AirJoule Technologies Q2 2026 Earnings Report

AirJoule Technologies EPS Results

• Actual EPS: -$0.12
• Consensus EPS: -$0.08
• Beat/Miss: Missed by -$0.05
• 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 2026
• Date: 8/13/2026
• Time: After Market Closes
• Conference Call Date: Friday, August 14, 2026
• Conference Call Time: 8:30AM ET

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 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Commercial channels expanded through an exclusive Kubota sales agreement for residential developments in water-constrained Texas and California, with showcase deployments planned near Corpus Christi and Irvine.
• Positive Sentiment: AirJoule reported progress toward commercialization: its full-scale Prime system is operating continuously at Newark, tracking toward up to 2,000 liters per day, while Core dehumidifier deployments and productization efforts remain on schedule for 2027.
• Positive Sentiment: The company shipped a Core system to the UAE for demonstrations at Expo City Dubai and other locations, and received an Expo City green license that provides access to government-led sustainability initiatives.
• Negative Sentiment: The company reported an $8.5 million quarterly net loss and raised 2026 cash-spend guidance to approximately $27 million-$28 million as commercialization activity accelerates, although management said combined liquidity of $43 million and no debt should fund operations through 2028.
• Neutral Sentiment: Management expects only modest deployment revenue in 2026, with more meaningful commercial revenue beginning in 2027 as Core and Prime systems are deployed and manufacturing readiness advances.

Presentation

[Operator]

Welcome to the AirJoule Technologies Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. It's now my pleasure to turn the call over to your host, Tom Divine, Vice President of Investor Relations and Finance. Thank you. You may begin.

[Tom Divine, VP of Investor Relations and Finance at AirJoule Technologies]

Thank you and good morning. With me today for our second quarter 2026 earnings call are Matt Jore, founder and chief executive Officer; Pat Eilers, executive chairman; Bryan Barton, chief commercialization officer; and Stephen Pang, chief financial officer. During this call, we will be referring to a presentation which is available on the webcast platform and on the investor section of our website. I would like to point out that many of the comments made during the prepared remarks and during the Q&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 of Investor Relations and 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. Now I will turn it over to Matt Jore.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Thanks, Tom. Good morning, everyone, and thanks for joining us today for our second quarter 2026 earnings call. We've had some exciting developments over the last few months, and we're pleased to be discussing those today. On our last call in May, we talked about the growing public opposition to data center development. This was driven in large part by the power and water demands these facilities place on their communities. While it started as local opposition in mostly rural areas where data center development was occurring, public perception has shifted, and that opposition has gone mainstream. Even cultural icons like Willie Nelson and Erin Brockovich are weighing in, issuing statements and launching campaigns to oppose data center development in the U.S. The political winds are shifting as well.

[Matt Jore, Founder and CEO at AirJoule Technologies]

New York recently enacted a moratorium on data center permits for facilities over 50 MW, making it the first state to explicitly pause data center development. When signing the executive order, Governor Kathy Hochul specifically said that existing regulatory frameworks are, quote, not yet prepared to address the large-scale water use and treatment from data centers, which could strain aquifers, surface waters, and public infrastructure. In Texas, which has been welcoming data centers and thus has seen massive development in recent years, Governor Greg Abbott announced a pause on grid-connected data centers until a full and complete audit of all proposed development can be completed. He urged regulators to determine how much water proposed data centers will use and what their water supply is, as well as information about their cooling technology. These policy actions are unfolding against a backdrop of growing water scarcity across the U.S.

