the integration of heat pumps into our turnkey heat recovery projects. This includes not only the supply and installation of heat pumps as part of one of our heat recovery projects, but also heat recovery projects that result from our customers implementing separate heat pump projects that can be supplied with our recovered heat. Our first heat pump integrated turnkey project, announced in September 2024 with a leading pharmaceutical customer, used heat pumps to elevate the thermal energy recovered by Flu Ace and HeatSponge to much higher, more usable temperatures.
Previously, without heat pumps, many target sites could use only a small portion of the heat we recovered. With heat pumps, the usable heat for some sites more than doubles, significantly expanding our addressable opportunity.
On the indirect sales channel front, we're working to develop a network of IMRs who already sell and service industrial boiler and steam-system products and have deep, long-standing relationships with end users. We recently hired two indirect sales channel managers – one for North America, and one for Europe, who will be responsible for driving this strategy in their respective markets. By leveraging IMRs for smaller equipment sales, we believe we can grow revenue with less investment while freeing our internal sales team to focus on larger, more strategic opportunities. As part of this strategy, we reorganized the North American sales team, and Ken Hardon, who joined us in January 2023 as Vice President of Sales for North America, is no longer with the Company. We thank Ken for shepherding the sales team for the last three years and wish him the best.
We see significant opportunity to expand HeatSponge into Europe, an attractive and largely untapped market. Our initial approach is straightforward: our U.S. facility will supply components for assembly and testing in Europe, with the intention of shifting to contract manufacturing in Europe as volumes grow. Establishing local manufacturing should shorten lead times and improve cost competitiveness.
Finally, across all these initiatives, CREST is the accelerator. Our award-winning mobile platform identifies thermal-energy savings and carbon-reduction opportunities, speeds up quoting, and helps both our sales team and IMRs spot opportunities that might otherwise be missed.
Together, these initiatives position us to scale more efficiently, expand into new markets, and convert more opportunities (both large and small) into profitable growth.
Investor Relations Update
We believe Thermal Energy is at an inflection point, and we've been actively expanding our profile with investors around the world.
In April, we were invited to participate in an exclusive three-day TSX-sponsored European roadshow featuring a select group of TSX and TSX Venture-listed companies. The roadshow provided us the opportunity to introduce our story to a curated group of family offices and high-net-worth individuals in Zurich, Paris and London, with interests in the new energy economy.
In June, we were invited to present at the 2026 Canadian Climate Investor Conference, hosted by the TSX and TSX Venture Exchange, where leading clean technology companies met with climate-focused investors seeking opportunities to support the transition to a more sustainable future. In addition to participating in a panel discussion on decarbonization, the event provided us the opportunity to share our story with climate-focused investors here in Canada.
Also in June, I presented at Planet MicroCap Las Vegas, connecting with a highly targeted audience of microcap investors and fund managers through a formal presentation and a full schedule of one-on-one meetings. You can watch my Planet MicroCap presentation here.
In closing, I want to thank our shareholders for their continued confidence and support. We are excited about the opportunities ahead and look forward to sharing our continued progress with you.
Sincerely,
William Crossland
President and Chief Executive Officer
Thermal Energy International
Readers are encouraged to subscribe to TEI News to receive strategic news and updates directly to their inbox.
ENDS
| For media enquiries contact: | For investor enquiries: |
| Thermal Energy International Inc. | William Crossland |
| Canada: 613-723-6776 | President and CEO |
| UK: +44 (0)117 917 2179 | Thermal Energy International Inc. |
| Marketing@thermalenergy.com | 613-723-6776 |
| Investors@thermalenergy.com |
Notes to editors
About Thermal Energy International Inc.
Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. We save our customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to
Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. By providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for our customers.
Thermal Energy's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG, on the OTCQB under the symbol TMGEF, and on the Frankfurt Open Market (FSE) under the symbol EUW. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on Twitter at https://twitter.com/GoThermalEnergy.
Forward-Looking Statements
This press release and the presentation linked in the press release above contain 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 expectation that orders in the Company's order intake will become revenue, the anticipated benefits of the Company's current efforts at scaling the business, potential growth and what might drive that growth, development of new product and equipment offerings, the perceived opportunities available to the Company as a result of various efforts described, the Company's belief that it can capitalize on those opportunities, the size of markets and opportunities open to the Company and the impact of investments that the Company has made on the Company's ability to scale. 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 order intake 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. Volatility with respect to tariffs and trade regulation may continue and may impact the Company in ways not currently anticipated. 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 www.sedarplus.ca.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306144