Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $52.21M
• Dividend Yield: N/A
• Average Volume (3M): 326.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -5.66%
• EPS Growth: -397.46%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 31,074,438
• 10 Day Avg. Volume: 216,379
• 30 Day Avg. Volume: 326,679
• PEG Ratio: -0.65
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -8.42
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: -17.97
• 1Y Price Target: $4.00
• Price Target Upside: 148.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.00 ▲(24.22% Upside)

Fuel Tech's overall stock score reflects significant financial challenges and weak technical indicators. The company's strong financial position and strategic initiatives provide some optimism, but ongoing profitability issues and valuation concerns weigh heavily on the score.

Positive Factors

Strong Financial Position

Fuel Tech's strong financial position with significant cash reserves and no long-term debt provides stability and flexibility for future investments and strategic initiatives.

FUEL CHEM Segment Growth

Growth in the FUEL CHEM segment indicates strong demand for Fuel Tech's solutions, supporting long-term revenue expansion and market penetration.

Strategic Acquisition

The acquisition of Wahlco's assets strengthens Fuel Tech's product offerings and competitive position in the APC market, potentially driving future growth.

Negative Factors

Decline in Consolidated Revenues

A decline in consolidated revenues highlights challenges in maintaining growth across segments, which could impact overall financial performance if not addressed.

APC Segment Revenue Decline

The decline in APC segment revenue due to project timing issues suggests potential volatility in this revenue stream, affecting predictability and stability.

Negative Cash Flow

Negative cash flow indicates operational challenges and could constrain Fuel Tech's ability to invest in growth opportunities or weather financial downturns.

Fuel Tech Business Overview & Revenue Model

Company Description

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through two segments, Air Pollution Control Technology and FUEL CHEM Technology. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources by low and ultra-low NOx burners; over-fire air systems; NOxOUT and HERT selective non-catalytic reduction systems; selective catalytic reduction systems comprising ammonia injection grid, and graduated straightening grid systems; I-NOx systems; ESP Processes and Services; ULTRA technology; and flue gas conditioning systems; and burner systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, and university and district heating markets; and the owners of boilers, furnaces, and other combustion units. The company was incorporated in 1987 and is headquartered in Warrenville, Illinois.

How the Company Makes Money

Fuel Tech generates revenue through a combination of product sales, service contracts, and ongoing maintenance agreements. The key revenue streams include the sale of its patented technologies for NOx reduction and other emissions control solutions, which are often sold to power generation facilities and industrial operators. Additionally, Fuel Tech provides consulting and engineering services related to the implementation of its products, which further contributes to its earnings. The company also engages in strategic partnerships with industry players and regulatory agencies, allowing it to expand its market reach and enhance its product offerings. Significant factors contributing to its earnings include the increasing global focus on environmental regulations and the demand for cleaner energy solutions.

Fuel Tech Financial Statement Overview

Summary

Fuel Tech is experiencing financial challenges with declining revenues and persistent profitability issues. Despite a strong balance sheet with low leverage, negative cash flows and ongoing losses highlight operational difficulties. Stability in gross margins provides some hope, but a strategic turnaround is necessary.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.71M	25.13M	27.08M	26.94M	24.26M	22.55M
Gross Profit	11.38M	10.62M	11.66M	11.64M	11.90M	10.64M
EBITDA	-3.09M	-1.41M	-1.11M	-931.00K	828.00K	-3.37M
Net Income	-3.01M	-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet
Total Assets	47.91M	48.80M	50.39M	50.12M	49.97M	30.09M
Cash, Cash Equivalents and Short-Term Investments	25.86M	18.69M	29.71M	26.31M	35.89M	10.64M
Total Debt	601.00K	625.00K	614.00K	191.00K	235.00K	1.94M
Total Liabilities	6.90M	6.84M	6.67M	5.28M	3.77M	7.77M
Stockholders Equity	41.01M	41.95M	43.71M	44.84M	46.20M	22.32M
Cash Flow
Free Cash Flow	2.68M	-3.81M	278.00K	-4.34M	677.00K	-2.95M
Operating Cash Flow	2.94M	-3.43M	696.00K	-4.14M	761.00K	-2.71M
Investing Cash Flow	-1.29M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 1.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Negative. The current price of 1.61 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 2.15, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEK.

Fuel Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$9.29M	13.13	―	―	-14.25%	-59.84%
FTEK	51 Neutral	$52.21M	-16.43	-7.10%	―	-5.66%	-397.46%
CLIR	48 Neutral	$30.90M	-5.15	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$16.37M	-1.59	-73.79%	―	10.97%	44.99%
TOMZ	43 Neutral	$15.92M	-3.07	-108.76%	―	-30.61%	-111.40%
SCWO	39 Underperform	$40.32M	-1.90	-232.63%	―	―	―

Fuel Tech Corporate Events

Fuel Tech Approves 2026 Sales Commission Plans

On December 11, 2025, Fuel Tech‘s Compensation Committee approved the 2026 APC and FUEL CHEM Officer Sales Commission Plans. These plans aim to incentivize the Senior Vice President, Sales, and the National Sales Manager by offering commissions based on sales in the APC product line and net revenue from customer units in the U.S. and Canada. This initiative is designed to boost revenue and profitability, potentially strengthening Fuel Tech’s market position in the environmental technology sector.