Revenue: As of FY2026 Q2, the actual value is USD 6.485 M, missing the estimate of USD 6.578 M.

EPS: As of FY2026 Q2, the actual value is USD -0.04.

EBIT: As of FY2026 Q2, the actual value is USD -1.486 M.

Consolidated Financial Performance (Three Months Ended June 30, 2026 vs 2025)

Consolidated revenues for Q2 2026 rose 17% to $6.5 million from $5.6 million in Q2 2025. Consolidated gross margin for Q2 2026 declined to 41% of revenues from 46% of revenues in Q2 2025. SG&A expenses were $3.6 million, or 55.4% of revenues, in Q2 2026, compared to $3.3 million, or 60.2% of revenues, in Q2 2025. Interest income was $266,000 in Q2 2026 compared to $537,000 in Q2 2025. Fuel Tech, Inc. reported a net loss of - $1.2 million in Q2 2026, compared to a net loss of - $0.7 million in Q2 2025. Adjusted EBITDA loss was - $1.2 million in Q2 2026 compared to - $0.9 million in Q2 2025.

Segment Performance (Three Months Ended June 30, 2026 vs 2025)

Air Pollution Control (APC) Segment

Revenues rose by 11% to $2.8 million in Q2 2026, from $2.505 million in Q2 2025. Segment gross margin declined to 36% in Q2 2026 compared to 44% in Q2 2025. The consolidated APC segment backlog was $14.3 million at June 30, 2026, compared to $7.0 million at December 31, 2025.

FUEL CHEM Segment

Revenues rose 21% to $3.7 million in Q2 2026 from $3.1 million in Q2 2025. Segment gross margin declined to 45% in Q2 2026 from 47% in Q2 2025.

Financial Condition (As of June 30, 2026)

Cash and cash equivalents were $7.6 million. Short-term investments were $12.0 million, and long-term investments totaled $10.0 million, bringing the total cash, cash equivalents, and investments to approximately $30 million. Fuel Tech, Inc. had no long-term debt. Stockholders’ equity was $37.4 million. Total assets were $43.194 million, and total liabilities were $5.827 million.

Cash Flow (Six Months Ended June 30, 2026 vs 2025)

Net cash used in operating activities was - $1,741 thousand for the six months ended June 30, 2026, compared to $1,487 thousand provided by operating activities in the prior year period. Net cash used in investing activities was - $2,502 thousand, compared to $700 thousand provided by investing activities in the prior year period. Net cash used in financing activities was - $45 thousand, compared to - $222 thousand in the prior year period. The net decrease in cash and cash equivalents was - $4,319 thousand, compared to a net increase of $2,079 thousand in the prior year period.

Outlook

Fuel Tech, Inc. is optimistic about the outlook for its business segments for the full year 2026, expecting FUEL CHEM segment revenues to approximate last year’s results with a strong third quarter anticipated. For the APC segment, the effective backlog is approximately $17 million, more than double the backlog at the end of 2025, including recently announced contract awards of $3 million.