Fermi Advances Project Matador, Pivots to Powered-Land Strategy as Director Vote Fails

Key Points

• Fermi is advancing Project Matador, with its first natural-gas turbines delivered and gas, water and transmission lines installed across the Texas campus.
• The company is shifting its commercial strategy toward a powered-land model, focusing on construction costs, pricing and net operating income per megawatt as it seeks to convert a strong prospective-tenant pipeline into contracted power capacity.
• Shareholders approved the 2026 auditor ratification but did not provide enough votes to elect Fermi’s two Class I director nominees; final results will be filed in a subsequent Form 8-K.

Fermi NASDAQ: FRMI said at its annual shareholder meeting that it is advancing development at its Project Matador site while shifting its commercial strategy toward a powered-land model for prospective tenants.

Chief Executive Officer Lee McIntire, who said he assumed the CEO role in August, characterized the period since the company’s initial public offering as “a year of change.” He said the board made leadership decisions during the spring, while employees and contractors continued infrastructure work at the Matador campus.

McIntire said customers that visit the Matador site value its permitted power capacity and its community relationships. He thanked Carson County, the City of Amarillo and Texas Tech University for their support of Project Matador.

Focus on costs and powered land

McIntire said Fermi has focused on establishing a clearer understanding of construction costs and market pricing in the engineering, procurement and construction business. That work helped the company develop what he described as a sound financial basis for bidding to potential tenants.

The company has developed a long-term financial strategy based on net operating income per megawatt built, McIntire said. Fermi also decided to focus on powered land, reflecting a preference among prospective tenants for that model.

“As a result of the team’s hard work and patience, our business development pipeline is very robust,” McIntire said. He added that conversion of the company’s current investment-grade pipeline into client tenants would result in significant megawatts of contracted power.

McIntire said Fermi planned to discuss its financial framework during an earnings call scheduled for Nov. 12, including its estimate of the value created for shareholders by each gigawatt of contracted capacity.

Infrastructure work underway

Fermi has taken delivery of its first natural-gas turbines at the project site and has installed natural-gas, water and transmission lines across the campus, according to McIntire.

He said the company’s next phase will focus on signing customers, building the plant and delivering power in accordance with its financial plan. Fermi’s operational priorities are to work safely, remain on schedule, invest with discipline and serve customers, he said.

McIntire said the company aims to create value and generate profitable cash flow, while acknowledging shareholder support during what he described as a difficult first year following the IPO.

Director election proposal fails

At the meeting, shareholders considered two proposals: the election of two Class I director nominees to serve through the 2029 annual meeting, and the ratification of Ernst & Young LLP as Fermi’s independent auditor for the fiscal year ending Dec. 31, 2026.

Chairman Marius Haas said a quorum was present, with holders of a majority of Fermi common stock outstanding and entitled to vote represented at the meeting or by proxy.

Based on preliminary voting results, shareholders did not provide enough votes to approve the election of the two Class I director nominees. The auditor-ratification proposal received the required support and was approved.

Fermi said the inspector of election would complete the final vote tally and that the final results would be disclosed in a subsequent Form 8-K filing.

About Fermi (NASDAQ:FRMI)

Fermi, Inc NASDAQ: FRMI is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company's principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi's activities are currently concentrated in the United States, particularly Texas.

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