Tecogen Inc. (TGEN) research, news, and more from GeoInvesting

Company description

Mon, 07 Dec 2020 17:28:00 GMT

Tecogen Inc. designs, manufactures, markets, and maintains industrial and commercial cogeneration systems that produce combinations of electricity, hot water, and air conditioning for residential, commercial, recreational, and industrial use in the United States and internationally. It operates in two segments, Products and Services, and Energy Production. The company offers InVerde e+, a cogeneration product that provides electricity and hot water; TECOGEN cogeneration systems for producing hot water; TECOCHILL air-conditioning and refrigeration chillers; and water heaters under the Ilios brand name, as well as emissions control technology under the Ultera brand name. It also provides long-term maintenance contracts, parts sales, and turnkey installation services through a network of 10 field service centers in California, the Midwest, the Northeast, and the Southeast. In addition, the company installs, owns, operates, and maintains distributed generation and other complementary systems. It serves hospitals and nursing homes, colleges and universities, health clubs and spas, hotels and motels, office and retail buildings, food and beverage processors, multi-unit residential buildings, laundries, ice rinks, swimming pools, factories, municipal buildings, military installations, and indoor growing facilities. The company was incorporated in 2000 and is headquartered in Waltham, Massachusetts.

Research

Tue, 24 Mar 2026 16:35:12 GMT

Tecogen Inc. (NYSE:TGEN) (NYSE:TGEN) ($2.36; $70.4M market cap) - Several insiders buy shares on the open market.

John Whiting, General Counsel buys 10,000 shares at average price of $2.38
Roger Deschenes, CAO buys 10,000 shares at average price of $2.23
Abinand Rangesh, CEO buys 3,000 shares at average price of $2.29

It’s nice to see management buying shares as the stock has pulled back significantly from recent highs. You can see our recent Q4 and full year earnings coverage here, as well as the update from the company’s investor presentation that we highlighted in the weekly wrap up here.

Tecogen Inc. designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products including combined heat and power systems, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational, and industrial applications.

Research

Thu, 19 Mar 2026 15:08:25 GMT

Yesterday, Tecogen Inc. (NYSE:TGEN) ($2.17; $64.9M market cap) announced Q4 2025 and full-year 2025 results:

Q4 sales of $5.32 million vs. $6.08 million in the prior year, above analyst estimates of $4.73 million
Q4 2025 EPS: loss of $(0.13) vs. loss of $(0.05) in the prior year, below analyst estimates of a loss of $(0.10)
Full-year sales of $27.07 million vs. $22.62 million in the prior year, above analyst estimates of $26.49 million
Full-year 2025 EPS: loss of $(0.30) vs. $(0.19) in the prior year, below analyst estimates of a loss of $(0.26)

Management Commentary:

Abinand Rangesh, CEO of Tecogen, commented "during the upcoming call, I will provide some significant positive updates that will include the scale of the Vertiv opportunity pipeline for our chillers, the status of our own data center opportunities and an upcoming pilot project.

On other positive news, our revenue grew 20% year on year. Although our loss widened and cash burn increased, this was because of critical expenses needed to expand margins in the service business and to develop the data center opportunities including expanding manufacturing capacity, R&D on our data center dual power source chiller and marketing."

Our Quick Take:

In case you did not see our update late yesterday, we are also providing it here this morning:

After thoroughly considering and digesting Tecogen Inc. (NYSE:TGEN)'s Q4 2025 earnings call, here are our main takeaways:

Positives:

A 50 MW project would equate to about $30M (please note that in our tweet we had said 100 MW project, where we should’ve said 100 units which would equate to 50 MW).
Expanding the scope of the Vertiv Holdings, Llc (NYSE:VRT) (Vertiv) marketing agreement
Vertiv demonstration project to show customers that TGEN's solution works, to help reduce friction
Vertiv has quoted TGEN in 25 to 50 MW worth of projects
Based on the timeline of developers who are interested, orders could occur in Q2 or Q3
Still pursuing deals outside the Vertiv relationship
Looks like a few deals outside the Vertiv relationship were close to closing but hit some delays
Expanding the contract terms with Vertiv

Negatives:

Seems no one wants to be the first customer, hence the need for the demonstration project.
Time to close a project may be taking longer than the company expected due to this customer friction
Cash runway concerns. Can the company get a project before exhausting its $10M cash balance? (Although, the company is making expense cuts to elongate its cash runway)

Maj’s overall take:

We are still betting on TGEN and will probably add to our position to take advantage of buyer fatigue. The quarter should not have been a surprise, given that the company had not announced any data center contract wins. In fact, I thought the call was very bullish.

Presumably, some investors may have expected a contract announcement alongside the quarterly results. Unfortunately, it appears the company was close to closing a couple of contracts outside the Vertiv relationship, but unforeseen delays prevented that from happening. Furthermore, the quarter was negatively impacted by project delays, with the associated revenue now expected to be recognized in 2026.

On the Vertiv front, management said some prospects want to see Tecogen chillers operating in live data center environments before committing, implying that the first few wins may unlock broader demand… hence, the Vertiv demonstration project.

