Push all these orders together and investors get a much more interesting picture of order flow at Fuel Tech. New orders totaling $20.7 million over a period of three months might mean a turn-around for Fuel Tech’s future. The company reported $74.2 million in total sales over the twelve months ending September 2015, well below the $108.3 million in total sales the company reported in 2013. The stepped-up pace of new orders suggests Fuel Tech is clawing its way back in a market that has been trouble by growth concerns and financing obstacles for the industrial and energy companies that need pollution control systems.
New business is not the only problem before Fuel Tech. The company has had trouble maintaining profits as sales have slipped. In the most recently reported twelve months the company reported a new loss of $20.4 million or $0.89 per share. Nonetheless, the company was able to generate $3.0 million in operating cash flow.
Emissions control for combustion systems is vital and there appears to be a large, unmet market. When the economics finally drive customers to make the investment, Fuel Tech is likely to get orders. Unfortunately, economics of late have not been in Fuel Tech’s favor. That has left the company’s stock priced at a bargain 0.70 times revenue.