Vulcan Infrastructure and Power — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended June 30, 2026, was $3.4 million, a decrease of $9.5 million from Q2 2025.
• Net loss for the quarter was $9.9 million, an increase of $5.8 million from Q2 2025.
• EBITDA loss was $8.5 million, an increase of $8.3 million from Q2 2025.
• Adjusted EBITDA loss was $6.7 million, compared to a profit of $0.4 million in Q2 2025.
• Net cash flow used for operating activities was $4.3 million, compared to $4.8 million in Q2 2025.
• Adjusted Free Cash Flow loss was $2.7 million, compared to $2.1 million in Q2 2025.
• The Company held $9.2 million in cash and digital assets as of June 30, 2026.
• First-half 2026 power and capacity revenue totaled $20.0 million, a 70% increase from the prior-year period.
• Total debt was $36.9 million as of June 30, 2026, consisting of $33.1 million in 8.50% Senior Notes due 2026 and $3.7 million in 10.00% Senior Notes due 2030.
• Net debt was $27.7 million as of June 30, 2026.
• The Company recorded losses on digital currency and non-recurring costs associated with a November 2025 electrical switchgear failure.

Guidance and Future Outlook

• Upon closing of the $39.4 million strategic investment, the Company expects to significantly strengthen its balance sheet and address near-term debt maturities.
• Immediate priorities include closing the financing transaction, advancing opportunities at Dresden and Mississippi, and continuing to build a pipeline of powered infrastructure assets.
• The Company aims to convert value embedded in power assets into higher-value infrastructure opportunities and identify additional sites to expand its platform.
• The Company is actively working to commercialize more than 100 MW of near-term AI/HPC opportunities within its 654 MW development pipeline.

Business Segments and Product Lines

• The Company controls 104 MW of existing energized capacity.
• The Company has a 654 MW development pipeline across owned sites.
• Upgrades and repairs were completed at the New York power plant to maintain high uptime.
• The Company is evaluating potential beneficial use for legacy fly ash.
• The Company rebranded as Vulcan Infrastructure and Power Inc., with Class A common stock trading on Nasdaq under the ticker "VIP."

Market and Competitive Landscape

• The Company focuses on acquiring, developing, and operating energized sites supporting artificial intelligence and high-performance computing data centers.
• The Company is pursuing AI/HPC infrastructure opportunities through engineering, site planning, and commercialization efforts.

Risks and Challenges

• Financial results were impacted by non-recurring costs and revenue adjustments associated with a November 2025 electrical switchgear failure.
• The Company incurred losses on digital currency.
• The strategic investment transaction remains subject to closing conditions and had not closed as of the date of the release.
• Forward-looking statements involve uncertainties regarding the AI/HPC transition, the timing and approval of the strategic investment, and the business plan.
• Actual results may differ materially from forward-looking statements due to risks and uncertainties described in the Company's SEC filings.

Management Commentary and Tone

• CEO Jordan Kovler stated the strategic investment represents an important step in the Company's evolution.
• Management expressed confidence that the investment will provide significant new capital and access to strategic expertise from investors with experience in power, infrastructure, real estate, and data center development.
• Kovler noted the Company is excited to have three strategic investors and is focused on executing its strategy to drive long-term growth.

Other Key Points

• The Company announced a $39.4 million strategic investment led by affiliates of Machine Investment Group and Atlas Holdings, along with Conversant Capital and company insiders.
• The Company intends to use net proceeds from the strategic investment to redeem all outstanding 8.50% Senior Notes due October 2026 (aggregate principal of approximately $33 million).
• During the quarter, the Company exchanged approximately $3.6 million in aggregate principal of the Senior Notes for $1.4 million in aggregate principal of 10.00% Senior Notes due 2030 and 1,277,111 shares of Class A common stock.
• The press release explicitly states it does not constitute a notice of redemption and creates no obligation to redeem the Senior Notes.
• The Company disclosed non-GAAP measures including EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, Total Debt, and Net Debt.
• The "As Adjusted" pro forma financials assume the closing of the PIPE Transaction and show Total Debt reducing to $13.7 million and Net Debt reducing to $1.3 million.