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EarningsQ2 2026 Earnings Report

Fuel Tech (FTEK) Q2 2026 Earnings Report

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Previous Report: Q1 2026

FTEK Q2 2026 EPS Results

Actual EPS-$0.04

Consensus EPS-$0.02

Beat/MissMissed by -$0.02

One Year Ago EPS-$0.02

FTEK Q2 2026 Revenue Results

Actual Revenue$6.49M

Expected Revenue$6.58M

Beat/MissMissed by -$93.00K

YoY Revenue Growth+16.68%

Earnings Announcement Details

QuarterQ2 2026

Date08/04/2026

TimeAfter Close

Conference CallTuesday, August 4, 2026

FTEK Upcoming Earnings

Fuel Tech's next earnings date is estimated for November 10, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

FTEK Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Aug 04, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call presents a cautiously positive operational and commercial picture: revenues rose 17% with both segments growing, APC backlog approximately doubled and the company holds a strong cash position with no debt. Progress on DGI commercialization and a sizable data center pipeline are meaningful growth opportunities. However, margin contraction, increasing operating losses, and substantial timing and execution risk — particularly tied to large APC and data center awards and external constraints (power, permitting, supply chain) — temper near-term profitability visibility. Overall, the company appears financially stable and positioned for upside if key contracts and DGI conversions materialize, but near-term margin and timing risks remain.

Company Guidance

Management reiterated that 2026 revenues are expected to exceed 2025 levels and highlighted key metrics: Q2 consolidated revenue was $6.5M (+17% YoY) with APC $2.8M (+11%) and FUEL CHEM $3.7M (+21%); consolidated gross margin fell to 41% (from 46% YoY) — APC 36% (44% prior) and FUEL CHEM 45% (47% prior); Q2 operating loss $1.6M, net loss $1.2M (‑$0.04/sh), adjusted EBITDA loss $1.2M; R&D was $646k and SG&A $3.6M (55% of revenue) with full‑year SG&A guidance of $14.5M–$15M. Balance sheet strength includes $29.6M cash/cash equivalents/investments (cash $7.6M, investments $22M), no debt, ~31.2M shares outstanding (cash/share $1.05), working capital $20.1M ($0.65/sh), and shareholders’ equity $37.4M ($1.20/sh). APC backlog was $14.3M at 6/30/26 (up from $7.0M at 12/31/25) — $11.3M domestic/$3.0M foreign — with ~$10.5M expected to be recognized within 12 months and an effective backlog of ~ $17M today (including $2.6M in recent awards); management is tracking an additional $8M–$10M near‑term APC pipeline (expects $3M–$5M to close by end‑Q3/early‑Q4) and a data‑center pipeline of roughly $75M–$100M per project (unit pricing ~$1M–$4M, projects up to 30–40 units) that could yield material revenues in 2027 depending on awards and timing. They also noted the large turbine integration project (adds ~100 MW, equipment ready Q4‑2027, plant operational 2029), FUEL CHEM demo restart mid‑Q4‑2026 with $2.5M–$3M annual upside if converted in 2027, DGI wastewater rental ~ $100k in 2026, and a potential DGI hatchery sale of $0.5M–$1M with a 5–6 month build and 2027 recognition if awarded.

Consolidated Revenue Growth

Consolidated revenues increased 17% year-over-year to $6.5 million in Q2 2026 (from $5.6 million).

Segment Performance — FUEL CHEM and APC

FUEL CHEM revenues rose 21% to $3.7 million (from $3.1 million) driven by increased dispatch at legacy accounts. APC revenues rose 11% to $2.8 million (from $2.5 million) primarily due to timing of project execution.

APC Backlog Expansion

APC backlog grew to $14.3 million at June 30, 2026 (up from $7.0 million at Dec 31, 2025), including $11.3 million domestic and $3.0 million foreign backlog; approximately $10.5 million of backlog is expected to be recognized in the next 12 months. Management reports an effective backlog of approximately $17 million inclusive of recent awards.

Strong Balance Sheet and Liquidity

Cash, cash equivalents and investments totaled ~$29.6–$30.0 million with no outstanding debt. Working capital was $20.1 million ($0.65/share) and cash per share was approximately $1.05 (31.2 million shares outstanding).

Near-Term APC Pipeline and Expected Awards

Excluding data center opportunities, management is tracking $8M–$10M in potential APC awards and expects to close $3M–$5M of awards before the end of Q3 or early Q4 2026.

Large Data Center Opportunity Pipeline

Management reports a strong data center pipeline with project-level infrastructure spend estimated at ~$75M–$100M per project; pollution-control scope pricing estimated at roughly $1M–$4M per unit and project sizes ranging up to 30–40 units. There is potential for material APC revenue in 2027 pending contract awards and timing.

DGI (Dissolved Gas Infusion) Commercial Progress

DGI demos delivered strong performance: an extended fisheries demo produced optimized oxygen delivery, cost savings and fish growth — client requested a full-hatchery proposal. A municipal wastewater trial was extended month-to-month and is expected to generate ~ $100,000 in rental revenue in 2026. Management estimates a full-sale DGI system for the hatchery could range $0.5M–$1.0M with recognition likely in 2027 if awarded before year-end.

FUEL CHEM Commercial Upside for 2027

A paused FUEL CHEM demo is planned to restart mid-Q4 2026; if converted to commercial and run full-time in 2027, management estimates incremental annual revenue of ~$2.5M–$3.0M based on historic gross margins.

Operating Expense Management (SG&A)

SG&A rose to $3.6 million (from $3.3 million), but as a percentage of revenue SG&A improved to 55% from 60% year-over-year, reflecting revenue growth outpacing SG&A growth. 2026 SG&A guidance remains $14.5M–$15.0M.

FTEK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 10, 2026	2026 (Q3)	-0.01 / -	0.01	―
Aug 04, 2026	2026 (Q2)	-0.02 / -0.04	-0.02	-100.00% (-0.02)
May 05, 2026	2026 (Q1)	0.00 / -0.04	-0.02	-100.00% (-0.02)
Mar 03, 2026	2025 (Q4)	-0.03 / -0.04	-0.06	33.33% (+0.02)
Nov 04, 2025	2025 (Q3)	0.01 / 0.01	0	―
Aug 05, 2025	2025 (Q2)	-0.03 / -0.02	-0.01	-100.00% (-0.01)
May 12, 2025	2025 (Q1)	-0.02 / -0.02	0.01	-300.00% (-0.03)
Mar 04, 2025	2024 (Q4)	-0.03 / -0.06	-0.02	-200.00% (-0.04)
Nov 06, 2024	2024 (Q3)	0.01 / 0.00	0.01	―
Aug 06, 2024	2024 (Q2)	-0.02 / -0.01	-0.03	66.67% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed