Education
About Us
Working with TipRanks
Follow Us
Fuel Tech (FTEK)
NASDAQ:FTEK
Top Page
Fuel Tech
(NASDAQ:FTEK)
Rating:53Neutral
Price Target:
$3.00
▲(2.74% Upside)
Positive Factors
Financial Position
The company's strong cash position, with $30.9M in cash and no debt, provides a solid financial foundation.
Growth Opportunities
Fuel Tech is positioned to realize significant revenue upside from over $100M in bids toward projects in expanding industries like AI, data centers, and crypto.
Regulatory Environment
The new federal administration's focus on 'clean air' is likely to benefit Fuel Tech due to its products' focus on eliminating harmful gases.
Negative Factors
Revenue Performance
Revenues for 2024 came in toward the lower end of the company’s guided range due to delayed projects and timing of APC awards.
Fuel Tech (FTEK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.74M
Dividend YieldN/A
Average Volume (3M)392.74K
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-4.78%
EPS Growth-1359.72%
CountryUS
Employees72
SectorIndustrials
Sector Strength79
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.02
Shares Outstanding31,074,438
10 Day Avg. Volume255,562
30 Day Avg. Volume392,737
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.06
Enterprise Value/Ebitda-17.75
Forecast
1Y Price Target
$3.50Price Target Upside19.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Fuel Tech Business Overview & Revenue Model
Company DescriptionFuel Tech, Inc. (FTEK) is a technology company focused on providing advanced equipment and solutions for air pollution control and energy efficiency. The company operates primarily in the environmental solutions sector, offering proprietary technologies and products designed to improve the performance of industrial processes while reducing emissions. Fuel Tech's core offerings include its NOx reduction technologies, fuel additives, and other innovative solutions that cater to various industries, including power generation, cement production, and other heavy industrial sectors.
How the Company Makes MoneyFuel Tech generates revenue through the sale of its proprietary technologies and services, which include system designs, installation, and ongoing support for its air pollution control solutions. Key revenue streams include the sale of NOx reduction systems, fuel additives, and consulting services. The company also earns revenue from long-term contracts for maintenance and operational support, which provide a steady income stream. Significant partnerships with industrial clients, especially in the power generation sector, enhance Fuel Tech's market presence and contribute to its earnings by providing access to larger projects and contracts focused on compliance with environmental regulations.
Fuel Tech Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced perspective with notable achievements in financial positioning and growth prospects in emerging technologies, particularly in AI data centers. However, this was offset by challenges such as a decline in revenue, increased operating loss, and reduced revenue guidance, leading to an overall neutral sentiment.Q2-2025 Updates
Positive Updates
Strong Financial Position
Fuel Tech ended the quarter with nearly $31 million in cash, cash equivalents, and investments, and no long-term debt.
Optimistic Growth in APC and FUEL CHEM
Expecting $2.5 million to $3 million in new APC awards by the end of August, and FUEL CHEM segment is on track to achieve $15 million to $16 million in revenue for 2025.
Increase in Gross Margin
Consolidated gross margin rose to 46% from 42% in the previous year, driven by segment contribution mix.
Dissolved Gas Infusion Technology Demonstration
Commenced an extended demonstration at a fish hatchery in the Western U.S., expected to last until 2026.
Strong Pipeline in AI Data Centers
Significant bid pipeline for APC emissions control solutions driven by AI and data center infrastructure, approximating $100 million.
Negative Updates
Decline in Quarterly Revenue
Revenue decreased to $5.6 million from $7 million in the prior year, primarily due to lower APC segment revenue.
Operating Loss
Operating loss increased to $1.3 million from $715,000 in the prior year period.
Reduced Revenue Guidance
2025 revenue guidance reduced from $30 million to a range of $28 million to $29 million due to uncertainty in APC awards timing.
Challenges in Mexico
Despite potential opportunities, there is ongoing uncertainty and delay in environmental policy implementation in Mexico.
