Fuel Tech (FTEK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined to $5.56M, down 21% year-over-year, mainly due to lower APC segment sales, while FUEL CHEM segment six-month revenue rose 42% year-over-year.

• Gross margin improved to 46% for the quarter, with FUEL CHEM gross margin at 47% and APC at 44%.

• Net loss for Q2 2025 was $689,000 ($0.02 per share); six-month net loss was $1.43M ($0.05 per share).

• Maintained a strong financial position with nearly $31M in cash, cash equivalents, and investments, and no long-term debt.

• Active pursuit of new contracts in both APC and FUEL CHEM segments, with a focus on data center emissions control opportunities.

Financial highlights

• Consolidated revenues declined to $5.6M from $7M year-over-year, mainly due to lower APC segment revenue.

• FUEL CHEM segment Q2 2025 revenue was $3.05M, nearly flat year-over-year; six-month revenue increased 42% to $8.13M.

• Gross margin rose to 46% from 42% year-over-year; FUEL CHEM gross margin at 47%, APC at 44%.

• Operating loss increased to $1.3M from $715,000; net loss was $689,000 or $0.02 per share.

• Adjusted EBITDA loss was $948,000 compared to $529,000 in the prior year period.

Outlook and guidance

• 2025 revenue guidance reduced to $28–$29M from $30M, reflecting timing uncertainty in APC awards.

• FUEL CHEM expected to exceed 2024 revenue, with annual objective of $15–$16M.

• Anticipates awarding $2.5–$3M in new APC contracts by end of August, increasing backlog.

• Guidance excludes material contributions from DGI, significant APC data center contracts, or new FUEL CHEM business development.

• Management expects cost control efforts to maintain operating expenditures and anticipates improved financial and market outlook from new business opportunities.