WARRENVILLE, Ill., March 27, 2025 (GLOBE NEWSWIRE) -- Fuel Tech, Inc. (NASDAQ: FTEK), a technology company using advanced engineering processes to provide emissions control systems and water treatment technologies in utility and industrial applications, today announced the receipt of air pollution control (APC) orders from new and existing customers in the US and Europe. These orders have an aggregate value of approximately $1.4 million.   A contract was received from a new customer in the US for an ULTRA® ...

Core Viewpoint - Fuel Tech, Inc. has announced the receipt of air pollution control orders valued at approximately $2.6 million from existing customers in the US and Japan, reflecting ongoing demand for its emissions control technologies [1][4]. Group 1: Orders and Contracts - A significant order from Japan involves an ULTRA® system for a natural gas-fired Combined Cycle utility plant, marking the fourth on-site unit for this customer and a follow-on from a 2017 contract [2]. - A domestic order has been received for advanced engineering services from a municipal waste unit customer in the Northeast, aimed at implementing an Advanced Selective Non-Catalytic Reduction (ASNCR) system [3]. - The company anticipates closing additional contracts worth $4 to $5 million by early in the second quarter of 2025, indicating a strong pipeline of opportunities [4]. Group 2: Technology and Services - Fuel Tech specializes in advanced engineering processes for emissions control and water treatment, with a focus on nitrogen oxide (NOx) reduction and particulate control technologies [5]. - The ULTRA process allows for the safe on-site conversion of urea to ammonia, enhancing energy efficiency and reducing hazards associated with ammonia transport and storage [2]. - The company's FUEL CHEM® technology improves combustion unit performance by addressing issues like slagging, fouling, and corrosion, while its water treatment technologies target various environmental applications [5].

Financial Data and Key Metrics Changes - Consolidated revenues for 2024 were $25.1 million, at the lower end of the guidance range of $25 million to $26 million, reflecting a 17% decrease in total APC segment revenue, partially offset by a 2% increase in FUEL CHEM revenue [7][32] - Consolidated gross margin for 2024 marginally decreased to 42% from 43% in the previous year, with a decline in both APC and FUEL CHEM gross margins [33] - Net loss for 2024 was $1.9 million or $0.06 per diluted share, compared to a net loss of $1.5 million or $0.05 per diluted share in 2023 [35] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenue was essentially unchanged at $3.5 million, while APC segment revenue declined to $1.8 million from $2.8 million due to project execution timing [27][32] - APC gross margin declined to 36% from 55%, primarily due to product mix and lower segment revenue, while FUEL CHEM gross margin declined to 45% from 48% [28] Market Data and Key Metrics Changes - Consolidated APC segment backlog at December 31, 2024, was $6.2 million compared to $7.5 million at the end of 2023, with expectations for backlog to improve steadily through the first half of 2025 [28][29] - The company is pursuing opportunities in the municipal solid waste market driven by state-specific regulatory requirements, with potential awards expected in the near term [14] Company Strategy and Development Direction - The company is optimistic about exceeding $30 million in total revenues for 2025, with expectations that both business segments will outperform their 2024 performance [24][25] - The company is focusing on the commercialization of its DGI technology and pursuing multiple end markets, including aquaculture, wastewater treatment, and others [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed renewed optimism for 2025, citing improved performance in the FUEL CHEM business segment and a strong portfolio of APC business opportunities [9][14] - The company does not expect specific regulatory tailwinds from new regulations but is monitoring the status of existing regulations that could impact future NOx regulations for clients [16][20] Other Important Information - The company ended 2024 with cash, cash equivalents, and investments of approximately $30 million and no long-term debt, maintaining a strong financial position [8][36] - SG&A expenses increased to $13.8 million in 2024, reflecting higher employee-related costs, with expectations for a modest increase in 2025 [33] Q&A Session Summary Question: Outlook for 2025 revenues - Management confirmed that the $30 million revenue outlook includes expected contributions from new APC orders and some contributions from FUEL CHEM accounts [43][44] Question: Gross margin expectations - Management expects a return to historical gross margin levels for FUEL CHEM in the range of 49% to 50% for 2025, while APC margins are expected to remain in the 35% to 38% range [53][55] Question: Data center opportunities - Management highlighted that data centers are increasingly requiring nitrogen oxide controls due to regulatory requirements, and the company is actively bidding on related projects [86][126] Question: Potential for M&A or stock buybacks - Management is exploring small acquisition opportunities and licensing technologies that could benefit the company, while stock buyback discussions are ongoing [114][116]

Fuel Tech, Inc. (NASDAQ:FTEK) Q4 2024 Earnings Conference Call March 5, 2025 10:00 AM ET Company Participants Devin Sullivan - Managing Director, The Equity Group Vince Arnone - Chairman, President & Chief Executive Officer Ellen Albrecht - Chief Financial Officer Conference Call Participants Sameer Joshi - H.C. Wainwright Marc Silk - Silk Investment William Bremer - Vanquish Capital Markets Operator Greetings, and welcome to the Fuel Tech 2024 Fourth Quarter Financial Results Conference Call and Webcast. A ...

