Fuel Tech (FTEK) Sidoti May Micro-Cap Virtual Conference summary

Company overview and business segments

• Operates in two main segments: air pollution control and chemical technologies, with a developing dissolved gas infusion (DGI) business.

• Nearly 40 years in operation, with a global presence and over 1,300 installations worldwide.

• Headquarters near Chicago and a European office near Milan.

• Lean organization with just over 70 employees, leveraging a strong supply chain for manufacturing.

• Does not manufacture products directly, relying on reputable suppliers.

Financial performance and outlook

• Maintains a strong balance sheet with over $31 million in cash and no debt.

• Targets approximately $30 million in revenue for 2025, an increase over prior years.

• Q1 backlog for air pollution control is the highest in three years, exceeding $10 million.

• Gross margin performance has improved in 2025; SG&A expected to be flat to slightly higher.

• Positioned for profitability in 2025 and beyond.

Market drivers and industry trends

• Rising power generation demand, especially from AI and data centers, is driving new opportunities.

• Extension of coal-fired unit lifespans due to power needs, with some units now expected to operate until 2028–2035.

• Data center construction resurgence is creating optimism for future contracts.

• No new regulatory drivers expected in the near term, but existing regulations support stable business.

• International regulations in Europe and elsewhere are also generating business.