Fuel Tech (FTEK) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues increased 17% year-over-year to $6.5 million, driven by strong performance in both FUEL CHEM and Air Pollution Control (APC) segments.

• Net loss widened to $1.2 million ($0.04 per share) from $0.69 million ($0.02 per share) in Q2 2025.

• Leadership transition announced: Vince Arnone retiring as CEO, succeeded by Ramesh Nuggihalli effective August 10, 2026.

• FUEL CHEM benefited from higher activity at legacy accounts, while APC saw gains from project execution and new contract awards.

• Management remains focused on cost control, technology development, and maintaining sufficient capital resources.

Financial highlights

• FUEL CHEM revenue increased 21% to $3.7 million, APC revenue up 11% to $2.8 million year-over-year.

• Consolidated gross margin declined to 41% from 46% year-over-year due to product mix and increased costs.

• SG&A expenses were $3.6 million (55% of revenue, down from 60%); $7.3 million for six months (58% of revenue, up from 56%).

• Adjusted EBITDA loss was $1.2 million, versus $948,000 in the prior year period.

• Cash, cash equivalents, and investments totaled approximately $30 million as of June 30, 2026.

Outlook and guidance

• Revenues for 2026 expected to exceed 2025, with FUEL CHEM segment approximating 2025 levels and APC segment exceeding prior year.

• APC segment backlog is approximately $14.3 million at June 30, 2026, with $10.5 million expected to be recognized in the next 12 months.

• Majority of new large APC contract revenue to be recognized in 2027; 2026 APC outlook excludes potential data center awards.

• SG&A expenses for 2026 projected at $14.5–$15 million.

• Management expects current capital resources to support operations and technology development.