Fuel Tech secures $5 million in APC orders By Investing.com

WARRENVILLE, Ill. – Fuel Tech , Inc. (NASDAQ: NASDAQ:), a provider of emissions control systems and water treatment technologies, has announced the acquisition of approximately $5.0 million worth of air pollution control (APC) orders. These orders are from both new and existing customers in Europe and the United States, with one being the company’s inaugural APC contract for a renewable energy project.

The European order, from a new client, entails multiple ammonia delivery and injection systems for renewable energy facilities. These systems are part of a Selective Catalytic Reduction (SCR) technology setup that will contribute to a green hydrogen production process. The equipment is scheduled for delivery in the fourth quarter of 2025, and the agreement includes an option for the customer to purchase additional units within a specified period.

Additionally, Fuel Tech has secured a repeat contract from an existing European customer for SCR technology to be used in a natural gas-fired heater at a chemical processing plant. This system also incorporates aqueous ammonia storage and delivery, alongside the catalyst, with deliveries expected in the second and third quarters of 2025.

In the United States, an existing customer has placed an order for Fuel Tech’s ULTRA system, which will be installed on a turbine at a university in the Northeast. The ULTRA process is designed for on-site conversion of urea to ammonia, offering a safer and more cost-effective solution for NOx reduction. This system is anticipated to be delivered in the first quarter of 2025.

Vincent J. Arnone, President and CEO of Fuel Tech, highlighted the significance of these new contracts, stating that they substantially enhance the company’s APC backlog. He also expressed enthusiasm about entering the renewable energy market, particularly in the context of hydrogen as an alternative fuel for reducing greenhouse gas emissions.

In other recent news, Fuel Tech Inc. disclosed mixed first-quarter results while expressing optimism for future growth. The company reported a decrease in Q1 2024 revenues to $5 million from $7.3 million in Q1 2023, although it saw an increase in consolidated gross margins to 41% of revenues. The net income for Q1 2024 was $281,000, aided by an extraordinary income of $1.7 million. Fuel Tech maintains a strong cash position with over $32 million and no long-term debt.

Despite facing customer-driven delays and weather-related challenges, Fuel Tech is hopeful for the remainder of 2024, expecting revenues to surpass the previous year’s total. This projection excludes potential contributions from its Dissolved Gas Infusion (DGI) initiative, EPA regulations, and significant business development in the FUEL CHEM segment. The company also anticipates steady improvement in its Air Pollution Control (APC) and FUEL CHEM segments throughout the year.

Additionally, Fuel Tech is investing in new technologies and capitalizing on a favorable interest rate environment. The company’s unique technology allows coal-fired units to operate with lower-quality coal during high demand periods. These recent developments highlight Fuel Tech’s strategic initiatives and strong financial foundation as it navigates market challenges and potential expansion opportunities.

InvestingPro Insights

As Fuel Tech, Inc. (NASDAQ: FTEK) continues to expand its environmental technology footprint with new air pollution control orders, it’s worth noting some key financial metrics and InvestingPro Tips that may interest investors. The company’s market capitalization stands at approximately $29.47 million, reflecting its size in the industry. Interestingly, Fuel Tech is currently trading at a low revenue valuation multiple, which could suggest it is undervalued relative to its sales. This is noteworthy given the company’s recent business developments.

From a balance sheet perspective, Fuel Tech holds more cash than debt, indicating a position of financial stability that could be reassuring for investors looking at the long-term prospects of the company. Additionally, despite recent order wins, analysts do not anticipate Fuel Tech will be profitable this year, which may influence investment decisions. The company’s stock price has also been quite volatile, and it’s trading near its 52-week low, presenting potential opportunities for investors who believe in the company’s growth trajectory in the emissions control and water treatment sectors.

InvestingPro also provides further insights, with a total of 9 additional InvestingPro Tips available for Fuel Tech, which can be accessed for those who are seeking a deeper analysis. Lastly, the InvestingPro Fair Value estimate stands at $1.31, which may serve as a reference point for investors comparing the current market price with potential value assessments.

These financial insights and tips from InvestingPro could be particularly relevant for investors who are evaluating Fuel Tech’s recent business activities against the backdrop of its financial health and market valuation.

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