AirJoule Technologies Q2 2025 Earnings Report

AirJoule Technologies EPS Results

• Actual EPS: N/A
• Consensus EPS: -$0.09
• Beat/Miss: N/A
• One Year Ago EPS: N/A

AirJoule Technologies Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

AirJoule Technologies Announcement Details

• Quarter: Q2 2025
• Date: 8/28/2025
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

Montana Technologies Corporation operates as an atmospheric renewable energy and water harvesting technology company. It provides energy and dehumidification, evaporative cooling, and atmospheric water generation through its AirJoule technology. The company is headquartered in Ronan, Montana.

AirJoule Technologies Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: AirDrill secured six new strategic collaborations, notably an MOU with a hyperscale data center developer to integrate waste-heat-to-water technology, positioning the company for multi-gigawatt data-center applications.
• Positive Sentiment: The City of Hubbard, Texas project will deploy an A250 unit to capture 140°F well water heat and produce potable water onsite, targeting regulatory certification for municipal and industrial use.
• Positive Sentiment: A military anti-corrosion collaboration is underway to replace energy-intensive desiccant wheels, leveraging AirDrill’s sorption efficiency to cut dehumidification expenses for Department of Defense storage facilities.
• Positive Sentiment: The A250 industrial dehumidifier demonstrated ~80% lower energy use per liter versus incumbent systems, addressing a ~$3 billion market with commercial launch planned for 2026.
• Neutral Sentiment: AirDrill closed a $15 million PIPE anchored by GE Vernova, ended Q2 with $30.5 million in cash and zero debt, and noted a $2–3 million increase in JV budget spend fully covered by existing funding.

Presentation

[Operator]

Greetings, and welcome to the AirDrill Technologies Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. It's now my pleasure to turn the conference over to your host, Tom Devine, Vice President, Investor Relations and Finance. Thank you. You may begin.

[Tom Divine, VP - IR & Finance at AirJoule Technologies]

Thank you, and good morning. With me today for our second quarter earnings call are Matt Joar, Chief Executive Officer Pat Eilers, Executive Chairman Brian Barton, Chief Commercialization Officer and Steven Peng, Chief Financial Officer. During this call, we'll be referring to a presentation, which is available on the webcast platform and on the Investors section of our website. I would like to point out that many of the comments made during the prepared remarks and during the Q and A section are forward looking statements that involve risks and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the Risk Factors and the forward looking statements sections of our filings with the SEC.

[Tom Divine, VP - IR & Finance at AirJoule Technologies]

Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance and actual results or developments may differ materially. And now I'll turn it over to Matt Joar.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks Tom and thanks everybody for joining us today. We're excited to share this morning that AirJewel has now progressed from proving and improving our AirJewel technology to building products and commercialization channels with our global partners. Since going public over a year ago, we've advanced our platform technologies, expanded our partnerships and set a clear path to market. We're more convicted than ever that our products will enable a sustainable and resilient future for water and energy. That's why I'm eager to reiterate our purpose and vision with you today.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Our purpose is clear, freeing the world of its water and energy constraints by delivering groundbreaking sorption technologies. This mission reflects our unwavering commitment to solving two of humanity's most pressing challenges, access to clean water and the increasing energy demand for air conditioning through the transformative power of our platform technologies. It's a bold statement, but it embodies what we've been building since day one. And our vision is equally inspiring and paints the picture of where we're headed to be the leading technology platform that unleashes the power of water from air. We see a future where communities, industries and nations can access this abundant resource available in the air all around them.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Our platform approach means we aren't just delivering products, we're deploying an ecosystem of solutions, a platform that fundamentally redefines how the world thinks about water and power. This is the path we're on and it's the future we're building every day. Now let's turn to some of our recent developments that occurred in the second quarter and over the summer. Pat's going to provide an update on our strategic collaborations and projects before I go into some updates on our product and operations. Pat?

