FTEK · Fuel Tech, Inc.

Fuel Tech's Q1 2026 results showed mixed segment performance, with Air Pollution Control (APC) revenues increasing 23% to $1.6 million due to project timing and ancillary activity, driving segment gross margin expansion to 38.3% from 32.6% on favorable product mix. This offset a decline in FUEL CHEM revenues to $4.5 million from $5.1 million, attributed to seasonal maintenance outages and lower dispatch-related demand, with margins contracting to 45.3% amid flat expenses. Consolidated revenues fell 5% to $6.1 million, gross margin to 43.5%, while SG&A rose to $3.7 million or 61% of revenues from higher employee costs and professional fees. The net loss widened to $(1.4) million from $(0.7) million, with Adjusted EBITDA loss at $(1.3) million. Balance sheet remains strong with $30.6 million in cash, equivalents, and investments, no debt, and stockholders' equity of $38.6 million. Management highlighted recent $10 million APC awards, including SCR integration for natural gas turbines to meet Midwest electricity demand from population growth, manufacturing, and data centers, boosting proforma backlog to its highest since 2018. Optimism persists for full-year 2026 across segments, with FUEL CHEM expected solid and DGI demonstration progressing positively.