Revenue: As of FY2026 Q1, the actual value is USD 6.08 M, missing the estimate of USD 7.62 M.EPS: As of FY2026 Q1, the actual value is USD -0.04.EBIT: As of FY2026 Q1, the actual value is USD -1.836 M.<h3>Segment Revenue</h3><ul><li>Total revenues for Fuel Tech, Inc. decreased by $302, or 5%, to $6,080 for the three months ended March 31, 2026, compared to $6,382 in the same period of 2025.<ul><li>Air Pollution Control (APC) Segment: Revenue increased by $301, or 23%, to $1,604 for the three months ended March 31, 2026, from $1,303 in the prior year, primarily due to the timing of project execution on existing contracts.</li><li>FUEL CHEM Segment: Revenue decreased by $603, or 12%, to $4,476 for the three months ended March 31, 2026, from $5,079 in the same period of 2025, mainly due to seasonal maintenance outages and dispatch-related decreases in operational demand.</li></ul></li></ul><h3>Operational Metrics</h3><ul><li>Consolidated Gross Margin Percentage: The consolidated gross margin percentage was 43% for the three months ended March 31, 2026, down from 46% in the same period of 2025.<ul><li>FUEL CHEM Segment Gross Margin: Decreased to 45% for the three months ended March 31, 2026, from 50% in the prior year.</li><li>APC Segment Gross Margin: Increased to 38% for the three months ended March 31, 2026, from 33% in the prior year.</li></ul></li><li>Selling, General and Administrative (SG&amp;A) Expenses: SG&amp;A expenses increased by $375 to $3,716 for the three months ended March 31, 2026, from $3,341 in the same period of 2025. As a percentage of revenues, SG&amp;A increased to 61% from 52%.</li><li>Research and Development (R&amp;D) Expenses: R&amp;D expenses were $524 for the three months ended March 31, 2026, compared to $570 in the same period of 2025.</li><li>Operating Loss: Fuel Tech, Inc. reported an operating loss of -$1,596 for the three months ended March 31, 2026, compared to an operating loss of -$952 in the same period of 2025.<ul><li>APC Segment Operating Income: $615 for the three months ended March 31, 2026, compared to $425 in 2025.</li><li>FUEL CHEM Segment Operating Income: $2,029 for the three months ended March 31, 2026, compared to $2,534 in 2025.</li></ul></li><li>Net Loss: Fuel Tech, Inc. reported a net loss of -$1,355 for the three months ended March 31, 2026, compared to a net loss of -$739 in the same period of 2025.</li></ul><h3>Cash Flow</h3><ul><li>Net Cash Used in Operating Activities: -$847 for the three months ended March 31, 2026.</li><li>Net Cash Used in Investing Activities: -$1,914 for the three months ended March 31, 2026.</li><li>Net Cash Used in Financing Activities: -$34 for the three months ended March 31, 2026.</li></ul><h3>Unique Metrics</h3><ul><li>Consolidated APC Backlog: $6,923 as of March 31, 2026, compared to $7,047 as of December 31, 2025. This includes $3,657 in U.S. domestic projects and $3,266 in international projects.</li><li>Global Sales Pipeline: Ranged from $75 million to $100 million.</li></ul><h3>Future Outlook and Strategy</h3>Fuel Tech, Inc. plans to continue executing existing APC segment projects, pursue new contract awards, and manage costs to maintain operational expenditure levels, expecting new business opportunities to improve its financial and market outlook. The company is investing in new technologies, such as its DGI® Dissolved Gas Infusion Systems, to expand into the water and wastewater treatment market. Management believes its current cash position and expected net cash flows from operations are adequate to fund planned operations for the next 12 months, anticipating additional capital expenditures in 2026 for the DGI business and other maintenance, which will be funded by cash from operations or on hand.

Fuel Tech | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 6.08 M