[Matt Jore, Founder and CEO at AirJoule Technologies]

A few weeks ago, The Washington Post profiled Kearny, Arizona, a town of 2,000 people whose annual water allocation was cut by 75% after the reservoir that supplies that town fell to 1% of capacity. The town has prohibited lawn watering, car washing, and even Little League. The article concluded that other towns across the West could face the same fate. Communities are already running short on water, and the demands of new development are colliding with a shrinking water supply. These are the problems that AirJoule helps solve. Our systems produce pure distilled water on-site from the humidity in the air, powered by low-grade waste heat, without drawing on municipal supply or local aquifers. For data center operators, AirJoule offers a path to water access that does not put them in competition with the communities around them. It also helps solve a permitting problem.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Water use is increasingly the factor that delays approval of new data centers because communities worry about long-term water usage. By using AirJoule systems, data center operators can show local officials and residents that it has a long-term solution to securing water. Over time, excess water produced by AirJoule can flow back into the community, which eases local water stress rather than adding to it. For water-stressed regions, AirJoule provides a distributed source of clean water that does not depend on a distant reservoir. The same advantage applies well beyond data centers. In many water-scarce markets, water availability is constraining residential development.

[Matt Jore, Founder and CEO at AirJoule Technologies]

To that end, we recently announced an exclusive partnership with Kubota Corporation to deploy AirJoule systems for residential development in water-scarce regions of Texas and California. Bryan is going to talk about that in greater detail, but it is a huge milestone for us on the path to commercialization.

[Matt Jore, Founder and CEO at AirJoule Technologies]

By partnering with Kubota, who has a 136-year legacy of environmental and water engineering expertise, we will be able to deploy AirJoule systems at scale and unlock residential development across the Southern U.S. Partnerships like the one we just announced with Kubota have been critical to our success so far. GE Vernova, our joint venture partner, delivered a powerful validation of our technology this summer. In July, GE Vernova held a grand opening for its new Advanced Research Center Frontier Campus in Niskayuna, New York. They specifically highlighted AirJoule as one of the innovative technologies that GE Vernova is helping to develop, and they have an AirJoule Core system operating there as a showcase unit for customers and partners who visit that facility. You can see it also on their website in their recent posts on LinkedIn.

[Matt Jore, Founder and CEO at AirJoule Technologies]

This reflects the strength of our joint venture with GE Vernova, and we are grateful for their continued support through engineering and R&D initiatives. We've also got some very exciting technology in the hopper at AirJoule that we'll be sharing in upcoming communications. Before Bryan provides an update on our customer engagements and productization, I'll turn it over to Pat for an update on our international growth initiatives in the UAE. Pat?

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Yeah, thanks, Matt. Good morning, everybody. Since the end of the quarter, we've achieved two important milestones related to our ongoing commercialization efforts in the UAE. First, we shipped an AirJoule Core system to the UAE for a series of deployments to demonstrate the technology and validate performance for customers across the country. The first showcase of this core unit will take place in Dubai at one of Expo City Dubai's landmark destinations. We intend to leverage Expo City's sandbox test environment for the sustainable urban deployment, including technologies addressing challenges like water security. This deployment puts AirJoule in front of the visitors and industry leaders who visit the iconic location. Following the deployment at Expo City, the AirJoule system will be used for on-site customer demonstrations and exhibitions across various Emirates of the UAE. Second, AirJoule was awarded one of UAE's first Expo City green licenses.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

The green license is the first of its kind in the UAE, and it is the key enabler of the Green Innovation District, the country's first location dedicated to sustainable innovation. It admits only companies that can demonstrate a commitment to sustainability, and we were in the first cohort. It provides us with access to business missions throughout the Ministry of Economy and Tourism and a seat in the Green Majlis Leadership Forum. In a region where government engagement is paramount, this is a meaningful milestone for us. Our progress in the UAE is taking place as the region is increasingly focused on water security. The Gulf supplies roughly 40% of the world's desalinated water, and more than 90% of that comes from about 56 plants. Several countries in the region draw 70%-99% of their drinking water from the concentrated base. That was always an efficiency story.

