Fuel Tech (FTEK) Q1 2026 earnings summary

Executive summary

• Q1 2026 results showed strong APC segment growth and major $10 million contract wins, but overall revenue declined 5% year-over-year due to FUEL CHEM declines and seasonal factors.

• APC backlog doubled to $17 million, the highest since 2018, with a $75–$100 million pipeline and major Midwest utility projects secured.

• Net loss widened to $1.4 million ($0.04/share) from $739,000 ($0.02/share) prior year, with operating loss at $1.6 million.

• Financial position remains robust with $31 million in cash and investments, $9.1 million in cash and equivalents, and no long-term debt.

• Data center-related opportunities and DGI water treatment demos are key near-term growth drivers.

Financial highlights

• Q1 2026 consolidated revenue was $6.1 million, down from $6.4 million year-over-year, with gross margin declining to 43% from 46%.

• APC revenue rose 23% to $1.6 million; FUEL CHEM revenue fell to $4.5 million from $5.1 million.

• Operating loss increased to $1.6 million from $952,000; net loss was $1.4 million ($0.04/share) vs. $739,000 ($0.02/share) prior year.

• Adjusted EBITDA loss was $1.3 million, up from $735,000.

• Cash and cash equivalents at March 31, 2026 were $9.1 million; total investments (short- and long-term) were $21.5 million.

Outlook and guidance

• 2026 revenue is expected to exceed 2025, with FUEL CHEM flat and APC segment outperforming prior year.

• Most new APC contract revenue will be recognized in 2027; data center awards would be incremental.

• SG&A expenses projected at $14–$15 million for 2026, with cost control efforts ongoing.

• Sufficient cash and working capital are expected to fund operations for at least the next 12 months.

• DGI division's fish hatchery demonstration is progressing and will conclude in Q2 2026.