Thermal Energy receives $1-million HeatSponge order

Executive Summary

• Thermal Energy International Inc. has secured a $1-million turnkey contract from a global nutrition company to install HeatSponge economizers on three natural gas-fired boilers.
• This marks the ninth turnkey project with this specific client and the third consecutive HeatSponge project, highlighting a strong, long-standing partnership that has generated over $14.6 million in business since 2019.
• The project is expected to be completed within six months, with gross margins expected to align with historical averages for the company's turnkey projects.

Key Details

• Contract Value: Approximately $1 million.
• Project Scope: Installation of one two-stage HeatSponge economizer on each of three natural gas-fired boilers to recover waste heat from exhausts.
• Client Relationship: This is the ninth turnkey project with this global client; it is the third consecutive HeatSponge turnkey project with them.
• Historical Context: Since 2019, the company has completed over $14.6 million in business with this customer, penetrating 28 of their manufacturing sites across nine countries.
• Timeline: Expected completion and revenue recognition within six months.
• Financial Expectations: Gross margin expected to be in line with historical amounts for turnkey projects.
• Strategic Context: The order stems from a strategy communicated in September to promote a streamlined HeatSponge turnkey solution for faster turnaround and strong ROI.
• Previous Announcements: This order follows the announcement of the seventh and eighth turnkey projects with this client on November 5, 2025.

Notable Quotes

• "We're excited to receive more repeat business from this multinational food and beverage leader... 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." — William Crossland, CEO
• "This order, along with the seventh and eighth turnkey projects we announced with this client on Nov. 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." — William Crossland, CEO