| “Fervo continues to demonstrate the power of enhanced geothermal at scale,” said | |
BUSINESS AND OPERATIONAL HIGHLIGHTS
- Continued to see strong growth in power demand across all categories of buyers, with behind-the-meter capabilities playing a growing role in meeting that demand outside conventional grid interconnection timelines.
- Raised its long-term development target to 1.1 gigawatts by 2030 - a 100-megawatt increase - as commercial and technical confidence in the Company's pipeline continues to build.
- Advanced
Cape Station Phase I toward commercial operation, achieving mechanical completion on GeoBlocks 1 and 2 and progressing commissioning, with GeoBlock 3 mechanical completion expected in the coming months. GeoBlock 1 first power is targeted for the fourth quarter of 2026, with full production anticipated by year-end; GeoBlocks 2 and 3 are expected to reach initial power in early 2027. - Set a new company drilling record with Sawtooth 7 - the ninth Fervo 3.0 well and most complex well design to date - reaching a measured depth of nearly 19,500 feet in a 460°F resource with a spud-to-total-depth of just 21 days.
Progressed Cape Station's second phase of development, with eight GeoBlocks slated to come online in 2028, and added a third Helmerich & Payne rig in line with the Phase II development plan.- Accelerated pipeline maturation, moving eight GeoBlocks (400 megawatts) into
Advanced Development while advancing 10.5 gigawatts of capacity potential across two new GeoClusters intoEarly Development .
FINANCIAL HIGHLIGHTS
- Marked its debut as a public company in the second quarter of 2026, completing its IPO and raising approximately
$2.2 billion in gross proceeds. - Reported Q2 2026 operating loss of
$28.7 million and net loss of$55.9 million . - Reported Q2 2026 capital expenditures of
$226.5 million , compared to$108.0 million in Q2 2025, reflecting continued investment inCape Station development and construction activities. - Expect total capital expenditures of approximately
$850.0 to$900.0 million in the second half of 2026, in line with previously disclosed expectations, reflecting continued construction activity atCape Station as well as broader pipeline development activities, including long-lead procurement and appraisal work across the Company's GeoCluster portfolio.
BUSINESS UPDATES
Commercial
Fervo continues to see robust commercial demand for firm, carbon-free power, driven by the scale of AI and data center build-out, the re-shoring of domestic manufacturing, and broader electrification straining existing grid capacity. Buyers across categories – utilities, industrial offtakers, and hyperscale data center developers – continue to seek out Fervo's 24/7 geothermal power as a differentiated solution to that demand, and the Company's commercial pipeline reflects that momentum.
As part of its GeoCluster approach to AI data center development, Fervo is pursuing behind-the-meter delivery pathways in addition to conventional grid-delivered power purchase agreements - structures under which the Company delivers baseload power directly to a customer's on-site load, alongside ancillary energy systems developed by others, rather than through the grid. Fervo believes that behind-the-meter developments will serve as a critical bridge for customers that urgently need power sooner than the grid can provide, and that these developments will be connected to the grid over time.
Construction
Fervo's second phase of development at
The drilling performance of the Sawtooth 7 well, combined with its design and resource temperature, underpins Fervo's confidence in its cost trajectory. Based on progress to date, Fervo continues to expect Phase II to achieve an all-in cost of
Portfolio
Fervo's development pipeline, which totaled more than 50 gigawatts as of quarter-end, continued to advance during the second quarter. Approximately 400 megawatts moved from
Fervo's current land portfolio spans over 650,000 acres.
Financing
In
Earlier in the quarter, Fervo repaid all outstanding borrowings under the loan agreements with
CONFERENCE CALL
Fervo will host a conference call to discuss its second quarter 2026 business, operational and financial highlights at
ABOUT FERVO
Fervo Energy (NASDAQ: FRVO) is a modern power company built around one of the market’s most important needs: affordable, dependable new power supply. Through the large-scale deployment of enhanced geothermal systems, Fervo has established a repeatable, industrial approach to building utility-scale power. The Company is transforming geothermal into a clean, reliable, cost-competitive solution designed to meet rising demand from AI hyperscalers, utilities, and a more electricity-intensive economy. For more information, visit www.fervoenergy.com.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, are forward-looking statements. When used in this press release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Fervo believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Fervo’s control. Accordingly, forward-looking statements are not guarantees of future performance, and Fervo’s actual outcomes could differ materially from what Fervo has expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance with extensive environmental regulations and permitting requirements; uncertainties in forecasting future operational results and growth due to economic conditions and market demand; compliance with environmental regulations and climate change initiatives impacting operational costs; inherent risks in the geothermal industry, including potential operational disruptions and associated liabilities; the influence of consumer preferences, government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in energy prices and material costs; dependence on a complex supply chain and successful maintenance of our geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, and other market conditions; capacity actually constructed or for which we enter power purchase agreements under non-binding agreements, like the Geothermal Framework Agreement; exposure to legal proceedings and claims arising from our business operations; protecting our brand reputation and facing potential negative public perception; negative public perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems and potential cybersecurity threats; global economic and political conditions affecting our operations, supply chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and other risks and uncertainties, including those set forth under “Risk Factors” in Fervo’s Registration Statement on Form S-1/A, filed with the Securities and Exchange Commission (the “SEC”) on May 11, 2026, and Fervo’s other filings with the SEC.
