{"id":905595,"date":"2025-11-04T19:23:38","date_gmt":"2025-11-05T00:23:38","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fuel-tech-reports-2025-third-quarter-financial-results\/"},"modified":"2025-11-04T19:23:38","modified_gmt":"2025-11-05T00:23:38","slug":"fuel-tech-reports-2025-third-quarter-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fuel-tech-reports-2025-third-quarter-financial-results\/","title":{"rendered":"Fuel Tech Reports 2025 Third Quarter Financial Results"},"content":{"rendered":"
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WARRENVILLE, Ill., Nov. 04, 2025 (GLOBE NEWSWIRE) — Fuel Tech, Inc. (NASDAQ: FTEK)<\/strong>, a technology company using advanced engineering processes to provide emissions control systems and water treatment technologies in utility and industrial applications, today reported financial results for the third quarter ended September 30, 2025.<\/p>\n

\u201cWe operated profitably in the third quarter, expanded customer relationships for our Air Pollution Control (APC) and FUEL CHEM\u00ae<\/sup> business segments, and increased our APC backlog by more than 20% from June 30, 2025,\u201d said Vincent J. Arnone, President and CEO. \u201cWe ended the third quarter in a very strong financial position with $33.8 million in cash and investments and no debt. Subsequent to quarter end, we expanded our APC solutions portfolio via a small strategic acquisition of complementary APC intellectual property from Wahlco, Inc., a leading environmental equipment and services company that has completed several hundred project installations worldwide over the past three decades.\u201d \u00a0\u00a0<\/p>\n

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\n Business Segment Performance<\/u>
\n <\/strong>\n <\/p>\n

Mr. Arnone continued, \u201cWe generated improved quarter-over-quarter performance in our FUEL CHEM\u00ae<\/sup> business segment during the third quarter of 2025. In October, we installed equipment at a coal-fired unit for a new FUEL CHEM customer in the U.S. for a commercially-priced demonstration program that recently commenced, and is expected to run for six months. \u00a0\u00a0 The annual revenue potential from this commercial contract is projected to be approximately $2.5 to $3.0 million based on the customer running the program full-time, with the revenue expected to generate historic FUEL CHEM gross margins.\u00a0\u00a0 We continue to believe that FUEL CHEM\u2019s full year 2025 segment revenues will reach their highest levels since 2022.\u201d<\/p>\n

\u201cRevenues generated by our APC business declined quarter-over-quarter, due primarily to customer-driven delays and project timing. In August, we announced $3.2 million of new awards from new and existing customers in the U.S., Europe and Southeast Asia. This activity supported an increase in consolidated APC segment backlog at September 30, 2025 to $9.5 million, up from $7.8 million at June 30, 2025 and $6.2 million at December 31, 2024.<\/p>\n

\u201cWe are continuing to pursue significant prospects offered by the rising demand for power generation in support of data centers and traditional public utility entities. We remain actively engaged with multiple bids outstanding for our SCR (Selective Catalytic Reduction) technology to address the emissions control requirements of those opportunities that will develop and be implemented in the U.S. over the next several years.\u201d\u00a0\u00a0<\/p>\n

Mr. Arnone continued, \u201cRegarding the growth and development of our Dissolved Gas Infusion (DGI\u00ae<\/sup>) technology, we had a very successful exhibition of DGI at the Water Environment Federation Technical Exhibition and Conference, or WEFTEC, in Chicago last month, and generated significant interest in the technology. We are continuing an extended demonstration of DGI at a fish hatchery in the Western U.S., which we expect will last until the second quarter of 2026. Our DGI system is currently performing well and is meeting customer expectations for the precise delivery of concentrated dissolved oxygen.\u201d<\/p>\n

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\n IP Acquisition<\/u>
\n <\/strong>\n <\/p>\n

As referenced earlier, subsequent to the end of the third quarter Fuel Tech acquired all of the intellectual property assets and customer-related activities of Wahlco, Inc. for total cash consideration of $350,000.<\/p>\n

\u201cThis acquisition represents a smart, cost-effective expansion of our IP portfolio by identifying high-value assets at a modest price. The acquired technology aligns with our long-term vision to address customer APC needs on a global basis.\u201d\u00a0<\/p>\n

The acquired portfolio of assets includes technology applicable to flue gas conditioning systems; ammonia handling equipment for all size applications associated with utilities, independent power producers, oil and gas refineries, pulp and paper mills, cement plants, and steel mills; and urea to ammonia conversion technologies for nitrogen oxide reduction. Also included as part of the portfolio are customer installation and aftermarket market data, which we believe will drive accretive aftermarket revenues.<\/p>\n

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\n Third Quarter 2025 (\u201cQ3 2025\u201d) Consolidated Results Overview
<\/u>
\n <\/strong>
\n
\n All comparisons are to the third quarter ended September 30, 2024 unless otherwise stated<\/em>
\n <\/strong>
\n .<\/strong>\n <\/p>\n

Consolidated revenues for Q3 2025 declined to $7.5 million from $7.9 million, mainly due to lower APC revenues resulting from the timing of project execution on current contracts, partially offset by higher FUEL CHEM revenues.\u00a0\u00a0\u00a0<\/p>\n

Consolidated gross margin for Q3 2025 expanded to 48.9% of revenues from 43.4% of revenues, reflecting higher APC and FUEL CHEM segment gross margins.<\/p>\n

SG&A expenses of $3.2 million were consistent with the prior year period.<\/p>\n

Interest income was flat at $0.3 million and related primarily to interest received on the held-to-maturity debt securities and money market funds.<\/p>\n

Net income in Q3 2025 was $303,000, or $0.01 per share, compared to net income of $80,000, or $0.00 per share.<\/p>\n

Adjusted EBITDA was $228,000 in Q3 2025 compared to an Adjusted EBITDA loss of $(35,000).<\/p>\n

APC segment revenue decreased to $2.7 million from $3.2 million, primarily related to timing\u00a0of\u00a0project execution on existing contracts. Segment gross margin expanded to 47.2% from 35.0%, primarily\u00a0due\u00a0to\u00a0product and project mix.<\/p>\n

FUEL CHEM segment revenue rose to $4.8 million from $4.6 million, primarily due to increased operation dispatch at legacy accounts, as well as sustained\u00a0business from a new customer account added midyear in 2024. Segment gross margin expanded to 49.8% from 49.2% due to an increased volume of sales activity\u00a0combined with relatively flat segment administrative expenses.<\/p>\n

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\n Financial Condition <\/u>
\n <\/strong>\n <\/p>\n

At September 30, 2025, cash and cash equivalents were $13.7 million, short-term investments were $12.2 million, and long-term investments totaled $8.0 million. Stockholders\u2019 equity at September 30, 2025 was $41.0 million, or $1.31 per share, and the Company had no debt.<\/p>\n

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\n Conference Call<\/u>
\n <\/strong>\n <\/p>\n

Management will host a conference call on Wednesday, November 5, 2025 at 10:00 am ET \/ 9:00 am CT to discuss the results and business activities. Interested parties may participate in the call by dialing:<\/p>\n