This matches the narrative the CEO has been discussing on previous calls, highlighting the challenge of a customer being the first to use TGEN’s solution in a data center, even though it is already being used in other industrial settings like hospitals and cannabis grow houses. So, I’m feeling confident this could open up Pandora’s box of orders.

The CEO was pretty blunt on the call, stating that developers are going to use their solution for data center projects. This gives some ammunition to conduct on-the-ground due diligence to help verify these claims.

Regardless, customer friction is the biggest risk to TGEN. Who’s going to be the first data center to step up and use their cooling solution?

At this point, we have enough information to start building a model for what TGEN’s financials could look like if they win some data center contracts. We will work on this over the next few days. Because in the end, you have to value a stock based on the numbers, not just the narrative. But one thing we do know is that one decent-sized contract would probably double the size of the company.

We would like to see insiders step up to the plate and buy some stock!

For the most up to date TGEN InfoArb Tearsheet offering more detail and analysis, please go here: https://deltasheets.substack.com/p/tgen-fy2025-q4

Tecogen Inc. designs, manufactures, installs, and maintains high-efficiency and ultra-clean cogeneration products, including combined heat and power systems, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational, and industrial applications.

Research

Fri, 21 Nov 2025 05:00:00 GMT

#InfoArb

Vertiv Begins Marketing Tecogen (TGEN) Chillier Solution As Part Of A Platform Power Grid Bottleneck Offering.

Vertiv’s “Bring Your Own Power and Cooling (BYOP&C)” gives data center operators the ability to create their own on-site power and cooling capacity without waiting for the grid. TGEN is one of the third party OEM’s whose solutions are offered and to our knowledge may be the only partner who deals with solving peak-power and grid capacity bottlenecks. However, we do need to confirm this.

Yesterday, Vertiv also published the following post on its website discussing why natural gas chillers are a smart choice for facilities aiming to reduce electrical load while maintaining consistent cooling performance. Although the article does not mention Tecogen Inc. (NYSE:TGEN) by name, it’s obvious to us that they are referring to them. See the full post here.

Actually, this LinkedIn post found by Geoinvesting subscriber @shantaram83 should reinforce that Vertiv Holdings, Llc (NYSE:VRT) is referencing TGEN.

This all makes sense when you take into account TGEN’s comments in the Q3 press release that the “The Vertiv relationship has also taken a positive turn and is building momentum” and that it looks like is tuning things up to be able to go after larger use cases:

“We're working on technology improvements that provide test data and engineering support and building chiller inventory for potential data center projects. We've also made several improvements to our engine platform so that we can double our service intervals and provide better performance of higher engine power.We're working on technology improvements that provide test data and engineering support and building chiller inventory for potential data center projects. We've also made several improvements to our engine platform so that we can double our service intervals and provide better performance of higher engine power.”

Unfortunately, this news comes at a time when AI and data centers are out of favor, despite NVDA commentary in their Q3 2026 results that data center growth is strong and our own observations of the bullish narratives throughout earnings calls on data center infrastructure demand and power constraints being the major roadblock to that growth.

Research

Thu, 13 Nov 2025 05:00:00 GMT

Tecogen Inc. (NYSE:TGEN) ($7.38; $219.1M market cap) announced Q3 2025 results:

Q3 sales of $7.2 million vs. $5.6 million in the prior year, ahead of analyst estimates of $6.7 million
Q3 2025 loss per share: ($0.07) vs. loss of ($0.04) in the prior year, below analyst estimates of ($0.05) loss per share
Revenue increased 27.6% YoY, driven by chiller and cogeneration product sales
Service margin investment: $700k in new engine deployments to support long-term fleet economics
Vertiv partnership showing momentum; follow-on offering completed in July 2025 expanded share count

Management Commentary:

"Since our last earnings call we have made tremendous progress. First, the potential data center customer we have an LOI from is now considering us for three sites and for a much larger portion of the AI load. This may result in significantly more chiller sales than the original LOI.

We have also now attracted the interest of bigger, more established data center developers. Many have multiple data centers in construction. The feedback from some of the larger developers is not only validating everything we've said to date, but that the power allocated to cooling is larger than we originally anticipated. We have also become aware of other benefits of our solution as a result of our discussions with larger developers. The Vertiv relationship has also taken a positive turn and is building momentum.

Last, we were able to present our solution to both of the big AI chip manufacturers and have received positive feedback.

We have also increased our R&D spend to push our technical edge in natural gas cooling and increase service intervals on our engines. This will be critical in data center applications where we might have a hundred engines in one location but will also be instrumental in increasing service margins fleet wide. To test our product improvements on a larger scale and to improve service margins, especially in NYC, we invested $700k in new engines this quarter. Although this impacts service margin substantially in the short term, it will more than pay for itself in longer term benefits.

During the call I will shed more light on next steps to convert our LOI with a data center developer to a PO, next steps with some of the larger developers, and recent developments in the Vertiv relationship.”

