Fuel Tech Reports 2026 Second Quarter Financial Results
Rhea-AI Summary
Fuel Tech (NASDAQ:FTEK) reported Q2 2026 revenues of $6.5 million, up 17% from $5.6 million, driven by 11% growth in the Air Pollution Control (APC) segment to $2.8 million and 21% growth in FUEL CHEM to $3.7 million. Consolidated gross margin declined to 41% from 46% due to less favorable product and project mix and higher costs. Net loss widened to $1.2 million, or $(0.04) per share, from $0.7 million, or $(0.02) per share; Adjusted EBITDA loss was $1.2 million versus $0.9 million.
APC backlog was $14.3 million at June 30, 2026 versus $7.0 million at December 31, 2025, and including recently announced $3 million of awards, effective backlog is about $17 million. Fuel Tech ended the quarter with roughly $30 million in cash, cash equivalents and investments, no debt, and stockholders’ equity of $37.4 million. The company announced that Ramesh Nuggihalli will succeed Vincent J. Arnone as President and CEO effective August 10, 2026, with Arnone remaining on the Board.
Positive
- Q2 2026 revenue $6.5 million, up 17% year-over-year
- FUEL CHEM segment revenue $3.7 million, up 21% year-over-year
- APC segment revenue $2.8 million, up 11% year-over-year
- APC backlog $14.3 million at June 30, 2026 vs. $7.0 million at December 31, 2025
- Effective backlog approximately $17 million including $3 million of recent awards
- Cash, cash equivalents and investments about $30 million with no debt as of June 30, 2026
Negative
- Q2 2026 net loss $(1.2) million vs. $(0.7) million year-over-year
- Q2 2026 Adjusted EBITDA loss $(1.2) million vs. $(0.9) million year-over-year
- Consolidated gross margin 41% vs. 46% in Q2 2025
- APC gross margin 36% vs. 44% year-over-year
- FUEL CHEM gross margin 45% vs. 47% year-over-year
- Operating cash flow for six months $(1.7) million vs. $1.5 million provided in prior-year period
News Explained
Fuel Tech says engineering has commenced on a recently announced large Air Pollution Control contract, moving that project from an announced award into active execution.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 earnings report | Negative | -13.2% | Lower revenue, wider loss, and weaker margins accompanied stronger APC activity. |
| Mar 03 | Q4 earnings report | Positive | -10.1% | Revenue and gross margin improved despite quarterly and full-year net losses. |
| Nov 04 | Q3 earnings report | Positive | -12.7% | Gross margin, APC backlog, and quarterly income improved year over year. |
| Aug 05 | Q2 earnings report | Negative | -0.7% | Revenue declined and the company reported a larger quarterly net loss. |
| May 12 | Q1 earnings report | Positive | +11.8% | Revenue, gross margin, and backlog increased despite a reported net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -4.98% move, with negative reactions following three of the five events.
Key Terms
adjusted ebitda financial
sg&a financial
held-to-maturity debt securities financial
nitrogen oxide technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
WARRENVILLE, Ill., Aug. 04, 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 second quarter ended June 30, 2026 (“Q2 2026”).
“Revenues for Q2 2026 rose
Mr. Arnone concluded, “As announced today, Ramesh Nuggihalli will be succeeding me as President and CEO of Fuel Tech effective August 10, 2026. In getting to know Ramesh during this process, I am confident that his background, temperament, and accomplishments make him exceptionally well positioned to lead Fuel Tech into its next chapter of growth and development. Serving Fuel Tech has been one of the greatest honors of my career, and I am proud of what we have achieved. I look forward to supporting Ramesh and the entire Fuel Tech organization as a member of the Board of Directors.”
Business Segment Performance
All comparisons are to the second quarter ended June 30, 2025 unless otherwise stated.
Revenues generated by the APC segment rose by
Consolidated APC segment backlog at June 30, 2026 was
FUEL CHEM segment revenue rose
Second Quarter 2026 (“Q2 2026”) Consolidated Results Overview
All comparisons are to the second quarter ended June 30, 2025 unless otherwise stated.