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Yes. Thanks, Matt. Over the last couple of months, we've announced six new strategic collaborations that are helping us accelerate the commercialization of our AirJewel technology. In June, we announced an MOU with the developer of AI hyperscale data center to advance the integration of AirJewel's waste heat to water technology for data center applications. We've talked at length in the past about how attractive the data center market is for us.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Data centers use millions of gallons of water per day in their cooling systems, which poses a massive risk for data center operations in water stress regions. Recently, Sam Altman of OpenAI said that the future data centers, which could go beyond 10 gigawatts of power each will require new technologies and new construction techniques. Our technologies are needed to improve water usage effectiveness known as WUE, reduce reliance on municipal supplies and build greater site independence. AirJewel is well positioned to be one of those technologies. Another recent announcement is our air to water project with the City Of Hubbard, Texas.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

This will demonstrate our ability to use free waste heat to generate water. In the City Of Hubbard, which is located in Central Texas between Waco and Dallas, their water supply comes out of a well at a temperature of around 140 degrees Fahrenheit. The water then has to be cooled with an evaporative chiller before it can be treated for human consumption. In this project, we'll be putting an AirJoule A250 right at the well to capture the geothermal heat and use it to produce distilled water from air. This project will demonstrate the ability to use waste heat of any time from sources such as industrial operations or power generation to produce water from air at scale.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

This project includes working alongside the Cindy engineers to pursue regulatory certification demonstrating that the water produced meets potability standards. This will enable AirJewel to support high volume municipal and industrial customers with on-site water production. We're grateful to be working with Mayor Alderman and Chief Patrick on this project for the benefit of the Hubbard community. Another intriguing collaboration we're exploring is with a company that provides anti corrosion solutions to military. Imagine a storage depot full of sensitive hardware and electronics equipment.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

If this expensive and specialized equipment is not stored at precise humidity levels, the moisture in the air can cause corrosion and render it useless. This is an expensive problem costing the Department of Defense on average more than $20,000,000,000 a year on corrosion related maintenance. Most facilities providing corrosion resistant solutions rely on conventional technology to dehumidify the air, primarily desiccant wheels. Desiccant wheels require a lot of energy and are very expensive to operate. Aerojoules market leading efficiency at removing moisture from air could significantly reduce operating expenses for customers and in the case of the military, the taxpayer.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Also during the second quarter, we announced a strategic project with GE Vernova to explore integrating our waste heat to water application into GE Vernova's product offerings. We see massive potential in pairing AirJewel water generators with gas turbines or reciprocating engines and utilize their waste heat to produce distilled water. Our AirJewel system operating in Dubai is continuing to effectively showcase AirJewel's technology and performance to potential customers in The Middle East. One of our Board of Directors, Doctor. Marwa Zatari recently visited Dubai and had the opportunity to see the system in action as you can see on Slide six of our presentation.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

The Middle East is an important market for us, especially given the water scarcity in the region and significant growth of high-tech and water intensive industries. And recent expedition in Dubai included a model showing the farm of the future was specifically mentioned atmospheric water generation as an innovative approach to address water scarcity challenges. We're also looking forward to deploying systems in The U. S. In June, we announced an agreement to sell an AirJUEL system to the Arizona State University, one of the world's foremost research institutions in the field of atmospheric water harvesting.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Once we deliver this system in the fall, the team at ASU intends to provide independent scientific validation of AirJoule's performance and engage with regional customers. Lastly, from June, we added two new directors who both bring incredible experience to the board, Denise Sterling and Thomas Murphy. Denise most recently served as Chief Financial Officer at Core Scientific, a publicly traded data center developer and operator and she has many years of public company finance and accounting experience. Tom Murphy spent most of his career as a partner at the accounting firm Crow where he led the SEC commercial audit practice. Tom has also been appointed as our Chair of our Audit Committee, a role for which he is perfectly suited given his background as an auditor.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Both Denise and Tom attended their first board meeting in late July in Delaware and we were thrilled with our contributions right out of the gate. Okay, back over to you Matt for the rest of the quarterly updates.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks Pat. Moving on to Slide seven, we've talked on prior earnings calls about our A1000 water generator, which is the foundation for our modular water generation platform for industrial scale water users. Now we've introduced our A250 product, which is uniquely suited for that industrial dehumidification application that Pat referenced. Brian will go into more detail about this product line later. I'm excited to be announcing this because it demonstrates that AirJewel is not one product for one application.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

