Analyst Summary:
Fuel Tech, a technology company that provides advanced engineering solutions for the optimization of combustion systems and emissions control, reported its financial results for Q4 2022 and FY 2022. The company's total revenue for FY2022 rose to $26.9 million, reflecting a 54% increase in APC revenues offset by a 6% decline in FUEL CHEM revenues. The company ended the year in a strong financial position, with $32.7 million in cash and investments and no long-term debt. Fuel Tech's Air Pollution Control (APC) business performed well driven by new project awards, driven by regulatory requirements, plant expansions, and equipment upgrade requirements. Despite the decline in segment gross margin, the Fuel Chemistry (FUEL CHEM) segment continued to perform at historic levels. CEO Vincent J. Arnone noted that the company's outlook for 2023 is promising, primarily driven by improving sales within APC and slight decline in anticipated results within FUEL CHEM. The company's hiring of William (Bill) Decker as Vice President Water and Wastewater Treatment Technologies reflected its efforts to accelerate its water and wastewater treatment activities. However, there was a modest decline in the segment gross margin, reflecting changes in product and project mix and increased supply chain costs in the APC segment.