Consolidated revenues for Q2 2026 rose
Consolidated gross margin for Q2 2026 declined to
SG&A expenses for Q2 2026 were
Interest income for Q2 2026 was
Net loss in Q2 2026 was
Adjusted EBITDA loss was
Financial Condition
As of June 30, 2026, cash and cash equivalents were
Conference Call
Management will host a conference call on Wednesday, August 5, 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 2,100 utility, industrial and municipal units worldwide. The Company’s chemical technologies improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. This includes Fuel Tech’s advanced TIFI® Targeted In-Furnace Injection™ technology which offers an innovative solution to fireside treatment on boilers using coal, oil or biomass. 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 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.
| CONTACT: | Vince Arnone President and CEO (630) 845-4500 | Devin Sullivan Managing Director The Equity Group Inc. devin.sullivan@theequitygroup.com Conor Rodriguez Associate The Equity Group Inc. conor.rodriguez@theequitygroup.com |
| FUEL TECH, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share data) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 7,620 | $ | 11,939 | |||
| Short-term investments | 11,991 | 12,942 | |||||
| Accounts receivable, less current expected credit loss of | 3,904 | 5,355 | |||||
| Inventories, net | 358 | 373 | |||||
| Prepaid expenses and other current assets | 1,153 | 1,335 | |||||
| Total current assets | 25,026 | 31,944 | |||||
| Property and equipment, net of accumulated depreciation of | 4,782 | 4,739 | |||||
| Goodwill | 2,116 | 2,116 | |||||
| Other intangible assets, net of accumulated amortization of | 604 | 646 | |||||
| Right-of-use operating lease assets, net | 490 | 536 | |||||
| Long-term investments | 9,974 | 6,991 | |||||
| Other assets | 202 | 207 | |||||
| Total assets | $ | 43,194 | $ | 47,179 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 2,817 | $ | 3,242 | ||||
| Accrued liabilities: | |||||||
| Operating lease liabilities - current | 94 | 89 | |||||
| Employee compensation | 718 | 1,308 | |||||
| Other accrued liabilities | 1,279 | 1,634 | |||||
| Total current liabilities | 4,908 | 6,273 | |||||
| Operating lease liabilities - non-current | 439 | 491 | |||||
| Deferred income taxes, net | 187 | 187 | |||||
| Other liabilities | 293 | 296 | |||||
| Total liabilities | 5,827 | 7,247 | |||||
| Stockholders’ equity: | |||||||
| Common stock, $.01 par value, 40,000,000 shares authorized, 32,457,627 and 32,281,179 shares issued, and 31,216,789 and 31,074,438 shares outstanding, respectively | 324 | 322 | |||||
| Additional paid-in capital | 165,712 | 165,616 | |||||
| Accumulated deficit | (124,381 | ) | (121,796 | ) | |||
| Accumulated other comprehensive loss | (1,751 | ) | (1,718 | ) | |||
| Nil coupon perpetual loan notes | 76 | 76 | |||||
| Treasury stock, at cost | (2,613 | ) | (2,568 | ) | |||
| Total stockholders’ equity | 37,367 | 39,932 | |||||
| Total liabilities and stockholders’ equity | $ | 43,194 | $ | 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues | $ | 6,485 | $ | 5,558 | $ | 12,565 | $ | 11,940 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of sales | 3,810 | 3,029 | 7,241 | 6,452 | |||||||||||