Research

Wed, 13 Aug 2025 19:02:47 GMT

Tecogen Inc. (NYSE:TGEN) ($8.82; $260.7M market cap) announced Q2 2025 results:

Q2 2025 sales of $7.29 million vs. $4.73 million in the prior year
Q2 2025 EPS: loss of $(0.06) vs. loss of $(0.06) in the prior year

Key highlights:

First LOI for pilot project on 100+MW data center (potential 500+MW)
Two additional large project quotes (60–100 chillers each) plus early-stage leads
Hybrid air-cooled chiller shipped; initial units had higher costs
Service margin decline in Manhattan/NJ due to InVerde fleet oil system upgrades and overtime
$18.2M capital raise in July to scale production and marketing

Management Commentary:

"Since our last earnings call we have made tremendous progress with our data center strategy and achieved several key milestones. We received our first LOI for a great pilot project… The customer expects to evaluate 6 STx chillers during the first phase of the project. If successful, more chillers will be used in subsequent phases.

The only setback this quarter was the reduction in the gross profit margin which drove the net loss. Product margin was lower because we started shipping the hybrid air-cooled chiller. As expected, the first few units had higher costs due to low volume material purchasing and as our team gained experience building the product. We expect the hybrid chiller margin to increase with volume production. The other products shipped this quarter had similar margins as previous quarters.

We have hired talent in manufacturing and engineering. The additional staffing was a significant factor in our increased operating expenses, which increased by 9% in Q2 2025 compared to last year. To provide the necessary capital to scale our business, we also raised $18.2 million in July. The capital raised will be used to increase factory output and for marketing. I will share more details on the data center projects, Vertiv and scale up plan tomorrow."

Our Quick Take:

The Q2 release came in as expected, but we continue to believe that the crux of the story is in Tecogen’s data center push. Management is now advancing multiple opportunities, including one LOI for six chillers and two large bids in progress that could, as they mentioned, total 60–100 chillers each, which, if won, would materially expand the installed base and recurring service revenue potential.

This morning's 9:30 AM (Eastern) call offers a chance for us to gather more detail on timelines, conversion probabilities, and customer profiles for these projects.

Progress here is central to our ongoing coverage of TGEN, as success in data center applications could accelerate growth, improve revenue visibility, and broaden the company’s end-market diversification beyond traditional CHP and industrial cooling.

Our next order of business is to start putting the pieces of the puzzle together to create a financial model

Research

Tue, 15 Jul 2025 19:03:07 GMT

Tecogen Inc. (NYSE:TGEN) ($7.50; $191.7M market cap) has filed an S-1 filing this morning. It appears that the company is about to do an offering of 2.6 million shares. We’re just waiting on the pricing. In the last Weekly GeoWire Issue we let you know how we would feel about a potential offering:

“As I mentioned during the forum, TGEN’s future likely hinges on how Vertiv decides to position and push Tecogen’s offerings. If Vertiv aggressively markets the solution, the leverage could be huge. Even though the company’s cash balance sits above $5 million, allowing it to execute on smaller project opportunities, the company is probably going to have to raise money at some point in the future to “attract” larger products. We would actually view a raise as a positive indication that the company is nearing its first large contract opportunity in the data center world.”

We would encourage TSSI to follow in TGEN’s footsteps given the current valuation.

Research

Tue, 13 May 2025 17:43:07 GMT

Tecogen Inc. (NYSE:TGEN) ($3.40; $85.0M market cap) announced Q1 2025 results:

Q1 sales of $7.28 million vs. $6.19 million in the prior year
Q1 GAAP EPS of $(0.03) vs. $(0.04) in the prior year
Key Takeaway(s): Revenue was sequentially up, nicely, from the $6 million revenue TGEN had been doing over the last couple quarters. This was a pleasant surprise. Recall, that the quarterly break even revenue hurdle is somewhere between $7 to $8 million.

Abinand Rangesh, CEO of Tecogen, reported that "there have been multiple exciting developments at Tecogen. We recently listed on the NYSE American stock exchange to increase liquidity and visibility of our stock. Across the board, our financial numbers also improved substantially. Our revenue for the quarter increased 17.6% and our adjusted EBITDA loss narrowed from $900k to $381k. Our gross profit margin also increased from 41.6% to 44.3%. Operating expenses were higher during the quarter due to increased R&D expenses, recruiter fees for strategic hires, and professional fees for the uplist. In addition to improving financials, we continue to make inroads on our data center strategy. During the conference call, I will update shareholders on interest from larger scale data center projects and the Vertiv partnership."

We are currently on the conference call to see if any InfoArb opportunities are presented.

Research

Thu, 01 May 2025 15:41:33 GMT

Tecogen Inc. (OTC:TGEN) ($2.47; $61.7M market cap), a leading clean energy solutions provider, revealed that its common stock has been approved for listing on the NYSE American LLC.

The stock, which was just added to our Open Forum Focus Model Portfolio yesterday, will begin trading under its current symbol, "TGEN," on May 6, 2025, pending continued compliance with exchange rules.

Shares will continue trading on the OTCQX Best Market until the close of business on May 5, 2025.

Abinand Rangesh, CEO of Tecogen, commented:

“Uplisting to the NYSE American marks a significant milestone for Tecogen. We expect the uplisting will provide enhanced visibility and expand our investor base, while also enhancing liquidity for our shares for both current and future stockholders.”

Call to Action

Wed, 30 Apr 2025 14:59:27 GMT

We are adding Tecogen Inc. (OTC:TGEN) to our Open Forum Focus Model Portfolio. In our latest Weekly Wrap Newsletter, we discussed potentially adding TGEN to this Model Portfolio. The dilemma to make this decision was two fold.