[Pat Eilers, Executive Chairman at AirJoule Technologies]

Events in the region over the past several months have made it a resilience story as well. AirJoule produces pure distilled water on-site across a range of climate conditions without drawing on municipal supplies, local aquifers, or a connection to centralized infrastructure. That is what we are demonstrating with this latest AirJoule Core deployment. With that, I'll hand it over to Bryan for the commercial update.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Thanks, Pat. I want to walk through three areas this morning. Our commercial progress, headlined by our recently announced partnership with Kubota, an update on our two product platforms, Prime and Core, and our productization efforts. Let's start with commercialization. In July, we signed an exclusive sales agreement with Kubota Corporation covering residential developments in Texas and California. Kubota will serve as the exclusive sales channel for AirJoule systems in that segment. As a part of the collaboration, we're also deploying two AirJoule Core systems with Kubota, one near Corpus Christi, Texas, and the other in Irvine, California. These will start later this quarter. Kubota, which was founded in 1890, operates in more than 150 countries and brings wastewater treatment, water reclamation, pipe systems, and operations and maintenance capabilities to our partnership. They also have tremendous experience in supporting residential development in water-constrained regions. The opportunity here is clear.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

In California and Texas, as well as other water-constrained areas, water is now a primary gating item for residential development. Under California law, a residential development of more than 500 units cannot obtain approval without written verification that the water supply is sufficient over a 20-year horizon. That requirement is getting more and more difficult to meet. The state's own water supply strategy projects that California could lose up to 10% of its water supply by 2040 due to hotter and drier weather conditions. When a developer cannot verify sufficient water supply, the projects stall. In Texas, the population is expected to grow by 53% by 2080. However, the state's recently adopted water plan projects that water supplies will be declining by 10% in the same timeframe. Water supply is decreasing while the population is booming. This is the market we are addressing with Kubota.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

AirJoule unlocks residential projects by generating pure water on-site, independent of municipal allocations and groundwater rights. Importantly, water produced by AirJoule is pure and distilled, meeting not only FDA bottled water standards but also meeting California's drinking water standards, which are the most stringent in the nation. Designing our system for the most demanding standard in the U.S. positions us well for the rest of our addressable markets. When it comes to performance, our systems produce water across a wide range of temperature and humidity conditions. This is what enables a single AirJoule product to serve both the U.S. Gulf Coast and Southern California. Also on the topic of customer engagement, our work with the NetZero Innovation Hub for Data Centers will soon move from preparation to deployment.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

After being selected from more than 70 applicants in the fall of 2025, we successfully completed the hub's technology acceleration program back in June. Throughout this program, we worked closely with the hub's members, including Google, Microsoft, Data4, Danfoss, Schneider Electric, and Vertiv. We worked with them to align AirJoule's waste heat to water capabilities with the real-world operation of data centers. We'll soon be shipping our first Prime unit to Europe for a deployment to show how AirJoule can convert low-grade data center waste heat into pure distilled water. Now let's talk about our products. I'll start with Prime. We commissioned our first full-scale Prime system at our Newark, Delaware, facility back in May, and it has been operating ever since. After the initial startup, we focused our engineering work on optimizing the run conditions for specific operating cycles.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

The learnings we gained from our field deployments of the Core systems have transferred directly to Prime. This includes the timing of fans, the sequencing of our vacuum pumps, and the thermal management of our sorbent chambers. Our decision last year to concentrate our build and development activity on the Core platform is paying off now by compressing the Prime optimization timeline. We are very pleased with the initial performance of the system, and we are tracking toward our expectation of 2,000 liters per day for this system. In late June, we held an unveiling ceremony of the Prime system, and we hosted both Delaware Governor Matt Meyer and U.S. Senator Chris Coons, as well as several local elected officials and representatives from economic development organizations. It was great to show off the Prime system, and we are grateful for their continued support.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

As I mentioned earlier, this first Prime system will be deployed in Europe, and we will be building additional systems over the coming months. This will allow us to continue optimizing the system at Newark, as well as provide showcase systems for customer demonstrations. Turning to the Core system, as a reminder, we have been using the Core system to demonstrate the technology for customers, but there is significant market demand for the Core product as a [inaudible]—against the incumbent desiccant wheel standard continues to demonstrate significant energy savings across our target humidity range. With this product, we are targeting the estimated 1.2 million unit install base of conventional desiccant wheel systems, and more specifically, applications where facilities operate between 30% and 50% relative humidity. We have already begun to deploy these dehumidifier systems with strategic customers for demonstrations and technology validation.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

