Fuel Tech Reports 17% Revenue Increase in Q2 2026 Despite Net Loss

Fuel Tech, Inc. reported a revenue increase of 17% for the second quarter of 2026, achieving $6.485 million compared to $5.558 million in the same period of 2025. For the first half of 2026, revenues rose by 5% to $12.565 million from $11.940 million year-over-year. The growth was driven by improved demand in the FUEL CHEM segment, which saw a 21% increase in quarterly revenue to $3.700 million, and a 11% rise in the Air Pollution Control (APC) segment, which generated $2.785 million. However, the company reported a net loss of $1.230 million for the quarter, compared to a loss of $689,000 in the prior year, reflecting ongoing operational challenges.

The company’s financial position showed a decline in total assets, which decreased to $43.194 million as of June 30, 2026, from $47.179 million at the end of 2025. Current assets also fell significantly, down to $25.026 million from $31.944 million, primarily due to reductions in cash and accounts receivable. Fuel Tech's total liabilities decreased to $5.827 million from $7.247 million, indicating a reduction in current liabilities, which fell from $6.273 million to $4.908 million. The company’s stockholders' equity also declined to $37.367 million from $39.932 million, largely due to the accumulated deficit increasing to $124.381 million.

Operationally, Fuel Tech has been focusing on enhancing its technology offerings and expanding its market presence. The company reported a consolidated APC backlog of $14.308 million as of June 30, 2026, significantly up from $7.047 million at the end of 2025. This backlog reflects ongoing projects and new contract awards, indicating a positive outlook for future revenue generation. The company is also investing in new technologies, particularly in the water and wastewater treatment sectors, which could broaden its addressable market.

In terms of employee metrics, Fuel Tech's workforce has been adjusted as part of its restructuring efforts, particularly in response to the suspension of its APC business operations in China. The company continues to manage costs while pursuing growth opportunities, with a focus on maintaining sufficient liquidity. As of June 30, 2026, Fuel Tech had cash and cash equivalents totaling $7.620 million, down from $11.939 million at the end of 2025. The company anticipates that its existing capital resources will support ongoing operations and planned technology developments.

Looking ahead, Fuel Tech's management remains optimistic about the company's prospects, citing increased market interest in emissions-control solutions and a robust sales pipeline estimated between $75 million and $100 million. The company is committed to disciplined cost control and strategic investments to enhance its market position and shareholder value. However, future results will depend on the level of activity from existing customers, the timing of project execution, and the successful commercialization of new technologies.