Fervo Energy Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 22 June 2026: press release. The quarter’s numbers.

Key takeaways

Net loss widened on higher costs: The company reported a Q1 2026 net loss of $31.8 million and an operating loss of $20.1 million, compared with a net loss of $9.1 million in Q1 2025. Revenue was $61 thousand, against none a year earlier. Source
Capital spending rose to $172.8 million: Q1 2026 capital expenditures were $172.8 million, up from $105.4 million in Q1 2025, which management ties to Cape Station development and construction. Source
Cape Phase I on track for Q4: Management reports Phase I is on track for first power in Q4 2026, with commissioning underway on GeoBlock Unit 1 and GeoBlocks 2 and 3 to follow in Q1 2027. Source
Phase II construction began in Q1: Cape Phase II, 400 megawatts of eight 50-megawatt GeoBlocks, began construction in Q1 2026. All long-lead equipment is secured, and the initial Phase II wells have been drilled. Source
Google framework covers 3 gigawatts: Fervo executed a Geothermal Framework Agreement with Google in March 2026 covering up to 3 gigawatts through 2033, with 1 gigawatt of proposed projects in the first two years. Source
Contracted PPAs total 658 megawatts: Management cited 658 megawatts of contracted power purchase agreements, alongside the Google framework, as the basis for its position in firm 24/7 power. Source
IPO raised $2.2 billion gross: The company issued 80.5 million Class A shares at $27.00 per share, including the full exercise of the over-allotment option, for gross proceeds of about $2.2 billion. Source
Cape Phase I non-recourse debt: The company secured $421.4 million of non-recourse project financing for Cape Phase I. The debt is secured solely by Phase I assets and cash flows and is not on Fervo's corporate balance sheet. Source

“2026 is already off to a transformative start.”
Tim Latimer, CEO and Co-founder of Fervo

Guidance

Area	Period	Figure
Capital expenditures Source	Q2 2026 through Q1 2027	approximately $1.2 billion
Cape Phase I first power Source	Q4 2026	Q4 2026
Cape Phase I capacity Source	Phase I	approximately 100 megawatts
GeoBlock Units 2 and 3 commercial operation Source	Q1 2027	Q1 2027
Cape Phase II capacity and commercial operation Source	2028	approximately 400 megawatts; expected commercial operation in 2028
Google geothermal framework capacity Source	through 2033	up to 3 gigawatts
Google framework proposed projects Source	first two years	1 gigawatt
Installed capital expenditures per kilowatt Source	not stated	toward $3,000 per kilowatt

What changed from last quarter

New: Completed an initial public offering on Nasdaq, with 80.5 million Class A shares sold at $27.00 per share. Source
New: Executed a Geothermal Framework Agreement with Google in March 2026 for up to 3 gigawatts through 2033. Source
New: Entered a turbine supply agreement with Turboden covering up to 35 Organic Rankine Cycle units. Source
New: Entered an agreement with Liberty Mutual Insurance Company to monetize tax credits from Cape Station Phase I. Source
New: Commenced construction of Cape Station Phase II in the first quarter of 2026. Source
New: Share counts were adjusted for a 0.7194-for-1 reverse stock split effective May 14, 2026, tied to the IPO. Source

Quarterly results and spending

Net loss widened on higher costs: The company reported a Q1 2026 net loss of $31.8 million and an operating loss of $20.1 million, compared with a net loss of $9.1 million in Q1 2025. Revenue was $61 thousand, against none a year earlier. Source
Capital spending rose to $172.8 million: Q1 2026 capital expenditures were $172.8 million, up from $105.4 million in Q1 2025, which management ties to Cape Station development and construction. Source

Cape Station project progress

Cape Phase I on track for Q4: Management reports Phase I is on track for first power in Q4 2026, with commissioning underway on GeoBlock Unit 1 and GeoBlocks 2 and 3 to follow in Q1 2027. Source
Phase II construction began in Q1: Cape Phase II, 400 megawatts of eight 50-megawatt GeoBlocks, began construction in Q1 2026. All long-lead equipment is secured, and the initial Phase II wells have been drilled. Source
Drilling and completion efficiency gains: The company completed its largest zipper completion to date, stimulating six wells on one pad. Management says this raised stages stimulated per day while lowering cost per foot across Cape Phase I. Source
Blanford well reaches 555°F: The Cottonwood observation well at Blanford, Utah, reached 555°F at 11,200 feet, the hottest well in company history, and validated premium resource quality at a key prospect. Source

