Thermal Energy Wins $1 Million Turnkey Project --- Ninth with Global Nutrition Company

Rhea-AI Summary

Thermal Energy (OTCQB: TMGEF) won a ~$1 million turnkey heat recovery project from a global nutrition company, its ninth project with that client and third consecutive HeatSponge turnkey order.

The system is expected to recover waste heat, deliver $285,000 in annual natural gas savings and reduce site-wide greenhouse gas emissions by 7%. Revenue is expected to be earned within 6 months and gross margin is anticipated to align with historical turnkey project levels.

Positive

• ~$1M order for a turnkey HeatSponge installation
• Expected $285k annual natural gas savings
• Projected 7% site-wide greenhouse gas reduction
• $14.6M cumulative business with this customer since 2019
• Deployment across 28 sites in nine countries

Negative

• Significant customer concentration: $14.6M from one client since 2019
• Single project value ~$1M implies limited near-term revenue contribution

Recovered waste heat expected to provide $285 thousand in annual natural gas savings and reduce site-wide greenhouse gas emissions by 7%

Ottawa, Ontario--(Newsfile Corp. - February 18, 2026) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, received an order for a turnkey heat recovery project worth approximately $1 million from a global nutrition company. The turnkey project will include adding one two-stage HeatSponge economizer to each of three natural gas fired boilers on site to recover waste heat from their exhausts. All figures are shown in CAD.

"We're excited to receive more repeat business from this multinational food and beverage leader," said William Crossland, Thermal Energy CEO. "Not only is this our ninth turnkey project with this global client, but it is also our third consecutive HeatSponge turnkey project with them. This order reflects the strength of our long-standing partnership whereby we've been working to economically reduce the client's natural gas use and greenhouse gas emissions. Including this order, since 2019, we've done over $14.6 million in business with this customer and have at least partially penetrated 28 of their manufacturing sites across nine countries worldwide. This latest order further validates the value of our offering and the broader impact we deliver, underscoring the significant opportunity that remains as we continue supporting their global decarbonization efforts.

"This order, along with the seventh and eighth turnkey projects we announced with this client on November 5, 2025, stem from the strategy we communicated in September to develop and promote a streamlined HeatSponge turnkey solution, providing faster turnaround times and delivering strong returns on investment for our customers."

This turnkey project is expected to be completed and revenue earned within 6 months. The Company expects the gross margin for this project to be in line with historical amounts for its turnkey projects. Thermal Energy's overall gross margins are available in its quarterly disclosure materials.

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

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

For investor enquiries: William Crossland President and CEO Thermal Energy International Inc. 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 80% of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.

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 and on the OTCQB under the symbol TMGEF. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on X at https://x.com/GoThermalEnergy.

Cautionary Statements

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 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. 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 www.sedarplus.ca.

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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/284239

FAQ

What did Thermal Energy (TMGEF) announce on February 18, 2026 about the turnkey project?

Thermal Energy announced a ~$1 million turnkey HeatSponge project for a global nutrition customer. According to the company, the project is expected to be completed and revenue earned within 6 months and carry historical turnkey gross margins.

How much annual natural gas savings does the TMGEF turnkey project provide?

The project is expected to deliver $285,000 in annual natural gas savings. According to the company, the savings come from adding two-stage HeatSponge economizers to three natural gas boilers on site.

What greenhouse gas reduction does the TMGEF project claim to achieve?

The turnkey installation is projected to reduce site-wide greenhouse gas emissions by 7%. According to the company, that reduction follows waste heat recovery from three natural gas-fired boiler exhausts.

How material is the customer relationship behind the TMGEF project for shareholders?

This is the company's ninth turnkey project with the client and third consecutive HeatSponge order. According to the company, it has done $14.6 million of business with this customer since 2019.

When will revenue from the TMGEF $1M turnkey project be recognized?

The company expects the turnkey project completed and revenue earned within 6 months. According to the company, gross margin for this project should be in line with historical turnkey project margins.

What does the TMGEF turnkey win suggest about market adoption of HeatSponge solutions?

The repeat orders indicate ongoing customer adoption and trust in HeatSponge turnkey solutions. According to the company, this is the third consecutive HeatSponge turnkey project with the same global nutrition client, validating the solution's appeal.