Fuel Tech Reports 2025 Fourth Quarter and Full Year Financial Results
Rhea-AI Summary
Fuel Tech (NASDAQ: FTEK) reported Q4 2025 revenue of $7.25M (up 37% YoY) and full-year 2025 revenue of $26.68M (up from $25.13M). Q4 gross margin rose to 44.6%; FY gross margin was 46.4%. Q4 net loss was $1.20M (loss per share $0.04); FY net loss was $2.32M (loss per share $0.08). Cash and investments totaled nearly $31.9M with no long-term debt.
Segment strength: FUEL CHEM revenue grew strongly; APC backlog increased to $7.0M. DGI demonstrations continue into 2026.
Positive
- Consolidated revenue +6.2% to $26.68M in 2025
- Q4 revenue +37% to $7.25M
- Cash and investments totaled nearly $31.9M with no long-term debt
- FUEL CHEM segment revenue +27.9% for FY 2025 and highest annual segment revenue since 2018
- APC backlog increased to $7.0M at December 31, 2025
Negative
- Net loss widened to $2.32M in 2025 (loss per share $0.08)
- Adjusted EBITDA loss increased to $2.7M in 2025
- Accounts receivable declined to $5.36M from $9.37M, reflecting timing of collections
- Long-term investments declined to $7.0M from $10.9M year-over-year
Key Figures
Market Reality Check
Peers on Argus
Sector peers showed mixed moves: SCWO +7.57%, ARQ +1.74%, ZONE +0.15%, while RAIN -1.91% and LIQT -9.89%. With FTEK up 4.93% pre-release and no peers in the momentum scanner, action appears more stock-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Neutral | -12.7% | Q3 revenue slightly lower but margins higher and return to profitability. |
| Aug 05 | Q2 2025 earnings | Negative | -0.7% | Revenue decline and wider net loss despite stronger gross margin performance. |
| May 12 | Q1 2025 earnings | Positive | +11.8% | Strong revenue growth, FUEL CHEM surge, margin expansion and higher backlog. |
| Mar 04 | FY/Q4 2024 earnings | Negative | +5.2% | Full-year and Q4 revenue declines with larger loss versus prior year levels. |
| Nov 06 | Q3 2024 earnings | Neutral | -1.0% | Flat revenues and modest profit with stable cash and new commercial programs. |
Earnings reactions have been mixed: 2 aligned vs 3 divergent moves, including both sharp gains and selloffs around results.
Over the last five earnings reports from Nov 2024 through Nov 2025, Fuel Tech has alternated between revenue growth and contraction while generally expanding gross margins and maintaining a cash-rich, debt-free balance sheet. APC backlog has fluctuated but remained meaningful, and FUEL CHEM has often been a growth driver. Share reactions around these earnings events have been inconsistent, with both double-digit gains and losses despite relatively modest fundamental swings.
Historical Comparison
Across the last five earnings releases, average 1-day stock reaction was only 0.53%, with both strong rallies and selloffs despite relatively modest fundamental shifts.
Earnings reports from late 2024 through 2025 show revenue oscillating around mid‑$20M annually, but with consistent gross margin expansion, a solid cash and investment base, and evolving APC backlog and FUEL CHEM strength as key themes.
Market Pulse Summary
This announcement highlighted solid top-line growth, with Q4 2025 revenue of $7.2M and full‑year revenue of $26.7M, alongside gross margin expansion to 46.4%. However, the company still posted a $(2.3M) net loss. Management emphasized a strong cash and investment position, no debt, and APC backlog of $7.0M, plus a $75–100M data center–linked pipeline. Investors may watch FUEL CHEM momentum, APC order conversion, and DGI demonstrations to gauge future trajectory.
Key Terms
computational fluid dynamics technical
AI-generated analysis. Not financial advice.