It's really a technology platform that supports differentiated products across water generation, dehumidification and air conditioning. Using groundbreaking sorption technologies in our AirJuul systems, we can deliver more efficient and more economical solutions to customers across diverse markets by unleashing the power of water from air. On the operations side, we've expanded our footprint in Newark to accommodate much larger environmental testing chambers. We've also continued to build our proprietary coating lines where we produce our sorbent coated contact ors and we've optimized the facility for manufacture and assembly of the AirDuel systems. That entire team including our remarkable Board of Directors was in Newark in late July for a Board meetings and an official even though we've been there a year ribbon cutting ceremony for the facility.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

It was a great event with several elected officials in attendance along with representatives from our commercialization partners GE Vernova and Carrier as well as our UAE partner 10x. We were eager to show off what Brian and the team have been doing in Newark and we're just thrilled with how that facility and team have come together over the past year. On the financial front, which Stephen will cover later in more detail, we completed a $15,000,000 private placement anchored by our partner GE Vernova. This transaction closed in April and it also brought several new institutional investors into our shareholder base. At the end of the quarter, we had $30,500,000 of cash on the balance sheet and zero debt by the way, providing us the runway to support our commercialization efforts.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Now I'll turn it over to Brian to give you an update on our product and commercialization roadmap. Hey, Brian.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Thanks, Matt. Turning to Slide eight, we've laid out how we're thinking about an AirDuel as a technology platform. The core technology, which consists of our advanced sorbents, vacuum chamber design, and process for separating moisture from air, provides the foundation for different products and applications. For example, in the middle of the page, we have our A1000 water generator. This will be our primary commercial product for modular large scale water generation aimed at industrial operations.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

In order to develop that product for our 2026 launch, we've been building and operating smaller systems this year, such as our a two fifty system. This allows us to optimize components and validate design requirements as we go. We've also been building out and are preparing to deploy several a two fifty systems. In talking to customers, we realized that there's a market for these smaller A250 systems, specifically for industrial dehumidification. We can deliver this product at our current performance specifications and reduce energy consumption by up to 80% compared to the incumbent systems.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

So rather than just serving as an engineering stepping stone to get us to the A1000, the A250 will be a product launched in 2026. So far in 2025, we've been successful in optimizing the system to achieve market leading performance. Now during the second half of the year, we're working on productizing it and delivering preproduction systems to our customers. As we focus on the products to come, it's useful to remind everyone that the core of our technology platform is the sorbent chamber. To take this core component across the finish line, we've been working with our supply chain partners like BASF to provide the sorbent at scale and are otherwise working on scaling and designing for manufacturing the chamber system.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

We anticipate that our initial products will all leverage the same sorbent chamber design. In this way, an A1000 system is simply a scaled up version of A250 with more sorbent chambers. This engineering decision enables our team to focus on optimizing the performance, quality, and cost of this core component. As we scale this sorbent chamber into the marketplace and continue to make improvements, all of our products will keep improving. And the real winner in this is our customers, who will see the levelized cost of water and the levelized cost of separating water from air continuing to decrease.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

On the right side of the page is another example of the future differentiated products that utilizes the AirDuel platform. Integrating AirDuel into Carrier's next gen air conditioning system is a longer term goal for us, but it will benefit from the engineering and productization that we are doing this year with the A250 and the A1000. Moving to Slide nine, you can see how vastly superior the A250's performance is compared to the incumbent technology, which is a traditional desiccant wheel dehumidifier. This is the workhorse of the industrial dehumidification market, but it's an energy hog. It requires over two kilowatt hours to remove one liter of water from the air.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

The A250 system is expected to use only 0.4 kilowatt hours per liter. That's an 80% reduction in energy, which translates directly into massive OpEx savings of up to $10,000 per year per unit, delivering a significantly lower cost of ownership to the customer. This industrial dehumidification market is relatively modest in size. We estimate around $3,000,000,000 in annual sales. But we expect that by delivering a superior product with this magnitude of cost savings, we'll be able to compete and attract meaningful market share, and we'll be able to leverage the lessons learned from this product offering as we continue to launch our a 1,000 water generator.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