The company is still losing money and won’t reach break-even on a quarterly basis until quarterly revenues reach $7 to $8 million (they did around $6 million for the last two quarters).
While the big marketing deal with $VRT is potentially transformative, we do not know when or if this will catalyze.

In the end, we decided to make a very risky and speculative move to add the stock to the Open Forum Focus Model Portfolio, since waiting to do so upon a potential VRT deal would likely be too late, as the stock would probably materially gap up. Sometimes you need to take uncomfortable chances in investing and this is one of those instances for us.

On that note, since we are in a speculative mood, we may also be adding another very speculative stock to the Open Forum Focus Model Portfolio. I will discuss this in more detail during our next Live Open Forum event on May 7th at 2 PM EST. The company operates in the medical device industry. The upside could be at least a 3x from current prices. We are just trying to get more comfortable with the risks.

Research

Tue, 18 Mar 2025 16:45:15 GMT

Tecogen Inc. (OTC:TGEN) ($2.57; $64.1M market cap) announced Q4 and full year 2024 results:

Q4 sales of $6.08 million vs $5.90 million in the prior year
Q4 net loss of $0.05 vs loss of $0.07 in the prior year
Full year sales of $22.6 million vs $$25.1 million in the prior year
Full year net loss of $0.19 vs loss of $0.19 in the prior year

"there have been multiple exciting developments at Tecogen. We recently signed a global partnership with Vertiv, we closed an InVerde project with a small data center in CT, and our backlog is strong. We were also successful in collecting substantial customer deposits, so we finished the year with >$5m in cash, placing us in a favorable position to grow. Our overall gross profit margin also expanded by 5% points to 45%. During my last call, I had forecast sequential improvements in revenue starting at >$6m for Q4, which we have achieved. I also forecast a small data center project closing in the first quarter of 2025, which we have achieved. The data center in CT chose our InVerde as the superior option after comparing it against alternatives, showing our products have tremendous potential for data centers. During this upcoming call I will provide more context for the data center strategy and why we are so excited about partnering with Vertiv."

Yesterday during the trading day, TGEN announced the above mentioned InVerde project with a data center in CT.

“We are pleased that this data center chose our InVerde after comparing it against competing options." said Abinand Rangesh, Chief Executive Officer at Tecogen. "This sale is another proof point that our products offer tremendous value to data centers. We expect many more existing and new data centers to adopt our solutions to combat a lack of electrical capacity and soaring energy costs."

2025 is shaping up to be a very interesting year for TGEN, while it is still uncertain of exactly when the Vertiv Holdings, Llc (NYSE:VRT) partnership will contribute, management has certainly put the company on what seems to be a new path of growth.

Ultimately, we want to understand the dynamics of TGEN's marketing relationship with VRT, specifically which company will take the lead in driving sales.

For example, is TGEN just on a list of vendors that it's able to use in their marketing process or is VRT going to aggressively market TGEN’s solution with his own salesforce. We do believe that VRT will be the one marketing the offering, but we just want to make sure. We also need to understand the economics of the relationship.

Furthermore, we will do some research on the outlook of data centers adopting natural gas power solutions.

TGEN designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products including combined heat and power systems, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational, and industrial applications. In a nutshell, cogeneration is the simultaneous production of electricity and usable heat from a single fuel source, resulting in higher energy efficiency than separate generation systems.The company specializes in natural gas cogeneration solutions.

Research

Tue, 04 Mar 2025 20:48:50 GMT

Tecogen Inc. (OTC:TGEN) ($2.27; $56.6M market cap) - Yesterday via a premium tweet we highlighted big InfoArb news from the company:

Late in the day the company issued a press release:

"This relationship is advantageous for both parties." said Abinand Rangesh, Chief Executive Officer at Tecogen. "For Tecogen, having a world-renowned partner like Vertiv enables us to scale rapidly in the data center market. By combining Vertiv's expertise in end-to-end data center thermal systems with Tecogen's proven natural gas-powered chiller technology, the collaboration offers a compelling value proposition for data centers aiming to enhance performance while managing energy consumption effectively."

See our recent weekly newsletter for a broad overview of the current data center environment here from the perspective of the CEO of Sterling Infrastructure, Inc. (NASDAQ:STRL), which talks about power needs being a big growth driver and ties in nicely to TGEN’s company developments. The obvious caveat is not knowing how long TGEN’s new relationship with Vertiv Holdings, Llc (NYSE:VRT) will take to catalyze. We assume it will take some time.

Research

Wed, 11 Dec 2024 16:31:05 GMT

Tecogen Inc. (OTC:TGEN) ($1.82; $45.2M market cap) has more than doubled since releasing its Q3 2024 results in mid November on the heels of the company’s first data center projects:

"We are also making progress towards closing our first data center projects by early 2025. Data centers are shifting towards AI and liquid cooling but are finding themselves short of power."

Yesterday morning the company announced it had received orders for 8 Tecopower Cogeneration systems. While there were no financial details, management offered the following comments:

“As mentioned during the investor call in November, we expected to add to the backlog before year end as there were multiple projects close to the finish line. I am glad to see these come to fruition." commented Abinand Rangesh, Tecogen's CEO.”