WARRENVILLE, Ill., March 03, 2026 (GLOBE NEWSWIRE) -- Fuel Tech, Inc. (NASDAQ: FTEK), a technology company using advanced engineering processes to provide emissions control systems and water treatment technologies in utility and industrial applications, today reported financial results for the fourth quarter and full year ended December 31, 2025.
“2025 was a year of achievement for Fuel Tech, highlighted by a resurgence at our FUEL CHEM® operations that produced the highest annual segment revenue since 2018, a broadened opportunity landscape at our Air Pollution Control (“APC”) business segment driven in large part by the expected growth of power generation to support data center construction and operation, and measurable progress at our Dissolved Gas Infusion (“DGI”) business segment,” said Vincent J. Arnone, President and CEO. “We maintained a strong balance sheet, finishing the year with nearly
Business Segment Performance
Revenues at FUEL CHEM increased by
Revenues generated by the Air Pollution Control (“APC”) segment rose by
Mr. Arnone continued, “We are continuing to pursue a robust sales pipeline comprised of multiple potential customers for the integration of our Selective Catalytic Reduction (“SCR”) technologies with power generation sources that meet the emissions control requirements for data centers planned across the U.S. over the next several years. We remain actively engaged with our supply chain partners and engineering colleagues to advance these opportunities. Our current pipeline of potential sales opportunities related to data center construction is approximately
The Company is continuing the extended demonstration of its DGI technology at a fish hatchery in the western U.S., which remains on track to conclude in the second quarter of 2026. The system is performing well, meeting customer expectations for the precise delivery of concentrated dissolved oxygen, and generating positive initial results. A second trial that commenced at a municipal wastewater site in the southeast U.S. was successfully completed in January 2026 and converted to a six-month demonstration rental contract that is expected to run through the third quarter of 2026.
Fourth Quarter 2025 (“Q4 2025”) Consolidated Results Overview
All comparisons are to the fourth quarter ended December 31, 2024 unless otherwise stated.
Consolidated revenues for Q4 2025 rose
Consolidated gross margin for Q4 2025 expanded to
SG&A expenses for Q4 2025 were
Interest income was flat at
Net loss in Q4 2025 was
Adjusted EBITDA loss was
APC segment revenue rose
FUEL CHEM segment revenue rose
2025 Full Year Overview
Consolidated revenues for 2025 rose to
Consolidated gross margin for 2025 expanded to
SG&A expenses for 2025 were
Interest income was
Net loss for 2025 was
Adjusted EBITDA loss was
Financial Condition
At December 31, 2025, cash and cash equivalents were
Conference Call
Management will host a conference call on Wednesday, March 4, 2026 at 10:00 am ET / 9:00 am CT to discuss the results and business activities. Interested parties may participate in the call by dialing:
- (877) 423-9820 (Domestic) or
- (201) 493-6749 (International)
The conference call will also be accessible via the Upcoming Events section of the Company’s web site at www.ftek.com. Following management’s opening remarks, there will be a question-and-answer session.
About Fuel Tech
Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NOx) reduction and particulate control technologies and its solutions have been installed on over 1,300 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. Water treatment technologies include DGI® Dissolved Gas Infusion Systems which utilize a patented saturator and a patent-pending channel injector to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, those discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.
