10-Q · May 5, 2026
Fuel Tech, Inc. reported Q1 2026 results with revenues of $6.08 million, a decrease of 5% from the prior year, and an EPS of $(0.04), missing analyst expectations. The APC segment showed strong growth of 23%, offset by…
Earnings analysis · 10-Q
FTEK earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Fuel Tech delivered Q2 revenue of $6.485 million, up 17% year over year, with APC up 11% and FUEL CHEM up 21%; however, gross margin contracted to 41% from 46% and diluted EPS was a $0.04 loss. APC backlog rose to…
Read full summary
Fuel Tech delivered Q2 revenue of $6.485 million, up 17% year over year, with APC up 11% and FUEL CHEM up 21%; however, gross margin contracted to 41% from 46% and diluted EPS was a $0.04 loss. APC backlog rose to $14.308 million from $7.047 million at year-end, improving project revenue visibility, while the approximately $75 million to $100 million pipeline supports longer-term opportunity. Liquidity remains solid at $7.620 million of cash and $20.118 million of working capital with no conventional debt, but six-month operating cash flow swung to a $1.741 million use of cash.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.04
What stood out
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Revenue grew 17% with both segments higher
Q2 revenue increased $0.927 million, or 17%, year over year to $6.485 million from $5.558 million. Both reportable segments grew, led by FUEL CHEM revenue growth of $0.647 million, or 21%.
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APC backlog more than doubled
APC backlog was $14.308 million at June 30, 2026, more than double the $7.047 million at December 31, 2025. The backlog comprised $11.262 million of U.S. projects and $3.046 million of international projects.
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Large APC pipeline supports visibility
Management cited an approximately $75 million to $100 million global sales pipeline and said backlog plus operating performance provide improved revenue visibility.
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Debt-free balance sheet and $20.1M working capital
Liquidity remained substantial: cash and cash equivalents were $7.620 million, working capital was $20.118 million, and the company reported no outstanding debt apart from letters of credit.
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Receivables release supported cash conversion
Accounts receivable declined $1.434 million during the first six months of 2026, partially offsetting operating cash outflows from lower accrued liabilities and accounts payable.
What to watch
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Gross-margin compression offset sales growth
Consolidated gross margin fell 5 percentage points year over year to 41% from 46%. APC margin declined to 36% from 44%, driven by product and project mix, while FUEL CHEM margin decreased to 45% from 47% due to demonstration, freight and maintenance labor costs.
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Losses persisted as operating costs increased
The company recorded a $1.230 million net loss, or $0.04 per diluted share, and operating margin was approximately negative 24.4%. SG&A rose $0.247 million to $3.594 million and R&D rose $0.156 million to $0.646 million.
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Operating cash flow reversed to outflow
Operating activities used $1.741 million of cash in the first six months of 2026, versus providing $1.487 million in the prior-year period. The outflow included a $0.931 million decrease in accrued and other non-current liabilities and a $0.417 million decrease in accounts payable.
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No material risk-factor updates disclosed
Item 1A states that risk factors have not materially changed from the 2025 Form 10-K; the filing identifies 0 material risk-factor changes.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance. Management said cash and expected operating cash flows are adequate to fund planned operations for the next 12 months and expects additional 2026 capital expenditures for DGI, field equipment, systems and office equipment.
Earlier filings 4
10-K · March 3, 2026
Fuel Tech, Inc. reported a 6% revenue increase in 2025 to $26.7 million despite a net loss of $2.3 million, as growth in the FUEL CHEM segment offset declines in the Air Pollution Control segment. The company remains…
10-Q · November 4, 2025
Fuel Tech, Inc. reported mixed results in its third quarter with a slight revenue decrease, down 5% year-over-year to $7,490,000, although it achieved positive EPS of $0.01. The FUEL CHEM segment experienced growth,…
10-Q · August 5, 2025
Fuel Tech, Inc. reported a revenue decline of 21% year-over-year in Q2 2025 alongside consistent results year-to-date. Despite maintaining a solid gross margin of 45.5%, the company's EPS remained negative at -$0.02,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.