Mon, May 12, 8:38 PM (37 days ago)
**Fuel Tech, Inc. (FTEK) Q1 2025 Financial Summary** Fuel Tech, Inc. (FTEK) reported mixed financial results for Q1 2025, with revenue growth but a net loss. Here are the key points: **Financial Health and Performance:** - **Revenue:** Total revenue increased by 29% to $6,382,000 from $4,957,000 in Q1 2024. The FUEL CHEM segment saw a significant 92% increase in revenue, while the Air Pollution Control (APC) segment experienced a 44% decrease. - **Profit Margins:** Gross margin improved to 46% from 41% in the previous year, driven by the FUEL CHEM segment's higher sales volume and flat administrative expenses. - **Net Loss:** The company reported a net loss of $739,000, compared to a net income of $281,000 in Q1 2024. The loss was primarily due to higher operating expenses and foreign exchange losses. - **Cash Flow:** Operating activities provided $1,508,000 in cash, mainly due to a decrease in accounts receivable and non-cash adjustments. Investing activities provided $1,692,000, primarily from maturities of debt securities. **Earnings Changes and Trends:** - **Earnings per Share (EPS):** Basic and diluted EPS were both $(0.02), compared to $0.01 in Q1 2024. - **Backlog:** The consolidated APC backlog increased to $10,328,000, with a global sales pipeline in the $50-75 million range. - **Cost Control:** The company maintained flat selling, general, and administrative expenses, which decreased as a percentage of revenues due to higher sales. **Future Operations and Uncertainties:** - **Liquidity:** Fuel Tech has sufficient cash and working capital to fund operations for the next 12 months. The company expects to fund capital expenditures with cash from operations or cash on hand. - **Market Outlook:** The company is optimistic about new business opportunities and improved financial and market outlook, driven by global emissions protocols and increased segment activity. - **Risks:** The company faces risks related to foreign currency exchange rates, litigation, and other contingencies. However, management believes these risks are manageable and do not expect them to have a material impact on the business. **Segment Performance:** - **FUEL CHEM:** This segment experienced a significant increase in revenue and operating profits due to outage completions, increased dispatch, and sustained business from a new customer account. - **APC:** This segment saw a decrease in revenue due to timing of project execution and customer-driven delays. However, the company is encouraged by the depth of its business development activities and increased focus on global emissions protocols. In summary, Fuel Tech, Inc. reported a challenging quarter with a net loss but showed positive trends in revenue growth, improved gross margins, and a strong backlog. The company remains optimistic about its future prospects and expects to maintain sufficient liquidity to fund operations and invest in growth opportunities.