Q2 2025 Fuel Tech Inc Earnings Call
If anyone require operator assistance during the conference. Please signal the operator by pressing star and zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host for today, Devin Sullivan, the managing director of the equity group. Please go ahead.
Thank you Albert and good morning, everyone. Thank you for joining us today for fuel Tech's 2025 second quarter financial results Conference call yesterday. After the close we issued a press release, a copy of which is available at the Companys website, Www Dot FTE K dot com.
Our speakers for today will be Vince Arnone, Chairman, President and Chief Executive Officer, and Ellen Albrecht The Companys Chief Financial Officer.
After prepared remarks, we will open the call for questions from our analysts and investors.
Speaker #4: Ladies and gentlemen, greetings and welcome to the Fuel Tech Inc. 2025 second quarter financial results conference call. At this time, all participants are in the listen-only mode.
Before turning things over to Vince I'd like to remind everyone that matters discussed on this call except for historical information are forward looking statements as defined in section 20, <unk> of the Securities Exchange Act of $19 34, as amended which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095 and <unk>.
Speaker #4: A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad.
<unk> fuel Tech's current expectations regarding future growth results of operations cash flows performance and business prospects and opportunities as well as assumptions made by and information currently available to our company's management.
Speaker #4: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Devin Sullivan, the managing director of the Equity Group.
Fuel Tech has tried to identify forward looking statements by using words, such as anticipate believe plan expect estimate intend will and similar expressions, but these words are not the exclusive means of identifying forward looking statements. These statements are based on information currently available to fuel tech and are subject to various risks uncertainties and other factors, including but not.
Speaker #4: Please go head.
Speaker #5: Thank you, Alaric. And good morning, everyone. Thank you for joining us today for Fuel Tech's 2025 second quarter financial results conference call. Yesterday, after the close, we issued a press release, a copy of which is available at the company's website, www.ftek.com.
Limited to those discussed in the company's annual report on Form 10-K in item <unk> under the caption of risk factors and subsequent filings under the Securities Exchange Act of 1934, as amended which could cause fuel tech's actual growth results of operations financial condition cash flows performance and business prospects and opportunity to do.
Speaker #5: Our speakers for today will be Vincent Arnone, chairman, president, and chief executive officer, and Ellen Albrecht, the company's chief financial officer. After prepared remarks, we will open the call for questions from our analysts and investors.
Speaker #5: Before turning things over to Vince, I'd ike to remind everyone that matters discussed on this call, except for historical information, are forward-looking statements as defined in section 21A of the Securities Exchange Act of 1934, as amended, are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Materially from those expressed in or implied by these statements.
Fuel Tech undertakes no obligation to update such factors will be publicly announced the results of any forward looking statements contained herein to reflect future events developments or changed circumstances or for any other reason investors are cautioned that all forward looking statements involve risks and uncertainties, including those detailed in.
Speaker #5: And reflect Fuel Tech's current expectations regarding future growth, results of operations, cash flows, performance, and business prospects and opportunities, as well as assumptions made by and information currently available to our company's management.
The company's filings with the SEC.
With that said I'd now like to turn the call over to Vince Arnone, Chairman President and CEO of fuel Tech events. Please go ahead.
Speaker #5: Fuel Tech has tried to identify forward-looking statements by using words such as anticipate, believe, plan, expect, estimate, intend, will, and similar expressions, but these words are not the exclusive means identifying forward-looking statements.
Thank you Devin.
Good morning, and I'd like to thank everyone for joining us on the call today.
Our second quarter results were largely in line with our expectations and reinforced our belief that 2025 will be a year of growth for our company versus prior year.
Speaker #5: These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including but not limited to those discussed in the company's annual report on Form 10K and item 1A, under the caption of risk factors and subsequent filings under the Securities Exchange Act of 1934, as amended.
For the quarter versus the prior year period, we expanded our gross margin managed expenses continued to invest in our emerging technologies and maintained a strong financial position with cash cash equivalents and investments of nearly $31 million at quarter end and no long term debt.
Speaker #5: Which could cause Fuel Tech's actual growth, results of operations, financial condition, cash flows, performance, and business prospects, and opportunity to different materially from those expressed in or implied by these statements.
We are also pleased with the pace of business development at each of our three businesses, which includes the expectation of a receipt of an incremental two $5 million to $3 million in new APC Awards before the end of the month of August.
Speaker #5: Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any forward-looking statements contained herein to reflect future events, developments, or change circumstances or for any other reason.
As well as customer demonstrations that are underway for our dissolved gas infusion technology and plan to commence later in the year for our fuel Chem business segment.
Speaker #5: Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in the company's filings with the SEC. With that said, I'd now like to turn the call over to Vincent Arnone, chairman, president, and CEO of Fuel Tech.
We are also increasingly optimistic about the application of our APC suite of emissions control solutions and the construction of AI related data centers in the United States and I will make further comments on this topic in a moment.
Speaker #5: Vince, please go head.
Speaker #6: Thank you, Devin. Good morning and I'd like to thank everyone for joining us on the call today. Our second quarter results were largely in line with our expectations, and reinforced our belief that 2025 will be a year of growth for our company, versus prior year.
Revenues for our fuel Chem segment were essentially flat for the quarter versus prior year, reflecting seasonal weather transition from spring to summer.
However, the warm weather that much of the country began to experience late in the second quarter has translated into higher energy demand, which has had a positive effect on <unk> results as we entered the current third quarter.
Speaker #6: For the quarter, versus the prior year period, we expanded our gross margin, managed expenses, continued to invest in our emerging technologies, and maintained a strong financial position.
Speaker #6: With cash, cash equivalents, and investments of nearly $31 million, at quarter-end, and no long-term debt. We are also pleased with the pace of business development at each of our three businesses, which includes the expectation of a receipt of an incremental $2.5 to $3 million in new APC awards before the end of the month of August.
With each of our base accounts in operation, including the incremental contribution from the new commercial accounts that we added in the fourth quarter of 2024.
We recorded more than $2 million in revenue at fuel Chem for the month of July.
As of today, we believe that we are well positioned to meet our annual objective of $15 million to $16 million in fuel Chem revenue.
Speaker #6: As well as customer demonstrations that are underway, for our dissolved gas infusion technology, and plan to commence later in year, for our fuel cam business segment.
In addition, we are also expecting to commence a new six months demonstration of our <unk> targeted in furnace injection technology early in the fourth quarter of this year and our new customers coal fired unit in the Midwest.
Speaker #6: We are also increasingly optimistic about the application of our APC suite of emissions control solutions in the construction of AI-related data centers in the United States, and I'll make further comments on this topic in a moment.
