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Q4 2026 Earnings Call September 22, 2026
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2 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”, “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” used in this presentation is a non-IFRS measure, does not have a standardized meaning under IFRS, and may not be comparable to similar measures used by other companies. It is provided to supplement IFRS results by offering additional insight into operating performance from management’s perspective and should not be viewed in isolation or as a substitute for IFRS financial information. Please refer to our MD&A for the applicable period for a reconciliation of Adjusted EBITDA to net income (loss), the closest IFRS measure.
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3 Overview 1. Q4 revenue up 3.9%; apples-to-apples profitability more or less on par 2. Fiscal year records for order intake, revenue, and profitability 3. Very strong balance sheet 4. Continuing to execute strategy
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4 Revenue ($ millions) 0 2 4 6 8 10 Q4 2023 Q4 2024 Q4 2025 Q4 2026 3 months ended May 31 $7.1$7.5 $6.8 $8.2 0 5 10 15 20 25 30 35 2023 2024 2025 2026 Fiscal year ended May 31 $33.6 $25.9 $29.8 $21.1 +59% New record
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5 Gross profit ($ millions) 0 1 2 3 4 Q4 2023 Q4 2024 Q4 2025 Q4 2026 3 months ended May 31 $3.5 $3.1 $3.7$3.8 0 5 10 15 2023 2024 2025 2026 Fiscal year ended May 31 $14.2 $12.5 $12.3 $9.6 +48% New record
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6 Adjusted EBITDA1 ($ millions) 0 0.3 0.6 0.9 1.2 Q4 2023 Q4 2024 Q4 2025 Q4 2026 3 months ended May 31 $0.25 $0.42 $0.40 $1.17 0 0.5 1 1.5 2 2023 2024 2025 2026 Fiscal year ended May 31 $1.93$1.99 $1.05 $1.73 1 Adjusted EBITDA is a non-IFRS financial measure that represents earnings before interest, taxation, depreciation, amortization, and share-based compensation expense.
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7 Adjusted EBITDA1 ($ millions) (when excluding one-time employer obligation adjustment) 0 0.3 0.6 0.9 1.2 Q4 2023 Q4 2024 Q4 2025 Q4 2026 3 months ended May 31 $0.40$0.42 $0.40 $1.17 0 0.5 1 1.5 2 2023 2024 2025 2026 Fiscal year ended May 31 1 Adjusted EBITDA is a non-IFRS financial measure that represents earnings before interest, taxation, depreciation, amortization, and share-based compensation expense. $2.08$1.99 $1.05 $1.73
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8 Net income ($ millions) 0 0.4 0.8 1.2 1.6 Q4 2023 Q4 2024 Q4 2025 Q4 2026 3 months ended May 31 $0.22$0.29 $0.22 $0.97 0 0.4 0.8 1.2 1.6 2023 2024 2025 2026 Fiscal year ended May 31 $1.34 $0.98 $0.16 $0.72 New record +86%
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9 Net income vs operating cashflow ($ millions) Fiscal year ended May 31 $1.35 $0.23 -$0.400 0.6 1.2 1.8 2.4 2024 2025 20262023 $0.98 $2.07 $1.34 $2.10 $1.55 $0.16 $1.62 $0.72 Net income Operating cashflow before changes in working capital items • Profitable for the last 4 years with total net income of $3.2M • Operating cashflow over that time totaled $7.3M
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10 Strong balance sheet As at May 31, 2026 $3.7 M Working Capital $3.3 M Cash <$2 K Bank Debt • Repaid $328 thousand in bank debt. • Repurchased 3.6 million shares, returning $0.5 million to shareholders. Fiscal 2026
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11 Order intake & backlog1 $30.0M Order intake 12 months ended May 31, 2026 $11.8M Order backlog as at year ending May 31, 2026 $7.1M Order intake subsequent to quarter end $18.9M Order backlog record at reporting date, Sept. 21, 2026 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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Significant repeat business: Global Pharmaceutical Leader 12 $5.1M $5.6M in orders specific to a turnkey heat recovery project in fiscal 2026 total project size including fiscal 2025 engineering order
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Significant repeat business: Global Nutrition Company 13 $2.5M ~$2.1M >$16.8M in turnkey heat recovery orders announced in fiscal 2026 in heat recovery orders announced in fiscal 2027 YTD in business with this customer since 2019
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14 Streamlined HeatSponge turnkey offering ~$5M from 5 orders in fiscal 2026, incl. 3 from Global Nutrition Company New offering launched last year targets larger, more strategic HeatSponge opportunities
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15 What’s next? • Develop & promote standardized equipment packages • Develop indirect sales channels in North America and Europe • Establish HeatSponge manufacturing in Europe
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16 Summary 1. Q4 revenue up 3.9%; apples-to-apples profitability more or less on par 2. Fiscal year records for order intake, revenue, and profitability 3. Very strong balance sheet 4. Continuing to execute strategy
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17 Visit us online at: www.thermalenergy.com Contact investor relations at: investors@thermalenergy.com