Thermal Energy Achieves Record Revenue and Improved Profitability in Second Quarter

Executive Summary

• Thermal Energy International reported record Q2 2025 revenue of $10.2 M, up >18% YoY, and a three‑fold increase in Adjusted EBITDA to $814 K.
• Net income surged 2,133% to $618 K, while the company eliminated virtually all bank debt by repaying its term loan.
• Order backlog grew to $21.5 M as of Jan 26 2026, reflecting strong demand for HeatSponge and other heat‑recovery solutions.

Key Details

• Revenue: $10,188 K (Q2 2025) vs. $8,671 K (Q2 2024), +18% YoY – record level.
• Gross Profit: $4,007 K, gross margin 39% (up from 33%).
• Adjusted EBITDA: $814 K, up 202% YoY (from $270 K).
• Net Income: $618 K, up 2,133% YoY (from $28 K).
• Cash & Working Capital: Cash $2.0 M; working capital $3.44 M at quarter end.
• Debt Repayment: Term loan reduced by $130 K; balance negligible as of Jan 26 2026.
• Order Backlog: $15.0 M at quarter‑end (up 16% YoY); increased to $21.5 M after post‑quarter orders.
• Orders Received in Quarter: $5.9 M, bringing YTD total to $17.8 M.
• Operating Expenses: $3.249 M (+$605 K YoY) – includes one‑time restoration cost ($150 K), group incentive accrual ($200 K), website/design investment ($90 K), and higher salary/benefit costs.
• Six‑Month Highlights: Revenue down $103 K vs. prior year; gross profit up $799 K due to product mix shift and improved heat‑recovery margins.
• Management Commentary: CEO William Crossland highlighted record revenue, strong HeatSponge demand, and a debt‑free balance sheet providing flexibility for growth.

Notable Quotes

“This was an excellent quarter, marked by all‑time high revenue and gross profit, as well as a threefold increase in adjusted EBITDA,” – William Crossland, President & CEO.

The release also announced an earnings call/webcast scheduled for Jan 27, 2026 at 8:30 am ET.