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Q4 2025 Earnings Call September 23, 2025 TSX-V: TMG | OTCQB: TMGEF
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Disclaimer This presentation may contain forward-looking statements within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Thermal Energy International Inc. (the "Company“ or “Thermal Energy”) with respect to future business activities and operating performance. These forward-looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. For a detailed discussion of such risks and uncertainties, please see the risk factors outlined in our management’s discussion and analysis available under the Company’s profile on SEDAR+ at www.sedarplus.ca. The Company does not intend, and does not assume any obligation, to update the forward-looking statements. The term “Adjusted EBITDA” as used in this presentation isnot a recognized measure under IFRS, does nothave a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similarmeasures presented by other companies. This measure is provided as additional information to complement IFRS measures by providing furtherunderstanding of the Company’s results ofoperations from management’s perspective and should not be considered in isolation nor as asubstitute for analysis of our financial informationreported under IFRS. Please refer to our management’s discussion and analysis for theapplicable period for a reconciliation of Adjusted EBITDA to Net income (loss), the closest IFRS measure. 2
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Overview 1. Record fiscal year revenue 2. Improved Q4 gross margin and Adjusted EBITDA margin 3. Significantly paid down debt 4. Record Q1 order intake positions us for strong H2 2026 5. Key opportunities for growth 3
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4 Revenue ($ millions) 0 3 6 9 Q4 2023 Q4 2024 Q4 2025 3 months ended May 31 $6.8 $8.2 $7.5 0 5 10 15 20 25 30 FY 2023 FY 2024 FY 2025 12 months ended May 31 $29.8 $21.1 $25.9
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0 0.5 1 1.5 2 FY 2023 FY 2024 FY 2025 5 Adjusted EBITDA 1 ($ millions) $1.05 $2.00 FY 2025 operating expenses included an additional $813K related to growth in headcount 3 months ended May 31 12 months ended May 31 1 Adjusted BITDA is a non-IFRS financial measure that represents earnings before interest, taxation, depreciation, amortization, and share-based compensation expense. $1.73 0 0.25 0.5 0.75 1 1.25 Q4 2023 Q4 2024 Q4 2025 $0.40$0.42 $1.17
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6 Net income ($ millions) 0 0.25 0.5 0.75 1 FY 2023 FY 2024 FY 2025 $0.16 $0.72 $0.98 3 months ended May 31 12 months ended May 31 FY 2025 operating expenses included an additional $813K related to growth in headcount 0 0.25 0.5 0.75 1 Q4 2023 Q4 2024 Q4 2025 $0.22$0.29 $0.97
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7 Strong balance sheet As at May 31, 2025 Reduced bank debt by $2M in fiscal 2025; repaid $1.1M in Q4 Cash $2.8 million Working Capital $2.4 million 0 0.5 1 1.5 2 2.5 3 3.5 4 May 2022 May 2023 May 2024 May 2025 $0.33 $3.27 $2.35 Long-term debt $3.94
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8 Order intake and backlog1 $21.8M Order intake 12 months ended May 31, 2025 $12.9M Order backlog as at quarter ending May 31, 2025 $11.4M Order intake subsequent to quarter end $24.3M Order backlog record at reporting date, Sept. 22, 2025 1 Order backlog represents any purchase orders that have been received but have not yet been reflected as revenue in the Compan y’s published financial statements.
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9 Record Q1 order intake $11.3M in orders received in Q1 2026 • Highest Q1 total in our history • 4X Q1 of last year • Most of the revenue from $7.5M in previously announced orders is expected in H2 2026 Received $5.1M in follow-up orders from leading pharmaceutical company
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Key strategic initiatives to scale the business ➢ Develop indirect sales channels in North America and Europe ➢ Develop & promote standardized equipment packages ➢ Establish BEI manufacturing in Europe ➢ Leverage our proprietary digital CREST platform across all sales channels Driving increased sales growth and margin improvement
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Develop indirect sales channels in both NA and EUR • Develop / cultivate networks of Independent Manufacturers’ Representative companies (“IMRs”) to focus on smaller equipment sales • IMRs have relationships / provide ongoing service to end customers and have a “line card” of complementary products Why? • Opportunity for more sales (of smaller orders) with less investment • IMRs operate on a 100% success-based markup basis • Frees up internal sales team to focus on larger, more strategic opportunities
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Increase sales of standardized equipment Develop and promote standardized equipment packages • Pre-engineered solutions sold from a line card • Creates more opportunities for smaller projects Why? • Reduces project development time – no bespoke design required • Faster sales cycle – projects can be quoted and sold directly from CREST survey data • Opens up smaller opportunities ideal for IMRs
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Expand BEI HeatSponge Into Europe Add European manufacturing • BEI to supply components for assembly & testing in Europe • Move to contract fabrication shop as orders increase Why? • Largely untapped market for BEI • Shorter lead time and more cost effective
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Leveraging direct and indirect sales with CREST Carbon Reduction & Efficiency Scoping Tool • Quickly and efficiently identifies energy savings and carbon reduction sales opportunities while on site • Catalyst for cross-selling; repeat business • Speeds up overall sales cycle • Reduces time needed for internal sales team and IMRs training and ramp up.
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Summary 1515 • Strong balance sheet • Record Q1 order intake positions us for strong H2 2026 • Key strategic initiatives for growth: • Develop indirect sales channels • Increase sales of standardized equipment • Expand BEI into Europe • Leverage CREST
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Analyst Q&A If you are a sell-side analyst and are accessing the call directly via MS Teams, you can use the Raise Your Hand feature if you have a question. 16