The third area I want to cover is productization. In 2025 and 2026, we deployed several AirJoule systems for pilot projects and customer demonstrations, and these units have been critical in proving the technology in the field. We are continuing that work with a limited number of strategic customers this year. In parallel, we are advancing the engineering that turns AirJoule into a commercial product designed for manufacturing, cost reduction, reliability testing, and product certification. Running these efforts together rather than in sequence is deliberate. It lets commercial deployment and product development proceed at the same time and accelerates market adoption. Reliability has been a huge focus for us this year, since it is one of the most important factors that customers look for when evaluating a new product.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

We built a component reliability program that evaluates every major component in the AirJoule system, and we operate dedicated test rigs through accelerated duty cycles, allowing us to identify problems and mitigate them early. In parallel with reliability and component testing, we are completing design for manufacturing work to prepare both platforms for scaled production. We are continuing to reduce and simplify the bill of materials, and we are working through a clear sequence to get us ready for contract manufacturing. Putting it all together, we are executing the commercialization plan that we have laid out for several quarters, and I look forward to providing more updates on our next call. Now I will pass it over to Stephen for the financial update.

[Stephen Pang, CFO at AirJoule Technologies]

Thank you, Bryan. I will walk through our financial results for the second quarter of 2026 and then provide an update on our 2026 outlook and liquidity position. For the second quarter, AirJoule Technologies reported net operating expenses of $4.1 million. This is inclusive of $0.8 million in administrative and engineering expenses reimbursed to us by the joint venture under a statement of work. Our net loss for the quarter was $8.5 million. The primary component below the operating line was $5.1 million of non-cash losses due to an increase in the fair value of our earn-out shares liability and shares subject to vesting liability. Turning to the joint venture. Total JV operating expenses for the second quarter were approximately $5 million.

[Stephen Pang, CFO at AirJoule Technologies]

The joint venture received $2.5 million in additional capital contributions from AirJoule Technologies during the quarter to support ongoing productization, manufacturing, and commercial deployment activities. AirJoule Technologies ended the second quarter of $41.4 million of cash on the balance sheet. This includes $14.2 million net proceeds from a registered direct offering we completed in early June. Combined cash across AirJoule Technologies and the JV was $43 million with no debt. Our guidance for the full year 2026 cash spend at AirJoule Technologies and the JV is now slightly higher at approximately $27 million-$28 million. This reflects increased commercialization activities as we pursue multiple projects and deployments across different market applications. Our liquidity is sufficient to fund our operations, the JV, and our planned commercial deployments into 2028.

[Stephen Pang, CFO at AirJoule Technologies]

Looking ahead, we still expect modest pay deployment revenue at the JV during 2026, but more meaningful commercial revenue beginning in 2027 as our Core and Prime deployments come online. We continue to maintain strong flexibility in managing our capital position and balance sheet and will remain opportunistic and disciplined in evaluating any financing and strategic opportunities that enhance our balance sheet and support long-term value creation. With that, I will pass it back for the Q&A portion of the call.

[Operator]

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Jeffrey Campbell with Seaport Research Partners. Please proceed with your question.

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Well, good morning and congratulations on all the progress that you're making. You said that AirJoule is deploying the Core DH to strategic customers beginning in the third quarter of [inaudible]. Can you provide high-level color, maybe geographic areas that you're targeting, or maybe just some specific types of businesses?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

I'm sorry, Jeff, you were breaking up a little bit. We got that this is about the Core DH deployments. Can you repeat?

