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    AIRJ
    Earnings call· Jun 2026(Q2 FY26)

    AirJoule Technologies Q2 FY26 earnings call AIRJ

    Aug 14, 2026 Source

    Executive summary

    AirJoule Technologies Q2 FY26 — Accelerated Commercialization and Strategic Partnerships

    AirJoule Technologies is rapidly advancing its commercialization strategy, leveraging strategic partnerships and product development to address critical water scarcity issues. The company is focused on unlocking development opportunities for data centers and residential communities by providing on-site distilled water solutions, while managing increased cash burn associated with these accelerated initiatives. International expansion and product optimization remain key priorities as AirJoule builds towards scaled commercial activity in 2027.

    Highlights

    5
    • Secured an exclusive sales agreement with Kubota Corporation for residential developments in water-scarce regions of Texas and California, a significant commercialization milestone.

    • GE Vernova, a joint venture partner, validated AirJoule's technology by showcasing an AirJoule Core system at its new Advanced Research Center Frontier campus.

    • Expanded international commercialization efforts in the UAE, shipping an AirJoule Core system for deployment and securing one of UAE's first Expo City green licenses.

    • Commissioned the first full-scale Prime system in May, which has been operating 24/7 and is tracking towards an expectation of 2,000 liters per day.

    • Core DH product demonstrated significant energy savings in head-to-head testing against incumbent desiccant wheel systems, targeting an estimated 1.2 million unit installed base.

    Concerns

    2
    • Reported a net loss of $8.5 million for the quarter, primarily due to noncash losses from earn-out shares liability and subject vesting shares liability.

    • Increased full-year 2026 cash spend guidance to approximately $27 million to $28 million, reflecting accelerated commercialization activities.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2026 cash spend (AirJoule Technologies and JV)
    $27M to $28M
    high materiality
    High
    JV paid deployment revenue
    modest
    medium materiality
    Medium
    JV commercial revenue
    meaningful
    medium materiality
    Medium

    Operational metrics

    25
    Net operating expenses
    $4.1M
    Q2 FY26

    Inclusive of $0.8 million in administrative and engineering expenses reimbursed by the joint venture.

    Administrative and engineering expenses reimbursed by JV
    $0.8M
    Q2 FY26

    Reimbursed to AirJoule Technologies by the joint venture under a statement of work.

    Net loss
    $8.5M
    Q2 FY26

    Primary components below the operating line included $5.1 million of noncash losses.

    Noncash losses (earn-out shares liability, subject vesting shares liability)
    $5.1M
    Q2 FY26

    Due to the increase in the fair value of earn-out shares liability and subject vesting shares liability.

    Total JV operating expenses
    $5M
    Q2 FY26

    For the second quarter.

    JV additional capital contributions from AirJoule Technologies
    $2.5M
    Q2 FY26

    Received during the quarter to support ongoing productization, manufacturing, and commercial deployment activities.

    Cash on balance sheet (AirJoule Technologies)
    $41.4M
    Q2 FY26

    As of the end of the second quarter.

    Net proceeds from registered direct offering
    $14.2M
    Q2 FY26

    Completed in early June.

    Combined cash (AirJoule Technologies and JV)
    $43M
    Q2 FY26

    With no debt, as of the end of the second quarter.

    Liquidity runway
    into 2028
    Q2 FY26

    Sufficient to fund operations, the JV, and planned commercial deployments.

    Kearny, Arizona annual water allocation cut
    75%
    current

    After the reservoir supplying the town fell to 1% of capacity.

    Kearny, Arizona reservoir capacity
    1%
    current

    The reservoir that supplies the town of Kearny, Arizona.

    New York data center permit moratorium threshold
    50 megawatts
    current

    First state to explicitly pause data center development for facilities over this size.

    California water supply loss projection
    10%
    by 2040

    Projected due to hotter and drier weather conditions, impacting residential development.

    Texas population growth projection
    53%
    by 2080

    Expected growth, while water supplies are projected to decline.

    Texas water supply decline projection
    10%
    by 2080

    Projected decline in water supplies, while population is expected to boom.

    Gulf region desalinated water supply
    40%
    current

    Supplies this percentage of the world's desalinated water.

    Gulf region drinking water from desalination
    70% to 99%
    current

    Several countries in the region draw this percentage of their drinking water from desalination.

    Prime system water production target
    2,000 liters per day
    ongoing

    Expectation for the first full-scale Prime system, achieved at higher humidity levels.

    Core DH target installed base
    1.2M
    current

    Estimated installed base of conventional desiccant wheel systems, targeted by Core DH.

    HVAC market size
    $300B
    current

    Market size for HVAC sectors, where Carrier is a key leader and strategic partner.

    Net Zero Innovation Hub applicants
    70+
    Fall 2025

    Number of applicants from which AirJoule was selected for the Hub's technology acceleration program.

    Kubota operating countries
    150+
    current

    Number of countries where Kubota operates.

    Kubota founding year
    1890
    founding

    Year Kubota Corporation was founded.

    California residential development approval threshold
    500 units
    current

    Residential developments over this size require written verification of sufficient water supply over a 20-year horizon.

    Product announcements

    3
    ProductTypeDetails
    AirJoule Prime systemlaunch
    AirJoule Core DH systemupdate
    AirJoule Core system (GE Vernova showcase)milestone

    Deals & partnerships

    3
    Kubota CorporationExclusive sales agreement for residential developments in water-scarce regions of Texas and California.

