Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 rose 37% to $7.2 million from $5.3 million in the prior year period, driven by growth in both APC and FUEL CHEM segments [23] - Full year 2025 consolidated revenue increased 6% to $26.7 million, with FUEL CHEM segment revenue rising 28% to $17.8 million [26] - Consolidated gross margin for 2025 rose to 46% from 42% in 2024, with higher margins for both FUEL CHEM and APC segments [27] Business Line Data and Key Metrics Changes - APC segment revenues increased 37% to $2.4 million in Q4 2025, primarily due to project completion timing [23] - FUEL CHEM segment generated a 37% increase in revenue to $4.9 million in Q4 2025, reflecting contributions from legacy portfolio and a new demonstration program [23] - APC segment backlog at the end of 2025 was $7 million, up from $6.2 million at the end of 2024 [24] Market Data and Key Metrics Changes - The company secured $8.8 million in APC awards during 2025 from new and existing customers in the U.S., Europe, and Southeast Asia [8] - The sales pipeline for data center opportunities is estimated at $75 million-$100 million, indicating strong demand for emissions control solutions [10] Company Strategy and Development Direction - The company is focusing on expanding its air pollution control business, particularly in data center development and construction [5] - A strategic acquisition of Wahlco, Inc. has strengthened the company's technology portfolio and broadened its customer base [9] - The company aims to convert demonstration programs into commercial contracts, particularly in the FUEL CHEM segment [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue growth in 2026, expecting FUEL CHEM to maintain 2025 revenue levels and APC to exceed 2025 performance [22] - The regulatory environment is evolving, with potential rollbacks of certain regulations that could extend the life of coal and natural gas-fired units, which may benefit the company [14][15] Other Important Information - The company maintained a strong financial position with cash and investments of nearly $32 million at year-end and no debt [5] - Operating loss narrowed to $3.7 million for 2025, compared to a loss of $4.7 million in 2024, reflecting higher segment revenues [29] Q&A Session Summary Question: Data center opportunity and reliance on integrators - Management indicated that they are not yet specifically designed in with operators but are establishing themselves as trusted partners for pollution control systems [36] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent regulatory rollbacks but emphasized that these do not affect opportunities related to nitrogen oxide reduction [41] Question: Potential customers in FUEL CHEM segment - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44] Question: Revenue expectations from DGI - Management expects to recognize small revenue from DGI rentals and hopes for a system sale by the end of 2026, which would help in further commercializing DGI [52]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 rose 37% to $7.2 million from $5.3 million in the prior year period, driven by growth in both APC and FUEL CHEM segments [24] - Full year 2025 consolidated revenue increased 6% to $26.7 million, with FUEL CHEM segment revenue rising 28% to $17.8 million [27] - Consolidated gross margin for Q4 2025 rose to 45% from 42% in the previous year, while full year gross margin increased to 46% from 42% in 2024 [24][28] - Operating loss narrowed to $1.4 million in Q4 2025 from $2.1 million in the prior year, and full year operating loss decreased to $3.7 million from $4.7 million [26][29] - Net loss for 2025 was $2.3 million or $0.08 per diluted share, compared to a net loss of $1.9 million or $0.06 per diluted share in 2024 [29] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenues for Q4 2025 increased 37% to $4.9 million from $3.5 million, reflecting contributions from legacy accounts and a new demonstration program [24][25] - APC segment revenues rose 37% to $2.4 million in Q4 2025 from $1.8 million, primarily due to project completion timing [24] - APC segment backlog at year-end 2025 was $7 million, up from $6.2 million at the end of 2024, with a mix of domestic and foreign projects [25] Market Data and Key Metrics Changes - The sales pipeline for data center opportunities is estimated at $75 million to $100 million, with expectations for commercial awards beginning in Q2 2026 [11][13] - The company secured $8.8 million in APC awards during 2025 from new and existing customers across the U.S., Europe, and Southeast Asia [9] Company Strategy and Development Direction - The company is focusing on expanding its air pollution control business, particularly in data center development and construction, and is optimistic about converting demonstration programs into commercial contracts [5][21] - A strategic acquisition of Wahlco, Inc. has strengthened the company's technology portfolio and customer base, enhancing its market position [10] - The company aims to leverage regulatory changes to extend the life of coal and natural gas-fired units, offering retrofit and maintenance solutions [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue growth in 2026, expecting FUEL CHEM revenues to approximate 2025 levels and APC revenues to exceed 2025 performance [23] - The company is actively monitoring regulatory changes and their implications for business opportunities, particularly regarding nitrogen oxide reduction [14][16] - Management highlighted the importance of establishing relationships with data center integrators and turbine suppliers to capitalize on emerging opportunities [12][62] Other Important Information - The company maintained a strong financial position with cash and investments totaling $31.9 million and no debt as of year-end 2025 [30] - SG&A expenses for 2025 increased slightly to $14.1 million, but as a percentage of revenue, they decreased to 53% from 55% in 2024 [28] Q&A Session Summary Question: Data center opportunity and competition with integrators - Management indicated that they are not yet specifically designed in with operators but are establishing themselves as trusted partners for pollution control system design [36][37] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent regulatory rollbacks but emphasized that these do not affect opportunities related to nitrogen oxide reduction [40][41] Question: Potential for additional customers in FUEL CHEM - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44][45] Question: Revenue expectations from DGI - Management expects to recognize small revenue from DGI rental contracts and is hopeful for a system sale by the end of 2026, which would support further market development [51][52] Question: Confidence in closing data center projects - Management's confidence stems from increased inquiries and the caliber of parties involved, indicating a long-term opportunity rather than a short-term one [60][62]