| Selling, general and administrative | 3,594 | 3,347 | 7,310 | 6,688 | |||||||||||
| Research and development | 646 | 490 | 1,175 | 1,060 | |||||||||||
| 8,050 | 6,866 | 15,726 | 14,200 | ||||||||||||
| Operating loss | (1,565 | ) | (1,308 | ) | (3,161 | ) | (2,260 | ) | |||||||
| Interest income | 266 | 537 | 506 | 816 | |||||||||||
| Other income, net | 79 | 86 | 79 | 20 | |||||||||||
| Loss before income taxes | (1,220 | ) | (685 | ) | (2,576 | ) | (1,424 | ) | |||||||
| Income tax expense | (10 | ) | (4 | ) | (9 | ) | (4 | ) | |||||||
| Net loss | $ | (1,230 | ) | $ | (689 | ) | $ | (2,585 | ) | $ | (1,428 | ) | |||
| Net loss per common share: | |||||||||||||||
| Basic net loss per common share | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.05 | ) | |||
| Diluted net loss per common share | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.05 | ) | |||
| Weighted-average number of common shares outstanding: | |||||||||||||||
| Basic | 31,181,000 | 30,868,000 | 31,137,000 | 30,796,000 | |||||||||||
| Diluted | 31,181,000 | 30,868,000 | 31,137,000 | 30,796,000 | |||||||||||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net loss | $ | (1,230 | ) | $ | (689 | ) | $ | (2,585 | ) | $ | (1,428 | ) | |||
| Other comprehensive income (loss): | |||||||||||||||
| Foreign currency translation adjustments | 10 | 11 | (33 | ) | 146 | ||||||||||
| Comprehensive loss | $ | (1,220 | ) | $ | (678 | ) | $ | (2,618 | ) | $ | (1,282 | ) | |||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | |||||||
| Six Months Ended | |||||||
| June 30, | |||||||
| 2026 | 2025 | ||||||
| Operating Activities | |||||||
| Net loss | $ | (2,585 | ) | $ | (1,428 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Depreciation | 353 | 327 | |||||
| Amortization | 44 | 18 | |||||
| Interest income on held-to-maturity securities, net of premium amortization and discount accretion | 67 | (90 | ) | ||||
| Provision for credit losses, net of recoveries | (1 | ) | — | ||||
| Stock-based compensation, net of forfeitures | 98 | 212 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 1,434 | 1,987 | |||||
| Employee retention credit receivable | — | 1,232 | |||||
| Inventory | 15 | (218 | ) | ||||
| Prepaid expenses, other current assets and other non-current assets | 182 | 77 | |||||
| Accounts payable | (417 | ) | (833 | ) | |||
| Accrued liabilities and other non-current liabilities | (931 | ) | 203 | ||||
| Net cash (used in) provided by operating activities | (1,741 | ) | 1,487 | ||||
| Investing Activities | |||||||
| Purchases of equipment and patents | (399 | ) | (101 | ) | |||
| Purchases of debt securities | (9,103 | ) | (4,949 | ) | |||
| Maturities of debt securities | 7,000 | 5,750 | |||||
| Net cash (used in) provided by investing activities | (2,502 | ) | 700 | ||||
| Financing Activities | |||||||
| Taxes paid on behalf of equity award participants | (45 | ) | (222 | ) | |||
| Net cash used in financing activities | (45 | ) | (222 | ) | |||
| Effect of exchange rate fluctuations on cash | (31 | ) | 114 | ||||
| Net (decrease) increase in cash and cash equivalents | (4,319 | ) | 2,079 | ||||
| Cash and cash equivalents at beginning of period | 11,939 | 8,510 | |||||
| Cash and cash equivalents at end of period | $ | 7,620 | $ | 10,589 | |||
See notes to condensed consolidated financial statements.
