Fuel Tech Reports 2026 First Quarter Financial Results
Rhea-AI Summary
Fuel Tech (NASDAQ: FTEK) reported Q1 2026 results for the quarter ended March 31, 2026. Consolidated revenue was $6.08M, down 5% year-over-year; consolidated gross margin was 43.5%. Net loss was $1.4M (‑$0.04 per share). Cash and investments totaled $30.6M and the company reported no long-term debt. APC revenue rose 23% to $1.6M and APC backlog stood at $6.9M at March 31, 2026 (not including ~$10M of recently awarded APC contracts). FUEL CHEM revenue declined to $4.5M. Management hosted a conference call on May 6, 2026.
Positive
- Cash + investments of $30.6M at March 31, 2026
- No long-term debt
- APC revenue up 23% to $1.6M
- Recent APC awards ~ $10M (not included in March 31 backlog)
Negative
- Consolidated revenue down 5% to $6.08M
- Net loss of $1.4M (‑$0.04 per share)
- FUEL CHEM revenue declined to $4.5M
- SG&A rose to 61% of revenues ($3.7M)
Key Figures
Market Reality Check
Peers on Argus
FTEK gained 1.24% with mixed peers: ARQ and ZONE up (7.93%, 5.99%), while LIQT, SCWO, and RAIN declined. Scanner shows no coordinated sector momentum.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 03 | Quarter & full year | Positive | -10.1% | Q4 and 2025 revenue and margin growth but company remained unprofitable. |
| Nov 04 | Quarterly earnings | Positive | -12.7% | Q3 2025 margin expansion and positive net income with higher APC backlog. |
| Aug 05 | Quarterly earnings | Negative | -0.7% | Q2 2025 revenue decline and larger net loss despite higher gross margin. |
| May 12 | Quarterly earnings | Positive | +11.8% | Q1 2025 strong revenue growth, FUEL CHEM strength and higher backlog. |
| Mar 04 | Quarter & full year | Negative | +5.2% | 2024 revenues declined and losses widened despite solid APC backlog and cash. |
Earnings releases often see muted or negative reactions even on stronger metrics, with several past reports selling off despite revenue growth and solid backlog.
Recent earnings for Fuel Tech show alternating growth and softness. Q1 2025 delivered 29% revenue growth to $6.4M and a strong backlog increase, yet later quarters like Q4 2025 still reported net losses despite improved gross margins and higher annual revenue of $26.68M. APC backlog has generally trended higher, and cash plus investments remained strong with no debt. Today’s Q1 2026 report, with lower revenue and a wider net loss, follows this pattern of uneven profitability against a still-solid balance sheet and APC pipeline.
Historical Comparison
In the past year, Fuel Tech released five earnings updates with an average move of -1.31%. Today’s Q1 2026 report, with revenue down and a wider loss, fits the mixed fundamental and typically subdued price reactions seen before.
Across these earnings periods, Fuel Tech maintained strong cash and investments with no debt, while APC backlog generally improved. Profitability has fluctuated between modest profits and recurring net losses as FUEL CHEM strength offset uneven APC revenue.
Market Pulse Summary
This announcement highlights a mixed Q1 2026, with consolidated revenue slipping to $6.08M and net loss widening to $(1.36M), while APC revenue rose 23% and backlog reached $6.9M excluding $10M of new APC awards. Fuel Tech maintains $9.11M in cash plus significant investments and no debt. Historically, earnings reports have produced modest price moves, so investors may watch upcoming APC contract execution and DGI demonstrations as key drivers for future results.
Key Terms
selective catalytic reduction technical
dissolved gas infusion technical
computational fluid dynamics technical
held-to-maturity debt securities financial
ebitda financial
adjusted ebitda financial
restricted stock units financial
AI-generated analysis. Not financial advice.
WARRENVILLE, Ill., May 05, 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 first quarter ended March 31, 2026 (“Q1 2026”).
“Our results for Q1 2026 reflected higher revenues for our Air Pollution Control (“APC”) business segment, another strong quarter from FUEL CHEM®, and continuing progress for our DGI® Dissolved Gas Infusion (“DGI”) division,” said Vincent J. Arnone, President and CEO. “At March 31, 2026, our balance sheet included cash and equivalents of
“We recently announced a series of APC awards valued at approximately
Mr. Arnone concluded, “We remain optimistic about the outlook for each of our businesses for full year 2026. On a proforma basis, including these recent awards, our APC backlog is at its highest level since 2018. We remain actively engaged with our supply chain partners and engineering colleagues in the pursuit of additional APC award opportunities. We expect another solid year for our FUEL CHEM business segment. For our DGI division, the extended demonstration of our high-efficiency water treatment system at a fish hatchery in the western U.S. is progressing well and generating positive results. This demonstration will conclude in the second quarter of 2026.”