Revenue Performance - In 2024, the Company experienced revenue growth in the FUEL CHEM segment, driven by the return of previously dormant customers and a new commercial program, although specific revenue figures were not disclosed[102]. - Revenues for the year ended December 31, 2024, were $25,133 million, a decrease of $1,948 million or 7% compared to 2023[132]. - U.S. revenues decreased by $3,595 million or 17%, from $21,397 million in 2023 to $17,802 million in 2024, while international revenues increased by $1,647 million or 29%[132]. - The APC technology segment revenues were $11,242 million, a decrease of $2,241 million or 17% compared to 2023, primarily due to project execution timing and customer delays[133]. - The FUEL CHEM technology segment revenues increased to $13,891 million, an increase of $293 million or 2% compared to 2023, driven by renewed orders and new customer acquisition[134]. - Total revenues for the year ended December 31, 2024, were $25,133 million, a decrease of 7.2% from $27,081 million in 2023[248]. - Air Pollution Control technology segment revenues decreased from $13,483 million in 2023 to $11,242 million in 2024, a decline of 16.6%[248]. - FUEL CHEM technology solutions revenues increased slightly from $13,598 million in 2023 to $13,891 million in 2024, a growth of 2.1%[248]. Financial Position - The Company maintains a valuation allowance on deferred tax assets of $13,697,000 and $15,699,000 at December 31, 2024 and 2023, respectively[125]. - Cash and cash equivalents at December 31, 2024, were $8,510 million, down from $17,578 million at the end of 2023[141]. - Total current assets decreased from $38,321,000 in 2023 to $29,619,000 in 2024, a decline of approximately 22.8%[166]. - Total liabilities rose from $6,674,000 in 2023 to $6,842,000 in 2024, an increase of about 2.5%[166]. - Stockholders' equity decreased from $43,714,000 in 2023 to $41,955,000 in 2024, a decline of approximately 4.0%[166]. - The Company’s total assets decreased from $50,388,000 in 2023 to $48,797,000 in 2024, a decline of about 3.2%[166]. - The accumulated deficit increased from $117,529,000 in 2023 to $119,472,000 in 2024, reflecting a worsening financial position[166]. Expenses and Losses - Selling, general and administrative expenses increased by $958 million or 7% to $13,761 million in 2024, attributed to higher employee-related costs and professional services[136]. - Research and development expenses were $1,564 million in 2024, focusing on new product development and innovative technologies like DGI® Dissolved Gas Infusion Systems[137]. - The net loss for the year ended December 31, 2024, was $1,943 million, compared to a net loss of $1,538 million in 2023[131]. - The net loss for the year ended December 31, 2024, was $1.94 million, compared to a net loss of $1.54 million in 2023, reflecting an increase in losses of approximately 25.8%[170]. - The company reported a total comprehensive loss of $2.11 million for 2024, compared to a total comprehensive loss of $1.56 million in 2023, marking an increase of approximately 35.3%[170]. Cash Flow and Investments - The company experienced a net cash used in operating activities of $3,433,000 in 2024, a significant decline from net cash provided of $696,000 in 2023[174]. - The company reported a net cash used in investing activities of $5,443,000 in 2024, a decrease from $6,444,000 in 2023, indicating improved cash management in investment[174]. - The company invested $18,060,000 in debt securities in 2024, compared to $14,026,000 in 2023, reflecting a 28.8% increase in investment activities[174]. - Fuel Tech's held-to-maturity debt securities increased in amortized cost from $15,800,000 in 2023 to $21,059,000 in 2024, representing a 33.3% increase[192]. Tax and Deferred Assets - The Company recorded a deferred tax asset of $2,233 related to research and experimental expenditures for the year ending December 31, 2024[260]. - The net operating loss carryforwards available to offset future U.S. taxable income amounted to approximately $27,054 as of December 31, 2024[272]. - The income tax expense for 2024 was $77, compared to $69 in 2023, reflecting a slight increase in tax obligations[263]. - Unrecognized tax benefits increased to $470 as of December 31, 2024, from $326 in 2023, which may impact future effective tax rates if recognized[268]. Stock and Compensation - Common stock issued increased to 31,767,329 shares as of December 31, 2024, from 31,361,303 shares in 2023[275]. - Stock-based compensation for the year ended December 31, 2024 was $446 million, an increase from $389 million in 2023[285]. - The company granted 1,040,200 restricted stock units in 2024, with a weighted average grant date fair value of $1.26[296]. - As of December 31, 2024, there was $1,024 million of total unrecognized compensation cost related to all non-vested share-based compensation arrangements, expected to be recognized over 1.2 years[295].