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Sure. It's the Core DH. I was wondering if you could give us a little color on maybe where these initial strategic applications are being located geographically and maybe specific types of businesses that you're targeting, if that's relevant.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, thank you for the question. As we said, we are deploying Core DH systems to strategic customers for industrial dehumidification, and really this is the segment where spaces need to be kept dry. I would maybe just elaborate that as strategic deployments, these are seeking to validate the performance and the efficacy of the Core operating system. We're focusing on both deployments that can enhance our commercial product adoption with strategic customers in that sense, as well as some industrial-focused customers that see the value of both the dehumidification and the water that's generated.

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Okay. Bryan, you discussed preparations for contract manufacturing, specifically highlighting cost reduction and simplifying materials. I wondered if you could add any color with regard to A, whether both models are in the optimization, whether the effort is on time, and when you expect to be ready to present enhanced designs to manufacturing partners?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, thanks. I think both DFM activities and cost simplification activities are on track for Prime and Core. The Prime engineering is effectively going through those cost component changes and some simplifications for manufacturing, and it is on time for those 2027 contract manufacturing conversations, and we are preparing on schedule for that. For the Core product, even though we have had Core for a while, getting that product to be really ready for prime time, I am very excited about the dehumidification market opportunity in front of us with this product, and we are on time, but we are also pushing to accelerate that effort. In the past, we have clearly communicated a 2027 product there for Core DH, and we are on track for that.

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Okay. If I can, I want to—

[Matt Jore, Founder and CEO at AirJoule Technologies]

Hey, Matt. Sorry, Jeff. Matt here. Just wanted to add on to the first topic: keep in mind Bryan mentioned the 1.2 million installed base for that dehumidification market. I am pretty excited about that. That gives you a little bit of color on where we are heading with it. On contract manufacturing, it is important to recognize that the vast majority of the components that go into a Core or Prime system are built around the heart of the system, the coated contactor, the metal-organic framework coated contactor. So there are many manufacturers who already have ERP systems, supply chains, and all set up for all the rest of the relatively commodity components. So it is not a heavy lift, is it? Thank you.

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Right. Yeah, understood. If I can ask one last one. With regard to Kubota and the development work that's going on there, can you just give us a little color on what the thought is? I am wondering, are the installations going to be more centralized, maybe for a planned development, or will each home have an AirJoule and would one Core enough water supply for each home? Just anything you can tell us there so we can start to visualize it a little bit. Thanks.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, Jeff, thanks. I think we have a rendering that was, I believe, released. The idea is a planned residential community. This is a multi-home community where there are several houses and there would be a centralized water generation system and recycling system. AirJoule brings the pure distilled potable water for the drinking water for the community, and then there is a water recycling system as well for the community. It is kind of that centralized community picture.

[Jeffrey Campbell, Analyst at Seaport Research Partners]

Great. Thank you.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Thanks.

[Operator]

Thank you. Our next question comes from the line of Alex Fuhrman with Lucid Capital Markets. Please proceed with your question.

[Alex Fuhrman, Analyst at Lucid Capital Markets]

Great. Thanks very much for taking my question, and congratulations on all of your recent announcements and progress towards commercialization. Matt, I wanted to ask about the Prime where you've been performing lately and just what that arc has looked like over the past six months, and just give us a sense of what other kinds of tweaks and optimizations we're talking about that are getting you to that 2,000 liters per day.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Alex, I know that question was directed to me, but I'm going to let Bryan answer it. Before I do, I think it's important that you recognize long term, these communities are looking, and regulators are looking at permitting where companies, data centers, or residential developers can show 20 or 100 years in the case of Arizona, water supply. That's really what we're pointing to. Long term, 2,000 liters a day is just the start. Long term, we want to do 10,000 and 20,000 liters, and that's what we're focusing on. But for now, I'll let Bryan answer the current state of Prime. Thanks, Bryan.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, thanks, Matt. Thank you for the question, Alex. We commissioned this system in May. It's been operating outdoors ever since, and we've been really impressed with the speed upon which it's come online and operated. It's running 24/7 with high uptime, and there's a lot of water and data that's being generated through a lot of different environmental conditions. As a reminder to everyone, the system operates depending on the humidity levels in the air. So when we talk about 2,000 liters per day, up to 2,000 liters per day, that's on the higher side of the humidity levels. What makes AirJoule unique is the ability to not only run on waste heat, but to generate humidity under a wide range of environmental conditions. Thankfully, we've been blessed with hot, warm days that are humid as well as dry days.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

