Fuel Tech secures $1.4 million in APC orders

WARRENVILLE, Ill. - Fuel Tech, Inc. (NASDAQ: FTEK), a provider of emissions control systems and water treatment technologies, has announced the acquisition of approximately $1.4 million in air pollution control (APC) orders from clients in the US and Europe. The company, which specializes in advanced engineering processes, is set to deliver these technologies aimed at reducing emissions from utility and industrial applications. With a current market capitalization of $30.45 million and trading at $0.99 per share, InvestingPro analysis suggests the stock is currently undervalued, making it an interesting case for value investors. For detailed insights, check out the comprehensive Pro Research Report, available among 1,400+ top stocks on InvestingPro.

A new customer in the US has contracted Fuel Tech for an ULTRA® system, designed for a medical facility’s natural gas turbine in the Midwest. This system facilitates the on-site conversion of urea to ammonia for use in Selective Catalytic Reduction (SCR) systems to lower nitrogen oxide (NOx) levels, offering a safer alternative to handling anhydrous or aqueous ammonia. The completion of this delivery is expected in the fourth quarter of 2025.

In Europe, Fuel Tech received an order for a Selective Non-Catalytic Reduction (SNCR) system to be installed on a biomass-fired unit. This follows a successful demonstration project, with the permanent equipment scheduled for delivery in the third quarter of 2025.

Additionally, an existing customer from the Eastern US has engaged Fuel Tech’s advanced engineering services for a biomass unit, a preliminary step towards implementing an Advanced Selective Non-Catalytic Reduction (ASNCR) system. This project is anticipated to be completed in the second quarter of 2025.

Vincent J. Arnone, President and CEO of Fuel Tech, expressed satisfaction with these contracts, which contribute to the $4 million in near-term contract wins expected by early second quarter of this year and $5.6 million in bookings to date. The company is actively seeking further APC contracts, with awards likely by the end of the second quarter of 2025. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 5.06, indicating robust short-term liquidity. While the company posted a gross profit margin of 42.27% in the last twelve months, analysts note that profitability remains a challenge in the near term.

Fuel Tech’s proprietary technologies, including FUEL CHEM® technology and DGI® Dissolved Gas Infusion Systems, are central to their operations, supporting customers in achieving cost-effective and environmentally sustainable performance. The company’s solutions have been implemented in over 1,300 units across utility, industrial, and municipal sectors globally.

This announcement is based on a press release statement from Fuel Tech, Inc. and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.

In other recent news, Flotek Industries reported fourth-quarter earnings that surpassed expectations, posting an adjusted earnings per share of $0.14 compared to $0.07 in the same quarter last year. The company also saw a 20% year-over-year increase in revenue, reaching $50.76 million, driven by a 21% jump in external customer revenue. Flotek’s gross profit increased by 30% year-over-year to $12.3 million, while net income more than doubled to $4.4 million. For the full year 2024, the company reported a net income of $10.5 million, a significant turnaround from a loss in 2023.

Meanwhile, Fuel Tech announced the acquisition of approximately $2.6 million in air pollution control orders from clients in the United States and Japan. The Japanese order is part of a continuing contract, marking the fourth unit for the client and involves the ULTRA-EX™ approach to enhance energy efficiency. In the U.S., Fuel Tech will focus on advanced engineering for a municipal waste unit to implement an Advanced Selective Non-Catalytic Reduction system. The company aims to complete this work by the second quarter of 2025. These developments reflect Fuel Tech’s anticipation of $4 to $5 million in near-term contract wins.

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