When we talk about utilizing low grade waste heat to produce distilled water at scale, we're talking about the a 1,000. In the images on slide 10, we've shown a modular configuration that can scale to meet the needs of even the largest water consumers like data centers and other industrial operators. The water requirements for data centers are enormous. A 100 megawatt data center could utilize a thousand AirDuel A1000 systems to supply it with all of the water it needs. With the rapid growth of data center development projected to grow by as much as 30 gigawatts by 02/1930, this is a huge market for us.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

We've talked in the past about tapping into waste heat that's handled by cooling systems, but we're also excited to be exploring the vast amounts of waste heat from power generators, like gas turbines and recip engines. Many new data center builds are now procuring these gensets on their campuses for prime power, aka their baseload, and they emit tremendous amounts of waste heat that's relatively straightforward to capture. As Pat mentioned, we've already announced an MOU with the developer of a hyperscale data center, and we're working with them to integrate AirJewel into their data center designs to improve water and energy efficiency and site resilience. So as you can see, we're making significant progress when it comes to the AirDuel products and we remain on track for commercialization in 2026. Now let me turn it over to Steven for the financial update.

[Stephen Pang, CFO at AirJoule Technologies]

Thank you, Brian. We can turn to Slide 11 of the presentation to see our financial results for the second quarter. As a reminder, AirDuel Technologies accounts for its 50% ownership in the joint venture using the equity method. These numbers in the table are only for AirDuel Technologies. The results of the joint venture are reflected in the loss from investment in Aerogel JV line, was 2,100,000 for the second quarter, which is in line with the $2,200,000 loss that was incurred in the first.

[Stephen Pang, CFO at AirJoule Technologies]

Aerogel's net operating expenses during the second quarter was $4,200,000 This is inclusive of the approximately $545,000 in administrative and engineering expenses reimbursed to us by the joint venture under our statement of work. Operating expenses were higher in the second quarter primarily due to increased professional fees incurred as a result of our equity related transactions along with increased non cash share based compensation expense. Our net income for the quarter is $2,500,000 compared to 14,900,000.0 the first quarter. The main driver of this difference is primarily the non cash gains associated with the change in the fair value of our earn out liabilities and subject vesting shares which are non cash in nature. During the quarter, the joint venture received a capital contribution of $5,000,000 from GE Vernova.

[Stephen Pang, CFO at AirJoule Technologies]

The $5,000,000 contributed matched the $5,000,000 that we contributed to the joint venture in the first quarter. The $5,000,000 was also structured as an equity investment in AirDuel Technologies to mirror the initial $5,000,000 investment in March 2024 and as part of the $15,000,000 pipe that we completed in April. Alongside GE Vernova's investment, we raised an incremental $10,000,000 from existing investors and new institutional investors as well. We ended the second quarter with approximately $31,000,000 of cash sitting on the balance sheet of the two entities. Looking ahead, I'll reaffirm that we have sufficient cash and liquidity to support both our operations and those of the joint venture to commercialize the technology.

[Stephen Pang, CFO at AirJoule Technologies]

With respect to the JV budget, we had guided last quarter that we anticipated this would come in slightly higher than the original budget and we now anticipate this to be 2,000,000 to $3,000,000 higher than our original guidance of 13,000,000 to $15,000,000 which is driven largely by the acceleration of the productization and field deployments of our preproduction systems. However, the additional cash that we raised through the pipe is more than sufficient to absorb the increased spend and will remain fully funded to support our commercialization efforts through the rest of this year and into 2026. I'll pass this back to the Q and A portion of the call.

[Operator]

Thank you. And I'll be conducting a question and answer session. Our first question is coming from Julien Mitchell from Barclays. Your line is now live.

[Julian Mitchell, Equity Research Analyst - US Industrials at Barclays Investment Bank]

Hi, good morning. Maybe you mentioned it a little bit in the prepared remarks, but maybe flesh out a bit more that opportunity of pairing Air Juul with gas turbines and reciprocal engines, please?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Hey, Julien, this is Brian. Yes, the idea in pairing Air Juul with RECEPs or gas turbines is really around combined heat and power plus water with AirDuel. Most RECEP engines operate at 35% efficiency, and combined cycle gas turbines can be in the sixties percent efficiency. What that means is that there's a lot of megawatts available as heat that can be recaptured that's effectively just dumped in the atmosphere. And so AirDuel Plus utilization of this this waste heat is really what we're excited about in terms of offering customers through partnerships and collaborations water and power.

