The Quiet Turnaround: How Bill Crossland Rebuilt Thermal Energy International

The Quiet Turnaround: How Bill Crossland Rebuilt Thermal Energy International

Thermal Energy International Inc. (TSX-V: TMG, OTCQB: TMGEF) is a small, thinly-traded industrial technology company that has spent the last several years quietly compounding revenue and improving profitability under long-tenured CEO William "Bill" Crossland — a story that has largely stayed under the radar given the company's modest market capitalization.

The Business: Waste Heat Recovery for Fortune 500 Plants

Thermal Energy designs, engineers, and manufactures industrial energy efficiency and carbon-reduction equipment — primarily waste heat recovery and steam system technology — for large multinational manufacturers. Its core product lines include GEM™ Steam Traps, FLU-ACE™ heat recovery systems, HeatSponge™ economizers, and PERCO-ACE™ systems, deployed across food & beverage, dairy, pharmaceutical, hospital, tissue/pulp/paper, and tire & rubber facilities.

The pitch is simple: capture heat that would otherwise be wasted in industrial boilers and exhaust systems, convert it into fuel savings and lower carbon emissions, and pay for the equipment through a fast payback period — often under three years. Case studies cited on the company's site include a pharmaceutical manufacturer saving $740,000 annually and a paper mill cutting natural gas use by 35%.

The recurring revenue layer matters too: once systems are installed, Thermal Energy generates high-margin maintenance and service revenue from its installed base, supplementing project-based sales with more predictable annuity income.

The Turnaround: Multi-Year Revenue Growth

The financial trajectory under Crossland's leadership shows a consistent growth pattern:

FY2022 revenue: $15.9 million
FY2023 revenue: $21.1 million (+32.6%)
FY2024 revenue: $25.9 million (+22.7%)
FY2025 revenue: $29.8 million (+15.1%) — a record year
TTM revenue: $32.3 million

Operating income turned positive in FY2023 ($1.1 million) after a loss in FY2022, and has remained positive since, though it dipped in FY2025 ($0.4 million, down 70.3% year-over-year) as the company scaled operations.

More recent quarters show the momentum continuing into fiscal 2026: the company reported record revenue and more than tripled adjusted EBITDA year-over-year in its second quarter (reported January 2026), followed by 62% revenue growth and the highest Q3 revenue in company history (reported April 2026).

The Contract Pipeline

Thermal Energy's order flow has been steady through 2026. Recent disclosed wins include a $1.8 million heat recovery order from an international premium beer and beverage company (July 2026, expected to generate approximately $406,000 in annual fuel savings and cut CO2 emissions by 975 tonnes), and a $1 million turnkey project — the ninth with a repeat global nutrition company customer (February 2026).

Repeat business from existing customers is a notable signal — it suggests the technology performs as promised and that Thermal Energy's sales cycle benefits from reference customers expanding their relationship over time.

Leadership

Bill Crossland has served as President and CEO of Thermal Energy International for well over a decade, giving him one of the longer CEO tenures among companies of this size. He has represented the company at investor events including the Planet MicroCap Conference in Las Vegas (June 2026) and the Canadian Climate Investor Conference, and participated in a TSX-sponsored European roadshow in 2026 — signs of an active, if modest, investor relations effort to build visibility for the stock.

Valuation

At a market capitalization of approximately CAD $26.5 million and enterprise value of roughly CAD $24 million, Thermal Energy trades at approximately 0.7x EV/Revenue (TTM) — a low multiple for a company that has grown revenue in every fiscal year since 2022 and has demonstrated profitability. The stock trades around CAD $0.155–0.16 per share.

The Bull Case

Thermal Energy has a multi-year track record of revenue growth, a differentiated and proprietary technology platform serving blue-chip industrial customers, growing recurring service revenue, repeat customers expanding their commitments, and a long-tenured CEO who has been present through the entire growth trajectory. The valuation — under 1x revenue — is inexpensive relative to the growth rate and improving profitability trend. Structural tailwinds from corporate decarbonization mandates provide a multi-year demand driver.

The Bear Case

The stock is a nano-cap with limited trading liquidity, which means wide bid-ask spreads and difficulty for larger investors to build or exit positions. Operating income growth has been inconsistent — down 70.3% year-over-year in FY2025 despite revenue growth, indicating rising costs or margin pressure. Revenue can be lumpy on a quarter-to-quarter basis given the project-based nature of the business. And with a market cap this small, the stock likely receives minimal analyst coverage, which can suppress valuation multiples regardless of fundamental performance.

Scoring and Quadrant Classification

Asset Quality / Execution (Signal Score): 7/10 — Consistent multi-year revenue growth, positive operating income in three of the last four years, growing recurring service revenue, repeat enterprise customers, and a long-tenured CEO with a demonstrated track record. Held back by inconsistent operating income growth.

Promotion Intensity (Hype Score): 3/10 — Limited investor relations activity beyond standard conference appearances and quarterly reporting. No aggressive press release cadence or retail promotion evident. The story has grown on operating results rather than marketing.

Quadrant Label: Hidden Value / Deep Value — High asset quality/execution combined with low promotion intensity is the definition of an overlooked name — a company posting real growth and margin improvement with minimal market attention.

📊 Scoring Guide
Asset Quality / Execution (1–10)	Measures tangible, verifiable fundamentals — revenue growth, profitability, contracts, institutional backing, and proprietary technology. A higher score indicates a company with real, derisked business performance.
Promotion Intensity (1–10)	Measures the volume of investor relations marketing, press release cadence, retail buzz, and promotional activity relative to actual operational progress. A higher score indicates more hype relative to substance.
Market Leader / Catalyst Play	High asset quality + High promotion. Real business with active market attention.
Hidden Value / Deep Value	High asset quality + Low promotion. Overlooked company with solid fundamentals.
Pure Promote / Pump Risk	Low asset quality + High promotion. Heavy promotion with limited operational substance.
Zombie Stock / Dormant	Low asset quality + Low promotion. Limited activity and minimal market interest.

The Bottom Line

Thermal Energy International is a small industrial technology company that has grown revenue every year since 2022 under CEO Bill Crossland, with recent quarters showing accelerating momentum (62% Q3 growth, tripled adjusted EBITDA in Q2). At under 1x revenue, the market has not yet priced in the multi-year growth trend or the structural demand tailwind from corporate decarbonization mandates.

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Disclaimer: This article is provided for educational and informational purposes only. Nothing contained herein constitutes investment, financial, legal, or tax advice. The Daily MicroCap does not provide personalized investment advice. Readers should conduct their own due diligence and consult with a qualified, licensed financial professional before making any investment decisions. The Daily MicroCap and/or affiliated parties may or may not hold positions in the securities discussed. Past performance is not indicative of future results.

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Todd Colpron is the Managing Partner of Eliakim Capital, a private investment and strategic advisory firm that manages its own capital while working alongside select family offices and private investors to identify and support exceptional opportunities.