Fuel Tech, Inc. (NASDAQ:FTEK)

Fuel Tech, Inc. (NASDAQ:FTEK) ($2.96; $91.1M market cap) announced Q2 2025 results:

• Q2 2025 sales of $5.6 million vs. $7.0 million in the prior year, below analyst estimates of $6.1 million
• Q2 2025 EPS: loss of $(0.02) vs. loss of $(0.01) in the prior year, ahead of analyst estimates of a loss of $(0.03)
• Q2 consolidated revenues declined primarily due to delayed execution of APC projects.
• FUEL CHEM® segment was flat at $3.1 million in revenue; gross margin rose to 46.8%.
• Anticipated Q3 2025 FUEL CHEM segment performance to be strongest since 2022.
• Expected $2.5–$3.0 million in new APC contracts to be awarded by end of August.
• Extended demonstration of DGI® technology began at a Western U.S. fish hatchery.
• No debt; $31 million in cash and investments as of June 30, 2025.

Management Commentary:

“Our second quarter results, along with ongoing developments across our two business segments and our Dissolved Gas Infusion business, strengthen our confidence in delivering improved overall performance in the second half of the year,” said Vincent J. Arnone, President and CEO.

“We are actively pursuing new contract opportunities across our APC and FUEL CHEM® business segments. For the APC segment, in particular, we are addressing both traditional end markets and the significant prospects offered by the rising demand for data centers.”

“We have multiple bids outstanding for our SCR technology to address the emissions control requirements of AI-related data centers to be built in the U.S. over the next several years.”

“We remain closely engaged with these potential partners and are excited about the opportunities that lie ahead.”

“We are supported in our efforts by a strong financial position. At June 30, 2025, our balance sheet included nearly $31 million in cash, cash equivalents and investments and no long-term debt.”

We will be on the conference call today at 10 AM to see if any InfoArb opportunities are presented. 

Fuel Tech, Inc. develops and provides technologies for air pollution control, combustion efficiency, water treatment, and engineering services, offering solutions to reduce emissions, optimize boiler performance, and treat industrial water across various energy and industrial markets.

Fuel Tech, Inc. (NASDAQ:FTEK) ($0.96; $29.5 market cap) announced Q1 2025 results:

• Q1 sales of $6.4 million vs. $5.0 million in the prior year
• Q1 GAAP EPS of $(0.02) vs. $0.01 in the prior year
• Backlog rose 66% to $10.3 million, highest since 2022
• Pursuing contracts in data center emissions control markets

Management Commentary:

 “We are very pleased with our first quarter performance, reinforcing our belief that 2025 will be a year of growth for our Company,” said Vincent J. Arnone, President and CEO…

…We are also participating in larger domestic contract opportunities to support emissions control requirements for the development of data centers, utilizing our SCR and ULTRA® technologies.”

In our March 6, 2025 research note and last week's open forum event we highlighted comments from the company’s earnings call discussing data center demand. We will jump on today’s conference call at 10 AM EST to see if the company expands on comments in the press release about the contract opportunities. 

Fuel Tech, Inc. develops and provides technologies for air pollution control, combustion efficiency, water treatment, and engineering services, offering solutions to reduce emissions, optimize boiler performance, and treat industrial water across various energy and industrial markets.