“Fervo is well positioned to deliver the clean, firm 24/7 power this country needs.”
Tim Latimer, CEO and Co-founder of Fervo

Commercial agreements and offtake

Google framework covers 3 gigawatts: Fervo executed a Geothermal Framework Agreement with Google in March 2026 covering up to 3 gigawatts through 2033, with 1 gigawatt of proposed projects in the first two years. Source
Contracted PPAs total 658 megawatts: Management cited 658 megawatts of contracted power purchase agreements, alongside the Google framework, as the basis for its position in firm 24/7 power. Source
Repeatable commercial model for buyers: The framework streamlines future offtake through a defined contract structure and priority geographies, and management believes the model can support agreements with other large power buyers. Source

Supply chain and equipment

Turbine supply covers 1,750 megawatts: Turboden, a Mitsubishi Heavy Industries subsidiary, agreed to supply up to 35 Organic Rankine Cycle units that together represent 1,750 megawatts of total power capacity. Source
ABB agreement targets long lead times: The ABB agreement covers motor control and electrification for Cape Station. Management expects it to help mitigate long lead-time risks that competing technologies increasingly face. Source
Five-year domestic tubular supply: The five-year Vallourec agreement is expected to give Fervo a sufficient base of domestically manufactured tubulars for scaled subsurface development. Source

“This is the geothermal decade, and Fervo is leading the charge”
Tim Latimer, CEO and Co-founder of Fervo

Capital, financing and IPO

IPO raised $2.2 billion gross: The company issued 80.5 million Class A shares at $27.00 per share, including the full exercise of the over-allotment option, for gross proceeds of about $2.2 billion. Source
Cape Phase I non-recourse debt: The company secured $421.4 million of non-recourse project financing for Cape Phase I. The debt is secured solely by Phase I assets and cash flows and is not on Fervo's corporate balance sheet. Source
Tax credits monetized with Liberty Mutual: The company entered an agreement with Liberty Mutual Insurance Company to monetize tax credits from Cape Station Phase I, as a means of funding development. Source

Strategy and use of proceeds

IPO proceeds under assessment: Management intends to assess deploying incremental capital across three areas: accelerating the commercial pipeline through 2030, high-return R&D to lower installed capex, and growth beyond 2030. Source
Cape Station called largest EGS project: The company describes Cape Station as the world's largest enhanced geothermal project, and the IPO is described as funding near-term execution there and the multi-gigawatt pipeline. Source

Coming up, as management said on 22 June 2026

Cape Phase I first power: Management expects first power from Cape Phase I in Q4 2026, with GeoBlocks 2 and 3 to follow in Q1 2027. Source
Phase II commercial operation: Management continues to work toward expected commercial operation of Cape Phase II in 2028. Source
IPO proceeds deployment review: Management intends to assess incremental capital deployment across accelerating the pipeline through 2030, high-return R&D, and growth beyond 2030. Source

Figures management reported

Figure	Reported
Capital plan Source	approximately $1.2 billion of capital expenditures, Q2 2026 through Q1 2027
Capital expenditures, Q1 2026 Source	$172.8 million

Risks management discussed

Operational: Management cites long lead-time equipment risk for competing energy technologies, which the ABB agreement is expected to help mitigate. Source

Earlier plans management reported on

On track: Management states Cape Phase I remains on track for first power in Q4 2026. Source
Ahead: GeoBlock Unit 1 commissioning is underway ahead of the planned Q4 2026 commercial operation date. Source
On track: Units 2 and 3 are progressing toward mechanical completion as scheduled, ahead of planned Q1 2027 commercial operation dates. Source
Not stated: Management says Phase II continues to progress toward expected commercial operation in 2028. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FINANCIAL HIGHLIGHTS Supply Chain CONFERENCE CALL personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems CONTACTS Fervo Energy Company and potential cybersecurity threats; global economic and political conditions affecting our operations, supply 811 Main St, 1700