[Julian Mitchell, Equity Research Analyst - US Industrials at Barclays Investment Bank]

That's helpful. Thank you. And then the waste heat to water demo effort, maybe help us understand the choice of location, understanding sort of potential partners in the area or local tax incentives and so on? Any more color you could give on that?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Well, first, just a reminder that we have this strategic project with GE Vernova to incorporate AirDuel products into their product line, and that's all about waste heat reuse for, you know, gas turbines. In in more specifically, the recent project with the city of Hubbard, you know, Hubbard is a very unique situation where the sourcing of their drinking water comes from a well that is very high temperature, above a 140 degrees Fahrenheit. And the city has to do a lot of work to to to treat that water before being delivered to the community. And so in this case, you know, AirJewel is tapping into that geothermal heat. So we're just gonna pull heat off of that that that well line, and then use that heat to separately drive, the AirJewel system to create water and going through that with one of the first examples of using waste heat in this setting.

[Julian Mitchell, Equity Research Analyst - US Industrials at Barclays Investment Bank]

Great. Thank you.

[Operator]

Thank you. Next question today is coming from Jake Zekauski from Alliance Resource Partners. Your line is now live.

[Jake Sekelsky, MD and Head - Metals & Mining Research at Alliance Global Partners]

Hi guys. Thanks for taking my questions. Hey, Jake. Just starting with the MOU with the hyperscaler that you mentioned, are you able to provide any additional color here? I mean, I realized the ink is still drying.

[Jake Sekelsky, MD and Head - Metals & Mining Research at Alliance Global Partners]

I'm just trying to get a handle on what ink you feel like you might be in as far as moving towards something definitive down the road?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Hey Pat.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Yes. No, I can take that for sure. Thanks for the question. I think the everything that we announced including this one are opportunities that we think are near term in ideally less than a year to capitalize on the opportunities we have including this one.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

So I think the ability to use waste heat, which we've already demonstrated works. And as you're probably familiar, converting electricity into compute throws off massive heat. That heat is usually either cooled or evacuated into the atmosphere and it just so happens to be an input for us to be able to grab atmospheric water that can then be used for data center cooling needs. So we're very excited about the opportunity on that front.

[Jake Sekelsky, MD and Head - Metals & Mining Research at Alliance Global Partners]

Okay. That's helpful. And then just maybe can you touch on how you're managing some of the noise around tariffs and how that might be impacting equipment sourcing as you head towards commercialization next year?

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Yes, Jake, it's a good question. I guess the entire country is watching for tariffs. The good news for us is we are in that stage where we've got the flexibility to source components from suppliers. We're evaluating a number of suppliers for each different component. Already Brian already mentioned BASF with the sorbent materials.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

We've also got other vendors for those sorbent materials that are domestic as well. So we're keeping an eye on it. The good news is we haven't set pricing and vendor embedded vendors at the moment. As we go into 2026, that'll be top of mind.

[Jake Sekelsky, MD and Head - Metals & Mining Research at Alliance Global Partners]

Got it. Okay. That's all for me. Thanks again.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks, Jake.

[Operator]

Thank you. Next question is coming from Amit Dayal from H. C. Wainwright. Your line is now live.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Thank you. Good morning, guys. Congrats on all the progress. The smaller A250 offering, it looks you know, it sounds good that you are, you know, being a bit more aggressive in terms of bringing products to market. But is the key leading value proposition just around energy savings with this offering?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Hi, Amit. Thanks for the question. Primarily, it's it's energy savings for dehumidification. Yes. 100%.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

It provides the the a two fifty and as a dehumidifier, and the currently operating in our in our research floor here is is performing equivalently in terms of the humidity decrease and the actual work done, but at, you know, a tremendous energy savings. And so that that's really an immediate opportunity. And, you know, as as iterated in the prepared remarks, you know, we're it it's basically a a miniaturized version of a 1,000. It's all the same shared components. So it's really, you know, a great finding for us that this product is gonna be able to service the dehumidification market and provide a tremendous amount of energy savings.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Understood. Can you give me any examples, guys, of, you know, what kind of settings this would be ideal for? Like, and who you are going after in terms of customers, you know, for this product?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. Let me just expand on that a little bit. So the the dehumidification market with desiccant wheels is is quite diverse. You know, desiccant wheels find themselves in in battery manufacturing and pharmaceuticals, you know, and and other very sensitive applications. They also are used prevalently, as mentioned in the prepared remarks, in in storage, storing high value assets that could be subject to corrosion.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