The purpose of the demonstration is to improve boiler availability and reliability and reduced maintenance downtime for offline boiler cleaning.
In order to maximize the power generation profile of this unit.
Speaker #6: Revenues for our fuel cam segment were essentially flat for the quarter, versus prior year, reflecting seasonal weather transition from spring to summer. However, the warm weather that much of the country began to experience late in the second quarter has translated into higher energy demand, which has had a positive effect on fuel cam's results as we entered the current third quarter.
Should this demonstration result in a new contract we would expect the annual revenue potential to be approximately 2% to $2 $5 million based on the customer running the program full time and with the revenue expected to generate historic fuel Chem gross margins.
With respect to international fuel fuel Chem opportunities.
Speaker #6: With each of our base accounts and operations, including the incremental contribution from the new commercial account that we added in Q4 2024, we recorded more than $2 million in revenue at Fuel Cam for the month of July.
We remain in discussions with our partner in Mexico to expand the provision of our chemical technology in that country.
Based on conversations with our partner in Mexico. It is still our understanding that the recently elected government is targeting the implementation of environmental policy aimed at the reduction of pollutants that can cause climate change.
Speaker #6: As of today, we believe that we are well positioned to meet our annual objective of $15 to $16 million in fuel cam revenue. In addition, we are also expecting to commence a new six-month demonstration of our Tiffy targeted infrared injection technology, early in the fourth quarter this year, at a new customer's coal-fired unit in the Midwest.
As Mexico was planning to use the heavy fuel oil generated from their oil refining operations.
Fuel for power generation for the near term future.
We are hopeful that our fuel Chem program will be an integral part of president Shane Moms plan.
Revenues for our APC business in the second quarter declined compared to the prior period due primarily to the timing of project execution on existing contracts.
Speaker #6: The purpose of the demonstration is to improve boiler availability and reliability and reduce maintenance downtime for offline boiler cleaning. In order to maximize the power generation profile of this unit.
With that said we are pleased to report that we are expecting to announce an incremental two $5 million to $3 million in new APC contract before the end of this month from new and existing U S and international customers for our emissions control solutions.
Speaker #6: Should this demonstration result in a new contract, we would expect the annual revenue potential to be approximately $2 to $2.5 million, based on the customer running the program full-time and with the revenue expected to generate historic fuel cam gross margins.
Further we do expect to close an additional $3 million to $5 million in New awards.
Speaker #6: With respect to international fuel cam opportunities, we remain in discussions with our partner in Mexico, to expand the provision of our chemical technology in that country.
Words before the end of this year, which would be exclusive of any data center opportunities.
We are continuing to pursue additional new awards, driven by industrial expansion globally and by state specific regulatory requirements in the U S.
Speaker #6: Based conversations with our partner in Mexico, it is still our understanding that the recently elected government is targeting the implementation of environmental policy aimed at the reduction of pollutants that can cause climate change.
And we are continuing to monitor their progress of the Epa's rule for large municipal waste combustor units.
Speaker #6: As Mexico is planning to use the heavy fuel oil generated from their oil refining operations as fuel for power generation for the near-term future, we are hopeful that our Fuel CAM program will be an integral part of President Shane Baum's plan.
This rule reduces the nitrogen oxide emissions requirements.
For the large end fwc units.
Fuel Tech has had a long history of assisting this industry and meeting its compliance requirements and we have had discussions with customers in this segment to support their compliance planning the.
Speaker #6: Revenues for our APC business in the second quarter declined compared to the prior period, due primarily to the timing of project execution on existing contracts.
The final rule has been delayed by EPA until December of this year with compliance deadlines expected three years from the date of issue.
Speaker #6: With that said, we are pleased to report that we are expecting to announce an incremental $2.5 to $3 million in new APC contracts before the end of this month, from new and existing US and international customers for our emissions control solutions.
That being said there are some specific states that are currently requiring lower nox emissions that are consistent with the proposed <unk> rule and we are actively pursuing those opportunities today.
Additionally, <unk>.
PPA under the current administration is currently pursuing the rollback of rules related to the reduction of greenhouse gases.
Speaker #6: Further, we do expect to close an additional $3 to $5 million in new awards before the end of this year, which would be exclusive of any data center opportunities.
It is important to note that the proposed rollback of the 2009 EPA engagement been finding does not loosen the nitrogen oxide emission requirements for any sources and could potentially extend the life of some coal and natural gas fired units that may not have to reduce their carbon carbon dioxide emission profile.
Speaker #6: We are continuing to pursue additional new awards driven by industrial expansion globally and by state-specific regulatory requirements in the US, and we are continuing to monitor progress of the EPA's rule for large municipal waste combustor units.
Lastly, as discussed on our previous conference calls, we are not expecting any specific <unk> that would come from the implementation of new regulation and the opportunities that we are pursuing today are not contingent on the implementation of any specific new regulations.
Speaker #6: This rule reduces the nitrogen oxide emissions requirements for the large MWC units. Fuel Tech has had a long history of assisting this industry in meeting its compliance requirements, and we have had discussions with customers in this segment to support their compliance planning.
For our dissolved gas infusion business we.
Speaker #6: The final rule has been delayed by EPA until December of this year, with compliance deadlines expected three years from the date of issue. That being said, there are some specific states that are currently requiring lower NOx emissions that are consistent with proposed MWC rule, and we are actively pursuing those opportunities today.
We commenced an extended demonstration in mid July at a fish hatchery in the Western U S that is expected to last until the second quarter of 2026.
The demonstration is designed to evaluate the benefits of delivering consistent and precise levels of dissolved oxygen for the raising of game fish in a controlled environment over a complete growth cycle.
Speaker #6: Additionally, EPA under the current administration is currently pursuing the rollback of rules related to the reduction of greenhouse gases. It is important to note that the proposed rollback of the 2009 EPA Endangerment finding does not loosen the nitrogen oxide emission requirements for any sources, and could potentially extend the life of some coal and natural gas fired units, that may not have to reduce their carbon dioxide emission profile.
Specifically this user is interested in Nash retaining how DTI will affect yield fish growth cycles and operational cost for the program.
What's interesting about this particular demonstration is that our <unk> technology will be going head to head with the technology that is currently being used by this hatchery and we believe that this comparison will provide a very clear view of the advantages of our DTI system in this setting.
Speaker #6: Lastly, as discussed in our previous conference calls, we are not expecting any specific tailwinds that would come from the implementation new regulation, and the opportunities that we are pursuing today are not contingent on the implementation of any specific new regulations.
In addition to this demonstration we are still in discussions with our municipal wastewater treatment facility in the southeastern United States and we are pursuing multiple other end markets of interest for dji, including pulp and paper food and beverage chemical petrochemical and horticulture.