| FUEL TECH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,939 | $ | 8,510 | ||||
| Short-term investments | 12,942 | 10,184 | ||||||
| Accounts receivable, less current expected credit loss of | 5,355 | 9,368 | ||||||
| Inventories, net | 373 | 397 | ||||||
| Prepaid expenses and other current assets | 1.355 | 1,160 | ||||||
| Total current assets | 31,944 | 29,619 | ||||||
| Property and equipment, net | 4,739 | 5,084 | ||||||
| Goodwill | 2,116 | 2,116 | ||||||
| Other intangible assets, net | 646 | 327 | ||||||
| Right-of-use operating lease assets | 536 | 585 | ||||||
| Long-term investments | 6,991 | 10,875 | ||||||
| Other assets | 207 | 191 | ||||||
| Total assets | $ | 47,179 | $ | 48,797 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,242 | $ | 2,915 | ||||
| Accrued liabilities: | ||||||||
| Operating lease liabilities - current | 89 | 77 | ||||||
| Employee compensation | 1,308 | 1,248 | ||||||
| Other accrued liabilities | 1,634 | 1,615 | ||||||
| Total current liabilities | 6,273 | 5,855 | ||||||
| Operating lease liabilities - non-current | 491 | 548 | ||||||
| Deferred income taxes | 187 | 176 | ||||||
| Other liabilities | 296 | 263 | ||||||
| Total liabilities | 7,247 | 6,842 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.01 par value, 40,000,000 shares authorized, 32,281,179 and 31,767,329 shares issued, and 31,074,438 and 30,708,273 shares outstanding in 2025 and 2024, respectively | 322 | 317 | ||||||
| Additional paid-in capital | 165,616 | 165,295 | ||||||
| Accumulated deficit | (121,796 | ) | (119,472 | ) | ||||
| Accumulated other comprehensive loss | (1,718 | ) | (1,915 | ) | ||||
| Nil coupon perpetual loan notes | 76 | 76 | ||||||
| Treasury stock, at cost (Note 5) | (2,568 | ) | (2,346 | ) | ||||
| Total stockholders’ equity | 39,932 | 41,955 | ||||||
| Total liabilities and stockholders’ equity | $ | 47,179 | $ | 48,797 | ||||
See notes to condensed consolidated financial statements. | ||||||||
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 7,247 | $ | 5,283 | $ | 26,677 | $ | 25,133 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of sales | 4,013 | 3,048 | 14,294 | 14,510 | ||||||||||||
| Selling, general and administrative | 4,155 | 3,946 | 14,050 | 13,761 | ||||||||||||
| Research and development | 504 | 405 | 2,014 | 1,564 | ||||||||||||
| Total costs and expenses | 8,672 | 7,399 | 30,358 | 29,835 | ||||||||||||
| Operating loss | (1,425 | ) | (2,116 | ) | (3,681 | ) | (4,702 | ) | ||||||||
| Interest income | 288 | 283 | 1,415 | 1,251 | ||||||||||||
| Other (expense) income, net | (58 | ) | 9 | (43 | ) | 1,585 | ||||||||||
| Loss before income taxes | (1,195 | ) | (1,824 | ) | (2,309 | ) | (1,866 | ) | ||||||||
| Income tax expense | (4 | ) | (59 | ) | (15 | ) | (77 | ) | ||||||||
| Net loss | $ | (1,199 | ) | $ | (1,883 | ) | $ | (2,324 | ) | $ | (1,943 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic net loss per common share | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
| Diluted net loss per common share | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 31,074,000 | 30,708,000 | 30,937,000 | 30,572,000 | ||||||||||||
| Diluted | 31,074,000 | 30,708,000 | 30,937,000 | 30,572,000 | ||||||||||||
See notes to condensed consolidated financial statements. | ||||||||||||||||
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) | ||||||||
| For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net loss | $ | (2,324 | ) | $ | (1,943 | ) | ||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustments | 197 | (167 | ) | |||||
| Total other comprehensive income (loss) | 197 | (167 | ) | |||||
| Comprehensive loss | $ | (2,127 | ) | $ | (2,110 | ) | ||
See notes to condensed consolidated financial statements. | ||||||||
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||