Secured $421.4 million in non-recourse project financing for Cape Phase I, supporting the continued In the first half of this year, Fervo strengthened its supply chain through strategic partnerships with three key Fervo will host a conference call to discuss its first quarter 2026 business, operational and financial highlights at CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) Investor Relations chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are Houston, TX 77002 commercialization and bankability of Fervo’s enhanced geothermal systems. suppliers, Turboden, ABB, and Vallourec, spanning power generation, electrical equipment, and well 10:00 a.m. ET (9:00 a.m. CT) today, June 22, 2026. A live webcast of the conference call will be available in the investor.relations@fervoenergy.com inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and
Entered into an agreement with Liberty Mutual Insurance Company to monetize tax credits from Cape Station (Dollars and shares in thousands)As of March 31, As of December 31,20262025ASSETSCurrent assets:Cash and cash equivalents .....................................................................................$280,776$461,836Grant receivables ...................................................................................................16,75510,580Prepaid expenses and other ...................................................................................10,3389,714Total current assets ..........................................................................................307,869482,130Deposits .................................................................................................................15,24215,234Construction-in-process ........................................................................................972,040789,571Operating leases right of use assets .......................................................................91,11258,713Restricted cash ......................................................................................................6,0006,000Other long-term assets ...........................................................................................35,24413,520Total assets .......................................................................................................$1,427,507$1,365,168LIABILITIES AND EQUITYCurrent liabilities:Accounts payable ...................................................................................................$8,043$10,789Accrued capital expenditures....................................................................................147,610119,303Operating lease liabilities ........................................................................................25,3354,822Other current liabilities ............................................................................................20,93216,997Total current liabilities .......................................................................................201,920151,911Long-term debt, net of issuance costs ......................................................................186,636172,837Operating lease liabilities ........................................................................................86,34972,639Other long-term liabilities .......................................................................................24,67311,407Total liabilities .................................................................................................499,578408,794Commitments and Contingencies (Note 16) ............................................................Redeemable convertible preferred stockRedeemable convertible preferred stock, par value $0.0001 per share; 283,546 and 283,546 authorized; 279,995 and 279,995 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively .........................................1,022,8861,022,942Redeemable noncontrolling interestCape Phase I HoldCo - Redeemable noncontrolling interest103,843102,586Cape Phase I Intermediate HoldCo - Redeemable noncontrolling interest79,52177,344Stockholders’ deficit:Common stock, par value $0.0001 per share; 358,279 and 358,279 authorized; 9,873 and 9,457 issued as of March 31, 2026 and December 31, 2025, respectively(1)11Additional paid-in capital - - Treasury stock, at cost; 270 and 270 shares as of March 31, 2026 and December 31, 2025, respectively (1) ..................................................................(1,960)(1,960)Accumulated deficit ..............................................................................................(276,362)(244,539)Total stockholders’ deficit ..................................................................................(278,321)(246,498)Total liabilities, redeemable convertible preferred stock, redeemable noncontrolling interests and stockholders’ deficit ..............................................$1,427,507$1,365,168 construction. “Events” section of the Company’s investor relations website at ir.fervoenergy.com. To participate in Q&A on the Fervo Energy Reports First Quarter 2026 Results other risks and uncertainties, including those set forth under “Risk Factors” in Fervo’s Registration Statement on Phase I, advancing capital deployment strategy for utility-scale geothermal development. call, register here to receive the dial-in information and a unique PIN. A replay of the call will be available shortly ICR, Inc. Form S-1/A, filed with the Securities and Exchange Commission on May 11, 2026.
Reported Q1 2026 operating loss of $20.1 million and net loss of $31.8 million. Fervo and Turboden, a subsidiary of Mitsubishi Heavy Industries, have entered a turbine supply agreement after the conclusion of the live webcast. fervo@icrinc.com Houston, TX - June 22, 2026 - Fervo Energy Company (“Fervo” or the “Company”) (NASDAQ: FRVO), a •Reported Q1 2026 capital expenditures of $172.8 million, compared to $105.4 million in the first quarter of covering up to 35 Organic Rankine Cycle units that together represent 1,750 megawatts of total power capacity. In light of these factors, the events anticipated by Fervo’s forward-looking statements may not occur at the time leading technology-enabled independent power producer of Enhanced Geothermal Systems (EGS), today reported 2025, reflecting continued investment in Cape Station development and construction activities. The Company also entered into a strategic agreement with ABB to provide advanced motor control and ABOUT FERVO anticipated or at all. Moreover, Fervo operates in a very competitive and rapidly changing environment, and new V2 Communications for Fervo Energy financial and operational results for the first quarter ended March 31, 2026. •Expects total capital expenditures of approximately $1.2 billion from Q2 2026 through Q1 2027, primarily electrification solutions for Cape Station, which is expected to help mitigate long lead-time risks that competing risks emerge from time to time. Fervo cannot predict all risks, nor can it assess the impact of all factors on its fervo@v2comms.com Fervo Energy (NASDAQ: FRVO) is a modern power company built around one of the market’s most important allocated to Cape Station Phase I and Phase II construction and the development of other GeoClusters. energy technologies increasingly confront. Finally, on well construction, the five-year supply agreement with business or the extent to which any factor, or combination of factors, may cause actual results to differ materially “This is the geothermal decade, and Fervo is leading the charge," said Tim Latimer, CEO and Co-founder needs: new supply of clean, firm 24/7 power. Through the large-scale deployment of enhanced geothermal Vallourec is expected to provide Fervo with a sufficient base of domestically-manufactured tubulars needed for from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue of Fervo. "2026 is already off to a transformative start. We completed the largest primary energy and systems, Fervo has established a repeatable, industrial approach to building utility-scale power. The company is scaled subsurface development. reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this press power IPO in recent memory, raising $2.2 billion to accelerate our multi-gigawatt development pipeline transforming geothermal into a clean, reliable, cost-competitive solution designed to meet rising demand from AI release or, if earlier, as of the date they were made. Fervo does not intend to, and disclaims any obligation to, BUSINESS UPDATES and near-term execution at Cape Station, the world’s largest enhanced geothermal project, which is on Development Pipeline hyperscalers, utilities, and a more electricity-intensive economy. For more information, visit update or revise any forward-looking statements unless required by applicable law. track for first power in Q4 2026. With 658 megawatts of contracted power purchase agreements and a 3- www.fervoenergy.com. Commercial Fervo also progressed an additional GeoCluster area in its development pipeline by successfully drilling its first gigawatt geothermal framework agreement with Google, Fervo is well positioned to deliver the clean, firm