We've been getting really great data across the gamut. I'm very pleased with its performance coming online. Yes, we are on track to hitting the 2,000 liters per day, and we have specific measures now identified to close the gap and to have the system really operating at spec.

[Alex Fuhrman, Analyst at Lucid Capital Markets]

Okay. That's really helpful. Thank you. If I could ask one on capital, it sounds like a very high-class problem that you're going to be burning a little bit more cash than expected at the JV, given the accelerated commercialization. How much capital do you envision committing to the JV this year and next?

[Stephen Pang, CFO at AirJoule Technologies]

Yeah, Alex, this is Stephen here. We haven't provided 2027 guidance, but as we think about the slightly higher $27 million-$28 million guidance that we provided for this year, the incremental capital above the $25 million is geared towards the JV. The additional capital has really helped up-sphere some incremental units that we have earmarked for additional customer interest that we're seeing. From a G&A standpoint, certainly nothing higher as a corporate entity, but all of this is earmarked towards enhanced deployments. I would think about next year as similar to what we're thinking about right now. From a CapEx standpoint, certainly we're evaluating the contract manufacturing partners to help eliminate some of the incremental CapEx we'll likely need if we were to scale up production on our own.

[Stephen Pang, CFO at AirJoule Technologies]

From an R&D and current G&A spend perspective, we expect next year right now to trend similarly from what we're seeing.

[Alex Fuhrman, Analyst at Lucid Capital Markets]

Okay. That's really helpful. Thank you very much.

[Operator]

Thank you.

[Stephen Pang, CFO at AirJoule Technologies]

Thanks, Alex.

[Operator]

Our next question comes from the line of Ryan Pfingst with B. Riley Securities. Please proceed with your question.

[Ryan Pfingst, Analyst at B. Riley Securities]

Hey, guys. Thanks for taking my questions. Maybe starting with the collaboration with Kubota, I think residential is the main opportunity, but are you exploring broader commercialization efforts with those guys in other verticals?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, thanks, Ryan, for the question. Today, our partnership and conversations with Kubota are focused on the residential multi-home communities.

[Ryan Pfingst, Analyst at B. Riley Securities]

Appreciate that. Then maybe turning to Europe, with the Prime expected to ship near-term for the NetZero Innovation Hub for Data Centers, I am curious what you envision resulting from that program, whether it be technology partnerships, commercial deployment opportunities, or anything else that you are looking for?

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, thanks. I think this is a really great opportunity for us to highlight our product and how it is integrated for data center waste heat operation. As shared on the call, the hub includes major key members in the sector. Microsoft, Google, Data4, Danfoss, Schneider, and Vertiv to round it out. But highlighting the system and integration into data centers is really a key showcase for these guys. I think the expected success is really the carry-on from there into how AirJoule can specifically enable data center operations for those players.

[Ryan Pfingst, Analyst at B. Riley Securities]

Great. I appreciate the time, guys.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Yeah. Hey, Ryan. I would add to Bryan's comment. This whole theme of permitting unlocks the opportunity if these data centers look at the air for their next source of water and demonstrate that is all it takes. They need to demonstrate a long-term solution to not deplete aquifers. That is what I view the NetZero Innovation Hub as all about. Demonstrate the efficacy of a water-from-air system. The alternative is aquifers that are going to deplete. That is what it offers data centers. That is what I get excited about because it is a long-term initiative that they can point to now, just entering into a contract with us. Thank you for your question.

[Ryan Pfingst, Analyst at B. Riley Securities]

Thanks, Matt.

