- Fuel Tech (FTEK, Financial) reported a 29% increase in Q1 2025 revenue, reaching $6.4 million.
- The FUEL CHEM segment saw a 92% rise in revenue to $5.1 million, boosting gross margin to 46.4%.
- Despite improvements, Fuel Tech recorded a net loss of $(739,000) or $(0.02) per share.
Fuel Tech, Inc. (FTEK), a leader in emissions control and water treatment technologies, announced its financial results for the first quarter of 2025. The company reported a substantial revenue increase of 29% year-over-year, totaling $6.4 million. This growth was largely driven by the FUEL CHEM segment, which experienced a 92% surge in revenue to $5.1 million. As a result, Fuel Tech achieved a gross margin expansion to 46.4%, up from 40.9% in the same period last year.
However, the company faced a net loss of $(739,000), equating to $(0.02) per share. This contrasts with a net income of $281,000 in Q1 2024, which benefited from a one-time $1.7 million employee retention credit. Excluding this credit, Fuel Tech's operating loss has narrowed significantly from $1.4 million to $739,000, indicating operational improvements.
Fuel Tech's balance sheet remains robust, with $31.2 million in cash and investments and no long-term debt, providing strong financial flexibility. Additionally, the company reported a 66% increase in backlog to $10.3 million, pointing to sustained future growth potential.
The company's management remains optimistic about 2025, anticipating continued strong performance from the FUEL CHEM segment. Plans to demonstrate new technologies, such as TIFI technology at a Midwest coal-fired unit and DGI technology at a Western U.S. fish hatchery, are underway, potentially leading to the first commercial revenues for DGI technology this year.
