Fuel Tech's Progress Highlights Growth in Q3 Financials
Fuel Tech Reports Impressive Third Quarter Financials
Fuel Tech, Inc. (NASDAQ: FTEK), a company dedicated to engineering advanced emissions control systems and water treatment technologies, has shared its encouraging financial results for the third quarter that concluded on September 30, 2025. The results showcase notable advancements in their business strategy and financial health.
Strengthening Financial Position
The President and CEO Vincent J. Arnone expressed pride in the company's profitable performance in the third quarter, highlighting the enhancement of customer relationships within their Air Pollution Control (APC) and FUEL CHEM segments. Notably, the APC backlog surged by over 20% since the previous quarter, underscoring the increasing demand for their technologies.
Fuel Tech concluded this quarter with a robust cash and investments portfolio totaling $33.8 million, while maintaining a debt-free status. Following the quarter's end, the company made a strategic acquisition of intellectual property from Wahlco, Inc., enhancing its APC solutions portfolio and demonstrating its commitment to expanding capabilities.
Review of Business Segments
The FUEL CHEM segment displayed a positive trend with improved quarter-over-quarter performance. The recent installation of equipment at a coal-fired unit for a new customer in the U.S. could potentially yield annual revenue ranging between $2.5 million to $3.0 million, contingent on the program's full-time operation. This growth is expected to restore FUEL CHEM segment revenues to their highest levels since 2022.
Although revenues from the APC segment saw a quarter-over-quarter decline, attributed to project execution delays, the overall backlog has improved. Recent awards valued at $3.2 million from various customers across the U.S., Europe, and Southeast Asia have contributed significantly to bolstering the consolidated APC segment backlog to $9.5 million at the end of Q3 2025.
Exhibition Success and Technology Development
Continuing with innovative initiatives, Fuel Tech successfully showcased its Dissolved Gas Infusion (DGI) technology at the recently held Water Environment Federation Technical Exhibition and Conference (WEFTEC). The enthusiasm generated at the event signifies the potential growth opportunities within the water treatment sector.
The ongoing DGI demonstration at a fish hatchery in the western region of the country is also noteworthy, with expectations to meet customer demands for precise oxygen delivery well into the second quarter of 2026.
Financial Results Overview
During Q3 2025, consolidated revenues amounted to $7.5 million, representing a slight decrease from $7.9 million in the same period the previous year, primarily due to project timing. Conversely, gross margins experienced a positive uptick, increasing to 48.9% from 43.4% a year ago.
Despite fluctuations, Fuel Tech’s operating strategies proved effective, with net income increasing to $303,000 or $0.01 per share, compared to $80,000 or $0.00 per share year-over-year. The Adjusted EBITDA also turned positive, amounting to $228,000 compared to a loss of $35,000 previously.
Company's Financial Health
The financial standing of Fuel Tech remains strong, with cash and equivalents reported at $13.7 million as of September 30, 2025. The robust stockholders’ equity value of $41 million reflects a significant strategic development for the company, remaining debt-free affirms its financial resilience.
Upcoming Conference Call
In light of these developments, management will host a conference call to discuss these results and future plans. Stakeholders can engage in this dialogue and gain insight into the company’s forward-looking strategies.
About Fuel Tech
Fuel Tech specializes in developing cutting-edge technologies aimed at optimizing processes in air pollution control and water treatment. Its innovations not only align with regulatory demands but also support sustainable operational practices across utility, industrial, and municipal sectors.
For more information or inquiries regarding Fuel Tech, Inc., the President and CEO Vince Arnone can be reached at (630) 845-4500.
Frequently Asked Questions
What did Fuel Tech report for the third quarter of 2025?
Fuel Tech reported a cash position of $33.8 million while maintaining a debt-free status, along with a profitable quarter.
How did the FUEL CHEM segment perform?
The FUEL CHEM segment showed improved performance with the potential to reach annual revenues between $2.5 million to $3.0 million.
What is the strategic acquisition made by Fuel Tech?
Fuel Tech acquired intellectual property from Wahlco, Inc. to enhance its APC solutions, strengthening its capabilities.
How does Fuel Tech's financial health appear?
With cash and equivalents totaling $13.7 million, Fuel Tech exhibits a strong financial condition with robust stockholders’ equity.
When will Fuel Tech have its next conference call?
Management will host a conference call soon to discuss the results and business strategies pertaining to future growth.
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