| For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (2,324 | ) | $ | (1,943 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 663 | 403 | ||||||
| Amortization | 36 | 57 | ||||||
| Loss on disposal of equipment | 2 | — | ||||||
| Non-cash interest income on held-to-maturity securities | (62 | ) | (132 | ) | ||||
| Provision for credit losses, net of recoveries | — | (4 | ) | |||||
| Deferred income taxes | 11 | 4 | ||||||
| Stock-based compensation, net of forfeitures | 326 | 446 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 2,518 | (1,127 | ) | |||||
| Employee retention credit receivable | 1,677 | (1,677 | ) | |||||
| Inventories | 26 | 41 | ||||||
| Prepaid expenses, other current assets and other non-current assets | (172 | ) | 292 | |||||
| Accounts payable | 258 | 519 | ||||||
| Accrued liabilities and other non-current liabilities | 57 | (312 | ) | |||||
| Net cash provided by (used in) operating activities | 3,016 | (3,433 | ) | |||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of equipment and patents, and other intangible assets | (674 | ) | (378 | ) | ||||
| Purchases of debt securities | (12,031 | ) | (18,060 | ) | ||||
| Maturities of debt securities | 13,250 | 12,995 | ||||||
| Net cash provided by (used in) investing activities | 545 | (5,443 | ) | |||||
| FINANCING ACTIVITIES | ||||||||
| Taxes paid on behalf of equity award participants | (222 | ) | (95 | ) | ||||
| Net cash used in financing activities | (222 | ) | (95 | ) | ||||
| Effect of exchange rate fluctuations on cash | 91 | (97 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 3,429 | (9,068 | ) | |||||
| Cash and cash equivalents at beginning of period | 8,510 | 17,578 | ||||||
| Cash and cash equivalents at end of period | $ | 11,939 | $ | 8,510 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Cash income taxes paid, net | $ | 11 | $ | 52 | ||||
| Non-cash transfer from other non-current assets to property and equipment | — | 597 | ||||||
See notes to condensed consolidated financial statements. | ||||||||
| FUEL TECH, INC. Segment Data- Reporting Segments (in thousands) | ||||||||||||||||
| Information about reporting segment net sales and gross margin from operations is provided below: | ||||||||||||||||
| Three months ended December 31, 2025 | Air Pollution Control Segment | FUEL CHEM Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 2,393 | $ | 4,854 | $ | — | $ | 7,247 | ||||||||
| Cost of sales | (1,380 | ) | (2,633 | ) | — | (4,013 | ) | |||||||||
| Gross margin | 1,013 | 2,221 | — | 3,234 | ||||||||||||
| Selling, general and administrative | — | — | (4,155 | ) | (4,155 | ) | ||||||||||
| Research and development | — | — | (504 | ) | (504 | ) | ||||||||||
| Operating income (loss) from continuing operations | $ | 1,013 | $ | 2,221 | $ | (4,659 | ) | $ | (1,425 | ) | ||||||
| Three months ended December 31, 2024 | Air Pollution Control Segment | FUEL CHEM Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 1,751 | $ | 3,532 | $ | — | $ | 5,283 | ||||||||
| Cost of sales | (1,123 | ) | (1,925 | ) | — | (3,048 | ) | |||||||||
| Gross margin | 628 | 1,607 | — | 2,235 | ||||||||||||
| Selling, general and administrative | — | — | (3,946 | ) | (3,946 | ) | ||||||||||
| Research and development | — | — | (405 | ) | (405 | ) | ||||||||||
| Operating income (loss) from continuing operations | $ | 628 | $ | 1,607 | $ | (4,351 | ) | $ | (2,116 | ) | ||||||
| For the year ended December 31, 2025 | Air Pollution Control Segment | FUEL CHEM Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 8,908 | $ | 17,769 | $ | — | $ | 26,677 | ||||||||
| Cost of sales | (5,093 | ) | (9,201 | ) | — | (14,294 | ) | |||||||||
| Gross margin | 3,815 | 8,568 | — | 12,383 | ||||||||||||