Financial Performance - Consolidated revenues for full year 2024 were $25.1 million, down from $27.1 million in 2023, primarily due to lower APC revenues[11] - Q4 2024 consolidated revenues declined to $5.3 million from $6.3 million in Q4 2023, reflecting lower APC segment revenues[6] - Net loss for 2024 was $(1.9) million, or $(0.06) per share, compared to a net loss of $(1.5) million, or $(0.05) per share, in 2023[13] - Total revenues for the year ended December 31, 2024, were $25,133,000, a decrease of 7.1% from $27,081,000 in 2023[30] - Revenues from external customers in the United States for 2024 were $17,802,000, down from $21,397,000 in 2023, a decrease of 16.5%[33] - The company reported a comprehensive loss of $2,110,000 for the year ended December 31, 2024, compared to a comprehensive loss of $1,558,000 in 2023, an increase of 35.4%[26] - Operating income (loss) from continuing operations for the year ended December 31, 2024, was $(4,702,000), compared to $(2,658,000) in 2023, indicating a worsening of 76.7%[30] Margins and Expenses - Consolidated gross margin for 2024 was 42.3%, slightly down from 43.0% in 2023[11] - SG&A expenses for 2024 increased to $13.8 million, or 54.8% of revenues, from $12.8 million, or 47.3% of revenues, in 2023[12] - Gross margin for the year ended December 31, 2024, was $10,623,000, down from $11,656,000 in 2023, indicating a decline of 8.9%[30] - FUEL CHEM segment revenue remained steady at $3.5 million in Q4 2024, with a gross margin decline to 45.5% from 48.0% in Q4 2023[9] - APC segment revenue decreased to $1.8 million in Q4 2024 from $2.8 million in Q4 2023, with gross margin declining to 35.9% from 55.0%[8] Cash and Investments - The company has approximately $30 million in cash and investments and no long-term debt as of year-end 2024[3] - Cash and cash equivalents at the end of the period decreased to $8,510,000 in 2024 from $17,578,000 in 2023, a decline of 51.6%[28] - The company incurred $18,060,000 in purchases of debt securities in 2024, compared to $14,026,000 in 2023, an increase of 28.8%[28] Future Outlook - The company expects to sign new contracts valued between $4 million and $5 million in early Q2 2025[4] - The company is pursuing growth in its DGI technology, with hopes to generate first commercial revenues in 2025[5] - Adjusted EBITDA for the year ended December 31, 2024, was $(2,211,000), compared to $(2,017,000) in 2023, reflecting a deterioration of 9.6%[34] Assets - Total assets as of December 31, 2024, were $48,797,000, a decrease from $50,388,000 in 2023, reflecting a decline of 3.2%[33]

Core Viewpoint - Fuel Tech, Inc. reported financial results for Q4 and full year 2024, indicating challenges in revenue generation primarily due to delayed project execution and lower performance in the Air Pollution Control (APC) segment, while the FUEL CHEM segment showed resilience and potential for growth in 2025 [2][3][9]. Financial Performance - Consolidated revenues for Q4 2024 were $5.3 million, down from $6.3 million in Q4 2023, mainly due to lower APC segment revenues [5]. - For the full year 2024, consolidated revenues decreased to $25.1 million from $27.1 million in 2023, driven by lower APC revenues but partially offset by an increase in FUEL CHEM revenues [9][10]. - The net loss for Q4 2024 was $(1.9) million, or $(0.06) per share, compared to a net loss of $(539,000), or $(0.02) per share, in Q4 2023 [6][10]. - The company ended 2024 with approximately $30 million in cash and investments and no long-term debt [2][11]. Segment Performance - The APC segment revenue for Q4 2024 was $1.8 million, down from $2.8 million in Q4 2023, with a gross margin decline to 35.9% from 55.0% [7]. - The FUEL CHEM segment revenue remained steady at $3.5 million, with a gross margin decline to 45.5% from 48.0% in Q4 2023 [8]. - The consolidated gross margin for Q4 2024 was 42.3%, down from 51.1% in Q4 2023, reflecting decreases in both APC and FUEL CHEM gross margins [5]. Future Outlook - The company anticipates improved performance in the FUEL CHEM segment in 2025, driven by normalized chemical program utilization and new commercial programs [3]. - Fuel Tech is pursuing new opportunities in emissions control solutions for data centers and municipal waste combustion units, driven by regulatory requirements [4][3]. - The company plans to showcase its Dissolved Gas Infusion (DGI) technology at Aquaculture 2025, with hopes of generating commercial revenues in 2025 [4]. Geographic Performance - For the year ended December 31, 2024, revenues from the United States were $17.8 million, down from $21.4 million in 2023, while foreign revenues increased to $7.3 million from $5.7 million [33].