Speaker #6: For our dissolved gas infusion business, we commenced and extended demonstration in mid-July at a fish hatchery in the western US, that is expected to last until the second quarter of 2026.
We continue to receive inquiries regarding the Gi from potential customers in multiple end markets and we are hopeful that we can generate our first commercial revenues in 2025.
Additionally, we continue to cultivate our sales representative network to broaden the introduction of the Gi to various end markets across the U S.
Speaker #6: The demonstration is designed to evaluate the benefits of delivering consistent and precise levels dissolved oxygen for the raising of game fish in a controlled environment, over a complete growth cycle.
We expect to add new sales Representatives later this year. These.
These would be in addition to the two companies with whom we executed sales agreements in the first half of this year.
Speaker #6: Specifically, this user is interested in ascertaining how DTI will affect yield, fish growth cycles, and operational costs for the program. What's interesting about this particular demonstration is that our DTI technology will be going head-to-head with the technology that is currently being used by this hatchery, and we believe that this comparison will provide a very clear view of the advantages of our DTI system in this setting.
As a follow up to the commentary that we provided on our previous conference call.
One of the most exciting opportunities that we have seen in quite some time for our company relates to the application of our APC emissions control solutions.
As part of the proliferation and investment in data center infrastructure being being built in support of AI cloud computing and the general trend for digital expansion.
Speaker #6: In addition to this demonstration, we are still in discussions with a municipal wastewater treatment facility in the southeastern United States, and we are pursuing multiple other end markets of interest for DTI, including pulp and paper, food and beverage, chemical petrochemical, and horticulture.
Data centers are becoming the backbone of the digital age and as such their development necessitates the increase in demand for power generation to support data Center operation.
This demand and power will require emissions control solutions for many of the energy sources that necessitate a low carbon footprint.
Speaker #6: We continue to receive inquiries regarding DTI from potential customers in multiple end markets, and we are hopeful that we can generate our first commercial revenues in 2025.
In fact, the primary factors that determine whether a datacenter will require nox control using SCR technology are the following.
Speaker #6: Additionally, we continue to cultivate our sales representative network to broaden the introduction of DTI to various end markets across the US. We expect to add new sales representatives later this year.
First site location.
Is this site in entertainment or non attainment area for ozone ambient air quality standards as Nox is a contributor to ozone.
Speaker #6: These would be in addition to the two companies with whom we executed sales agreements in the first half of this year. As a follow-up to the commentary that we provided on our previous conference call, one of the most exciting opportunities that we have seen in quite some time for our company relates to the application of our APC emissions control solutions as part of the proliferation in investment in data center infrastructure being built in support of AI, cloud computing, and the general trend for digital expansion.
There will be more stringent nox requirements in the non attainment areas.
The planned utilization of the power generation application is the generation source for primary for backup power and what are the expected number of operating hours per year.
Primary power sources and backup power that is expected to run extensively will be more likely to require SCR.
And third the baseline <unk> of the power generation source.
Some combustion turbines can be equipped with combustion controls to enable a lower baseline nox emissions level. However, ultimately the state permit we will define the required level of emissions control.
Speaker #6: Data centers are becoming the backbone of the digital age, and as such, their development necessitates the increase in demand for power generation to support data center operation.
Speaker #6: This demand in power will require emissions control solutions for many of the energy sources that necessitate a low carbon footprint. In fact, the primary factors that determine whether a data center will require NOx control using SDR technology are the following.
The interest in our technology solutions for these applications has continued throughout the recent quarter and as of today, we have multiple bids outstanding for the integration of our of our SCR technology with the power generation sources to address the emissions control requirements of data centers to be built in the U S over the next.
Speaker #6: First, site location. Is the site in an attainment or non-attainment area for ozone ambient air quality standards? Is NOx a contributor to ozone? There will be more stringent NOx requirements in the non-attainment areas.
Several years.
We are watching the progress of the bid activity closely and are proactively working with our supply chain partners to ensure that we are ready to capitalize on the opportunity when it comes our way.
As we look ahead to the balance of 2025.
Speaker #6: Second, the planned utilization of the power generation application. Is the generation sourced for primary or backup power? And what are the expected number of operating hours per year?
Based on our effective backlog and pending contract awards.
<unk> business development activities that we are pursuing and our previously noted expectations for fuel Chem.
Speaker #6: Primary power sources and backup power that is expected to run extensively will be more likely to require SDR. And third, the baseline NOx of the power generation source.
We are reducing our revenue guidance for 2025 modestly from approximately $30 million to a range of $28 million to $29 million.
We are confident that fuel chem will well exceed its revenue level for 2024. However.
Speaker #6: Some combustion turbines can be equipped with combustion controls to enable a lower baseline NOx emissions level. However, ultimately, the site permit will define the required level of emissions control.
However, the timing of both the receipts and execution of ATC Awards has some uncertainty and as a result, we are being cautious in our guidance.
Also please note that this base case outlook excludes any material contributions from pgi.
Speaker #6: The interest in our technology solutions for these applications has continued throughout the recent quarter, and as of today, we have multiple bids outstanding for the integration of our SDR technology with the power generation sources to address the emissions control requirements of data centers to be built in US over the next several years.
Any significant contributions to APC from datacenter contract awards, and any material impact from new business development activities for fuel Chem.
In closing.
I want to express my thanks to the fuel Tech team for their continued efforts in support of our strategic goals and I want to thank our shareholders for their continued interest in and support of fuel Tech.
Speaker #6: We are watching the progress of the bid activity closely, and our proactively working with our supply chain partners to ensure that we are ready to capitalize on the opportunity when it comes our way.
We are excited about the business opportunity landscape that lies in front of us today and one of our primary objectives for our company is to build a material contract backlog as we move towards the end of 2025 and into 2026 and thereafter.
Speaker #6: As we look ahead to the balance of 2025, based on our effective backlog impending contract awards, the APC business development activities that we are pursuing, and our previously noted expectations for fuel cam, we are reducing our revenue guidance for 2025 modestly from approximately $30 million to a range of $28 to $29 million.
Now I'd like to turn the call over to Ellen for her comments on the financial results. Ellen. Please go ahead.
Thank you Vince and good morning, everyone.
For the quarter consolidated revenues declined to $5 6 million from $7 million in the prior year's period due to lower APC segment revenue.
Speaker #6: We are confident that fuel cam will well exceed its revenue level for 2024. However, the timing of both the receipts and execution of APC awards has some uncertainty, and as a , we are being cautious in our guidance.
APC segment revenue declined to $2 5 million from $3 9 million, primarily related to the timing of project execution on existing contracts, while as expected fuel Chem segment revenue remained flat at $3 1 million for the quarter.
