Fuel Tech, Inc. reported its financial results for the third quarter of 2025, revealing a slight decline in revenue but a return to profitability. For the three months ending September 30, 2025, the company generated revenues of $7.49 million, a decrease of 5% from $7.85 million in the same period last year. For the nine-month period, revenues totaled $19.43 million, down 2% from $19.85 million in 2024. The company recorded a net income of $303,000 for the quarter, compared to a net income of $80,000 in the prior year, marking a significant improvement in profitability.
The decrease in revenue was primarily attributed to a 16% decline in the Air Pollution Control (APC) segment, which brought in $2.71 million for the quarter, down from $3.22 million in 2024. This decline was linked to project execution timing and customer-driven delays. Conversely, the FUEL CHEM segment saw a 3% increase in revenue, reaching $4.78 million, bolstered by operational demand and contributions from a new customer account added in 2024. The APC segment's backlog increased to $9.47 million, indicating potential future revenue growth.
Fuel Tech's operational metrics showed a consolidated gross margin improvement, rising to 49% for the third quarter, up from 43% in the previous year. The FUEL CHEM segment's gross margin also improved to 50%, while the APC segment's gross margin increased to 47%. Selling, general, and administrative expenses remained relatively stable, totaling $3.21 million for the quarter, slightly down from $3.23 million in 2024. Research and development expenses increased to $450,000, reflecting ongoing investments in new technologies, particularly in water treatment solutions.
The company reported a cash and cash equivalents balance of $13.68 million as of September 30, 2025, an increase from $8.51 million at the end of 2024. Fuel Tech's cash flow from operations for the nine-month period was $4.58 million, a notable improvement compared to a cash outflow of $1.79 million in the same period last year. The company also announced the acquisition of intellectual property assets from Wahlco, Inc. for $350,000, which is expected to enhance its technology offerings.
Looking ahead, Fuel Tech remains optimistic about its growth prospects, particularly in the FUEL CHEM segment and the expansion of its product offerings in the water treatment market. The company plans to continue its focus on cost control and operational efficiency while pursuing new business opportunities. Management believes that its current cash position and expected cash flows will be sufficient to support operations and planned investments over the next 12 months.
About FUEL TECH, INC.
Fuel Tech, Inc. develops proprietary technologies for air pollution control, process optimization, and water treatment. Its core offerings include NOx reduction systems, such as SCR and SNCR, and chemical injection solutions for combustion efficiency and emission compliance. Serving utility and industrial markets worldwide, the company leverages advanced engineering, modeling, and patented processes to deliver cost-effective, environmentally sustainable solutions for power generation and manufacturing industries.
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