CORRECTED-Tecogen posts smaller than expected drop in Q1 revenue, but net loss widens

Overview

• U.S. clean energy equipment maker's Q1 revenue fell 13%, less than analysts' expectations

• Net loss widened to $2.12 mln, driven by lower products segment revenue and higher expenses

• Company expects cost cuts to reduce cash burn and impact results in Q3

Outlook

• Tecogen expects lower cash burn in coming quarters due to cost cuts and customer deposits

• Company anticipates full impact of cost reductions in Q3 2026

• Tecogen has recently secured or expects to secure over $8 mln in orders, potentially contributing to near-term revenue

Result Drivers

• PRODUCT REVENUE DECLINE - Co said lower products segment revenue, especially chillers and cogeneration units, drove the overall revenue decrease

• HIGHER OPERATING EXPENSES - Co attributed increased operating expenses to general spending and research costs for hybrid-drive air-cooled chiller

• GROSS MARGIN PRESSURE - Co said lower product shipments and higher service labor and material costs impacted gross margin

Company press release: ID:nACSGPszya

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Tecogen Inc is $6.00, about 41.8% above its May 12 closing price of $4.23

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