[Operator]

Thank you. As a reminder, if you would like to join the question queue, please press star one on your telephone keypad. Our next question comes from the line of Amit Dayal with H.C. Wainwright. Please proceed with your question.

[Amit Dayal, Analyst at H.C. Wainwright]

Thank you. Good morning, everyone. Just trying to confirm if Carrier did invest in AirJoule and where that relationship stands in terms of commercialization efforts.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Amit, are you asking as it relates to the most recently completed offering or just more broadly speaking?

[Amit Dayal, Analyst at H.C. Wainwright]

No, just in relation to this deal with Kubota.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, Amit, thanks. I think Carrier is very interested in a couple of things. One, obviously, is the HVAC market sector, with HVAC being over a $300 billion market and Carrier being a key leader in that sector. Also, they're a great strategic partner as it comes to data centers. Carrier providing some, it's called a heat recovery system to keep data centers cold, while also providing warm water, for example, for AirJoule to be used on location. So those are two really important strategic initiatives under Carrier. They're engaged in both of those efforts. So, thinking about the dehumidification and where that technology is going at large in terms of our longer-term product roadmap in the HVAC sector as well as, yeah, the data center engagement.

[Amit Dayal, Analyst at H.C. Wainwright]

Okay, understood. Thank you. Are there any regulatory incentives that could be brewing at a state or federal level that could support the commercialized efforts for these types of offerings?

[Matt Jore, Founder and CEO at AirJoule Technologies]

Yeah, Amit, that's great. Sorry, Bryan. That's a great question, and we're definitely exploring those. In my remarks, I talked about the attention that's being paid on water. We aim to do our best to inform Congress and all government regulatory bodies that water's a real issue. Bryan hosted Senator Chris Coons as he made in his remarks as he referenced, and part of that is to make sure that everyone at the policymaking level understands how serious this issue is and what a fantastic solution AirJoule is. We're active in terms of communication there.

[Amit Dayal, Analyst at H.C. Wainwright]

Thank you. The two, just last one from me, guys. The two units that are deployed, I guess, in relation to this Kubota development, is this just to continue sort of benchmarking performance, et cetera, or to start showcasing these offerings to developers? Any clarity on that would be helpful. Thank you.

[Bryan Barton, Chief Commercialization Officer at AirJoule Technologies]

Yeah, Amit, it's really the latter, showcasing the technology development, sorry, the technology opportunity to the developers, and how we can actually unlock residential communities. Two of the areas that are of key focus are Irvine, California, and Corpus Christi, Texas, both locations that are facing difficulty expanding development in general, but specifically on residential communities. Kubota selected these two locations really as a focus for them to highlight the technology to the developers.

[Amit Dayal, Analyst at H.C. Wainwright]

Got it. Thank you, guys. That's all I have.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Thanks, Amit.

[Operator]

Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Jore for any final comments.

[Matt Jore, Founder and CEO at AirJoule Technologies]

Thanks, Melissa. Thanks everyone for joining us this morning. The second quarter moved AirJoule from validating the technology to building defined commercial channels. Our exclusive sales agreement with Kubota gives us a channel into residential development in two states where water decides whether projects get built. Our first Prime system is operating at Newark and ships to Europe this quarter. We have a Core system operating at GE Vernova's Frontier Campus and another in the UAE supporting customer demonstrations. Every deployment we execute over the balance of this year builds towards scaled commercial activity in 2027. Thank you very much.

[Operator]

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Tom Divine, VP of Investor Relations and Finance
• Matt Jore, Founder and CEO
• Pat Eilers, Executive Chairman
• Bryan Barton, Chief Commercialization Officer
• Stephen Pang, CFO

Analysts

• Jeffrey Campbell, Analyst at Seaport Research Partners
• Alex Fuhrman, Analyst at Lucid Capital Markets
• Ryan Pfingst, Analyst at B. Riley Securities
• Amit Dayal, Analyst at H.C. Wainwright