AirJoule Technologies Corporation Q2 FY2026 earnings call

Market Context & Value Proposition

• Growing mainstream opposition to data center development across the U.S. driven by strain on local water supplies from data center power and cooling demands, with New York enacting a moratorium on new large data center permits and Texas pausing grid-connected data center approvals amid widespread regional water scarcity.
• AirJoule solves this permitting and water access problem by producing pure distilled water on-site from air humidity using low-grade waste heat, eliminating competition for local aquifers or municipal water supplies; excess water can even be returned to communities to reduce overall water stress.

Commercial Partnerships & Milestones

• Announced an exclusive sales partnership with Kubota Corporation to deploy AirJoule systems for residential development in water-scarce regions of Texas and California, where water availability is the primary gating factor for new project approval; two demonstration Core systems will deploy to Corpus Christi, TX and Irvine, CA later this quarter.
• Joint venture partner GE Vernova highlighted AirJoule technology at the grand opening of its new Advanced Research Center Frontier Campus in Niskayuna, New York, operating a showcase core system for visiting customers and partners, validating the technology commercially.

International Expansion

• Achieved two key commercial milestones in the UAE: shipped an AirJoule core system for demonstration deployments starting at Expo City Dubai's sustainable innovation sandbox, and was awarded one of the UAE's first Expo City green licenses, a first-of-its-kind designation for sustainable innovation companies that provides access to government business networks and leadership forums.

Product Development Status

• The first full-scale Prime system for data centers was commissioned in May 2026 at the Newark, Delaware facility, has operated continuously since, and is tracking to meet its target of 2,000 liters of water output per day; engineering optimizations learned from Core platform testing have compressed the Prime development timeline.
• Core DH, the Core platform variant that combines industrial dehumidification with water generation, is targeting the existing 1.2 million unit installed base of conventional desiccant wheel dehumidification systems; head-to-head testing shows significant energy savings compared to incumbents, and initial demonstration units have begun deployment with strategic customers.
• Productization efforts are on track: parallel development and commercial piloting is accelerating adoption, with a focused component reliability program and ongoing design for manufacturing (DFM) work to simplify bills of materials and prepare for scaled contract manufacturing in 2027.

AirJoule is pre-revenue with no formal product segment financial results reported for the quarter. The company has two product platforms in development: Core (including Core DH, the combined dehumidification/water generation product) and Prime (the full-scale water generation system for data centers). All expenses are currently concentrated in product development, commercialization, and joint venture activities. No segment revenue or absolute profit figures are available as the company expects meaningful commercial revenue to begin in 2027.

• Full-year 2026 combined cash spend for AirJoule Technologies and its joint venture has been revised upward slightly to $27 million to $28 million, reflecting expanded commercialization activities and increased customer demonstration deployments across multiple market segments.
• The company maintains that modest pilot deployment revenue is expected at the joint venture in 2026, with more meaningful commercial revenue from Core and Prime deployments projected to begin in 2027.
• AirJoule's ending Q2 2026 cash balance of $43 million (combined across the company and joint venture, with no debt) is sufficient to fund all planned operations and deployments through 2028.
• 2027 spend is currently projected to trend similarly to 2026 levels, with plans to leverage contract manufacturing partners to reduce in-house capital expenditure requirements for scaled production.

• All forward-looking statements are subject to material risks and uncertainties, including regulatory permitting delays for data center and residential development projects, changing state and local water policy, faster-than-expected declines in regional water supplies that could alter market demand, and unforeseen technical or manufacturing challenges that could delay commercial launch.
• The company relies on third-party strategic partners and contract manufacturers for scaled deployment, so partner performance and supply chain stability for commodity components could impact commercialization timelines.
• Market adoption of the new AirJoule technology is unproven, and customer acceptance of water-from-air systems as a long-term water solution may not meet the company's current expectations.

Q: What types of customers and geographic regions are targeted for the initial Core DH demonstration deployments, and are the Prime and Core DFM and optimization efforts on track for 2027 manufacturing? / A: Initial Core DH deployments are focused on industrial customers needing controlled low humidity spaces, seeking to validate both dehumidification performance and the added benefit of co-generated pure water. Both Prime and Core design for manufacturing and cost reduction efforts are on schedule: Prime is on track for 2027 contract manufacturing conversations, and Core DH remains on target for a 2027 commercial launch, with management accelerating efforts where possible. Most system components are standard commodity parts, so manufacturing setup is not a heavy lift. /

Q: For the Kubota residential partnership, will deployments be centralized or individual per-home systems, and is the partnership limited to residential development? / A: Kubota deployments will use a centralized model, where a single AirJoule system generates pure potable water for an entire planned residential community, paired with an on-site community water recycling system. The current exclusive partnership is limited to residential multi-home developments in Texas and California, with no other verticals included in the current agreement. /

Q: What outcomes does AirJoule expect from the Prime system deployment to the European Net Zero Innovation Hub for data centers, and what is the current status of the strategic relationship with Carrier? / A: The deployment will showcase AirJoule's ability to convert low-grade data center waste heat to water for major industry hub members including Google, Microsoft, and Vertiv, with a core goal of demonstrating that AirJoule solves the long-term water permitting problem that is blocking many new data center projects. Carrier remains an active strategic partner focused on two initiatives: long-term HVAC sector product roadmap opportunities, and data center collaborations where Carrier provides heat recovery systems to supply waste heat for AirJoule water generation. /

Q: How much additional capital will AirJoule contribute to its joint venture in 2026 and 2027 to support accelerated commercialization? / A: The entire incremental increase in 2026 cash spend (to the new $27-$28 million range) is allocated to the joint venture to fund additional customer demonstration units driven by unanticipated customer interest. For 2027, management currently expects spend levels to be similar to 2026, and using contract manufacturing will limit the need for large in-house capital expenditures for production.