AirJoule Technologies Q1 Earnings Call Highlights

Key Points

• AirJoule is shifting from development to commercialization, with management saying 2025 was focused on foundational deployments and 2026 should mark the move to productized commercial sales. The company says its cash position is sufficient to fund operations through 2027.
• Water scarcity is a major demand driver, especially for data centers in water-constrained regions. AirJoule is targeting customers that need on-site water generation or dehumidification, including hyperscale operators, residential projects and Middle East markets.
• The company advanced both Core and Prime platforms: the Core design is locked with late-2026 and 2027 launch targets, while the first full-scale Prime system is operating in Newark and is slated for a Europe deployment. AirJoule also reported a $55 million non-cash impairment tied to its JV investment, but said it had no cash impact.

AirJoule Technologies NASDAQ: AIRJ said it is moving from early deployments toward productized commercial sales, with management highlighting progress on its Core and Prime platforms, customer discussions in data centers and other water-constrained markets, and a cash position it says can fund operations through 2027.

On the company’s first-quarter 2026 earnings call, Chief Executive Officer Matt Jore said AirJoule is executing on the commercialization plan it outlined earlier this year. He described 2025 as a year focused on building a foundation through initial deployments at the company’s joint venture with GE Vernova, while 2026 is expected to be the year AirJoule transitions toward productized commercial sales.

“We’re on course,” Jore said. “We’ve developed our technology and are now a product company.”

Management Points to Water Scarcity as Key Market Driver

Jore said water scarcity is becoming a more prominent consideration in industrial planning, particularly for data centers. He cited recent examples of hyperscale operators abandoning multibillion-dollar data center projects amid community opposition tied to water access, as well as investor pressure for more detailed water-use disclosures.

According to Jore, even highly efficient data centers still require significant water volumes for system fill, replenishment, humidification and domestic uses. He said AirJoule’s technology is designed to reduce dependence on municipal supplies and aquifers by generating water on-site from atmospheric humidity, particularly when paired with low-grade waste heat.

Chief Commercialization Officer Bryan Barton said AirJoule is working with a leading hyperscale operator on a detailed evaluation of AirJoule Prime’s economic and technical performance at specific data center locations. He added that most of the company’s data center conversations involve new builds in water-scarce regions where permitting or community concerns are an issue.

“If you’re building a data center and you have all the water you need, then you’re not our customer,” Barton said during the question-and-answer session. “If there’s water scarcity or quality or regional pushback, then those are where we can come in.”

Core Platform Design Locked; Prime System Operational

Barton said the first-generation AirJoule Core design is now locked, with only minor dimensional adjustments possible as manufacturing is finalized. The company plans two Core variants: AirJoule Core AWG, targeted for a late-2026 commercial launch, and AirJoule Core DH, targeted for 2027.

Core AWG is aimed at the U.S. military and small residential deployments. Barton said AirJoule is collaborating with the U.S. Army Engineer Research and Development Center under an existing Cooperative Research and Development Agreement.

Core DH, which uses materially the same hardware configured for dehumidification, targets conventional desiccant wheel dehumidification systems. Barton said AirJoule’s metal-organic framework sorbent regenerates at 60 to 70 degrees Celsius, compared with 120 to 150 degrees Celsius for conventional desiccant wheels. Initial performance data showed up to about 40% energy savings versus incumbent desiccant wheel technology in targeted operating ranges, he said.

The company also completed its first full-scale AirJoule Prime system at its Newark, Delaware, facility, where it is now operating outdoors. Barton said the system is designed to deliver up to 2,000 liters per day at less than 200 watt-hours per liter when paired with low-grade waste heat, with a maximum power draw of 12.5 kilowatts.

The first Prime unit is planned for deployment in Europe as part of AirJoule’s Net Zero Innovation Hub collaboration, while another Prime system is being built as an internal showcase unit in Newark for customer demonstrations and proof-of-value engagements.

Commercial Pipeline Spans Data Centers, Housing, Water Delivery and Middle East

AirJoule executives outlined several markets they are pursuing as they build a commercial pipeline for 2027 and beyond. In residential development, Barton said the company is deepening a co-development framework with a global partner focused on water-scarce U.S. Southwest markets. During the quarter, AirJoule deployed a Core system at the Red Dot Ranch Foundation site in Pescadero, California, validating off-grid water generation for a climate-positive housing development.

Barton also described a potential opportunity in water delivery and trucked distilled water. He said the global water distribution market is approximately $50 billion and that in many U.S. markets distilled water sells for more than $1 per gallon, largely due to logistics. In collaboration with a waste heat partner, Barton said AirJoule’s waste-heat-to-water economics could result in operating costs below $0.10 per gallon.

Executive Chairman Pat Eilers discussed the company’s Middle East efforts, saying AirJoule remains engaged with UAE government and regulatory leaders. In January, the company announced an exclusive distribution agreement with TenX Investment across the UAE, Oman, Qatar, Saudi Arabia, Bahrain and Kuwait. Eilers said AirJoule expects to build its profile through industry gatherings ahead of the UN Water Conference, which he said will be co-hosted by the UAE and Senegal in Abu Dhabi in December 2026.

First-Quarter Results Include Non-Cash Impairment

Chief Financial Officer Stephen Pang said AirJoule recorded a non-cash impairment charge of approximately $55 million through its AirJoule JV equity method investment line. Pang said the charge followed an interim fair value assessment triggered by a decline in the company’s share price last quarter.

He emphasized that the charge had no impact on cash, the joint venture’s operational performance or the company’s commercial trajectory.

For the first quarter, AirJoule reported net operating expenses of $3.6 million, including $0.8 million in administrative and engineering expenses reimbursed by the joint venture. The company reported a net loss of $49.8 million. Below the operating line, AirJoule recorded a $63.1 million loss from investment in the AirJoule JV, primarily driven by the impairment, partially offset by a $14.7 million tax benefit.

The AirJoule JV had total operating expenses of approximately $5.5 million in the quarter and received $10 million in capital contributions from AirJoule Technologies. The company ended the quarter with $31.1 million in cash, while combined cash across AirJoule Technologies and the JV was $35 million, with no debt.

Pang said the company’s full-year 2026 cash-spend guidance remains unchanged and that liquidity is sufficient to fund operations, the JV and planned commercial deployments through 2027. He said AirJoule expects modest paid deployment revenue at the JV during 2026, with more meaningful commercial revenue beginning in 2027 as Core certifications are completed and first Prime deployments come online.

Analysts Focus on Customer Conversion and Manufacturing

During the Q&A session, analysts asked what customers need before placing orders. Barton said some customers want pilots, while others are comfortable seeing operational systems with real-world performance data. He added that customer requirements vary by market.

Asked about unit cost reductions, Barton said the company is working through component optimization, including pumps and fans, for both Core and Prime. He also said AirJoule has begun initial conversations with contract manufacturing partners and continues to view 2028 as a reasonable timeframe for scaling volume, depending on customer demand.

Jore closed the call by saying the first quarter reflected “disciplined execution” against AirJoule’s 2026 objectives, with the Core platform maturing, the first Prime unit built and operational, and customer demand developing across multiple markets.

About AirJoule Technologies NASDAQ: AIRJ

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.

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