Company Overview - Fuel Tech, Inc. is a technology company specializing in emissions control systems and water treatment technologies for utility and industrial applications [3] - The company is recognized for its advanced engineering processes and has installed solutions on over 1,300 utility, industrial, and municipal units globally [3] - Fuel Tech's proprietary technologies include nitrogen oxide (NOx) reduction and particulate control, as well as water treatment solutions like Dissolved Gas Infusion Systems [3] Financial Results Announcement - Fuel Tech will release its financial results for the fourth quarter and full year ended December 31, 2024, on March 4, 2025, after the stock market closes [1] - A conference call to discuss these results and business activities is scheduled for March 5, 2025, at 10:00 am ET [2] Technology and Services - The company's FUEL CHEM technology enhances the efficiency and environmental performance of combustion units by addressing issues like slagging, fouling, corrosion, and opacity [3] - Fuel Tech's water treatment technologies are designed for various applications, including remediation, aeration, biological treatment, and wastewater odor management [3] - The company leverages exceptional Computational Fluid Dynamics modeling capabilities, supported by high-end visualization software, to develop its products and services [3]

Core Viewpoint - Fuel Tech, Inc. has announced new air pollution control (APC) orders valued at approximately $1.6 million and expects to secure additional contracts worth between $4 million and $5 million in the near future [1][4]. Group 1: Recent Orders and Contracts - The company received a contract for an ULTRA system to be installed on a natural gas turbine at a university in the Midwest, with delivery expected in the second quarter of 2026 [2]. - An order was placed for advanced engineering services from a municipal waste unit customer as a preliminary step towards an Advanced Selective Non-Catalytic Reduction (ASNCR) system [3]. - Additional orders were received for site services from a medical facility in the Northeast and for parts related to recent SCR and ULTRA projects, with completion scheduled for the first quarter of 2025 [3]. Group 2: Company Growth and Market Position - The President and CEO of Fuel Tech expressed satisfaction with the recent contract awards, indicating continued growth to meet the needs of various industrial customers [4]. - The company is actively pursuing multiple APC contracts that are expected to be awarded soon, reflecting a strong sales pipeline [4]. - Fuel Tech is positioned as a leader in nitrogen oxide (NOx) reduction and particulate control technologies, with over 1,300 installations worldwide [5]. Group 3: Technology and Services - Fuel Tech develops proprietary technologies for air pollution control, process optimization, and water treatment, enabling cost-effective and environmentally sustainable operations [5]. - The company's FUEL CHEM technology enhances the efficiency and environmental status of combustion units by managing slagging, fouling, corrosion, and opacity [5]. - Water treatment technologies include Dissolved Gas Infusion Systems, which address various applications in the water and wastewater industries [5].

Core Insights - Fuel Tech, Inc. will showcase its DGI® Dissolved Gas Infusion technology at Aquaculture 2025 in New Orleans from March 6-10, 2025, highlighting its commitment to the aquaculture industry [1][3] - The Triennial event is the largest aquaculture conference globally, attracting nearly 4,000 attendees from over 90 countries, indicating significant industry interest and participation [2] - DGI technology is designed to enhance dissolved oxygen or carbon dioxide transfer efficiency, providing a cost-effective solution for water and wastewater treatment across various sectors, including aquaculture [3][4] Company Overview - Fuel Tech specializes in advanced engineering processes for emissions control systems and water treatment technologies, aiming for cost-effective and environmentally sustainable operations [5] - The company has installed its solutions in over 1,300 utility, industrial, and municipal units worldwide, establishing itself as a leader in nitrogen oxide (NOx) reduction and particulate control technologies [5] - DGI technology utilizes a patented saturator and a patent-pending channel injector to deliver supersaturated oxygen solutions, applicable in multiple industries, including aquaculture, municipal and industrial wastewater, and food and beverage [5][4] Industry Context - The Triennial event combines annual meetings of major aquaculture organizations, showcasing the importance of collaboration and knowledge sharing within the industry [2] - DGI technology has been successfully utilized in aquaculture settings, demonstrating its potential to significantly increase total production compared to traditional aeration methods [8] - A state government agency has selected DGI for an extended demonstration at a fish hatchery in the Western U.S., expected to commence in late Q1 2025, indicating growing interest and validation of the technology [8]