So these can be, you know, primarily metal components, but also electronics. And so, you know, when we think about taking this dehumidifier to market, you know, the the easiest market for us to go after initially is this type of storage environment followed by some industrial applications that that are gonna be, you know, kind of the next market for us to to go after with respect to the performance and the controls. So hopefully that provides some additional color.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

No. That's very helpful. Thank you. It just helps to understand, you know, who you may be pursuing from a customer perspective. And then number

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

two, one thing I might add, Amit. Sorry to interrupt, but one thing I might add, Brian, is the volumes are pretty substantial for these units.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Yeah. Thanks. So so so in that context, guys, then, you know, one customer could order, like, four, five, 10 of these units at a time. Is is that how we should think about it? Or is it maybe a smaller size of deployment per customer?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

No. I I think that's accurate, Amit. I mean, just to give a marketing context, maybe the Matt's reference. There there's about 1,300,000, dehumidification systems globally installed, and they have various sizes of offerings in terms of how much air they can dehumidify. And so this is a pretty substantial market.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

And with AirDuel, you know, launching a a product with such substantial energy savings, we think we can capture, you know, a good chunk of that market, of course, you know, going into the market selectively. But, yes, we anticipate that the, you know, our initial customer engagements are gonna be excited to replace many units. At the same time, of course, there's always, you know, proof points and validations. So, you know, that's expected for kind of the the ramp curve, but I do anticipate a significant, future volume.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

So so, you know, just I was getting to that part. How long do you think I mean, it looks like you are ready to, you know, place these, the a two fifties with customers for testing potential customers for testing, etcetera. Will how much time do you think they may need? Like, three months, six months, nine months to just get confident about the results they're seeing from this offer?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. Let's just talk a little bit about timing. So the a two fifty and the a 1,000 are right now still targeting, right, mid twenty twenty six product launches. The exact timing for when a two fifty gets launched is a, you know, a formal product ready to take POs, we're working on the details of that. We'll provide a more meaningful update, you know, in coming quarters.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Of course, we'll be, you know, working with our customer partners to kind of get these these preproduction units into their factory floors as soon as we are capable of. And and then, of course, they will wanna go through a derisking on their side to ensure the reliability and the performance, you know, is adequate. And so without getting into too much details, I expect that some customers are gonna be relatively risk tolerance to their specific application and some are gonna be more more cautious in the validation phase before volumes pick up. But I think there are, you know, there's even with that, there's a significant opportunity, you know, to revenue as we kinda go into to 2027 especially.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Thank you for that.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Just one last one from you guys. The a 1,000, right, I mean, it's a bigger offering with, you know, better savings and water generation or water distillation capabilities. Like, have you guys done any work on how much, you know, maybe a data center can save, you know, by using this versus, you know, other systems they may be using right now?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. Thanks for that. Specifically around the a 1,000, there are it's really around the levelized cost of water that we can provide to our customers. And, you know, the the the situation is evolving, you know, globally, water scarcity and water security. And, you know, data centers in particular, they're they're building out operations in quite large operations very quickly.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

And, you know, data centers typically designed for n plus one redundancy on all core technologies. Water is and should be one of them. And really, know, data centers are being built in locations where they maybe can't secure a 100% of their water needs. And so they need to have a technology to fill the gap. So AirDuel is really one of the only technologies that economically for a customer can can close the gap on water generation, pulling water out of the air and providing that high quality water to industrial operations at an attractive levelized cost of water.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Understood. That's all I have.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Hey, Brian. Also, Amit, you might you might, Brian talk about the some of the learnings particularly in Europe where it might accelerate their permitting process by a couple of years.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. I mean, I think this is not just a European based thing. Obviously, there's some some recent conversations around the requirements in Europe to utilize waste heat from data centers. And, you know, conventionally, that would mean district heating. Otherwise, right, air jewels may be one of the only other, I think, practical applications of this scale of heat, you know, taking that heat to water, water for communities.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

But but to Matt's point, the, you know, oftentimes data centers are looking for power and land and and fiber connections and and water. And, you know, part of that equation and and, you know, doing site selection, the water is sometimes not available, but everything else is super attractive. And so that's really where, you we end up having a lot of excitement with our customers.

[Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.]

Got it. Thank you, guys.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks, Amit.

[Operator]

Thank you. Next question is coming from Jeffrey Campbell from Seaport Research Partners. Your line is now live.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Thank you and congratulations on all the progress. I just wanted to ask a couple of questions regarding the Hubbard project. The first one being, should we think of the data gathering and the potential certification sought from the Hubbard project as is different from the work with ASU or is it complementary?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. Thanks, Jeff. They're complementary but different as well. So the work in in Hubbard is primarily, you know, a way where we can tap and run for a length of time using that geothermal well that's that's there. It's not really geothermal well, but it's a well that's providing hot water.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

And and through operating at length, we will be pursuing the certifications that are required for AirJewel to be a portable water, you know, utility, for example. So we'll be, you know, pursuing those with Texas Commission on Environmental Quality as well as NSF. And so that that program, that deployment that I have covered is really after those certifications as well as just demonstrating long term, you know, well, let's just say medium term outdoor deployment. Whereas ASU is for independent academic validation as well as, being a regional showcase for a number of customers in the Phoenix area.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

So it sounds like the

[Pat Eilers, Executive Chairman at AirJoule Technologies]

the data that you're

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

not oh, go ahead. I'm sorry.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

No, no, Jeff, complete your thought and then I'll I was just going to add just additional color.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Sure. I was just going to say it sounds like that the data that you're gathering at Hubbard would be similar to the sort of data that you've gathered in The UAE with the demonstration with the pilot facility that you've had there. In other words, a unit that's primary reason for being there is to create a water source, a potable water

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Yes. That unit is a standalone system, Jeff. It's a it doesn't use waste heat. It doesn't have to. So it's sitting in a nice location just pumping out water.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

You saw Marwa with a with a picture of that water. That that unit will be an A250 will be placed in that same location here in the coming months.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

And then, go how long ahead. I'm sorry.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

No, no, please keep going, Jeff. Was I'll come in at the end. I apologize.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

No. Here's well, here's my last one. I just wondered how long is the unit I mean, it's all the the hub are gonna remain there, and is there any indication of where I might go next?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah. So the unit will remain in Hubbard as long as we need to remain in Hubbard to achieve some of the certifications that we're pursuing. And then we'll be using that that deployment, you know, to to go to the next customer, which is, you know, we'll provide more more specific more specific guidance in future calls.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

I found it interesting, Brian, to listen to Christian talk about the thermal energy coming out of that well. It's enough to support, Jeff, 80 A1000 systems. So, you know, long term, we we we we will we believe we'll make a great impact for the city of town of Hubbard as a demonstration unit for other areas in Texas where water stress and drought is incumbent there.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Yes, Jeff, I was just going to offer, I apologize to continue to battle here with you. This is Pat Eilers. When you think about the progression of the commercialization of this technology, Matt and team started in Montana with Pacific Northwest National Lab. We partner with General Electric and we're fortunate to at their global research center in Schenectady, New York. I see the evolution going to ASU as a furtherance of an independent researcher who's an expert in the field, then being able to do this validated scientific analysis and publish research on an independent basis.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

And then as you step forward into what we've accomplished in Dubai and now will accomplish in Hubbard, Those are actually systems now putting it put out beyond the scientific approach in specific applications that I think will demonstrate to the research community and our investors the opportunity set that we have in front of us. And hopefully that progression helps you kind of put that progression logically in place.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Yes, I'll just follow. The thing I've always kind of wondered with this is if the more academic stuff is ultimately going to surround verifying the portability of the water or the quality of the water because obviously a data center if they're going to put up a lot of money and put a bunch of A1000s in there, they've already arrived at some level of belief in the system to make those investments. And then in The UAE, saw the picture of the pitcher of water there. Know that it's working. So if they've had a pilot and they want to come back with a more permanent system, that's another point of verification that they're satisfied that the systems behave as advertised.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