Research

Mon, 25 Nov 2024 05:00:00 GMT

Tecogen Inc. (OTC:TGEN) announced it has received two new orders:

Received orders for seven 400-ton DTX chillers for the iconic Las Vegas Convention Center. These chillers are part of a project to modernize the convention center’s Central Cooling Plant with newer, more efficient chillers, pumps, and other equipment.
Received orders for twelve cogeneration systems for multiple buildings in the Northeast. These orders were generated through Tecogen’s project developer relationships.

“Power prices are rising sharply nationwide because of insufficient electrical capacity. Consumers in many regions can expect year-on-year energy bill increases of 10% or more. Cogeneration continues to be one of the best ways to reduce energy expenses and greenhouse gas footprint simultaneously. We hope to see more projects close before year end.” commented Abinand Rangesh, Tecogen’s CEO.

“We look forward to these chillers being installed at the Las Vegas Convention Center in 2025. The chillers were purchased with a comprehensive 10-year service contract, so we will be establishing a new service center in Las Vegas. We believe this service center will be a catalyst for additional projects in Nevada,” said Abinand Rangesh, Tecogen’s CEO.

—

Research

Fri, 15 Nov 2024 17:27:27 GMT

Tecogen Inc. (OTC:TGEN) ($0.89; $22.3M market cap) reported Q3 2024 results:

Sales of $5.6 million vs $7.1 million in the prior year
Loss per share of $0.04 vs loss of $0.02

"Our business development efforts over the last 15 months are showing results. Our backlog has jumped to $10.8m and we expect further orders before year end. Our cash resources and the short term increase in working capital needed to restart production limited our revenue for Q3, but now we expect to see sequential increases in revenue and product shipments each quarter."

"We are also making progress towards closing our first data center projects by early 2025. Data centers are shifting towards AI and liquid cooling but are finding themselves short of power. Therefore, potential data center customers are interested in replacing their electrical chillers with Tecogen's high efficiency natural gas chillers because they can convert an expense - electrical power that would be consumed by cooling - and turn it into revenue by selling that power for use in computing. I will discuss more about this exciting growth opportunity during the conference call" commented Abinand Rangesh, Tecogen's Chief Executive Officer.

Research

Thu, 08 Aug 2024 15:44:37 GMT

Tecogen Inc. (OTC:TGEN) ($0.69; $17.2M market cap) - Provided Q2 2024 update. While the company had no new production in the quarter as it moved its factory and offices, comments from management suggest large orders coming and likely data center related.

Sales of $4.7 million vs $6.7 million in the prior year
Loss per share of $0.06 vs loss of $0.03

“As expected, during Q2 we had no production as we moved our factory and offices. Now, I believe we are about to put the challenges of the last year and half behind us.”

“Customers have told us to expect substantial product orders before the end of Q3. Some of these are in regions that are receptive to natural gas. Some are in new segments like data centers. During the investor call, I will discuss why our technology is better than the alternatives for data centers. I'll also explain how collocation and enterprise data centers have unique needs that our products can solve," commented Abinand Rangesh, Tecogen's Chief Executive Officer.

Research

Thu, 21 Mar 2024 14:27:43 GMT

Tecogen Inc. (OTC:TGEN) ($0.76; $18.8M market cap) - Last week, we highlighted the company’s Q4 2023 results which showed improvements on the top and bottom line and offered some bullish comments from management. We wanted to share the conference call link, which we thought also offered some intriguing comments on how data center demand could boost business moving forward.

“Increased electrification efforts, data centers consuming exponentially more power and aging utility infrastructure leading to electrical capacity constraints nationwide. It is limiting customers' ability to expand the time of day charges are becoming punitive, and there are only a few options that allow customers to address the problem.

As a result, we are seeing more multiple unit cogeneration and chiller projects than ever before. In the case of our chillers, the customer completely avoids the need to connect to the utility grid. In the case of our electrical cogeneration product, the ease of interconnect with our modular inverter-based system is a huge benefit. These electrical capacity constraints are nationwide. So I believe we are just starting to see the beginning of this trend.”

We encourage you to read the entire transcript which talks about the company's goals to turn the company around into a profitable enterprise within the next two or three quarters.

We used to actively cover TGEN and will now try to re-engage with the new management team.

Research

Thu, 14 Mar 2024 14:56:29 GMT

Tecogen Inc. (OTC:TGEN) ($0.70; $17.3M market cap), announced Q4 2023 results:

Q4 sales of $5.9 million vs $4.5 million in the prior year
Loss per share of $0.03 vs loss of $0.06

Last year around this time, we removed TGEN from our model portfolios based on weak financial results and a lack of traction on its restructuring efforts. Based on comments from management in today’s release, it seems they may finally be in position to begin benefitting from those initiatives.

"During the 4th quarter we had positive cash flow from operations and a recovery in gross margin for our Services segment. We continue to execute on our strategy of increasing recurring cash flow from Energy and Services to cover our fixed costs. This will allow us to be cash flow positive while we secure profitable large dollar value projects.

