WARRENVILLE, Ill. - Fuel Tech , Inc. (NASDAQ: NASDAQ:FTEK), a provider of advanced engineering solutions for emissions and water treatment, has announced securing orders worth approximately $2.0 million for air pollution control systems from clients across the US, Europe, and Southeast Asia.
The company received a repeat order from a domestic client to install a Selective Catalytic Reduction (SCR) system and a UDI™ Urea Direct Injection™ reagent delivery system at an industrial process plant in the Eastern US. This system, which is the fifth such order from this customer over the last two decades, is designed to significantly reduce nitrogen oxide (NOx) emissions using a safe urea reagent. The equipment is scheduled for delivery in the fourth quarter of 2025.
Additionally, Fuel Tech will demonstrate its Selective Non-Catalytic Reduction (SNCR) technology at biomass-fired units for two customers in the US and Europe. These demonstrations, taking place in the fourth quarter of 2024, could lead to permanent equipment orders in the first half of 2025.
The company also secured an order from a new customer in Southeast Asia for an SCR system that will be incorporated into a gas-fired industrial process unit, with deliveries expected to be completed in the third quarter of 2025.
Vincent J. Arnone, President and CEO of Fuel Tech, expressed satisfaction with the new contracts, highlighting the utilization of UDI technology by a longstanding customer and the addition of a new SCR client in Southeast Asia. He also noted the SNCR demonstration agreements as a testament to the technology's adaptability for various fuel sources.
Fuel Tech specializes in NOx reduction and particulate control technologies, with its solutions installed on over 1,300 units globally. Their FUEL CHEM® technology focuses on improving the efficiency and environmental performance of combustion units, while their water treatment technologies offer applications ranging from remediation to wastewater odor management.
The company's success in securing these orders is based on its proprietary technologies and computational fluid dynamics modeling capabilities. These orders represent Fuel Tech's commitment to enabling environmentally sustainable operations for its customers.
This announcement is based on a press release statement from Fuel Tech, Inc. and does not include any forward-looking statements or speculative information.
In other recent news, Fuel Tech, Inc. secured a new contract for its emissions control technology, following a successful demonstration at a Midwest utility's coal-fired boiler. This could yield annual revenues of $1.5 to $2.0 million, assuming full-time operation by the customer. The company also secured approximately $5 million in air pollution control (APC) orders, including a notable order from a new European client for renewable energy facilities.
In financial highlights, Fuel Tech reported a decrease in Q1 2024 revenues to $5 million, down from $7.3 million in Q1 2023, but an increase in consolidated gross margins to 41% of revenues. The company's net income for Q1 2024 was $281,000, boosted by an extraordinary income of $1.7 million.
In other developments, the company continues to invest in new technologies and maintain a positive outlook, anticipating revenues to surpass the previous year's total. These recent developments underscore Fuel Tech's commitment to innovation, customer support, and navigating market challenges.
InvestingPro Insights
Fuel Tech's recent $2.0 million order win aligns with its focus on air pollution control systems, but InvestingPro data reveals some financial challenges. The company's market cap stands at $31.78 million, with a revenue of $26.33 million for the last twelve months as of Q2 2024. Despite a 28.95% quarterly revenue growth in Q2 2024, the company faces profitability issues.
InvestingPro Tips highlight that Fuel Tech holds more cash than debt on its balance sheet, which could provide financial flexibility for executing these new orders. However, the company is not profitable over the last twelve months, with an operating income margin of -11.68%.
The stock's price-to-book ratio of 0.73 suggests it might be undervalued, which could be of interest to value investors considering the company's recent contract wins. It's worth noting that Fuel Tech's stock price movements are quite volatile, which investors should factor into their decision-making.
For those seeking a deeper understanding of Fuel Tech's financial position, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company's prospects in light of these new contracts.
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