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Fuel Tech Inc (FTEK) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
  • Revenue: $25.1 million for 2024, at the lower end of guidance range ($25 million to $26 million).

  • Cash and Investments: Approximately $30 million with no long-term debt.

  • Fourth Quarter Revenue: $5.3 million, down from $6.3 million in Q4 2023.

  • APC Segment Revenue: Declined to $1.8 million from $2.8 million in Q4 2023.

  • FUEL CHEM Segment Revenue: Essentially unchanged at $3.5 million in Q4 2024.

  • Gross Margin: Declined to 42% in Q4 2024 from 51% in Q4 2023.

  • SG&A Expenses: Increased to $3.9 million in Q4 2024 from $3.7 million in Q4 2023.

  • Net Loss: $1.9 million or $0.06 per share in Q4 2024, compared to $539,000 or $0.02 per share in Q4 2023.

  • Adjusted EBITDA Loss: $1.8 million in Q4 2024, compared to $646,000 in Q4 2023.

  • Backlog: $6.2 million at December 31, 2024, compared to $7.5 million at December 31, 2023.

  • Operating Loss: $2.1 million in Q4 2024, compared to $801,000 in Q4 2023.

  • Interest Income: $283,000 in Q4 2024 and $1.3 million for the full year 2024.

  • Working Capital: $23.8 million or $0.77 per share as of December 31, 2024.

  • Stockholders' Equity: $42 million or $1.37 per share as of December 31, 2024.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fuel Tech Inc (NASDAQ:FTEK) ended 2024 with a strong financial position, holding approximately $30 million in cash, cash equivalents, and investments, with no long-term debt.

  • The FUEL CHEM business segment is starting 2025 with its best performance in several years, driven by the return to full operation of base accounts and the addition of a new commercial account.

  • Fuel Tech Inc (NASDAQ:FTEK) is pursuing new business opportunities, including a potential FUEL CHEM account in the Midwest and international expansion in Mexico.

  • The company has a promising portfolio of APC business opportunities for 2025, both domestically and internationally, with recent awards totaling $1.6 million and expectations for an additional $4 million to $5 million in contracts.

  • Fuel Tech Inc (NASDAQ:FTEK) is actively working on commercializing its DGI technology, with ongoing demonstrations and discussions in various end markets, including aquaculture and municipal wastewater treatment.

Negative Points

  • Revenues for 2024 were at the lower end of guidance, impacted by delayed project execution and timing of air pollution control awards.

  • Consolidated revenues declined in the fourth quarter of 2024 compared to the same period in 2023, with a notable decrease in the APC segment.

  • Gross margins for both APC and FUEL CHEM segments declined in the fourth quarter of 2024, affecting overall profitability.

  • Operating loss for 2024 increased compared to 2023, reflecting lower segment revenues and higher operating expenses.

  • The company does not expect to reach operational income break-even at the projected $30 million revenue for 2025, indicating a need for higher revenues to achieve profitability.