    Kubota will serve as the exclusive sales channel for AirJoule systems in this segment. Includes deployment of 2 AirJoule Core systems with Kubota near Corpus Christi, Texas, and Irvine, California, starting later this quarter. Kubota brings wastewater treatment, water reclamation, PIPE systems, and O&M capabilities, along with experience in supporting residential development in water-constrained regions.

    GE VernovaJoint venture partner, providing engineering and R&D support, and showcasing AirJoule technology.

    GE Vernova highlighted AirJoule as an innovative technology at the grand opening of its Advanced Research Center Frontier campus in July, where an AirJoule Core system is operating as a showcase unit.

    Net Zero Innovation Hub (Google, Microsoft, Danfoss, Schneider Electric, Vertiv)Participation in a technology acceleration program for data centers.

    AirJoule was selected from over 70 applicants in Fall 2025 and completed the Hub's technology acceleration program in June. Worked closely with members to align waste heat-to-water capabilities. First Prime unit will soon ship to Europe for deployment to demonstrate conversion of low-grade data center waste heat into pure distilled water.

    Risks & headwinds

    3
    Public opposition and regulatory moratoriums on data center developmentcurrent

    New York enacted a moratorium on data center permits over 50 megawatts; Texas announced a pause on grid-connected data centers.

    Mitigation: AirJoule systems provide a path to water access that does not put data centers in competition with communities, helping to solve permitting problems by demonstrating a long-term water solution.

    Growing water scarcity impacting residential developmentmedium to long-term (by 2040, by 2080)

    California could lose up to 10% of its water supply by 2040; Texas population expected to grow 53% by 2080 while water supplies decline 10%.

    Mitigation: AirJoule unlocks residential projects by generating pure water on-site, independent of municipal allocations and groundwater rights, as demonstrated by the Kubota partnership.

    Increased cash burn due to accelerated commercializationFY26

    Full-year 2026 cash spend guidance increased to $27 million to $28 million from $25 million.

    Mitigation: The company maintains strong flexibility in managing its capital position and balance sheet, and will remain opportunistic and disciplined in evaluating financing and strategic opportunities. Evaluating contract manufacturing partners to help eliminate incremental CapEx.

    What to watch in Q3 FY26

    5

    Prime system deployment in Europe

    this quarter
    CurrentFirst Prime system commissioned in May, operating at Newark facility.
    TargetSuccessful shipment and deployment in Europe for data center waste heat conversion.

    Why it matters

    This deployment will showcase AirJoule's capabilities in a key market for data centers and validate its waste heat-to-water technology in a real-world setting.

    As I mentioned earlier🔁, this first Prime system will be deployed in Europe, and we will be building additional systems over the coming months.

    Q&A highlights

    7

    Where are the initial strategic Core DH deployments located geographically and what specific types of businesses are being targeted?

    The Core DH systems are being deployed to strategic customers for industrial dehumidification in spaces that need to be kept dry. The focus is on validating performance and efficacy, enhancing commercial product adoption with strategic customers, and targeting industrial customers who value both dehumidification and water generation.

    we are deploying Core DH systems to strategic customers for industrial dehumidification. And really this segment where spaces need to be kept dry.

    asked by Jeffrey Campbell · answered by Bryan Barton

    2 min read5 chapters

    Detailed Narrative

    01

    Addressing Data Center Water Scarcity and Permitting Challenges

    AirJoule is positioning its technology as a solution to growing public opposition and regulatory hurdles for data center development, driven by significant water and power demands. New York has enacted a moratorium on data center permits over 50 megawatts, and Texas has paused grid-connected data centers for an audit of water usage and cooling technology. AirJoule systems produce pure distilled water on-site from air humidity using low-grade waste heat, eliminating reliance on municipal supply or local aquifers, which helps data center operators secure permits and potentially contribute excess water back to communities.

    02

    Unlocking Residential Development in Water-Stressed Regions

    Water availability is increasingly a primary gating item for residential development in water-constrained regions like California and Texas. California projects a 10% loss of its water supply by 2040, while Texas expects a 53% population growth by 2080 alongside a 10% decline in water supply. AirJoule's partnership with Kubota aims to unlock stalled residential projects by generating pure, distilled water on-site that meets stringent drinking water standards, independent of municipal allocations or groundwater rights.

    03

    International Expansion and Strategic Validation in the UAE

    AirJoule has made significant strides in the UAE, shipping an AirJoule Core system for demonstration at Expo City Dubai to validate performance in a sandbox test environment. The company was also awarded one of UAE's first Expo City green licenses, providing access to business missions and leadership forums. This progress is timely as the Gulf region, which relies heavily on desalination for 70% to 99% of its drinking water, is increasingly focused on water security and resilience.

    04

    Product Development and Optimization for Commercial Scale

    The first full-scale Prime system, commissioned in May, is operating 24/7 at the Newark, Delaware facility, tracking towards 2,000 liters per day. Learnings from Core system field deployments have accelerated Prime optimization. The Core DH product, targeting the 1.2 million unit industrial dehumidification market, continues to demonstrate significant energy savings. AirJoule is concurrently advancing design for manufacturing, cost reduction, and reliability testing for both platforms to prepare for scaled contract manufacturing and accelerate market adoption.

    05

    Engagement with Policymakers and Industry Leaders

    AirJoule is actively engaging with policymakers to highlight the severity of water scarcity and the potential of its technology as a solution. The company hosted Delaware Governor Matt Meyer and U.S. Senator Chris Coons to showcase the Prime system. Additionally, AirJoule successfully completed the Net Zero Innovation Hub's technology acceleration program, collaborating with major data center players like Google and Microsoft to align its waste heat-to-water capabilities with real-world data center operations.

    AI-generated summary of the company’s earnings call. Not investment advice.