Thermal Energy International Inc.

CEO of Thermal Energy International, thank you for joining us today for our earnings call for the fourth quarter and fiscal year ended May 31st, 2025. Our news release, financial statements, and MD&A are available on our website and have been filed on CDAR. Following my prepared remarks, we'll have a question and answer session, at which time qualified equity analysts joining us on MS Teams will be able to ask questions. If you're joining us online, you should be able to see our slide presentation on your screen now. Before we get started, I'll point out that today's earning call may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are subject to risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. For additional information, please refer to our financial statements and our MD&A for the quarter and our other filings with Canadian securities regulators.

Here's a quick overview of what I'll be highlighting in this morning's call.

First, we had record fiscal year revenue of $29.8 million, and while our revenue was down for the quarter, our gross margin and adjusted EBITDA margin improved in Q4. We significantly paid down our long-term debt, both in the quarter and the year, and looking ahead, our record Q1 order intake positions us well for a strong second half of fiscal 2026. And finally, we've identified a few key strategic opportunities to drive sales growth and margin improvement going forward. Now looking at our revenue on slide four, while our revenue for the fourth quarter of 2025 was down 9% year over year, we achieved a record revenue of $29.8 million for the year. And this slide is great at illustrating how our revenue can be lumpy from quarter to quarter and why we tend to focus more on the trailing 12 months. As you can see, our fourth quarter revenue was down each of the past two years, but our fiscal year revenue increased by 41.2% over the last two years.