In light of these factors, the events anticipated by Fervo’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Fervo operates in a very competitive and rapidly changing environment, and new risks emerge from time to time. Fervo cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this press release or, if earlier, as of the date they were made. Fervo does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| (Dollars and shares in thousands except per share amounts) | Three Months Ended | Six Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | $ | 113 | $ | — | $ | 174 | $ | — | ||||||||
| Costs and expenses: | ||||||||||||||||
| Operation and maintenance | 306 | 158 | 788 | 410 | ||||||||||||
| Research and development (income) expense, net | (712 | ) | 395 | (784 | ) | 359 | ||||||||||
| General and administrative expense | 27,427 | 9,484 | 44,417 | 17,163 | ||||||||||||
| Operating lease expense | 1,490 | 205 | 4,110 | 2,194 | ||||||||||||
| Depreciation and amortization | 344 | 56 | 437 | 103 | ||||||||||||
| Operating loss | (28,742 | ) | (10,298 | ) | (48,794 | ) | (20,229 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 10,521 | 601 | 13,336 | 2,629 | ||||||||||||
| Interest expense | (2,215 | ) | (1,739 | ) | (4,932 | ) | (2,966 | ) | ||||||||
| Other non-operating expense, net | (35,478 | ) | — | (47,354 | ) | (16 | ) | |||||||||
| Loss before income taxes | (55,914 | ) | (11,436 | ) | (87,744 | ) | (20,582 | ) | ||||||||
| Income tax expense | (1 | ) | (2 | ) | (1 | ) | (2 | ) | ||||||||
| Net loss | $ | (55,915 | ) | $ | (11,438 | ) | $ | (87,745 | ) | $ | (20,584 | ) | ||||
| Net loss per share information: | ||||||||||||||||
| Net loss | $ | (55,915 | ) | $ | (11,438 | ) | $ | (87,745 | ) | $ | (20,584 | ) | ||||
| Less: Remeasurement of redeemable noncontrolling interest | (3,612 | ) | (189 | ) | (7,046 | ) | (189 | ) | ||||||||
| Net loss attributable to common stock, basic and diluted | (59,527 | ) | (11,627 | ) | (94,791 | ) | (20,773 | ) | ||||||||
| Weighted average common stock, basic and diluted (1) | 157,003 | 8,844 | 83,643 | 8,902 | ||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (0.38 | ) | $ | (1.31 | ) | $ | (1.13 | ) | $ | (2.33 | ) | ||||
| (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194-for-1 reverse stock split effected on | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| (Dollars and shares in thousands) | As of 2026 | As of 2025 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,106,371 | $ | 461,836 | ||||
| Grant receivables | 17,177 | 10,580 | ||||||
| Prepaid expenses and other | 30,634 | 9,714 | ||||||
| Total current assets | 2,154,182 | 482,130 | ||||||
| Deposits | 12,602 | 15,234 | ||||||
| Construction-in-process | 1,235,160 | 789,571 | ||||||
| Operating leases right-of-use assets | 88,667 | 58,713 | ||||||
| Restricted cash | 11,000 | 6,000 | ||||||
| Other long-term assets | 33,478 | 13,520 | ||||||
| Total assets | $ | 3,535,089 | $ | 1,365,168 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 29,667 | $ | 10,789 | ||||
| Accrued capital expenditures | 173,961 | 119,303 | ||||||
| Current portion of long-term debt | 11,042 | — | ||||||
| Operating lease liabilities | 24,744 | 4,822 | ||||||
| Other current liabilities | 10,614 | 16,997 | ||||||
| Total current liabilities | 250,028 | 151,911 | ||||||
| Long-term debt, net of issuance costs and current portion | 217,376 | 172,837 | ||||||
| Operating lease liabilities | 85,123 | 72,639 | ||||||
| Other long-term liabilities | 1,749 | 11,407 | ||||||
| Total liabilities | 554,276 | 408,794 | ||||||
| Commitments and Contingencies (Note 19) | ||||||||
| Mezzanine equity | ||||||||
| Redeemable convertible preferred stock, par value authorized; 0 and 279,995 issued and outstanding as of 2025 | — | 1,022,942 | ||||||
| Redeemable noncontrolling interest | ||||||||
| 105,118 | 102,586 | |||||||
| 81,858 | 77,344 | |||||||
| Stockholders’ equity (deficit): | ||||||||
| Common stock, par value issued as of | — | 1 | ||||||
| Class A common stock, par value and 0 issued as of | 29 | — | ||||||
| Class B common stock, par value issued as of | 1 | — | ||||||
| Additional paid-in capital | 3,126,084 | — | ||||||
2025, respectively (1) | — | (1,960 | ) | |||||
| Accumulated deficit | (332,277 | ) | (244,539 | ) | ||||
| Total stockholders’ equity (deficit) | 2,793,837 | (246,498 | ) | |||||
| Total liabilities, mezzanine equity, and stockholders’ equity (deficit) | $ | 3,535,089 | $ | 1,365,168 | ||||
| (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194-for-1 reverse stock split effected on | ||||||||
CONTACTS
Investor Relations
investor.relations@fervoenergy.com
Fervo@icrinc.com
V2 Communications for
fervo@v2comms.com