Unlike in the past where our sales were predominantly small cogeneration projects for residential buildings in New York City, we are now seeing the market shift to multiple unit chiller and cogeneration projects nationwide. We recently received a 6 unit (3 hybrid chillers and 3 Inverde cogeneration units) as well as a 12 unit cogeneration order. We are now focused on securing additional multiple unit product orders that we expect will result in sustained profitability and growth. In fact, we are specified on large chiller projects for some iconic facilities that are on track to close later this year”.

Research

Fri, 17 Mar 2023 16:27:23 GMT

**Call To Action - Removed TGEN From All Model Portfolio Holdings

Yesterday, at the market open, Tecogen Inc. (OTC:TGEN) ($0.79; $19.6M market cap), a company that designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products, released its Q4 2022 results.

Via tweet we mentioned we would remove TGEN from our model portfolios as the company continues to report weak financials and seems to be lacking of traction on the restructuring initiatives which we originally wrote about in our February 2021 article, “New CEO Rights The Ship At Tecogen.”

–

Research

Thu, 10 Nov 2022 16:43:20 GMT

Tecogen Inc. (OTC:TGEN) ($1.28; $32.3M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products, announced Q3 2022 results:

Sales of $6.6 million vs $5.0 million in the prior year
Loss per share of $0.01 vs EPS of $0.06

“I'm encouraged by the year on year revenue growth. As electricity rates continue to rise, the need for customers to find alternative ways to reduce energy expenses is making our products increasingly attractive. The 40% investment tax credit (a 30% base and 10% bonus for domestic manufacturers) makes the climate favorable for energy efficient products such as ours. In particular the availability of the ITC direct pay option for non-profits makes the value proposition for our cogeneration and chillers incredibly compelling," commented Benjamin Locke, Tecogen's Chief Executive Officer. “

Research

Thu, 11 Aug 2022 04:00:00 GMT

Tecogen Inc. (OTC:TGEN) ($1.45; $36.0M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products, announced Q2 2022 results:

Sales of $3.0 million vs $2.4 million in the prior year
Loss per share of $0.03 vs EPS of $0.02

“We saw a substantial increase in revenues for the first half of the year compared to 2021. However we also saw a significant increase in cost of goods due to the inflationary environment we presently find ourselves in," commented Benjamin Locke, Tecogen's Chief Executive Officer. "We have instituted price increases that we expect to positively impact our revenues and margins in H2 2022. We are further encouraged by the 30% investment tax credit included in the pending Inflation Reduction Act which will significantly help the economics of both our cogeneration and chiller systems as we continue to focus on clean cooling in our key market segments including controlled environment agriculture (CEA). We expect to have more announcements going forward on how our new business unit focused on CEA can create additional value to our shareholders."

On a side note, you can now view a full new August 2022 investor presentation just released by the company discussing market opportunities ZDPY’s goals, and its current investment portfolio.

Research

Thu, 12 May 2022 17:42:41 GMT

Tecogen Inc. (OTC:TGEN) ($1.35; $33.5M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products, announced first quarter 2022 results.

Sales of $7.4 million vs $6.1 million for the same period in 2021, a 22.8% increase.

$0.00/share vs $0.00/share in the prior year

“We saw a substantial increase in revenues this quarter and were able to produce positive operating income and net income. However we saw a significant increase in cost of goods due to the inflationary environment we presently find ourselves in. We have instituted price increases and continue to execute on our strategy of focusing on clean cooling in our key market segments including controlled environment agriculture. Our Board has formed a special committee headed by our Board member Prof. Ahmed Ghoniem to determine how Tecogen can help reduce the environmental impact of agricultural food products by expanding the use of our systems in the controlled-environment growing segment” commented Benjamin Locke, Tecogen's Chief Executive Officer.

After Maj’s analyst, Jan Svenda, put out an initial PodClip on the company, we’ve been largely just covering the company’s earnings updates and progress reports announced via press releases.
Most recently, Maj assessed the risk of TGEN in theApril 2022 Open Forum,

Research

Fri, 11 Mar 2022 15:03:27 GMT

Tecogen Inc. (OTC:TGEN) ($1.45; $36.0M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products announced Q4 2021 results:

Sales of $7.2 million vs $5.7 million in the prior year
EPS of $0.00 vs a loss of $0.05 in the prior year

“We had a significantly improved 4th quarter and year in 2021 compared to 2020,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “As COVID effects recede, our business has started to rebound. We have also been seeing improved sales as a result of our strategic focus on key market segments such as controlled environment agriculture, healthcare and multifamily. Our chiller product in particular has seen significant penetration in the cannabis cultivation space. More than 45% of our current backlog is in this high growth market.”

See all of our past coverage on TGEN here, our write up on the company here and a recent PodlCip here.

Research

Thu, 11 Nov 2021 18:03:19 GMT

Tecogen Inc. (OTC:TGEN) ($1.78; $44.2M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products announced Q3 2021 results:

Sales of $5.0 million vs $7.1 million in the prior year
Non-GAAP net loss of $0.02 vs loss of $0.01 in the prior year

“This quarter was challenging due to the significant supply chain impacts on our Product Segment. We have mitigated a majority of these impacts, but were unable to ship some product during Q3 due to supplier constraints. As a result our Product Segment revenue was significantly impacted,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “We expect Product sales to rebound in the fourth quarter of 2021 and further into 2022. We are pleased with the recent announcement of an order for 12 Inverde E+ units and 3 chillers which are scheduled to be shipped during Q4 2021 and Q1 2022. Our Energy Production assets are gradually returning to normal operation as COVID related closures and restrictions are eased, and our Service maintenance revenues continue to grow each quarter. Our board and management team are cautiously optimistic regarding anticipated improvements to product sales as evidenced by one Board member's decision to acquire an additional 150,000 shares of equity in the company on October 27, 2021 at the current market price."

