Core Insights - Fuel Tech reported a GAAP revenue shortfall of $5.6 million in Q2 2025, primarily due to delayed project execution in the Air Pollution Control (APC) segment, despite a GAAP EPS loss of $(0.02) beating consensus projections of $(0.03) [1][5][7] Financial Performance - Q2 2025 GAAP revenue was $5.6 million, down from $7.0 million in Q2 2024, representing a year-over-year decline of 20.9% [2][5] - GAAP gross margin improved to 45.5% in Q2 2025 from 41.9% in Q2 2024, with APC margin increasing to 43.9% and FUEL CHEM margin growing to 46.8% [6] - The company reported a GAAP net loss of $(689,000) for Q2 2025, wider than the previous year, and an adjusted EBITDA loss of $(0.9) million [7][10] Business Segments - The APC segment saw sales drop from $3.9 million to $2.5 million due to delayed customer contract execution, while FUEL CHEM segment revenue was $3.1 million [5][6] - The APC project backlog decreased from $10.3 million in Q1 2025 to $7.8 million in Q2 2025, but management expects new projects worth $2.5–$3.0 million to close by the end of August 2025 [7][8] Strategic Focus - Fuel Tech is focused on regulatory compliance, expanding its patent portfolio, and entering new markets such as data centers and water treatment facilities [3][4] - The company is developing its TIFI Targeted In-Furnace Injection system and advancing its water treatment initiative with Dissolved Gas Infusion technology [9] Future Outlook - Management did not provide formal guidance but expects improved performance in the second half of fiscal 2025, with anticipated revenue growth in the FUEL CHEM segment [10] - Key factors to monitor include the conversion of APC bookings, DGI demonstrations to commercial installations, and cost management amid revenue pressures [10][11]