| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 6.49 | 6.7% | 16.7% |
| Total Income | 6.49 | 6.7% | 16.7% |
| Expenditure | 8.05 | 4.8% | 17.2% |
| PBT | -1.22 | 10.3% | 76.8% |
| Net Profit | -1.23 | 9.6% | 78.3% |
| OPM | -24.13% | 2.12pp | 0.60pp |
| NPM | -18.97% | 3.32pp | 6.57pp |
| EPS | -0.04 | 0.0% | 100.0% |
Fuel Tech Reports Q2 2026 Financial Results
05 Aug 2026 · 5 Aug, 2:37 am
Summary
Fuel Tech, Inc. reported a 17% increase in consolidated revenues for the second quarter of 2026, reaching $6.5 million compared to $5.6 million in the prior year period, driven by growth in both its Air Pollution Control (APC) and FUEL CHEM segments. The APC segment saw an 11% revenue increase to $2.8 million, while the FUEL CHEM segment grew by 21% to $3.7 million. However, consolidated gross margin decreased to 41% from 46%, attributed to declines in both segments. The company reported a net loss of $(1.2) million, or $(0.04) per share, for Q2 2026, an increase from the $(0.7) million net loss in Q2 2025. Management expressed optimism about the outlook for each business segment for the full year 2026, noting strong performance and an increasing backlog in the APC segment.
Key Highlights
- 1
Consolidated revenues for Q2 2026 rose 17% to $6.5 million from $5.6 million, driven by increases in both APC and FUEL CHEM segment revenues.
- 2
The APC segment revenues rose by 11% to $2.8 million in Q2 2026, primarily attributable to the timing of project execution on existing contracts.
- 3
The FUEL CHEM segment revenue rose 21% to $3.7 million from $3.1 million, primarily due to increased operational dispatch at legacy accounts.
- 4
Consolidated gross margin for Q2 2026 declined to 41% of revenues from 46% of revenues, driven by declines in both APC and FUEL CHEM segment gross margins.
- 5
Net loss in Q2 2026 was $(1.2) million, or $(0.04) per share, compared to a net loss of $(0.7) million, or $(0.02) per share in the prior year period.
- 6
As of June 30, 2026, the company had approximately $30 million in cash, cash equivalents, and investments and no long-term debt.
- 7
Consolidated APC segment backlog at June 30, 2026 was $14.3 million compared to $7.0 million at December 31, 2025, including recently awarded APC contracts valued at $10 million.
Management Comments
Vincent J. Arnone
Revenues for Q2 2026 rose 17% and reflected strong performance from our FUEL CHEM® and Air Pollution Control (“APC”) business segments. We are pleased with our performance at the midpoint of the year and remain optimistic about the outlook for each of our business segments for full year 2026. We are preparing for what has historically been a strong third quarter for FUEL CHEM and continue to expect that segment revenues will approximate last year’s results. For APC, including our recently announced contract awards of $3 million, our effective backlog is approximately $17 million, which is more than double the backlog at the end of 2025. In addition, we have commenced engineering work on our recently announced large contract at a publicly-owned Midwest utility. Our business development activities across FUEL CHEM, APC and our DGI® Dissolved Gas Infusion water treatment division are encouraging. As of June 30, 2026, our balance sheet included cash, cash equivalents, and investments of approximately $30 million and no long-term debt. As announced today, Ramesh Nuggihalli will be succeeding me as President and CEO of Fuel Tech effective August 10, 2026. In getting to know Ramesh during this process, I am confident that his background, temperament, and accomplishments make him exceptionally well positioned to lead Fuel Tech into its next chapter of growth and development. Serving Fuel Tech has been one of the greatest honors of my career, and I am proud of what we have achieved. I look forward to supporting Ramesh and the entire Fuel Tech organization as a member of the Board of Directors.
Informational and educational content only. Not investment advice.