Fuel Tech (FTEK) Q4 2025 earnings summary

Executive summary

• Achieved record FUEL CHEM revenues since 2018 and strong Q4 growth in both FUEL CHEM and APC segments, supported by data center development and a strategic acquisition.

• Maintained a robust financial position with $31.9 million in cash and investments and no debt at year-end.

• Demonstrated progress in DGI water treatment technology, with successful demonstrations and new contracts.

• FUEL CHEM segment benefited from extended coal-fired unit operations, new commercial accounts, and demonstration programs.

Financial highlights

• Q4 2025 consolidated revenues rose 37% year-over-year to $7.2 million, with both APC and FUEL CHEM segments up 37%.

• Full-year 2025 consolidated revenue increased 6% to $26.7 million, driven by a 28% rise in FUEL CHEM revenue to $17.8 million.

• Q4 gross margin improved to 45% from 42% year-over-year; full-year gross margin rose to 46% from 42%.

• Full-year 2025 net loss was $2.3 million ($0.08/share) versus $1.9 million ($0.06/share) in 2024.

• Adjusted EBITDA loss was $2.7 million in 2025, compared to $2.2 million in 2024.

Outlook and guidance

• 2026 revenues expected to exceed 2025, with FUEL CHEM stable and APC segment growth anticipated, excluding potential data center awards.

• APC segment pipeline related to data center construction is estimated at $75–100 million.

• FUEL CHEM demonstration contract could convert to $2.5–$3.0 million in annual revenue at historic gross margins.

• First commercial DGI contract expected in 2026, with modest revenue contribution.

• SG&A expenses projected to increase modestly in 2026.