Business Segment Performance
All comparisons are to the first quarter ended March 31, 2025 unless otherwise stated.
Revenues generated by the APC segment rose by
Consolidated APC segment backlog at March 31, 2026 was
FUEL CHEM segment revenue declined to
First Quarter 2026 (“Q1 2026”) Consolidated Results Overview
All comparisons are to the first quarter ended March 31, 2025 unless otherwise stated.
Consolidated revenues for Q1 2026 declined
Consolidated gross margin for Q1 2026 declined to
SG&A expenses for Q1 2026 were
Interest income for Q1 2026 was
Net loss in Q1 2026 was
Adjusted EBITDA loss was
Financial Condition
At March 31, 2026, cash and cash equivalents were
Conference Call
Management will host a conference call on Wednesday, May 6, 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 (Unaudited) (in thousands, except share and per share data) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,109 | $ | 11,939 | ||||
| Short-term investments | 12,470 | 12,942 | ||||||
| Accounts receivable, less current expected credit loss of | 4,112 | 5,355 | ||||||
| Inventories, net | 364 | 373 | ||||||
| Prepaid expenses and other current assets | 1,099 | 1,335 | ||||||
| Total current assets | 27,154 | 31,944 | ||||||
| Property and equipment, net of accumulated depreciation of | 4,886 | 4,739 | ||||||
| Goodwill | 2,116 | 2,116 | ||||||
| Other intangible assets, net of accumulated amortization of | 620 | 646 | ||||||
| Right-of-use operating lease assets, net | 516 | 536 | ||||||
| Long-term investments | 8,995 | 6,991 | ||||||
| Other assets | 200 | 207 | ||||||
| Total assets | $ | 44,487 | $ | 47,179 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,144 | $ | 3,242 | ||||
| Accrued liabilities: | ||||||||
| Operating lease liabilities - current | 92 | 89 | ||||||
| Employee compensation | 1,265 | 1,308 | ||||||
| Other accrued liabilities | 1,487 | 1,634 | ||||||
| Total current liabilities | 4,988 | 6,273 | ||||||
| Operating lease liabilities - non-current | 465 | 491 | ||||||
| Deferred income taxes, net | 187 | 187 | ||||||
| Other liabilities | 291 | 296 | ||||||
| Total liabilities | 5,931 | 7,247 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.01 par value, 40,000,000 shares authorized, 32,390,127 and 32,281,179 shares issued, and 31,157,075 and 31,074,438 shares outstanding, respectively | 323 | 322 | ||||||
| Additional paid-in capital | 165,671 | 165,616 | ||||||
| Accumulated deficit | (123,151 | ) | (121,796 | ) | ||||
| Accumulated other comprehensive loss | (1,761 | ) | (1,718 | ) | ||||
| Nil coupon perpetual loan notes | 76 | 76 | ||||||
| Treasury stock, at cost | (2,602 | ) | (2,568 | ) | ||||
| Total stockholders’ equity | 38,556 | 39,932 | ||||||
| Total liabilities and stockholders’ equity | $ | 44,487 | $ | 47,179 | ||||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per-share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | 6,080 | $ | 6,382 | ||||
| Costs and expenses: | ||||||||
| Cost of sales | 3,436 | 3,423 | ||||||
| Selling, general and administrative | 3,716 | 3,341 | ||||||
| Research and development | 524 | 570 | ||||||
| 7,676 | 7,334 | |||||||
| Operating loss | (1,596 | ) | (952 | ) | ||||
| Interest income | 240 | 279 | ||||||
| Other expense, net | — | (66 | ) | |||||
| Loss before income taxes | (1,356 | ) | (739 | ) | ||||
| Income tax benefit | 1 | — | ||||||
| Net loss | $ | (1,355 | ) | $ | (739 | ) | ||
| Net loss per common share: | ||||||||
| Basic net loss per common share | $ | (0.04 | ) | $ | (0.02 | ) | ||
| Diluted net loss per common share | $ | (0.04 | ) | $ | (0.02 | ) | ||
| Weighted-average number of common shares outstanding: | ||||||||
| Basic | 31,091,335 | 30,718,000 | ||||||
| Diluted | 31,091,335 | 30,718,000 | ||||||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (1,355 | ) | $ | (739 | ) | ||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustments | (43 | ) | 135 | |||||
| Comprehensive loss | $ | (1,398 | ) | $ | (604 | ) | ||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Operating Activities | ||||||||
