What does Fuel Tech do and what are its main business segments?

What is Fuel Tech's gross profit margin?

What guidance did Fuel Tech's management provide for the next earnings period?

What were the key takeaways from Fuel Tech's earnings call?

Did Fuel Tech beat or miss consensus estimates last quarter?

What factors drove the changes in Fuel Tech's revenue and profit?

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What is the revenue and EPS growth rate for Fuel Tech year over year?

- **FUEL CHEM Segment Surges**: 2025 revenue guidance raised to $16.5M-$17M, up 10% YoY, driven by new customer demonstration and legacy dispatch growth.
- **APC Backlog Expansion**: $9.5 million backlog (+55% YoY), with $3.2 million in Q3 wins and $3M-$5M in pipeline for year-end closure.
- **Strategic Acquisition Payoff**: $350,000 Wahlco IP acquisition to generate $2M+ in annual aftermarket revenue and enable $10M+ capital project wins by 2026.
- **Data Center Gold Rush**: $80M-$100M SCR pipeline targeting AI/data center power generation, with 2-3 deals expected to close by Q1 2026.
- **Financial Strength**: $34 million cash, no debt, and 49% gross margins position company for growth in high-demand power generation and emissions control markets.

**【CEO Summary Section】**
- **Profitable Q3 2025**: Operated with positive net income of $303,000 and enhanced gross margins to 49% of revenues, up from 43% in Q3 2024. Maintained strong financial position with $34 million in cash and no long-term debt.
- **FUEL CHEM Growth**: Segment revenue rose to $4.8 million, driving full-year guidance to $16.5M-$17M (up from $15M-$16M). New 6-month demonstration program with a U.S. customer could add $2.5M-$3M annual revenue in 2026.
- **APC Segment Challenges**: Q3 revenue declined due to project timing, but secured $3.2 million in new contracts, raising backlog to $9.5 million. Pursuing $3M-$5M in additional contracts by year-end.
- **Strategic Acquisition**: Acquired Wahlco, Inc.'s APC IP for $350,000, adding flue gas conditioning and urea-to-ammonia technologies. Anticipates near-term aftermarket contributions and long-term capital project opportunities.
- **Data Center Pipeline**: $80M-$100M pipeline for SCR solutions, with 2-3 commercial opportunities expected to close by Q1 2026. Engaging turbine OEMs, aircraft engine repurposers, and system integrators.
- **DGI Progress**: Extended demonstration at a Midwest fish hatchery until Q1 2026. Expanded sales network to target pulp, food, and chemical markets.

**【CFO Financial Commentary】**
- **Revenue Performance**: Q3 2025 revenue $7.5 million (-5% YoY) due to APC timing, offset by FUEL CHEM growth (+4%).
- **Gross Margin Expansion**: 49% (vs. 43% YoY), driven by FUEL CHEM volume and APC ancillary sales (spares, services).
- **Cost Management**: Flat SG&A at $3.2 million, R&D up 25% to $450,000 for DGI. Positive operating cash flow of $4.6 million YTD.
- **Profitability**: Net income $0.01 per share (vs. $0.00 YoY). Adjusted EBITDA $228,000 (vs. -$35,000 YoY).
- **Balance Sheet**: $33.8 million in cash, $41 million in equity, and no debt.

**【Q&A Highlights】**
- **Acquisition Monetization**: Minimal incremental investment needed. Near-term aftermarket gains, with capital project wins expected in 2026+.
- **Data Center Strategy**: Engaging turbine OEMs, aircraft engine repurposers, and integrators. 2-3 commercial deals could close by Q1 2026, with potential for platform expansion.
- **Pipeline Visibility**: $80M-$100M data center pipeline, excluding $10M-$20M traditional APC opportunities. Q4 2025 cash flat to slightly down from Q3 levels.

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