Tecogen Q3 revenue beats estimates on Services segment growth
TGEN•Tecogen's third-quarter revenue rose 9.6% to $7.87 million, above the $6.41 million analyst estimate, while its net loss narrowed year over year to $1.59 million.
1. Revenue and margin growth
Tecogen reported third-quarter revenue of $7.87 million, up 9.6% year over year and above the $6.41 million consensus estimate. Its net loss narrowed year over year to $1.59 million, and gross margin improved by 7 percentage points. The company said higher Services revenue, including revenue from acquired Aegis maintenance contracts and existing service contracts, and increased chiller revenue contributed to results.
2. Backlog and outlook
Tecogen said its backlog exceeds $8 million, mostly from large property owners and energy services firms. It expects higher utility rates and power shortages to accelerate demand for its products, and said new retrofit technology for data centers may support margin growth and faster scaling.
