Fuel Tech 2025 Q1 Earnings Misses Targets as Net Income Falls 363%

Fuel Tech (FTEK) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Fuel Tech's Q1 2025 results missed expectations, primarily due to a significant net loss and decreased earnings per share compared to Q1 2024. Despite a 29% revenue increase, the company swung to a net loss, indicating volatility in its financial performance. Looking forward, Fuel Tech maintains an optimistic outlook with the anticipation of securing new contracts and expanding its FUEL CHEM segment throughout the year.

Revenue
Fuel Tech's revenue for the first quarter of 2025 increased by 28.7% to reach $6.38 million, compared to $4.96 million in Q1 2024. The FUEL CHEM segment significantly contributed to this growth, surging by 92% to $5.08 million. However, the Air Pollution Control segment experienced a decline, generating $1.30 million in revenue. Other revenue sources contributed nothing to the total.

Earnings/Net Income
Fuel Tech reported a net loss of $739,000 for 2025 Q1, compared to a net income of $281,000 in 2024 Q1, marking a 363.0% downturn. The earnings per share fell from a profit of $0.01 per share in 2024 Q1 to a loss of $0.02 per share in 2025 Q1, indicating a negative shift in EPS performance.

Price Action
The stock price of Fuel Tech has edged down 2.35% during the latest trading day, has edged down 1.26% during the most recent full trading week, and has edged down 0.83% month-to-date.

Post-Earnings Price Action Review
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CEO Commentary
Vincent J. Arnone, President and CEO, expressed satisfaction with the first quarter performance, highlighting a 29% revenue increase to $6.4 million and an expanded gross margin of 46.4%. The growth was primarily driven by a 92% rise in FUEL CHEM revenue, supported by significant business development activities that yielded $5.6 million in orders. Although revenues from the Air Pollution Control (APC) segment decreased, Arnone remains optimistic about future contract awards, citing industrial expansion and regulatory requirements as opportunities. The company’s balance sheet remains robust with $31.2 million in cash and no long-term debt.

Guidance
The company anticipates continued strong performance from the FUEL CHEM segment throughout 2025, bolstered by the return of base accounts and new commercial contributions. Arnone noted the expectation of securing additional FUEL CHEM opportunities domestically and internationally, with a demonstration of TIFI technology planned for late third quarter 2025. The management is optimistic about new contract awards in the APC segment, projecting enhanced performance driven by ongoing industrial expansion and regulatory needs, with hopes for new awards by late second quarter 2025.

Additional News
In recent weeks, Fuel Tech announced the showcasing of its DGI® Dissolved Gas Infusion Technology at Aquaculture 2025 in New Orleans, demonstrating its potential in water treatment applications. Additionally, the company secured Air Pollution Control orders totaling $1.4 million and $2.6 million, reflecting continued demand for its emissions control solutions. Fuel Tech also scheduled its 2025 first-quarter financial results and conference call, reinforcing its commitment to transparency and investor engagement.