Speaker #6: Also, please note that this base case outlook excludes any material contributions from DTI, any significant contributions to APC from data center contract awards, and any material impact from new business development activities for Fuel Cam.
Consolidated gross margin for the second quarter rose to 46% of revenues from 42% in last years second quarter due to segment contribution mix.
Speaker #6: In closing, I want to express my thanks to the Fuel Tech team for their continued efforts in support of our strategic goals, and I want thank our shareholders for their continued interest in and support of Fuel Tech.
Fuel Chem gross margin increased to 47% compared to 46% in the second quarter of 2024, Despite flat segment revenues, which was mainly due to account mix combined with relatively flat segment administration expenses.
Speaker #6: We are excited about the business opportunity landscape that lies in front of us today. And one of our primary objectives for our company is to build a material contract backlog as we move towards the end of 2025, and into 2026 and thereafter.
APC segment margin rose to 44% in the second quarter as compared to 39% in the prior year's period as a result of project and product mix.
Speaker #6: Now, I'd like to turn the call over to Ellen for her comments on the financial results. Ellen, please go head.
The APC segment containment revenues from capital project and ancillary revenue for items, such as post contractual spare parts and services.
Speaker #7: Thank you, Vince, and good morning, everyone. For the quarter, Consolidated Revenues declined to $5.6 million from $7 million in the prior year's period, due to lower APC segment revenue.
Ancillary point in time revenue maintain a higher margin profile and will offset fluctuating capital project revenue margins, which are recognized over time based on project completion.
Speaker #7: APC segment revenue declined to $2.5 million from $3.9 million primarily related to the timing project execution on existing contracts, while as expected, fuel cam segment revenue remained flat at $3.1 million for the quarter.
Consolidated APC segment backlog on June 32025 was $7 8 million up from a backlog of $6 2 million as of December 31.
Backlog at June 30 included $2 $8 million of domestically delivered project backlog and $5 million of foreign delivered project backlog compared to $1 $9 million of domestic delivered project backlog and $4 3 million of foreign deliver project backlog as of December 30 <unk>.
Speaker #7: Consolidated gross margin for the second quarter rose to 46% of revenues from 42% in last year's second quarter, due to segment contribution mix. Fuel cam gross margin increased to 47% compared to 46% in second quarter 2024, despite flat segment revenues, which was mainly due to account mix combined relatively flat segment administration expenses.
2024.
We expect that approximately $5 million of current consolidated backlog will be recognized in the next 12 months.
SG&A expenses in the second quarter rose slightly to $3 3 million from $3 2 million in the prior year period, due primarily to timing of routine expenditures.
Speaker #7: APC segment margin rose to 44% in the second quarter, as compared to 39% in the prior year's period, as a result of project and product mix.
As a percentage of revenue SG&A expenses rose to 60% from 46% in the prior year period, reflecting lower consolidated revenue in the current period.
Speaker #7: The APC segment contained revenues from capital projects and ancillary revenue for items such as post-contractual spare parts and services. Ancillary point-in-time revenue maintained a higher margin profile and will offset fluctuating capital project revenue margins, which are recognized over time based on project completion.
For 2025, we expect SG&A expenses to increase modestly from prior year as we focus on the development of our infrastructure and business segment.
Yeah.
Research and development expenses for the second quarter Rose to 490000 from 422000 in the prior year period due to our continuing investment in water and wastewater treatment technologies, specifically, our dji system and including including the demonstration Vince previously mentioned.
Speaker #7: Consolidated APC segment backlog on June 30th, 2025, was $7.8 million, up from a backlog of $6.2 million as of December 31st. Backlog at June 30th included $2.8 million of domestically delivered project backlog and $5 million of foreign delivered project backlog, compared to $1.9 million of domestic delivered project backlog and $4.3 million of foreign delivered project backlog as of December 30th.
Our investment in DTI will continue throughout 2025 to support ongoing site demonstration and other growth initiatives.
Our second quarter operating loss was $1 3 million compared to an operating loss of 715000 in the prior year period.
Speaker #7: In 2024, we expect that approximately $5 million of current consolidated backlog will be recognized in the next 12 months. SG&A expenses in the second quarter rose slightly to $3.3 million from $3.2 million in the prior year period, due primarily to the timing of routine expenditures.
Interest income increased to 537000 in the second quarter up from 334000 in the prior year period.
Interest income and net 2025 second quarter included 257000 related to the onetime recognition of the employee retention credit funds under the cares Act.
Speaker #7: As a percentage of revenue, SG&A expenses rose to 60% from $46% in the prior year period, reflecting lower Consolidated revenue in the current period.
Collection of approximately 75% of <unk> T fund, including the interest was completed in the second quarter with the remaining balance fully collected as of today.
Speaker #7: For 2025, we expect SG&A expenses to increase modestly from prior year as we focus on the development of our infrastructure and business segments. Research and development expenses for the second quarter rose to $490,000 from $442,000 in the prior year period, due to our continuing investment in water and wastewater treatment technologies, specifically our DGI systems and in including the demonstration Vince previously mentioned.
Our net loss for the quarter was 689000 or <unk> <unk> per share compared to a net loss of 421000 or <unk> <unk> per share in the prior year period.
Adjusted EBITDA loss was 948000 compared to an adjusted EBITDA loss of 529000 in the prior year period.
Speaker #7: Our investment in DGI will continue throughout 2025 to support ongoing site demonstrations and other growth initiatives. Our second quarter operating loss was $1.3 million, compared to an operating loss of $715,000 in the prior year period.
Lastly, moving to the balance sheet, our financial condition remains very strong as of June 32025, we had cash and cash equivalents of $10 6 million and short and long term investments of $20 3 million for a total of 39 million.
Shares outstanding at the quarter or approximately $30 9 million equating to cash per share of $1.
Speaker #7: Interest income increased to $537,000 in the second quarter, up from $374,000 in the prior year period. Interest income in the 2025 second quarter included $257,000 related to the one-time recognition of the employee retention credit funds under the CARES Act.
Working capital was $25 7 million or <unk> 83 per share stockholders equity was $40 7 million or $1 32 per share and the company continues to have no outstanding debt.
We remain greatly confident in our ability to maintain a strong financial position and to fund our short and long term growth initiatives.
Speaker #7: Collection of approximately 75% of ERC funds, including the interest, was completed in the second quarter, with the remaining balance fully collected as of today.
I'll now turn the call back over to Vince.
Thanks, very much Alan Operator list. Please go ahead and open the call for questions.
Speaker #7: Our net loss for the quarter was $689,000 or $0.02 per share, compared to a net loss of $421,000 or $0.01 per share in the prior year period.