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Forward-looking statements notice

observation well at Blanford, Utah. The Cottonwood observation well reached 555°F at a depth of 11,200 feet, FORWARD-LOOKING STATEMENTS 24/7 power this country needs.” In March 2026, Fervo Energy executed a Geothermal Framework Agreement (GFA) with Google that establishes making it the hottest well in the Company's history and validating premium resource quality at a key development (Dollars and shares in thousands except per share amounts)Three months ended March 31, 20262025Revenues ...................................................................................................................$61$ - Costs and expenses:Operation and maintenance ....................................................................................482252Research and development income, net ..................................................................(72)(36)General and administrative expense........................................................................16,9907,679Operating lease expense ..........................................................................................2,6201,989Depreciation and amortization ................................................................................9347Operating loss ......................................................................................................(20,052)(9,931)Other income (expense):Interest income .......................................................................................................2,8152,028Interest expense ......................................................................................................(2,717)(1,227)Other non-operating expense, net............................................................................(11,876)(16)Loss before income taxes ..........................................................................................(31,830)(9,146)Net loss .....................................................................................................................$(31,830)$(9,146)Net loss per share information:Net loss ...................................................................................................................$(31,830)$(9,146)Less: Remeasurement of redeemable noncontrolling interest.................................(3,434) - Net loss attributable to common shares, basic and diluted ....................................(35,264)(9,146)Weighted average shares, basic and diluted (1) ...................................................9,4678,961Net loss per share attributable to common stockholders, basic and diluted (1) ...$(3.72)$(1.02) a development framework for up to 3 gigawatts of geothermal capacity through 2033, including 1 gigawatt of This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act prospect. proposed projects in the first two years. The GFA streamlines future offtake through a defined contract structure and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other and priority geographies, while creating a path to accelerate near-term development of up to 1 gigawatt. The BUSINESS AND OPERATIONAL HIGHLIGHTS Financing than statements of historical fact, are forward-looking statements. When used in this press release, the words agreement also establishes a repeatable commercial model that Fervo believes can support future agreements with “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” other large power buyers.

