With more and more evidence of climate change coming out all the time, and knowing the ways that traditional industrial processes contribute to the problem, more governments and companies are looking at ways to “up” their environmental friendliness and reduce emissions. 

Thermal Energy International Inc. (TSXV:TMG) offers several products that can do just that.  Their products include GEM steam traps, FLU-ACE direct contact condensing heat recovery, and DRY-REX low temperature biomass drying systems.  These products are effective in a wide variety of industries and applications and have a long track record of delivering significant energy savings (10-30%), reduced carbon emissions, improved water efficiency and lower maintenance costs all while offering compelling financial returns with paybacks of 1-5 years, reliability, and improved production efficiency and quality.

Although Thermal Energy has been around for quite a while, some recent developments have put them back on the radar of investors.  On September 20th, the company issued a press release summarizing their year end financial results highlighting strong revenue growth and a key word to the investment community; “Profitability”.  Their fiscal year ended May 31, 2016 and revenue for that fiscal year compared to the previous one saw their revenue increase 82.4% to $12.4 million.  Their gross profit also jumped 87.3% to $6.8 million and their net income rose to $259,000 which was a year over year improvement of $2.4 million.  According to comments from CEO William Crossland included in the release, this represents the second most profitable year in the history of Thermal Energy International Inc.  He indicated their revenue has grown at a compounded annual rate of 17.9% since they acquired the GEM business.  He added that they already have a healthy order backlog of approximately $7.3 million for the current fiscal year, up from $5.9 million a year ago.

The stock has responded by trading almost 24 million shares in the past 6 trading days and has also seen the market cap double with the share price sitting just under the 5 year high.  

Thermal Energy International has a lot of things going for them right now: we mentioned they are just coming off their second most profitable year ever, they have $7.3 million in orders backlogged already for this fiscal year, the company has no debt (according to the investor presentation on their website), they had a cash position of $1.14 million at the end of their fiscal year and they are selling proprietary products to leading companies in an enormous, fast growing global market.  
Governments and industries around the world are taking unprecedented action on climate change and increasing energy efficiency is the cheapest and easiest way to reduce greenhouse gas emissions.  If Thermal Energy can continue their strong record of growth, it certainly looks like blue (reduced emissions) skies ahead.