Thank you.
Ladies and gentlemen, we will now begin the question and answer session.
If you would like to ask a question. Please press star and one on your telephone keypad.
Speaker #7: Adjusted EBITDA loss was $948,000, compared to an adjusted EBITDA loss of $529,000 in the prior year period. Lastly, moving to the balance sheet, our cial condition remains very strong.
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Speaker #7: As of June 30th, 2025, we had cash and cash equivalents of $10.6 million, and short and long-term investments of $20.3 million, for a total of $30.9 million.
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Ladies and gentlemen, we will wait for a moment when we pull for questions.
Speaker #7: Shares outstanding at the quarter were approximately $30.9 million, equating to cash per share of $1. Working capital was $25.7 million, or 83 cents per share.
The first question comes from Sameer Joshi with each C. Wainright. Please go ahead.
Speaker #7: Stockholders' equity was $40.7 million, or $1.32 per share. And the company continues to have no outstanding debt. We remain greatly confident in our ability to maintain a strong financial position and to fund our short and long-term growth initiatives.
Hey, good morning Debbie.
Kevin Thanks for taking my questions good morning Samira.
Morning.
On the actual financials and outlook.
Just want to make sure you mentioned fuel Chem revenues for the year.
Speaker #7: I'll now turn the call back over to Vince.
Likely it could be highest since 2022.
Speaker #8: Thanks very much, Ellen. Operator, let's please go ahead and open the call for questions.
So affordable clarified.
To be expected in the $15 million to $16 million range.
Speaker #9: Thank ou. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press star and one on your telephone keypad.
For the year is that because of any additional.
Units coming online later in the year.
Did mentioned some <unk> activities, we'd like to get some color on that.
Speaker #9: A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue.
Right now the the number that I provided is the range of $15 million to $16 million does not include contributions from from any new accounts as we sit here today.
Speaker #9: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions.
Anything that would be added from a new account perspective would be incremental to those numbers.
Understood.
And then the backlog of $7 8 million I think Alan mentioned 5 million expected to be.
Speaker #9: The first question comes from Sameer Joshi, with HC Wainwright. Please go head.
I recognized during 2020 quality.
Any seasonality or cadence tobacco over the next two quarters or so.
Speaker #10: Hey, good morning, Vince, Ellen, Devin. Thanks for taking my questions.
<unk>.
Speaker #9: Good morning, Sameer.
Right and Ellen had actually mentioned that that backlog number is largely going to be recognized over the next 12 months.
Speaker #10: So, good morning. Just a few on the actual financials and outlook. Just want to make sure you mentioned fuel cam revenues for the year are likely to be highest since 2022, and also further clarified it in those to be expected in 15 to 16 million dollar range.
Im horizon, not necessarily solely in 2025 and.
And yet the backlog is it's definitely projects or specific in nature. So it's not it's not like we can easily allocate that over the 12 month timeframe. If you will.
Speaker #10: Is that for the year? Is that because of any additional units coming online later in the year? You did mention some fourth-year activity. Just would like to get some color on that.
Yes.
Misspoke.
Equivalents is correct.
On the <unk> front.
This nine to 12 months demonstration that actually ordered any costs being reimbursed or is that being considered as R&D expense.
Speaker #9: Right. Now, the number that I provided as the range of 15 to 16 million, does not include contributions from any new accounts as we sit here today.
Counting.
Thank you.
It is largely considered to be R&D expense.
Speaker #9: Anything that would be added from a new account perspective would be incremental to those numbers.
Samir and no we are not expecting to collect collect any funds from the customer for this demonstration.
Speaker #10: Understood. And then the backlog of $7.8 million, I think Ellen mentioned $5 million to be expected to be recognized during 2025. Is there any seasonality or other cadence to that over the next two quarters, or it's evenly distributed?
This is solely a fuel tech investing and ensuring that we look to commercialize <unk> as quickly as we can.
Understood and you did reiterate.
Commercial revenues from I guess, the one or two prior end used customers during 2020.
Speaker #9: Right. And Ellen had actually mentioned that that backlog number is largely going to be recognized over the next 12 months time horizon, not necessarily solely in 2025.
Is that correct.
We have not recognized commercial revenues on <unk> as of yet.
But do you expect to be towards the end of 2025.
Speaker #9: And the backlog is, it's definitely projects specific in nature. So it's not like we can easily allocate that over the 12-month timeframe, if you
It is it is our hope and expectation that we will be fortunate enough to recognize some commercial revenue in 2025, yes.
Speaker #10: Understood. Yeah, no, I missed both. 12 months is correct. So on the DGI
So stepping back and just some.
Higher level macro questions you did address it.
Speaker #10: front, this 9 to 12-month demonstration that the hatchery are there any costs being reimbursed, or is it being considered . as R&D expense from a accounting point of view?
The proposed rollbacks of EAP there.
Regulations.
<unk>.
Indicated neither a headwind nor tail winds, resulting from that.
<unk>.
Speaker #9: It is largely considered to be R&D expense. Sameer and no, we are not expecting to collect any funds from the customer for this demonstration.
Any particular.
Where you might see some improvements.
On the <unk>, maybe or something like that.
Just wanted to see because.
Speaker #9: This is solely Fuel Tech investing in ensuring that we look to commercialize DGI as quickly as we can.
Youre in the pollution control.
The Nox control business.
Speaker #10: Understood. And you did reiterate commercial revenues from, I guess, the one or two prior engaged customers. During 2025, did I hear that correct?
Regulations me might have some impact.
Alright.
That's all.
Yes.
At this point in time.
There are opportunities for APC, there are being driven.
Speaker #9: We have not recognized commercial revenues on DGI as of yet.
Speaker #10: But do you expect to before the end 2025?
Predominantly by continued business expansion.
Speaker #9: It is our hope and expectation that we will be fortunate enough to recognize some commercial revenue in 2025, yes.
The the contract awards that were looking to announce here in this next two to three week timeframe. Our four plant expansions both in this country and in Europe as well. So we'll continue to participate in those types of activities as we continue to have manufacturing.
Speaker #10: Understood. Got . So then stepping back and just some like higher-level macro questions. You did the address the role proposal rollbacks of EPA, Clean Air Act, regulations.
Manufacturing build out.
Around the World and then obviously our largest opportunity that we're seeing today is indeed, the AI related data center build out.
Speaker #10: And indicated neither headwinds nor tailwinds resulting from that. Are there any particular areas where you might see some improvements on the NOx front, maybe, or some like just wanted to see because you are in the pollution control NOx control business, and the regulations may might have some impact that that's just how I like that's our that's how I feel.
That pretty much everyone has been speaking about here over this past several months.
