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 Q4 2025 rose to 45% from 42% in the previous year, while full year gross margin increased to 46% from 42% in 2024 [23][27] - 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 [25][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 - APC segment revenues increased 37% to $2.4 million in Q4 2025, primarily due to project completion timing [23] - FUEL CHEM segment had a strong quarter with a 37% revenue increase to $4.9 million, benefiting from legacy portfolio contributions and a new demonstration program [23][24] - APC segment backlog at year-end 2025 was $7 million, up from $6.2 million at the end of 2024, indicating a positive trend in project awards [24] Market Data and Key Metrics Changes - The company secured $8.8 million in APC awards during 2025 from new and existing customers across the U.S., Europe, and Southeast Asia [8] - The near-term sales pipeline for APC contracts, excluding data center opportunities, is estimated to be between $3 million and $5 million [8] - The sales pipeline for data center opportunities is strong, approximating $75 million to $100 million for projects integrating SCR technology [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, which is expected to continue performing well [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in 2026, expecting revenues to exceed 2025 levels, with FUEL CHEM approximating 2025 revenues and APC exceeding 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] - Management highlighted the importance of the data center opportunity as a significant growth driver for the future [10][12] 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][30] - SG&A expenses as a percentage of revenue decreased to 57% in Q4 2025 from 75% in the prior year, reflecting higher consolidated revenue [25] 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 [36][38] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent rollbacks but emphasized that they do not affect nitrogen oxide reduction opportunities [40][41] Question: Potential customers in FUEL CHEM - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44][46] Question: Outlook for DGI revenues - Management expects to recognize small revenue from a rental contract and hopes for a system sale by the end of 2026, which would support further commercialization efforts [51][53] 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 [62]