| FUEL TECH, INC. Segment Data- Reporting Segments (Unaudited) (in thousands) | |||||||||||||||
| Information about reporting segment net sales and gross margin from operations is provided below: | |||||||||||||||
| Air Pollution | FUEL CHEM | ||||||||||||||
| Three months ended June 30, 2026 | Control Segment | Segment | Other | Total | |||||||||||
| Revenues from external customers | $ | 2,785 | $ | 3,700 | $ | — | $ | 6,485 | |||||||
| Cost of sales | (1,775 | ) | (2,035 | ) | — | (3,810 | ) | ||||||||
| Gross margin | 1,010 | 1,66 | — | 2,675 | |||||||||||
| Selling, general and administrative | — | — | (3,594 | ) | (3,594 | ) | |||||||||
| Research and development | — | — | (646 | ) | (646 | ) | |||||||||
| Income (loss) from operations | $ | 1,010 | $ | 1,66 | $ | (4,240 | ) | $ | (1,565 | ) | |||||
| Air Pollution | FUEL CHEM | ||||||||||||||
| Three months ended June 30, 2025 | Control Segment | Segment | Other | Total | |||||||||||
| Revenues from external customers | $ | 2,505 | $ | 3,053 | $ | — | $ | 5,558 | |||||||
| Cost of sales | (1,406 | ) | (1,623 | ) | — | (3,029 | ) | ||||||||
| Gross margin | 1,099 | 1,430 | — | 2,529 | |||||||||||
| Selling, general and administrative | — | — | (3,347 | ) | (3,347 | ) | |||||||||
| Research and development | — | — | (490 | ) | (490 | ) | |||||||||
| Income (loss) from operations | $ | 1,099 | $ | 1,430 | $ | (3,837 | ) | $ | (1,308 | ) | |||||
| Air Pollution | FUEL CHEM | ||||||||||||||
| Six months ended June 30, 2026 | Control Segment | Segment | Other | Total | |||||||||||
| Revenues from external customers | $ | 4,389 | $ | 8,176 | $ | — | $ | 12,565 | |||||||
| Cost of sales | (2,764 | ) | (4,482 | ) | — | (7,246 | ) | ||||||||
| Gross margin | 1,625 | 3,694 | — | 5,319 | |||||||||||
| Selling, general and administrative | — | — | (7,310 | ) | (7,310 | ) | |||||||||
| Research and development | — | — | (1,170 | ) | (1,170 | ) | |||||||||
| Income (loss) from operations | $ | 1,625 | $ | 3,694 | $ | (8,480 | ) | $ | (3,161 | ) | |||||
| Air Pollution | FUEL CHEM | ||||||||||||||
| Six months ended June 30, 2025 | Control Segment | Segment | Other | Total | |||||||||||
| Revenues from external customers | $ | 3,808 | $ | 8,132 | $ | — | $ | 11,940 | |||||||
| Cost of sales | (2,284 | ) | (4,168 | ) | — | (6,452 | ) | ||||||||
| Gross margin | 1,524 | 3,964 | — | 5,488 | |||||||||||
| Selling, general and administrative | — | — | (6,688 | ) | (6,688 | ) | |||||||||
| Research and development | $ | — | — | (1,060 | ) | (1,060 | ) | ||||||||
| Income (loss) from operations | $ | 1,524 | $ | 3,964 | $ | (7,748 | ) | $ | (2,260 | ) | |||||
| 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues: | |||||||||||||||
| United States | $ | 5,901 | $ | 4,442 | $ | 11,148 | $ | 9,801 | |||||||
| Foreign | 584 | 1,116 | 1,417 | 2,139 | |||||||||||
| $ | 6,485 | $ | 5,558 | $ | 12,565 | $ | 11,940 | ||||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Assets: | |||||||
| United States | $ | 40,636 | $ | 44,345 | |||
| Foreign | 2,558 | 2,834 | |||||
| $ | 43,194 | $ | 47,179 | ||||
| FUEL TECH, INC. RECONCILIATION OF GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net Loss | $ | (1,230 | ) | $ | (689 | ) | $ | (2,585 | ) | $ | (1,428 | ) | |||
| Interest income | (266 | ) | (537 | ) | (506 | ) | (816 | ) | |||||||
| Income tax expense | 10 | 4 | 9 | 4 | |||||||||||
| Depreciation expense | 178 | 163 | 353 | 327 | |||||||||||
| Amortization expense | 18 | 9 | 44 | 18 | |||||||||||
| EBITDA | (1,290 | ) | (1,050 | ) | (2,685 | ) | (1,895 | ) | |||||||
| Stock compensation expense | 42 | 102 | 98 | 212 | |||||||||||
| Adjusted EBITDA | $ | (1,248 | ) | $ | (948 | ) | $ | (2,587 | ) | $ | (1,683 | ) | |||
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.