Regulatory <unk>, where we are not expecting any downside nor any upside that will be driven by regulation as we sit here today.
Understood. So the offset and you did address it.
And your commentary the ACC.
Fortunately from the data center.
It goes like AI.
So it will be because we will be deploying more.
Speaker #9: Yeah. So at this point in time, our opportunities for APC, they're they're they're being driven predominantly by continued business expansion. The contractor awards that we're looking to announce here in this next two to three-week timeframe are for plant expansions, both in this country and in Europe as well.
Paul the resources that we require.
Services, Thats, where youll see the upside from there.
I think that is correct.
Sure.
Any timeline or are you seeing increased activity toward this.
Or.
Speaker #9: So we'll continue to participate in those types of activities as we continue to have manufacturing build out around the world. And then obviously, our largest opportunity that we're eing today is indeed the AI-related data center build out that pretty much everyone has been speaking about here over this past several months.
You're just expecting it in the future.
Yes, I don't have a specific timeline for you as we sit here today Samir.
Have we have active.
Proposals in place with multiple.
Turbine manufacturer Oems.
The proposals are there is a combination of both budgetary and what I would call commercial proposal activity the commercial ones are likely to be.
Speaker #9: Regulatorily, we're we are not expecting any downside nor any upside that will be driven by regulation as we sit here today.
More current in their timeliness relative to the customer acting on them, but as we sit here today, we would expect to hear.
Speaker #10: Understood. So the upside, and you did address it on the in your commentary, the APC opportunity. From the data center/crypto/AI space, so it will be because they will be deploying more power resources that will require your services that's where you see the upside from.
Some level of response on these awards before the end of 2025, but hopefully sooner than that.
Hopefully sooner than that.
These projects do take time to develop obviously and we are working with.
Our partners do very very closely.
And.
We are active in terms of supporting them with bids for for our services.
Speaker #10: Is there I mean, I think that is correct. Is there any timeline are ou seeing increased activity toward this or you just are expecting it in the future?
And it's something we're following extremely closely it is literally the largest opportunity that we have seen for our technologies.
In probably 10% to 15 years.
So it's critical for us to capitalize on these.
Speaker #9: Yeah. I don't have a specific timeline for you as we sit here today, Sameer. We have active proposals in place with multiple turbine manufacturer OEMs.
Yes.
No that was total.
What I was going to.
My last question as well about what does the pipeline of opportunities not.
Local news from the EA, but also a film.
Speaker #9: The proposals are there's a combination of both budgetary and what I would call commercial proposal activity. The commercial ones are likely to be more current in their timeliness relative to the customer acting on them.
Some <unk> in the next two years.
Or even the <unk> debt.
Emerging just the broader market.
Our pipeline for the company.
Speaker #9: But as we sit here today, we would expect to hear some level of response on these awards before the end of 2025. But hopefully sooner than that.
For the next two years.
Right. So the I'll start with fuel Chem right. So we don't actually measure of pipeline for fuel Chem, because thats recurring revenue. So as I said for 2025, we are looking at $15 million to $16 million in revenue.
Speaker #9: Hopefully sooner than that. These projects do take time to develop, obviously. And we are working with our partners very, very closely. And we are active in terms of supporting them with bids for our services.
26, and beyond is going to depend on whether or not we are able to add.
Some new commercial accounts to our to our base accounts for fuel Chem.
I had mentioned that we are looking at demonstrating it at a large coal fired unit here before the end of 2025, if that does come on board and his operational for the majority of 2026 that could be an incremental two to $2 $5 million.
Speaker #9: And it's something we're following extremely closely. It is literally the largest opportunity that we have seen for our technologies in probably 10 to 15 years.
Speaker #9: So, it's critical for us to capitalize on these.
Revenue amount.
Speaker #10: Yes, yes. No, that was sort of where I was going. And towards my last question as well, about what is the pipeline of opportunities?
For for 2026.
They would also assume the the same level of contribution from all of our other base accounts. So.
So no no no backlog, if you will for fuel Chem recurring revenue with some opportunities for upside for.
Speaker #10: Not only from the AI, but also from fuel cam in the next two years. Or even DGI that you're emerging. Just a broader market, please.
For dji.
I really can't speak to a backlog number a year at this point in time, it's at where we're still pre revenue and it would be.
Speaker #10: Pipeline for the company. Over the next two years.
On my behalf.
Speaker #9: Right. So the I'll start with fuel cam, right? So we don't actually measure a pipeline for fuel cam because that's recurring revenue. So as I said, for 2025, we are looking at 15 to 16 million in revenue.
Making a statement that I really don't have any justification for here today. So we'll hold off on TGI for the time being for APC.
The pipeline just for the bids we have in place related to AI data centers, it's approximating $100 million in bids that we have outstanding today, its a significant material opportunity for our company and then the pipeline for call. It what I would call more standard APC business.
Speaker #9: 26 and beyond is going to depend on whether or not we are able to add some new commercial accounts to our base accounts for fuel cam.
Speaker #9: I had mentioned that we are looking at demonstrating it at a large coal-fired unit here before the end of 2025, if that does come on board.
That's related to normal business growth I'd put that in the $20 to $25 million range.
Speaker #9: And as operational for the majority of 2026, that could be an incremental $2 to $2.5 million dollar revenue amount for 2026. And that would also assume the same level of contribution from all of our other base accounts.
Yes.
The number I was getting at.
If we can the opportunity ahead of you.
<unk>.
So good luck with that.
Thank you very much for your question Nelson.
Thank you.
Thank you.
Speaker #9: So no backlog, if you will, for fuel cam recurring revenue with some opportunities for upside. For DGI, I really can't speak to a backlog number here this point in time.
The next question comes from Marc Silk with Silk investment Advisors. Please go ahead.
Yeah.
Thank you.
Hey, Martin interim might be weaker we can borrow we can barely hear you.
Speaker #9: We're still pre-revenue and it would be on my behalf making a statement that I really don't have any justification for here today. So we'll hold off on DGI for the time being.
How is that that is much better. Thank you.
Hey.
Did you say the opportunity for the data centers is a $100 million.
I said that that's what we have in our pipeline today the opportunity itself could.
Speaker #9: For APC, the pipeline just for the bids we have in place related to AI data centers is approximating $100 million dollars in bids that we have outstanding today.
Could be larger than that but that's that's that represents what we have in terms of bid pipeline activity today.
That's impressive most of my questions are answered so I just have one more obviously the data centers is a big U S phenomenon, but is there also additional data centers being built around the world that you can be part of as well.
Speaker #9: It's a significant material opportunity for our company. And then the pipeline for call it what I would call more standard APC business that's related to normal business growth, I'd put that in the 20 to 25 million dollar range.
