Thermal Energy International: Q2 2025 Results - What to Expect

Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) is set to release its fiscal 2025 second quarter financial results before market open on Tuesday, January 28, 2025. Management will host an earnings conference call and webcast at 8:30 a.m. ET the same day to review the financial results. Investors and stakeholders are eagerly awaiting the company's performance update, as the energy efficiency and carbon emission reduction solutions provider continues to grow and expand its operations.

Thermal Energy International's fiscal 2025 first quarter results, released in October 2024, highlighted record revenue and growing profitability. The company reported revenue of CAD 29.17 million, an increase of 28.17% year-over-year, and earnings of CAD 1.05 million, an increase of 29.46%. These strong financial results demonstrate the company's ability to execute on its growth strategy and deliver value to shareholders.

As Thermal Energy International prepares to release its Q2 2025 results, investors should focus on several key financial metrics to assess the company's performance:

1. Revenue Growth: Investors should look at the year-over-year (YoY) and quarter-over-quarter (QoQ) revenue growth to understand the company's sales performance. In Q1 2025, Thermal Energy reported revenue of CAD 29.17 million, an increase of 28.17% YoY. Investors should expect a similar or better growth rate in Q2 2025.
2. Gross Margin: Gross margin is a crucial indicator of a company's profitability. In Q1 2025, Thermal Energy reported a gross margin of 45.29%. Investors should monitor any changes in gross margin, as it can indicate improvements or deterioration in the company's operating efficiency.
3. Operating Margin: Operating margin is another important metric that reflects the company's core profitability. In Q1 2025, Thermal Energy's operating margin was 5.05%. Investors should analyze any changes in operating margin to assess the company's ability to control costs and improve profitability.
4. Earnings per Share (EPS): EPS is a key metric that measures the company's profitability on a per-share basis. In Q1 2025, Thermal Energy reported EPS of CAD 0.01. Investors should compare the Q2 2025 EPS with the previous quarter and the same quarter in the previous year to assess the company's earnings growth.
5. Cash Flow: Free cash flow (FCF) is an important metric that measures the cash generated by the company's operations after accounting for capital expenditures. In Q1 2025, Thermal Energy reported FCF of CAD 2.07 million. Investors should analyze the FCF to assess the company's ability to generate cash and fund its growth initiatives.
6. Debt-to-Equity Ratio: This ratio measures the company's financial leverage. In Q1 2025, Thermal Energy's debt-to-equity ratio was 0.92. Investors should monitor any changes in this ratio to assess the company's financial health and risk profile.
7. Return on Equity (ROE) and Return on Assets (ROA): These metrics measure the company's profitability relative to its shareholder investments and total assets, respectively. In Q1 2025, Thermal Energy reported ROE of 37.06% and ROA of 6.65%. Investors should analyze any changes in these metrics to assess the company's ability to generate returns for its shareholders and utilize its assets effectively.



Thermal Energy International's recent projects and financial reporting transparency also support the company's positive growth trend. The company has announced several projects, including a $2.8 million turn-key project with a leading pharmaceutical company, which is the third heat recovery project under a global master services agreement in the last 15 months. Additionally, the company has received orders totaling over $1,000,000, including its second largest purchase order and largest two-stage economizer order to date. These projects indicate that the company is expanding its client base and securing significant contracts.



In conclusion, investors should focus on the key financial metrics mentioned above when evaluating Thermal Energy International's Q2 2025 results. The company's strong financial performance in the first quarter of 2025, along with its recent projects and financial reporting transparency, suggest that the company is well-positioned for continued growth and success. As the company continues to execute on its growth strategy, investors can expect to see positive developments in its financial performance and market position.