Company Guidance
In the Fuel Tech Inc. 2025 Second Quarter Financial Results Conference Call, the company provided several key metrics and guidance for the year. The company’s second-quarter revenues declined to $5.6 million from $7 million in the previous year, primarily due to lower APC segment revenues, which fell to $2.5 million from $3.9 million. The FUEL CHEM segment, however, remained flat at $3.1 million. Fuel Tech reported a consolidated gross margin increase to 46% from 42%, with the FUEL CHEM segment gross margin slightly rising to 47%. The company ended the quarter with cash, cash equivalents, and investments totaling nearly $31 million and no long-term debt. Looking forward, the company expects its FUEL CHEM revenues to reach $15 million to $16 million for 2025 and anticipates recognizing approximately $5 million of its $7.8 million backlog over the next 12 months. Fuel Tech reduced its overall revenue guidance for 2025 to a range of $28 million to $29 million, citing uncertainties in the timing of APC awards. However, they expressed optimism about significant opportunities in the AI-related data center infrastructure, with a pipeline of approximately $100 million in bids outstanding for their APC emissions control solutions.Fuel Tech Financial Statement Overview
Summary
Fuel Tech faces significant financial challenges, with declining revenues and persistent profitability issues. Despite a strong balance sheet with low leverage, negative cash flows and ongoing losses indicate operational difficulties. Stability in gross margins offers some hope, but a strategic turnaround is essential.Income Statement
Fuel Tech has faced declining revenue over the years, with a recent drop from $27.1M in 2023 to $25.1M in 2024. The gross profit margin showed stability at around 42%, but the company has consistently reported negative EBIT and net income, indicating profitability challenges. The net profit margin was -7.7% in 2024, reflecting ongoing losses.45
Neutral
Balance Sheet
The company maintains a strong equity position, with a high equity ratio of approximately 86%. However, the debt-to-equity ratio remains low at 0.01, indicating minimal leverage. Despite a solid asset base, the company has faced declining equity over the years.60
Neutral
Cash Flow
Fuel Tech's cash flow performance has been weak, with negative operating cash flow in 2024 at -$3.4M. The free cash flow has also been negative, dropping from $0.28M in 2023 to -$3.4M in 2024. The operating cash flow to net income ratio suggests cash generation issues relative to net income.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.07M | 25.13M | 27.08M | 26.94M | 24.26M | 22.55M |
| Gross Profit | 10.96M | 10.62M | 11.66M | 11.64M | 11.90M | 10.64M |
| EBITDA | -3.13M | -1.41M | -1.11M | -931.00K | -748.00K | -3.37M |
| Net Income | -3.23M | -1.94M | -1.54M | -1.44M | 54.00K | -4.28M |
Balance Sheet | ||||||
| Total Assets | 47.00M | 48.80M | 50.39M | 50.12M | 49.97M | 30.09M |
| Cash, Cash Equivalents and Short-Term Investments | 23.01M | 18.69M | 29.71M | 26.31M | 35.89M | 10.64M |
| Total Debt | 696.00K | 625.00K | 614.00K | 191.00K | 235.00K | 1.94M |
| Total Liabilities | 6.42M | 6.84M | 6.67M | 5.25M | 3.77M | 7.77M |
| Stockholders Equity | 40.59M | 41.95M | 43.71M | 44.88M | 46.20M | 22.32M |
Cash Flow | ||||||
| Free Cash Flow | 544.00K | -3.81M | 278.00K | -4.34M | 677.00K | -2.95M |
| Operating Cash Flow | 718.00K | -3.43M | 696.00K | -4.14M | 761.00K | -2.71M |
| Investing Cash Flow | -432.00K | -5.44M | -6.44M | -9.48M | -84.00K | -247.00K |
| Financing Cash Flow | -222.00K | -95.00K | 42.00K | -17.00K | 23.98M | 1.28M |
Fuel Tech Technical Analysis
Positive
2.92
Price Trends
2.73
Positive
2.03
Positive
1.52
Positive
Market Momentum
0.07
Negative
53.91
Neutral
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Positive. The current price of 2.92 is above the 20-day moving average (MA) of 2.88, above the 50-day MA of 2.73, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTEK.
Fuel Tech Risk Analysis
Fuel Tech disclosed 21 risk factors in its most recent earnings report. Fuel Tech reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fuel Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.36M | 14.30 | 4.68% | ― | -14.25% | -59.84% | |
64 Neutral | $10.85B | 16.20 | 8.89% | 1.97% | 2.67% | -15.04% | |
54 Neutral | $30.63M | ― | -46.19% | ― | 19.03% | 11.70% | |
53 Neutral | $90.74M | ― | -7.69% | ― | -4.78% | -1359.72% | |
47 Neutral | $18.85M | ― | -78.97% | ― | -12.76% | 15.23% | |
41 Neutral | $16.77M | ― | -94.24% | ― | -12.72% | -36.80% | |
39 Underperform | $53.93M | ― | -160.82% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
FTEK
Fuel Tech
2.92
1.93
194.95%
CLWT
Euro Tech Holdings Company
1.28
-0.17
-11.72%
CLIR
ClearSign Combustion
0.58
-0.13
-18.31%
LIQT
LiqTech International
1.96
-0.78
-28.47%
SCWO
374Water
0.36
-0.77
-68.14%
TOMZ
TOMI Environmental Solutions
0.82
0.00
0.00%
Fuel Tech Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Fuel Tech Releases Updated Corporate Presentation
Neutral
May 22, 2025
Fuel Tech, Inc. announced that it will post an updated corporate presentation on its website, dated May 21, 2025. This presentation is part of a regulatory filing and is not subject to certain liabilities, indicating a strategic move to update stakeholders on the company’s current status and future plans.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.