We believe that we will see data center build out in other parts of the world as well.
Where we're involved in what I would call a lesser amount or a number of inquiries for those opportunities because they are not as developed or not as advanced as the activity that we're seeing here in the U S. But we would expect that there would be some opportunities outside of the U S prospectively.
Speaker #10: Yeah, no, that's the number I was getting at. It's a significant opportunity ahead of you. And it is emerging. Yes. So good luck with that.
Speaker #9: Thank you y much for your question.
Speaker #10: Thank you for your estion. Yeah, thank you.
Speaker #9: Thank you. The next question comes from Mark Silk, with Silk Investment Advisors. Please go ahead.
Great. That's all I have good luck going forward. Thank you Mark.
Okay.
Thank you.
Speaker #11: Thanks for taking my questions.
The next question comes from Richard Greulich with Reg Capital Advisors. Please go ahead.
Speaker #9: Hey, Mark.
Speaker #11: I wanted to interrupt Mark.
Speaker #9: We can barely hear you.
Speaker #11: Oh, how's that?
Thank you.
Speaker #9: That is much better. Thank ou.
Unrelated question, so I noticed in the <unk>.
Speaker #11: Okay. Did you say the opportunity for the data centers is $100 million dollars?
<unk> 10-Q that you changed your global sales pipeline range from.
Speaker #9: I said that that's what we have in our pipeline today. The opportunity itself could be larger than that, but that's what we have in terms of bid pipeline activity today.
In the last quarter, it was $50 million to $75 million and in this 10-Q and 75% to $100 million.
Does that reflect accelerating interest in the data center area or maybe accelerating bids placed by you.
Speaker #11: That's impressive. Most of my questions are answered, so I just have one more. Obviously, the data centers is a big US phenomenon, but is there also additional data centers being built around the world that you could be part of as well?
It actually does and as I just mentioned.
To the prior.
Color.
Speaker #9: We believe that we will see data center build out in other parts the world as well. We're involved in what I would call a lesser amount or number of inquiries for those opportunities because they are not as developed or not as advanced as the activity that we are seeing here in the US.
Our range in total is at this point in time, it is greater than $100 million in terms of our sales pipeline and yes. It is specifically being driven by the opportunities that are out there related to AI data centers.
If these opportunities came to fruition would you be able to expand your.
Speaker #9: But we would expect that there would be some opportunities outside of the US prospectively.
Speaker #11: Great. That's all I have. Good luck going ward.
Production capacity or installation capacity on a timely basis to take advantage of that over the next year to two.
Speaker #9: Thank you, Mark. Thank you. The next question comes from Richard Grulik. With Reg Capital Advisors. Please go head.
Yes, we are working with.
Our supply chain partners and have had discussions with them over these past few months as some of these inquiries have come in fuel tech does not manufacture.
Speaker #12: Thank ou. In related question, so I noticed in the 10-Q that you changed your global sales pipeline range from in the last quarter, it 50 to 75 million.
And anything ourselves, we use our supply chain partners to actually manufacturer and fabric fabricate the equipment that we provide so we do have the ability to scale up by bringing on board additional qualified suppliers for this type of work and that would be our intention.
Speaker #12: And in this 10-Q, it's 75 to 100 million. Does that reflect accelerating interest in the data center area or maybe accelerating bids placed by you?
Mhm.
For the benefit of people, who may not have listened to the last conference call.
Speaker #9: It actually does. And as I just mentioned, to the prior caller, our range in total is at this point in time, it is greater than $100 million in s of our sales pipeline.
In that call you delineated sort of why this is such a big opportunity in the sense of not just having multiple centers, but multiple units at each center is that still the case that is absolutely the case.
Speaker #9: And yes, it is specifically being driven by the opportunities that are out there related to AI data centers.
Most of the bids that we are providing to our customers that it can range from it can range from anywhere from from one.
Speaker #12: If these opportunities came to fruition, would you be able to expand your production capacity or installation capacity on a timely basis to take advantage of that over the next year or two?
Up to 25% to 30 units that were actually bidding on the the data center sites.
Our.
Scaling up in blocks or in stages and typically each stage will require a multitude of units for that stage and then that ables them too.
Speaker #9: Yeah. We are working with our supply chain partners and have had discussions with them over these past few months as some of these inquiries have come in.
Develop and add modular lead to that site prospectively when they have additional data requirements that they're looking to fill so so yes. Entering your question. These are these bids are for multiple units at a site.
Speaker #9: Fuel Tech does not manufacture anything ourselves. We use our supply chain partners to actually manufacture and fabricate the equipment that we provide. So we do have the ability to scale up by bringing on board additional qualified suppliers for this type of work.
And the revenue that you receive for each unit is in the range of one.
Speaker #9: And that would be our intention. You know.
Per unit.
It ranges anywhere from a little over $1 million per unit to as high as $2 $5 million per unit.
Speaker #12: For the benefit of people who may not have listened to the last conference call, in that call, you delineated sort of why this is such a big opportunity in the sense of not just having multiple centers, but multiple units at each center.
Okay, great. Thank you very much thank you.
Thank you.
A reminder to all participants you May press star one to ask a question.
Speaker #12: Is that still the case?
Speaker #9: That is absolutely the case. Most of the bids that we are providing to our customers that it can range from anywhere from one up to 25 to 30 units that we're actually bidding on.
The next question comes from William Bremer with Vanquish Capital Partners. Please go ahead.
Good morning, Vince.
Hey, good morning Bill.
Speaker #9: The data center sites are scaling up in blocks or in stages. And typically, each stage will require a multitude of units for that stage.
The previous caller.
It is an excellent job of articulating, where I was going what I'll add in terms of the modular mix.
These data center opportunities for the SCR units.
Speaker #9: And then that ables them to develop and add modularly to that site prospectively when they have additional data requirements that they're oking to fill.
Is.
I'm, assuming your engineering team once the fulfill the specific engineering thats needed.
For the turbine manufacturer.
I'm, assuming that going forward that time.
Speaker #9: So yes, entering your question, these bids are for multiple units at a site.
To prove yourself or the technical aspect just needs to be tweaked. So thus you could leverage.
Speaker #12: And the revenue that you receive for each unit is in the range of what?
The building out of the bids that you, possibly doing right now is that correct.
Speaker #9: Per unit? The range is anywhere from a little over $1 million dollars per unit to as high as $2.5 million dollars per unit.
I would say, yes to that bill.
Once we have a specific design in place for specific.
Speaker #12: Okay, great. Thank you very much.
Speaker #9: Thank you. Thank you. A reminder to all participants: you may press star and one to ask a question. The next question comes from William Bremmer with Vanquish Capital Partners.
