Fuel Tech Inc. Reports Q2 2025 Financial Results
Fuel Tech, Inc. (NASDAQ: FTEK), a company specializing in commercial services and supplies within the Industrials sector, has released its financial results for the second quarter of 2025. The Warrenville-based company, known for its air pollution control technologies, particularly the NOxOUT process, reported a significant decline in revenue and a net loss for the quarter.
Revenue and Earnings Overview
For Q2 2025, Fuel Tech’s GAAP revenue was reported at $5.6 million, marking a 21% decrease from the previous year’s $7.0 million. This shortfall was primarily attributed to lower sales in the Air Pollution Control (APC) segment. Despite the revenue decline, the company’s earnings per share (EPS) matched estimates at $(0.02), indicating a stable performance relative to market expectations.
Financial Performance and Highlights
The company posted a net loss of $(689,000) for the quarter, compared to a net loss of $(421,000) in Q2 2024. However, Fuel Tech achieved a gross margin expansion, increasing to 45.5% from 41.9%. The APC segment backlog stood at $7.8 million, reflecting ongoing demand for its pollution control solutions.
Fuel Tech’s financial position remains robust, with $31 million in cash and investments and no long-term debt. The company anticipates securing $2.5-3.0 million in new APC contracts by the end of August. Additionally, it projects its highest FUEL CHEM segment revenue since 2022, signaling potential growth in this area.
Strategic Initiatives and Outlook
Fuel Tech is actively pursuing new opportunities in traditional markets and emerging sectors, such as AI-related data centers. The company has multiple selective catalytic reduction (SCR) technology bids outstanding, indicating a proactive approach to expanding its market presence.
In summary, while Fuel Tech faced challenges in Q2 2025 with a revenue decline and net loss, its strategic initiatives and strong financial position position it well for future growth. The company’s focus on expanding its APC segment and exploring new market opportunities underscores its commitment to innovation and sustainability in air pollution control technologies.