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Fuel Tech
(NASDAQ:FTEK)
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Rating:53Neutral
Price Target:
$1.50
▼(-2.60% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong balance-sheet flexibility (low leverage and significant liquidity) offset by ongoing operating losses and inconsistent/free cash flow. Technical signals are neutral-to-weak (negative MACD and price below key moving averages), and valuation is difficult to support with a negative P/E and no dividend. The latest earnings call adds moderate support via improving backlog and revenue growth expectations, but margin pressure and timing/execution risks cap the upside.
Positive Factors
Strong balance sheet and liquidity
Very low leverage and roughly $30M of cash/investments give structural financial flexibility. This supports funding working capital, absorbing project timing risk, and investing in commercialization (DGI, data center pursuits) without reliance on external debt for 2–6 months visibility.
Negative Factors
Persistent operating and net losses
Despite revenue growth, recurring operating and net losses indicate the company has not yet converted top-line improvements into sustained profitability. Continued losses pressure retained earnings, constrain reinvestment capacity, and heighten dependency on cash reserves if margins don't normalize over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and liquidity
Very low leverage and roughly $30M of cash/investments give structural financial flexibility. This supports funding working capital, absorbing project timing risk, and investing in commercialization (DGI, data center pursuits) without reliance on external debt for 2–6 months visibility.
Read all positive factors
Fuel Tech Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across regions (U.S., Europe, Asia, etc.), revealing where Fuel Tech is strongest, where growth is accelerating or slowing, and how exposed the business is to local regulatory or market risks; useful for judging diversification and regional growth potential.
Breaks down sales across regions (U.S., Europe, Asia, etc.), revealing where Fuel Tech is strongest, where growth is accelerating or slowing, and how exposed the business is to local regulatory or market risks; useful for judging diversification and regional growth potential.
Data provided by:
The Fly
The FlyFuel Tech (FTEK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.94M
Dividend YieldN/A
Average Volume (3M)326.68K
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-0.69%
EPS Growth1.97%
CountryUS
Employees77
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.11
Shares Outstanding31,165,249
10 Day Avg. Volume216,379
30 Day Avg. Volume326,679
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)1.21
Price to Sales (P/S)1.81
P/FCF Ratio20.61
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$4.00Price Target Upside159.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.12
Revenue Forecast (FY)$28.32M
Fuel Tech Business Overview & Revenue Model
Company Description
Fuel Tech, Inc. engages in the development, commercialization, and application of technologies for air pollution control, process optimization, water treatment, and advanced engineering services to utility and industrial customers in the United St...
How the Company Makes Money
Fuel Tech makes money primarily by selling emissions-control products and project-based systems, along with related engineering, installation support, and aftermarket parts/service. Revenue is generally generated when customers (typically power pl...
Fuel Tech Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
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.Positive Updates
Consolidated Revenue Growth
Consolidated revenues increased 17% year-over-year to $6.5 million in Q2 2026 (from $5.6 million).
Negative Updates
Gross Margin Contraction
Consolidated gross margin declined to 41% in Q2 2026 from 46% in the prior-year quarter (a 5 percentage point decline), driven by lower segment margins in both FUEL CHEM and APC.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenues increased 17% year-over-year to $6.5 million in Q2 2026 (from $5.6 million).
Read all positive updates
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.Fuel Tech Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.30M | 26.68M | 25.13M | 27.08M | 26.94M | 24.26M |
| Gross Profit | 12.21M | 12.38M | 10.62M | 11.66M | 11.64M | 11.90M |
| EBITDA | -2.87M | -1.61M | -1.41M | -1.11M | -931.00K | 828.00K |
| Net Income | -3.48M | -2.32M | -1.94M | -1.54M | -1.44M | 54.00K |
Balance Sheet | ||||||
| Total Assets | 43.19M | 47.18M | 48.80M | 50.39M | 50.12M | 49.97M |
| Cash, Cash Equivalents and Short-Term Investments | 19.61M | 24.88M | 18.69M | 29.71M | 26.31M | 35.89M |
| Total Debt | 533.00K | 580.00K | 625.00K | 614.00K | 191.00K | 235.00K |
| Total Liabilities | 5.83M | 7.25M | 6.84M | 6.67M | 5.28M | 3.77M |
| Stockholders Equity | 37.37M | 39.93M | 41.95M | 43.71M | 44.84M | 46.20M |
Cash Flow | ||||||
| Free Cash Flow | -1.18M | 2.34M | -3.81M | 278.00K | -4.34M | 677.00K |
| Operating Cash Flow | -212.00K | 3.02M | -3.43M | 696.00K | -4.14M | 761.00K |
| Investing Cash Flow | -2.66M | 545.00K | -5.44M | -6.44M | -9.48M | -84.00K |
| Financing Cash Flow | -45.00K | -222.00K | -95.00K | 42.00K | -17.00K | 23.98M |
Fuel Tech Technical Analysis
Negative
1.54
Price Trends
1.59
Negative
1.48
Negative
1.61
Negative
Market Momentum
-0.06
Positive
42.86
Neutral
45.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Negative. The current price of 1.54 is above the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.59, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEK.
Fuel Tech Risk Analysis
Fuel Tech disclosed 21 risk factors in its most recent earnings report. Fuel Tech reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fuel Tech Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $43.94M | -14.89 | -8.88% | ― | -0.69% | 1.97% | |
53 Neutral | $11.04M | 72.33 | 1.01% | ― | -13.77% | -78.34% | |
48 Neutral | $24.35M | -3.85 | -61.23% | ― | 73.54% | 17.08% | |
43 Neutral | $20.89M | -0.75 | -79.34% | ― | 6.94% | 38.10% | |
42 Neutral | $38.14M | -1.52 | -338.76% | ― | ― | ― | |
42 Neutral | $13.03M | -2.46 | -315.76% | ― | -30.33% | -24.92% |
* Industrials Sector Average
FTEK
Fuel Tech
1.45
-1.60
-52.46%
CLWT
Euro Tech Holdings Company
1.49
0.27
22.13%
CLIR
ClearSign Combustion
3.89
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-30.76%
LIQT
LiqTech International
0.66
-1.40
-67.96%
SCWO
374Water
2.26
-0.29
-11.57%
TOMZ
TOMI Environmental Solutions
1.91
-1.16
-37.87%
Fuel Tech Corporate Events
Business Operations and StrategyExecutive/Board Changes
Fuel Tech appoints new CEO amid leadership transition
Positive
Aug 4, 2026
On July 31, 2026, Fuel Tech announced that Chief Executive Officer and President Vincent J. Arnone would retire from his executive roles effective August 10, 2026, while remaining on the board and serving as an employee until September 15, 2026 to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.