| Selling, general and administrative | — | — | (14,050 | ) | (14,050 | ) | ||||||||||
| Research and development | — | — | (2,014 | ) | (2,014 | ) | ||||||||||
| Operating income (loss) from continuing operations | $ | 3,815 | $ | 8,568 | $ | (16,064 | ) | $ | (3,681 | ) | ||||||
| For the year ended December 31, 2024 | Air Pollution Control Segment | FUEL CHEM Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 11,242 | $ | 13,891 | $ | — | $ | 25,133 | ||||||||
| Cost of sales | (7,050 | ) | (7,460 | ) | — | (14,510 | ) | |||||||||
| Gross margin | 4,192 | 6,431 | — | 10,623 | ||||||||||||
| Selling, general and administrative | — | — | (13,761 | ) | (13,761 | ) | ||||||||||
| Research and development | — | — | (1,564 | ) | (1,564 | ) | ||||||||||
| Operating income (loss) from continuing operations | $ | 4,192 | $ | 6,431 | $ | (15,325 | ) | $ | (4,702 | ) | ||||||
| FUEL TECH, INC. Geographic Segment Financial Data (in thousands) | ||||||||
| Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the end-user. Assets are those directly associated with operations of the geographic area. | ||||||||
| For the years ended December 31, | 2025 | 2024 | ||||||
| Revenues: | ||||||||
| United States | $ | 21,022 | $ | 17,802 | ||||
| Other Foreign | 5,655 | 7,331 | ||||||
| $ | 26,677 | $ | 25,133 | |||||
| As of December 31, | 2025 | 2024 | ||||||
| Assets: | ||||||||
| United States | $ | 44,345 | $ | 44,430 | ||||
| Foreign | 2,873 | 4,367 | ||||||
| $ | 47,218 | $ | 48,797 | |||||
| FUEL TECH, INC. RECONCILIATION OF GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net loss | $ | (1,199 | ) | $ | (1,883 | ) | $ | (2,276 | ) | $ | (1,943 | ) | ||||
| Interest income, net | (288 | ) | (283 | ) | (1,415 | ) | (1,251 | ) | ||||||||
| Income tax expense | (44 | ) | 59 | (33 | ) | 77 | ||||||||||
| Depreciation expense | 173 | 155 | 663 | 403 | ||||||||||||
| Amortization expense | 9 | 15 | 36 | 57 | ||||||||||||
| EBITDA | (1,301 | ) | (1,937 | ) | (3,025 | ) | (2,657 | ) | ||||||||
| Stock compensation expense | 57 | 109 | 326 | 446 | ||||||||||||
| Adjusted EBITDA | $ | (1,244 | ) | $ | (1,828 | ) | $ | (2,699 | ) | $ | (2,211 | ) | ||||
Adjusted EBITDA
To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (GAAP), the Company has provided an Adjusted EBITDA disclosure as a measure of financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation expense, amortization expense, stock compensation expense, and intangible assets abandonment and building impairment. The Company's reference to these non-GAAP measures should be considered in addition to results prepared in accordance with GAAP standards, but are not a substitute for, or superior to, GAAP results.
Adjusted EBITDA is provided to enhance investors' overall understanding of the Company's current financial performance and ability to generate cash flow, which we believe is a meaningful measure for our investor and analyst communities. In many cases non-GAAP financial measures are utilized by these individuals to evaluate Company performance and ultimately determine a reasonable valuation for our common stock. A reconciliation of Adjusted EBITDA to the nearest GAAP measure of net loss has been included in the above financial table.
| CONTACT: | Vince Arnone President and CEO (630) 845-4500 | Devin Sullivan Managing Director The Equity Group Inc. dsullivan@theequitygroup.com |
FAQ
What were Fuel Tech (FTEK) Q4 2025 revenue and net loss figures?
How did Fuel Tech perform for full-year 2025 and what was the EPS impact?
What is Fuel Tech's cash position and debt status as of December 31, 2025?
What progress did Fuel Tech report on its FUEL CHEM and APC segments for 2025?
What is the status of Fuel Tech's DGI demonstrations and expected timelines?
How large is Fuel Tech's pipeline for data center-related SCR opportunities (FTEK)?