Research

Thu, 12 Aug 2021 14:43:54 GMT

Tecogen Inc. (OTC:TGEN) ($1.83; $45.4M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products announced Q2 2021 results:

Sales of $6.1 million vs $7.4 million in the prior year
Non-GAAP net loss of $0.01 vs net loss of $0.03

“Our core business areas continued to be negatively impacted by COVID-19, but despite the challenging economic environment, we achieved significant improvements in our gross margin and operations,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “We expect Product sales to rebound as we move further into 2021. Our Energy Production assets are gradually returning to normal operation as COVID related closures and restrictions are eased, and our Service maintenance revenues continue to grow each quarter."

You can reference a recent PodCllip we published on TGEN to understand why we are becoming more bullish on the company's prospects.

Research

Tue, 27 Jul 2021 16:55:09 GMT

Tecogen Inc. (OTC:TGEN) ($2.11; $52.4M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products. The company announced an order for a cogeneration system for a large medical center.

“Maintaining close relationships with our manufacturers’ representatives and collaborating on business development efforts will be a key element of Tecogen’s success,” noted Abinand Rangesh, CFO of Tecogen. “We expect that continued collaborations with our manufacturers’ representatives will help us identify and develop compelling proposals for similar projects at other medical facilities in New Jersey and elsewhere.”

Research

Tue, 20 Jul 2021 04:00:00 GMT

Tecogen Inc. (OTC:TGEN) ($1.81; $45.1M market cap), designs, manufactures, installs, and maintains high efficiency and ultra-clean cogeneration products. The company announced it has signed 25 long term contracts with a large housing provider in Canada.

“The 20-year contracts provide for the maintenance of 31 InVerde e+ cogeneration systems as well as ancillary components. The systems will be serviced out of Tecogen’s Ontario service center, established in March 2020.”

“We are excited to start full time operation of these units which we shipped in 2020,” noted Benjamin Locke, Tecogen’s CEO. “These units are expected to run with over 93% uptime, which maximizes the savings for our customer as well as our service revenues which are billed per run hour. These units join our existing fleet of cogeneration systems and chillers already operating in our Toronto service area.”

No financial details were given in the release.

Research

Tue, 13 Jul 2021 19:45:17 GMT

Tecogen Inc. (OTC:TGEN) ($1.91; $47.4M market cap), a company that produces commercial and industrial natural gas fueled engine driven, combined heat and power products announced an order for two 300 ton Tecochil chillers for an indoor cannabis cultivation facility.

“The Controlled Environment Agriculture (CEA) space continues to be a strong market for our chillers,” noted Benjamin Locke, Tecogen’s CEO. “These units are expected to achieve over 99% uptime, which maximizes the savings for our customer as well as our service revenues which are tied to equipment utilization. We are optimistic that the Tecochill solution will also be included in the next phase of this customer’s expansion.”
You can reference a recent PodCllip we published on TGEN to understand why we are becoming more bullish on the company's prospects.

Research

Wed, 07 Jul 2021 17:23:47 GMT

Tecogen Inc. (OTC:TGEN) ($1.88; $46.7M market cap), a company that produces commercial and industrial natural gas fueled engine driven, combined heat and power products, announced it has filed a provisional patent application entitled, High Efficiency Hybrid Engine-Driven Variable Frequency Drive.”

“The application describes a novel system for seamlessly blending multiple power sources in any combination through a single inverter. The system will allow building owners to energize loads such as a chiller plant from an engine generator system, the existing electric utility, and/or solar and battery storage.”

“Customers are looking to maximize savings and resiliency while choosing the greenest source of power,” noted Benjamin Locke, Tecogen’s CEO. “As the electric grid becomes greener and renewable, and on-site power becomes more widespread, the natural gas engine input to the hybrid drive may be used primarily for backup power, with an integrated inverter and controls providing effective coordination of all connected energy sources, and the system providing power in normal operations from renewable or other available energy sources.”

We have been talking about how the company is moving up our research pipeline. We even discussed this sentiment in yesterday's open forum, basically trying to ascertain if the company is now ready to resume growth as natural gas conversion projects begin ramp up again now that the pandemic is passing.

If you were not able to attend the forum, don’t worry. We’ll have the replay uploaded soon.

Research

Thu, 17 Jun 2021 17:18:28 GMT

PodClip

Hi, this is Jan, Maj’s analyst. We wanted to do a quick note about Tecogen (TGEN). This is a clean energy company which provides cogeneration products which are focused on heat and power systems. We like TGEN and are currently long. Back in December 20, we noted that the company might be coming out of a low growth cycle, which was significantly impacted by COVID-19.

We then delved deeper into the company and wrote a report about it in February 2021. In this report, which you can find on our portal as per usual, we stated that the company might indeed start seeing increased revenue opportunities, especially on the back of the booming clean energy and cannabis industries.

