Fuel Tech, Inc. (NASDAQ: FTEK) reported second-quarter revenue of $6.5 million, up 17% from $5.6 million a year earlier, while its net loss widened to $1.2 million, or $(0.04) per share, from $0.7 million, or $(0.02) per share.
Both operating segments grew. Air Pollution Control (APC) revenue rose 11% to $2.8 million, which the company attributed to project timing and new awards. FUEL CHEM, the chemical injection business that treats boiler slagging and fouling, rose 21% to $3.7 million on higher operational dispatch at existing accounts.
Margins moved the other way. Consolidated gross margin fell to 41% of revenue from 46%. APC segment margin dropped to 36% from 44% on product and project mix; FUEL CHEM slipped to 45% from 47%, which the company tied to demonstration costs, freight and internal labor for unit maintenance.
Operating costs rose faster than revenue in absolute terms. Selling, general and administrative expenses were $3.6 million against $3.3 million, though they fell as a share of revenue to 55.4% from 60.2%. Research and development increased to $646,000 from $490,000. The operating loss was $1.6 million versus $1.3 million. Adjusted EBITDA loss — earnings before interest, tax, depreciation, amortization and stock compensation — was $1.2 million against $0.9 million.
Interest income fell to $266,000 from $537,000. The prior-year figure included a one-time $257,000 collection under the CARES Act Employee Retention Credit.
On backlog, Fuel Tech said consolidated APC backlog stood at $14.3 million at June 30, up from $7.0 million at the end of 2025, including roughly $10 million of awards linked mainly to a Midwest utility grid enhancement project. Adding contracts announced since quarter-end, President and CEO Vincent Arnone put "effective" backlog at about $17 million. Engineering work on the Midwest utility contract has begun, according to the company. Fuel Tech expects full-year FUEL CHEM revenue to approximate 2025 levels.
The balance sheet carried cash and equivalents of $7.6 million, short-term investments of $12.0 million and long-term investments of $10.0 million, roughly $30 million in total, with no debt. Cash and equivalents were down from $11.9 million at the end of 2025. Operations used $1.7 million of cash in the first half, compared with $1.5 million generated a year earlier. Stockholders' equity was $37.4 million, or $1.20 per share, on 31.2 million shares outstanding.
Separately, Fuel Tech said Ramesh Nuggihalli becomes President and CEO on August 10, 2026, succeeding Arnone, who is to remain on the board.
Source: GlobeNewswire
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