Fuel Tech Reports 29% Revenue Increase to $6.4 Million in Q1 2025

Fuel Tech, Inc. reported a revenue increase of 29% for the first quarter of 2025, reaching $6.4 million compared to $5.0 million in the same period of 2024. The growth was primarily driven by a significant rise in the FUEL CHEM technology segment, which saw revenues soar by 92% to $5.1 million, up from $2.6 million year-over-year. In contrast, the Air Pollution Control (APC) segment experienced a decline in revenue, generating $1.3 million, a decrease of 44% from $2.3 million in the prior year, attributed to project execution timing and customer delays.

The company's operating loss for the quarter narrowed to $952,000 from a loss of $1.7 million in the previous year. Fuel Tech's net loss for the quarter was $739,000, compared to a net income of $281,000 in the first quarter of 2024. The decrease in net income was influenced by a significant drop in other income, which fell to a loss of $66,000 from a gain of $1.7 million, primarily due to foreign exchange losses and the absence of the employee retention credit recorded in the prior year.

Fuel Tech's total assets decreased to $46.7 million as of March 31, 2025, down from $48.8 million at the end of 2024. The company reported a cash and cash equivalents balance of $11.8 million, an increase from $8.5 million at the end of the previous year. The reduction in total assets was largely due to a decline in accounts receivable, which fell to $5.6 million from $9.4 million, reflecting improved cash flow management and a decrease in customer credit risk.

In terms of strategic developments, Fuel Tech announced several new APC segment projects and reported a consolidated APC backlog of $10.3 million as of March 31, 2025, up from $6.2 million at the end of 2024. The company continues to invest in the development of new technologies, particularly in the water and wastewater treatment market, which is expected to enhance its product offerings. The company’s workforce remains stable, and management expressed confidence in maintaining operational expenditures while pursuing new business opportunities.

Looking ahead, Fuel Tech anticipates that its cost control measures and ongoing business development efforts will lead to improved financial performance. The company expects to recognize approximately $6.9 million of its remaining performance obligations over the next 12 months, contributing to a positive outlook for revenue growth. Management remains focused on leveraging its technological advancements and expanding its market presence to drive future profitability.