We also point out the moat that TGEN has in the natural gas space when it comes to these systems. They are for example, the only company that is offering a Natural Gas based chiller.

Now it seems the company is yet again closer to increased revenue generation. On June 2, the company released a press release about a new sale of two of its cogeneration systems in New York. On its own, this is positive, but what we specifically like and would like to talk about is that the company commented on the broader sales trends in the current quarter. They specifically mentioned in the press release that as construction activities resumed post COVID, TGEN is seeing specific sales opportunities coming to fruition. This is in line with TGEN’s Q1 comments about the likelihood of achieving profitability this year. While this is certainly not a full-blown InfoArb opportunity, we believe these comments from the press release are further validating our bullish thesis.

Research

Fri, 14 May 2021 04:00:00 GMT

Yesterday, Tecogen Inc. (OTC:TGEN) ($1.66; $39.3M market cap), a company that produces commercial and industrial natural gas fueled engine driven, combined heat and power products, announced Q1 2021 results:

Sales of $3.0 million vs $2.8 million in the prior year
Diluted loss per share of $0.07 vs loss of $0.05 in the prior year

“The first quarter saw the continued impact of COVID-19 on our core business areas. Despite the challenging economic environment, we saw significant improvements in our gross margin and further reductions in our operating expenses,” commented Benjamin Locke, Tecogen Chief Executive Officer. “Product sales were down for the quarter but are expected to rebound as we move further into 2021. Our energy production assets are gradually returning to operation as COVID related closures and restrictions are eased, and our service maintenance revenues continue to grow each quarter. We are confident we will continue to see growth in our core business as we strive for profitability in 2021. I invite investors to read our shareholders letter on our website that provides more color on our vision for growth and establishing profitability from operations.”

See additional insights in shareholder letter

Research

Mon, 15 Mar 2021 15:36:45 GMT

Tecogen Inc. (OTC:TGEN), a producer of commercial and industrial natural gas fueled engine driven, combined heat and power products, reported its Q4 2020 results on March 11, 2021, which we covered here. Below is a summary slide of the conference call with the associated comments. The full transcript can be read here.

“I’d like to make some final comments regarding the outlook for the company. 2020 was a difficult year, as I just reviewed, but it also gave us an opportunity to focus on making improvements to our business activities across the board that puts us in a good position to achieve profitability in 2021

Research

Thu, 11 Mar 2021 19:03:40 GMT

Tecogen Inc. (OTC:TGEN) ($2.33; $58.0M market cap) produces commercial and industrial natural gas fueled engine driven, combined heat and power products announced Q4 2020 results:

Sales of $5.6 million vs $8.7 million in the prior year and below analyst estimates of $8.5 million
Non-GAAP loss per share of $0.05 vs loss of $0.02 in the prior year and below analyst estimates of a loss of $0.01

The fourth quarter revenue was clearly TGEN's worst quarter of the year. The company is still experiencing the negative impacts of the pandemic on its operations as customers delay projects. Although we highlighted this short term risk factor in our research on TGEN, we are surprised at the severity of how bad the quarter was. We plan to participate in the company's conference call at 11AM ET to see if the CEO will offer any color on the near term outlook for the company.

“2020 was a challenging year for many businesses," commented Benjamin Locke, Tecogen CEO. "The COVID-19 pandemic had many negative impacts on our business with regard to facility closures and construction slowdowns. We took the opportunity of a slower 2020 to reduce operational costs and strengthen our balance sheet. We reduced our receivable and unbilled revenue balances resulting in positive cash flows from operations. We are beginning to see the return of normal business activities and are encouraged that our service maintenance agreement revenues continue to grow sequentially quarter over quarter despite the slowdown. I am optimistic that our reduced operating costs combined with a strengthened balance sheet positions Tecogen for a rebound as the COVID-19 vaccine distribution progresses and normal business activities resume."

Research

Mon, 07 Dec 2020 17:27:04 GMT

Tecogen Inc. (OTC:TGEN) produces commercial and industrial natural gas fueled engine driven, combined heat and power products. The company’s product applications revolve around Cogeneration products and installation, Refrigeration, Chillers, Heat Pumps, and Emissions Control.

Management’s comments, coupled with what we see to be very strong analyst estimates has us digging deeper into the story.Preliminary due diligence indicates that the company will begin growing top and bottom line after several years of stagnant growth and recurring losses. Current estimates call for 38% top line growth over the next several years with steadily improving bottom line. Current EPS estimates of $0.02, $0.15, $0.28 and $0.42 over the next four years.

While we do not know how closely the analyst works with the company, we will reach out to management to obtain a better understanding of the business and its growth prospects.

2020 was impacted by the COVID-19 pandemic. However, in its Q3 2020 release, management is starting to see some positive business trends:

“Our product sales in the third quarter declined primarily due to the impact of COVID-19 related delays on projects and customer purchase decision timing. Installation revenue and Energy Production revenue also decreased as we experienced COVID-19 related disruption. On the positive side, we saw record revenues from our maintenance services, and we are cautiously optimistic that our product revenues will improve for the rest of the year. We have used the slowdown in activity to focus on improving efficiencies and reducing operating expenses, and I am encouraged we are seeing results with our improved product and service margins.”