Fermi Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $25.8 million ($0.04 per basic and diluted share) for the three months ended June 30, 2026, compared to a net loss of $6.3 million ($0.02 per share) for the same period in 2025.
• General and administrative expenses were $26.8 million for the quarter, up from $5.6 million in the prior year period.
• Total cash and restricted cash on hand was $91.7 million as of June 30, 2026, down from $408.5 million as of December 31, 2025.
• Property, plant, and equipment (PP&E) gross balance reached approximately $1.55 billion, with $185.0 million in capital invested during the quarter.
• Outstanding debt increased to $520.1 million as of June 30, 2026, reflecting a $98.8 million net increase in borrowings under equipment financing facilities compared to $109.8 million at year-end 2025.
• The Company remains pre-revenue and in its development phase.
• Net cash used in operating activities was $56.0 million for the six months ended June 30, 2026.
• Net cash used in investing activities was $626.2 million for the six months ended June 30, 2026, primarily driven by investments in PP&E.
• Net cash provided by financing activities was $365.4 million for the six months ended June 30, 2026.

Guidance and Future Outlook

• Projected to deliver approximately 200 megawatts of initial commercial power over the next six months.
• Targeting approximately 1.5 gigawatts of power over the next 18 to 24 months, excluding the Hillcore alliance and subject to binding customer agreements and approvals.
• Project Matador is expected to ramp to approximately 17 GW subject to entering into binding customer agreements.
• First power of approximately 350 MW from the Hillcore alliance is targeted within 24 months of notice to proceed.
• The Hillcore alliance framework aims to double planned on-site generation to 4.8 GW within approximately 30 months.

Business Segments and Product Lines

• Signed a 15-year turnkey binding lease agreement with TensorWave, the first anchor customer, for 222 MW of total facility power with total revenue of approximately $6.5 billion over the contract life.
• The TensorWave agreement includes two expansion options allowing the customer to triple the site footprint.
• Received three Siemens F-class turbines, bringing total landed power assets to 1.5 gigawatts.
• Phase One involves six Siemens SGT-800 turbines capable of delivering nearly 300 megawatts; bathtub excavation is complete for all six power islands.
• Phase Two involves three Siemens SGT6-5000F turbines rated at up to 728 megawatts in simple-cycle mode; TSK is delivering early works and engineering.
• Established a build-own-operate-transfer strategic alliance with Hillcore Energy Capital Corporation for approximately 2.6 GW of incremental power generation.
• Signed strategic partnerships with Primoris Services Corporation for balance of plant work and TSK for engineering on the Siemens SGT6-5000F turbines.
• Site infrastructure includes 11 miles of perimeter fencing, nearly five miles of high-pressure natural gas pipeline, and seven miles of water distribution lines.

Market and Competitive Landscape

• The Company targets the market need for large-scale, reliable power on an AI timeline, positioning itself to solve the single biggest constraint in AI infrastructure.
• Project Matador is developed on approximately 8,400 acres in the Texas Panhandle.
• The Siemens SGT6-5000F turbines used in Phase Two are among the most widely used heavy-duty turbines in the 60-hertz market, with global fleet reliability near 99% and ramp rates up to 40 megawatts per minute.
• The cooling systems utilize 80% less water than traditional methods.

Risks and Challenges

• Forward-looking statements are subject to risks including the ability to obtain and maintain required permits and regulatory approvals (NRC, TCEQ).
• Risks include the ability to secure binding customer agreements and creditworthy counterparties.
• Potential risks involve the completion of strategic partnerships and joint ventures on acceptable terms, project financing availability, and large-scale construction risks.
• Supply chain and equipment procurement risks, commodity availability and pricing (natural gas, water), and interconnection availability are cited as factors.
• Leadership transition risks and broader economic, regulatory, and market conditions are noted.
• Generation capacity targets exceeding currently permitted levels (e.g., 17 GW) are subject to successful receipt of additional permits, approvals, and financing.

Management Commentary and Tone

• Marius Haas, Chairman of the Board, stated the team delivered on all five aggressive 90-day objectives with "focus, discipline, and execution."
• The Company appointed Lee McIntire as Chief Executive Officer, citing his 40+ years of experience in large-scale natural gas generation, nuclear programs, and civil mega-projects.
• Management described the new convertible note offering as having a "very attractive cost of capital" while protecting shareholders against dilution.
• The tone emphasizes real momentum and the transition from development into construction and first power.

Other Key Points

• Issued more than $431 million of 5.00% Convertible Senior Notes due 2031 subsequent to the quarter end, with net proceeds of $416.8 million before capped call transaction costs.
• The initial conversion price is approximately $9.52 per share.
• Capped call transactions eliminate shareholder dilution up to an effective strike price of $14.64 per share (a 100% premium to the July 9, 2026, closing price).
• The notes carry no scheduled amortization and no financial maintenance covenants.
• Share-based compensation expense was $118.7 million for the six months ended June 30, 2026.
• A loss on extinguishment of debt of $24.8 million was recorded for the six months ended June 30, 2026.
• The Company has invested more than $1.5 billion in site buildout to date.