<unk>.
Yes that design can be leveraged for future applications.
Assuming that the permitting requirements for the emissions reduction for this site is indeed similar in nature. If the permitting requirements are different we would then need to modify that design. Accordingly, However, I will say that having having a base design in place for.
Speaker #9: Please go head.
Speaker #13: Good morning, Vin.
Speaker #9: Hey, good morning, Bill.
Speaker #13: The previous caller did an excellent job of articulating where I was going. What I'll add in terms of the modular mix of these data center opportunities for the SCR units is I'm assuming your engineering team once they fulfill the specific engineering that's needed per the turbine manufacturer, I'm assuming that going forward, that time to prove yourself or the technical aspect just needs to be tweaked so thus you could leverage the building out of the the bids that ou're possibly doing right now.
A turbine or a certain make and model does provide some leverage absolutely.
And I guess, what surprises many of us as that.
The minimum.
Potential dollar figure.
It's just a single seven figure as a single million dollars here. So.
Boy, if you guys will start receiving clusters of these leverage you'll have is tremendous.
Agreed.
Agreed.
As I noted we are extremely excited about this opportunity.
Fantastic I won't go to Mexico.
And there's been recent.
Speaker #13: Is that correct?
What I mean by recent I'm talking.
Speaker #9: I would say yes to that, . Once we have a fic design in place for a specific turbine, yeah, that design can be leveraged for future applications.
In March of this year and even currently last week, there's been more and more news regarding Pemex and the fact that they are not fulfilling their emissions.
Regulatory.
Speaker #9: Assuming that the permitting requirement for the emissions reduction for this site is indeed similar in nature, if the permitting requirements are different, we would then need to modify that design accordingly.
Fulfillment, there and there seems to be an increased amount of pressure down there are you seeing that as well.
We have been waiting for pressure to be applied not just on Pemex Pemex, but on on Cfe, who is the state owned power generation company as well.
Speaker #9: However, I will say that having a base design in place for a turbine a certain make and model does provide some leverage, absolutely.
But seeing the pressure being put on Pemex is a good indicator.
Speaker #12: And I guess what surprises many of us is that the minimum potential dollar figure is just a single seven figures, a single million dollars here.
What might be coming here in the future it's been our hope and expectation that this administration would be looking at these issues more stringently.
And I think to your point, we are starting to see the administration, perhaps put a little bit more focus in this area. So.
Speaker #12: I mean, so boy, if you guys restart receiving clusters of these to leverage you'll have is tremendous.
Im hoping its trending in the right way build because again. This is this is another opportunity for us and we've talked about this now for for several years.
Speaker #9: No, agreed. Agreed. Now, as I noted, we are extremely excited about this opportunity.
Speaker #12: Fantastic. I want to go to Mexico. And there's been recent, and what I mean by recent, I'm king, hey, in March of this year and even currently in the last week, there's been more and more news regarding Pemex.
But this might be the best opportunity that we have to see something move forward for fuel Chem down in Mexico that the additional pressure on the emissions whether it be from Pemex Cfe or other industries in Mexico that is it's good to see and hopefully that will indeed expand to the point whereby.
Speaker #12: And the fact that they are not fulfilling their emissions regulatory fulfillments there, and there seems to be an increased amount pressure down there. Are you seeing that as well?
Our program in Mexico can be well expanded.
Agreed and we're talking about fuel Chem, which is currently your highest margin product.
Speaker #9: We have been waiting for pressure to be applied not just on Pemex, but on CFE, who is the state-owned power generation company as well.
We have some facilities down there currently.
Being one right now that's my assumption and that's what I recall.
And the fact that the leader down there is an environmentalist so it seems as though all the potentials right there that.
Speaker #9: But seeing the pressure being put on Pemex is a good indicator of what might be coming here in the future. 's been our hope and expectation that this administration would be looking at these issues more stringently and I think, to our point, we are starting to see the administration perhaps put a little bit more focus in this area.
<unk>.
So I know youre dealing with a partnership down there can you give us some color in terms of the partnership's engagement.
Through the entities in Mexico.
And back to us.
Speaker #9: So I'm oping it's trending in the right way, Bill, because again, this is another opportunity for us. And we've talked about this now for several years.
The engagement is very heavy we've worked with this partner for for more than 15 years. They were able to establish our Chem Tech program down there going back to.
Speaker #9: But this might be the best opportunity that we have to see something move forward for fuel cam down in Mexico that the additional pressure on the emissions whether it be from Pemex, CFE, or other industries in Mexico that is good to see and hopefully that will indeed expand to the point whereby our program in in Mexico can be well expanded.
2007, 2008 timeframe, so quite quite a long time ago.
The issue has been the lack of supportive of an administration to actually have concern for for the environment. So our partners well engaged in and well connected with.
With parties down there without getting into into too much detail.
Speaker #12: Agreed. I an, and we're talking about fuel cam, which is currently your highest margin product. I have some
Phone calls with him at a minimum every two weeks getting updates on on where things stand in and where his team has been working to go ahead and try to push this forward. So it's a regular and ongoing it is it's great to see that the government is providing some additional pressure.
Speaker #9: Correct.
Speaker #12: Facilities down there are currently being run right now. That's my assumption; that's what I recall. And the fact that the leader down there is an environmentalist.
And again, we are watching for that next step.
Speaker #12: So it seems as though all the potential is right there that. So I know you're dealing a partnership down there. Can you give us some color in terms the partnerships engagement to the entities in Mexico and back to us?
Final question, if you did receive an order with you.
Partner from Mexico.
How quickly would you be able to.
Complete that order with the fuel Chem division and send a demo.
Yes, very very quickly we actually.
Speaker #9: The engagement is very heavy. We've worked with this partner for more than 15 years. They were able to establish our chem tech program down there, going back to 2007, 2008 timeframe, so quite a long time ago.
Have equipment that is ready to go so it would be less than a couple of months deployment time for us to be able to get up and running on a new facility down there it would be a fast response.
Fantastic I look forward to seeing orders Vince Thank you.
Thank you bill Thanks for your questions.
Thank you.
Ladies and gentlemen, as there are no further questions I would now like to hand, the conference over to Vincent Arnone for closing comments.
Thanks, very much operator.
Again, our reach out and thank you to the fuel tech team.
And the same for our shareholder base. Thanks for your confidence in us.
We are well motivated very excited about the landscape of opportunity that we do see in front of us today.
And we look forward to execute executing on this opportunity.
I want to thank everyone for attending the call today and everyone have a good remainder of your day. Thank you very much.
Thank you, ladies and gentlemen, the conference of you want to take US in Oakland included Thank you for your participation and you may now disconnect your lines.