FUEL TECH, INC.

Well-capitalized but loss-making small-cap pollution-control firm with concentrated, lumpy revenue.

Strengths

• Very strong liquidity: current ratio 5.09 (81st) and $31.9M cash, essentially debt-free
• Healthy 46% gross margin and positive operating cash flow margin (11.3%, 59th)

Risks

• Net margin -8.7%, operating margin -13.8%, ROA -4.9% and ROE -5.8% — a loss year
• Top-5 customers are ~58% of revenue (largest ~21%), all in FUEL CHEM, with secular decline in coal-fired power demand
• Fixed-price contract and backlog-timing risk create earnings volatility

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -8.7%)
• Customer concentration~58% of revenue from one customer/distributor — During 2025, our five largest customers accounted for approximately 58% of our net revenues, with our largest customer accounting for approximately 21% of our net revenues
• Revenue declineRevenue -16.1% YoY