So never want to knock having additional data and additional credibility, but just wondering if with Hubbard, know that there's a specific endpoint that's being pursued, which is to get certified as a potable water utility. So that's really why I asked about ASU in regard to that because it seems like it's more open ended, although I think there was a reference to trying to take heat off of a smokestack or something and or they were doing that with another system and maybe AirJew will be compared to that as well.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Cool. Cool. One other thing on ASU deployment, right? Phoenix area is a very different humidity and temperature profile than Texas or really maybe anywhere in the world. And partly the engagement with Paul is gonna be looking as well at lower humidity sorbents.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

And so, you know, Paul is gonna be providing this academic validation of the quality of water, you know, when you're pulling air from different humidity temperature locations, what is the quality of water. And they've done a lot of work in that field. They're the leading researchers in, you know, assessing both efficacy of water generation systems, like how productive they are as well as the quality of water. And then with looking at novel sorbents kind of going in there as well provides that additional kind of research validation with pulse. Yes, that's a great one.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

The other thing about AFU Jeff is they're not only validation of the technology, but there is a huge need. I think it's pretty well known for housing projects that are stymied by the fact that the groundwater isn't available to support them. And it's funny that humans are going to locations and building in locations like that, but that's a fact. And so we think that this ASU validation will be a great contribution to the solution. The solution we believe is to help those not just data centers, but housing projects.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Right. And I think the point about doing further research on different sorbents is a good point as well because if we're not careful, we sort of think of this as a static project or a static product that's just looking for different ways to be utilized. But you're continuing to evolve and trying to perhaps widen the range of of use cases in terms of how extreme the the the location is, how little humidity, how much humidity, and so forth. So thankfully,

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

we really talked about sorry. We haven't really talked about, you know, some of the technology things that we're working on with respect to sorbent. But when you think about our product and and you realize that that the sorbent is the thing doing all of the work. How much water we get out per hour, it's all about the sorbents of capability to take up that water and and take it up quickly. And so, you know, really, the the main differentiator and the the thing that will allow AirDuel to continue to have the best products into the future is maximizing the sorbent and the capability of that coated contactor, to to provide a lot of water, you know, in a small footprint.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Right.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Yeah. And all I can add to that, Jeff, is the fact that GE Vernova, we've got the ongoing daily and weekly routine with the GE Vernova experts on sorbent development. It's one of the reasons we pulled together. And then Brian of course has chemists and chemical engineers in the facility in Newark that are contributing to that effort.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Thanks. I think that's really great color.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Yes, Jeff, we've been very deliberate on how we're putting our units into the market. Some is for scientific validation, which we already know the answer to, but it has to be independent, that's ASU. And then getting the product to Dubai and getting the product to Hubbard is now a further advancement of seeing it in actual use in the end market applications that we're very excited about. And hopefully it excites you as well.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Certainly. Thanks.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Thanks, Jeff.

[Operator]

Thank you. We have reached the end of

[Pat Eilers, Executive Chairman at AirJoule Technologies]

our question and answer session.

[Operator]

I'd to turn the floor back over to Matt for any further or closing comments.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks, Kevin. Thanks everybody for joining us today and your continued belief in AirJewel. We're making exciting progress moving from innovation to product and from product to commercialization. Every step brings us closer to our vision of unleashing the power of water from air and fulfilling our purpose of freeing the world from its water and energy constraints. The road ahead is full of opportunity and with the momentum and our global partners we have today, we're ready to seize it.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

We look forward to updating you on our continued progress in the quarters ahead. Thank you.

[Operator]

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

[Matt Jore, Founder, CEO & Director at AirJoule Technologies]

Thanks, Kevin.

Participants

Executives

• Tom Divine, VP - IR & Finance
• Matt Jore, Founder, CEO & Director
• Pat Eilers, Executive Chairman
• Bryan Barton, Chief Commercialization Officer
• Stephen Pang, CFO

Analysts

• Julian Mitchell, Equity Research Analyst - US Industrials at Barclays Investment Bank
• Jake Sekelsky, MD and Head - Metals & Mining Research at Alliance Global Partners
• Amit Dayal, MD & Senior Technology Analyst at H.C. Wainwright & Co.
• Jeffrey Campbell, Senior Analyst at Seaport Research Partners