Successfully completed an initial public offering on Nasdaq on May 14, 2026, issuing 80.5 million shares of Subsequent to quarter-end, in May 2026, Fervo completed its initial public offering and listed on Nasdaq, issuing “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” Class A common stock, including the full exercise of the underwriters’ over-allotment options, at a price of 80.5 million shares of Class A common stock at $27.00 per share and generating gross proceeds of $2.2 billion, “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify Construction $27.00 per share and raising approximately $2.2 billion in gross proceeds. including the full exercise of the underwriters' over-allotment option. The offering was significantly upsized and forward-looking statements, although not all forward-looking statements contain such identifying words.
Executed a Geothermal Framework Agreement (GFA) with Google to support the development of up to 3 priced above the revised range, reflecting strong investor demand. Although Fervo believes that the expectations and assumptions reflected in its forward-looking statements are Cape Station Phase I, Fervo’s first greenfield development, is an approximately 100-megawatt installation gigawatts of geothermal capacity through 2033. reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, comprising three 33-megawatt GeoBlocks. Fervo has drilled, stimulated, and completed all initial Phase I wells, The IPO provides Fervo with an opportunity to accelerate its strategic priorities. Fervo intends to assess the •Advanced Cape Station Phase I, which is expected to deliver approximately 100 megawatts, with GeoBlock beyond Fervo’s control. Accordingly, forward-looking statements are not guarantees of future performance, and concluding the phase’s initial subsurface program, and achieved mechanical completion at its first GeoBlock in deployment of incremental capital across three areas: accelerating its commercial pipeline through 2030, investing Unit 1 commissioning currently underway ahead of the planned Q4 2026 Commercial Operation Date (COD). Fervo’s actual outcomes could differ materially from what Fervo has expressed in its forward-looking statements. the first quarter of 2026. During the quarter, the Company completed its largest zipper completion operation to in high-return R&D to drive down installed capital expenditures toward $3,000 per kilowatt, and positioning the GeoBlock Units 2 and 3 continue to progress toward mechanical completion as scheduled ahead of planned date, during which the Company simultaneously stimulated six wells on a single pad, providing efficiency Company for growth beyond 2030. CODs in Q1 2027. Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks improvements that increased the number of stages stimulated per day while continuing to lower the cost per foot
Commenced construction of Cape Station Phase II in Q1 2026, which is expected to deliver approximately related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance drilled and completed across Cape Phase I. With key power facility equipment installed and commissioning Fervo also closed $421.4 million of non-recourse project debt for Cape Station Phase I. The financing was led by 400 megawatts. All long-lead equipment has been secured, and initial Phase II wells have been drilled as the with extensive environmental regulations and permitting requirements; uncertainties in forecasting future underway, Fervo remains on track for first power in Q4 2026, with GeoBlocks 2 and 3 expected to follow in Q1 Barclays, BBVA, HSBC, MUFG, and Société Générale as lead partners, with RBC, J.P. Morgan, and Sumitomo Company progresses toward expected COD in 2028. operational results and growth due to economic conditions and market demand; compliance with environmental 2027. Mitsui Trust Bank as additional participants. Fervo believes this represents the first non-recourse project financing •Validated premium resource quality at Blanford, a Utah GeoCluster north of Cape Station, with the regulations and climate change initiatives impacting operational costs; inherent risks in the geothermal industry, for an enhanced geothermal systems project globally, structured on the same terms as conventional power, Cottonwood observation well reaching 555°F at 11,200 feet depth, the hottest well in Fervo history. including potential operational disruptions and associated liabilities; the influence of consumer preferences, Cape Station Phase II, a 400-megawatt expansion comprising eight 50-megawatt GeoBlocks, represents Fervo’s renewable energy, and infrastructure project finance. The facility is secured solely by Cape Station Phase I assets •Secured strategic supply partnerships with Turboden, ABB, and Vallourec to enable scaled geothermal government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in go-forward design and commenced construction in the first quarter of 2026. Two Helmerich & Payne rigs are and cash flows and does not sit on Fervo's corporate balance sheet. deployment. energy prices and material costs; dependence on a complex supply chain and successful maintenance of our actively drilling, and all four initial Fervo Generation 3.0 wells, the Company’s upsized 7,500-foot lateral design, geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, have been drilled on the first well pad and are ready for completion. Erection of power generation facilities has and other market conditions; capacity actually constructed or for which we enter power purchase agreements also begun, with structural steel being assembled to support the air-cooled condenser units for GeoBlock 4, the under non-binding agreements, like the GFA; exposure to legal proceedings and claims arising from our business first GeoBlock in the Cape Phase II program. Fervo continues to progress toward expected commercial operation (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194-for-1 reverse stock split effected on May 14, 2026 in connection with operations; protecting our brand reputation and facing potential negative public perception; negative public in 2028. the Company’s IPO. See Note 2 - Significant Accounting Policies and Note 17 - Subsequent Events in the notes to condensed consolidated financial perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; statements for details. (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194-for-1 reverse stock split effected on May 14, 2026 in connection with the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key the Company’s initial public offering (“IPO”). See Note 2 - Significant Accounting Policies and Note 17 - Subsequent Events in the notes to condensed consolidated financial statements for details.