| Net loss | $ | (1,355 | ) | $ | (739 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation | 175 | 164 | ||||||
| Amortization | 26 | 9 | ||||||
| Non-cash interest income on held-to-maturity securities | 105 | (50 | ) | |||||
| Provision for credit losses, net of recoveries | (1 | ) | — | |||||
| Stock-based compensation, net of forfeitures | 56 | 110 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,176 | 3,768 | ||||||
| Inventory | 9 | (137 | ) | |||||
| Prepaid expenses, other current assets and other non-current assets | 240 | (28 | ) | |||||
| Accounts payable | (1,095 | ) | (1,340 | ) | ||||
| Accrued liabilities and other non-current liabilities | (183 | ) | (249 | ) | ||||
| Net cash (used in) provided by operating activities | (847 | ) | 1,508 | |||||
| Investing Activities | ||||||||
| Purchases of equipment and patents | (322 | ) | (65 | ) | ||||
| Purchases of debt securities | (6,092 | ) | (993 | ) | ||||
| Maturities of debt securities | 4,500 | 2,750 | ||||||
| Net cash (used in) provided by investing activities | (1,914 | ) | 1,692 | |||||
| Financing Activities | ||||||||
| Taxes paid on behalf of equity award participants | (34 | ) | (24 | ) | ||||
| Net cash used in financing activities | (34 | ) | (24 | ) | ||||
| Effect of exchange rate fluctuations on cash | (35 | ) | 135 | |||||
| Net (decrease) increase in cash and cash equivalents | (2,830 | ) | 3,311 | |||||
| Cash and cash equivalents at beginning of period | 11,939 | 8,510 | ||||||
| Cash and cash equivalents at end of period | $ | 9,109 | $ | 11,821 | ||||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. Segment Data- Reporting Segments (Unaudited) (in thousands) | ||||||||||||||||
| Air Pollution | FUEL CHEM | |||||||||||||||
| Three months ended March 31, 2026 | Control Segment | Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 1,604 | $ | 4,476 | $ | — | $ | 6,080 | ||||||||
| Cost of sales | (989 | ) | (2,447 | ) | — | (3,436 | ) | |||||||||
| Gross margin | 615 | 2,029 | — | 2,644 | ||||||||||||
| Selling, general and administrative | — | — | (3,716 | ) | (3,716 | ) | ||||||||||
| Research and development | — | — | (524 | ) | (524 | ) | ||||||||||
| Operating income (loss) from operations | $ | 615 | $ | 2,029 | $ | (4,240 | ) | $ | (1,596 | ) | ||||||
| Air Pollution | FUEL CHEM | |||||||||||||||
| Three months ended March 31, 2025 | Control Segment | Segment | Other | Total | ||||||||||||
| Revenues from external customers | $ | 1,303 | $ | 5,079 | $ | — | $ | 6,382 | ||||||||
| Cost of sales | (878 | ) | (2,545 | ) | — | (3,423 | ) | |||||||||
| Gross margin | 425 | 2,534 | — | 2,959 | ||||||||||||
| Selling, general and administrative | — | — | (3,341 | ) | (3,341 | ) | ||||||||||
| Research and development | — | — | (570 | ) | (570 | ) | ||||||||||
| Operating income (loss) from operations | $ | 425 | $ | 2,534 | $ | (3,911 | ) | $ | (952 | ) | ||||||
FUEL TECH, INC.
Geographic Segment Financial Data
(Unaudited)
(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.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| United States | $ | 5,247 | $ | 5,359 | ||||
| Foreign | 833 | 1,023 | ||||||
| $ | 6,080 | $ | 6,382 | |||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets: | ||||||||
| United States | $ | 41,751 | $ | 44,345 | ||||
| Foreign | 2,736 | 2,834 | ||||||
| $ | 44,487 | $ | 47,179 | |||||
| FUEL TECH, INC. RECONCILIATION OF GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (1,355 | ) | $ | (739 | ) | ||
| Interest income, net | (240 | ) | (279 | ) | ||||
| Income tax benefit | (1 | ) | - | |||||
| Depreciation expense | 175 | 164 | ||||||
| Amortization expense | 26 | 9 | ||||||
| EBITDA | (1,395 | ) | (845 | ) | ||||
| Stock compensation expense | 56 | 110 | ||||||
| ADJUSTED EBITDA | $ | (1,339 | ) | $ | (735 | ) | ||
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, and stock compensation expense. 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 income (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
