Fuel Tech(US:FTEK)2026-03-03 21:31Revenue Growth - In 2025, the company achieved revenue growth of over $1.5 million compared to 2024, maintaining momentum through successful order fulfillment and R&D investments[97] - Revenues for the year ended December 31, 2025, were $26,677 million, a year-over-year increase of $1,544 million or 6% compared to 2024[126] - U.S. revenues increased by $3,220 million, or 18%, from $17,802 million in 2024 to $21,022 million in 2025, while international revenues decreased by $1,676 million, or 23%[126] - The FUEL CHEM technology segment revenues increased by $3,878 million, or 28%, to $17,769 million in 2025, driven by renewed orders and new customer acquisition[128] - The APC technology segment revenues decreased by $2,334 million, or 21%, to $8,908 million in 2025, primarily due to project execution timing and customer-driven delays[127] Segment Performance - The FUEL CHEM segment experienced revenue growth driven by increased order regularity from legacy customers and a new commercial program, contributing to improved performance in 2025[100] - The APC business segment saw a decline in revenues and operating profits in 2025 due to customer-driven project delays, with a consolidated backlog of $7,047 thousand at year-end[101] Financial Condition - Cash and cash equivalents at December 31, 2025, were $11,939 million, an increase from $8,510 million at December 31, 2024[136] - Operating activities provided cash of $3,016 million for the year ended December 31, 2025, primarily due to a decrease in accounts receivable[137] - The outstanding standby letters of credit totaled approximately $2,437 million at December 31, 2025, with no financial covenants in the Investment Collateral Security agreement[144] Research and Development - Research and development expenses rose to $2,014 million in 2025 from $1,564 million in 2024, focusing on new product development and water treatment technologies[131] Market Outlook - The company anticipates continued demand for its products driven by increased electricity demand in emerging markets and industries reliant on electric power, despite a market shift towards alternative power generation[99] Impairment and Valuation - The company performed its annual goodwill impairment analysis for the FUEL CHEM reporting unit and determined no impairment existed as of October 1, 2025[119] - Deferred tax assets had a valuation allowance of $14,761 thousand at December 31, 2025, compared to $13,697 thousand in 2024, indicating a review of realizability[122] Cost and Inflation - Inflationary pressures for materials and labor, along with long lead times for equipment components, are being monitored, which could adversely affect business results and financial condition[102] Capital Expenditures - The Company expects capital expenditures in 2026 to be funded with cash from operations or cash on hand[142] Gross Margin - Consolidated gross margin improved to 46% in 2025 from 42% in 2024, with the FUEL CHEM segment gross margin increasing to 48%[129]