Ottawa’s Thermal Energy delivers Q1 profit despite revenue drop


A sizeable order backlog and a strong bottom line put Ottawa-based Thermal Energy International on solid footing in its first quarter of the fiscal year – despite a 27 per cent drop in revenue.

The cleantech firm, which installs heat-trap systems and other energy efficiency technologies,  said this week it recorded the “strongest first quarter” in the company’s history for the three months ended Aug. 31. It pointed to EBITDAS of $472,000 and net income of $241,000 – both of which were recorded as losses a year ago – as proof.

Despite the solid bottom line, Thermal Energy’s revenue dropped to $5 million this past quarter, compared to $6.8 million last year. CEO William Crossland said in a statement that the company’s earnings can fluctuate based on the mix of  projects on-the-go at any one time; first-quarter revenues were affected by the end of an $11-million heat recovery project, which contributed to the previous year’s sales

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Thermal Energy also reported its order backlog stood at $12.8 million as of Aug. 31, 75 per cent higher than the same time last year. Crossland said the company’s backlog contains a strong mix of orders from customers across multiple sectors and geographies, which bodes well for the company’s future growth.

“Importantly, this demonstrates our success at diversifying as a means of maintaining our trajectory,” he said.

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