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Fuel Tech (FTEK)
NASDAQ:FTEK
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Fuel Tech
(NASDAQ:FTEK)
Rating:56Neutral
Price Target:
$3.00
▲(0.00% Upside)
Positive Factors
Financial Position
The company's strong cash position, with $30.9M in cash and no debt, provides a solid financial foundation.
Market Opportunities
Order wins in the data center market are expected to be significant catalysts for growth.
Revenue Growth
Revenues for the FUEL CHEM segment grew by 93% year-over-year, indicating strong performance and demand.
Negative Factors
Revenue Guidance
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
$93.22M
Dividend YieldN/A
Average Volume (3M)459.04K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-4.78%
EPS Growth-1359.72%
CountryUS
Employees72
SectorIndustrials
Sector Strength83
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.02
Shares Outstanding31,074,438
10 Day Avg. Volume546,559
30 Day Avg. Volume459,035
Financial Highlights & Ratios
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 Cap0.60
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda-14.15
Forecast
1Y Price Target
$3.50Price Target Upside16.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Fuel Tech Business Overview & Revenue Model
Company DescriptionFuel 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 MoneyFuel Tech generates revenue primarily through the sale of its proprietary air pollution control technologies and fuel treatment chemicals. The company's key revenue streams include licensing fees for its technology solutions, sales of consumable products such as chemical additives, and service contracts for engineering and consulting services. Significant partnerships with utility operators and industrial clients contribute to its earnings, as these collaborations often lead to long-term contracts and recurring revenue from maintenance and support services. Additionally, Fuel Tech's ability to help clients achieve regulatory compliance and operational efficiencies provides a compelling value proposition that drives its sales and market presence.
Fuel Tech Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 1.35%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with a strong financial position and promising opportunities in the data center sector. However, revenue declines in the APC segment, an overall decrease in consolidated revenues, increased operating loss, and reduced revenue guidance for 2025 indicate challenges. While there are significant growth opportunities, particularly related to data centers, the current financial performance and challenges prevent a wholly positive outlook.Q2-2025 Updates
Positive Updates
Strong Financial Position
Fuel Tech maintained a strong financial position with cash, cash equivalents, and investments totaling nearly $31 million at the end of the quarter and no long-term debt.
FUEL CHEM Revenue Projections
FUEL CHEM recorded more than $2 million in revenue for July and is on track to meet its annual revenue objective of $15 million to $16 million for 2025.
Gross Margin Improvement
Consolidated gross margin for the second quarter rose to 46% from 42% in the previous year's second quarter due to segment contribution mix.
Data Center Opportunities
Fuel Tech has multiple bids outstanding for SCR technology integration with power generation sources to address emissions control requirements for data centers, with a pipeline exceeding $100 million.
Negative Updates
Decline in APC Segment Revenue
APC segment revenue declined to $2.5 million from $3.9 million in the previous year, primarily related to the timing of project execution on existing contracts.
Overall Revenue Decline
Consolidated revenues declined to $5.6 million from $7 million in the prior year's period.
Operating Loss Increase
The second quarter operating loss increased to $1.3 million compared to an operating loss of $715,000 in the prior year period.
Reduced Revenue Guidance for 2025
Revenue guidance for 2025 was reduced modestly from approximately $30 million to a range of $28 million to $29 million.
Company Guidance
During the Fuel Tech Inc. 2025 Second Quarter Financial Results Conference Call, the company provided an updated fiscal guidance, reflecting its strategic growth expectations. For the year, Fuel Tech anticipates FUEL CHEM revenues to reach between $15 million and $16 million, potentially higher with the addition of new accounts. Despite a decline in consolidated revenues to $5.6 million from $7 million compared to the prior year, the gross margin improved to 46% from 42%. The APC business is on track to announce new contracts worth $2.5 million to $3 million by the end of August, with an additional $3 million to $5 million in awards expected later this year. The company's dissolved gas infusion technology is undergoing a key demonstration, and Fuel Tech is pursuing commercial revenues in 2025. The company has adjusted its annual revenue guidance to a range of $28 million to $29 million, down from $30 million, citing uncertainties in APC contract executions. However, the outlook remains positive with a strong financial position, a cash reserve nearing $31 million, and no long-term debt. The company is particularly optimistic about opportunities in the AI-related data center sector, contributing to a robust $100 million pipeline in APC bids.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 | 11.13M | 10.62M | 11.66M | 11.64M | 11.90M | 10.64M |
| EBITDA | -3.92M | -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 | 620.00K | 625.00K | 614.00K | 191.00K | 235.00K | 1.94M |
| Total Liabilities | 6.34M | 6.84M | 6.67M | 5.25M | 3.77M | 7.77M |
| Stockholders Equity | 40.66M | 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
3.00
Price Trends
2.43
Positive
1.75
Positive
1.38
Positive
Market Momentum
0.14
Negative
62.67
Neutral
69.99
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 3 is above the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.43, and above the 200-day MA of 1.38, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 69.99 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 20 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $9.37M | 12.93 | 4.68% | ― | -14.25% | -59.84% | |
64 Neutral | $11.07B | 17.16 | 6.44% | 2.05% | 2.75% | -15.88% | |
58 Neutral | $18.56M | ― | -69.66% | ― | -17.77% | 0.86% | |
56 Neutral | $93.22M | ― | -7.69% | ― | -4.78% | -1359.72% | |
49 Neutral | $29.36M | ― | -75.96% | ― | 10.88% | 3.57% | |
42 Neutral | $20.42M | ― | -62.68% | ― | 19.09% | 3.50% | |
39 Underperform | $36.07M | ― | -110.71% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
FTEK
Fuel Tech
3.00
2.00
200.00%
CLWT
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1.23
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CLIR
ClearSign Combustion
0.56
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LIQT
LiqTech International
1.93
-0.35
-15.35%
SCWO
374Water
0.25
-0.71
-73.96%
TOMZ
TOMI Environmental Solutions
1.02
0.29
39.73%
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.
The most recent analyst rating on (FTEK) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Fuel Tech stock, see the FTEK Stock Forecast page.
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.