AirJoule Technologies Corporation Class A Common Stock 2026 Q2 Earnings Call

Thank you and good morning. With me today for our second quarter 2026 earnings call are Matt Jore, Founder and Chief Executive Officer, Pat Eilers, Executive Chairman, Bryan Barton, Chief Commercialization Officer, and Stephen Pang, Chief Financial Officer. During this call, we will be referring to a presentation which is available on the webcast platform and on the investor section of our website. I would like to point out that many of the comments made during the prepared remarks and during the Q&A section are forward-looking statements that involve risks and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the Risk Factors and the Forward-looking Statements sections of our filings with the SEC.

Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance, and actual results or developments may differ materially. Now I will turn it over to Matt Jore.

Thanks, Tom. Good morning, everyone, and thanks for joining us today for our second quarter 2026 earnings call. We've had some exciting developments over the last few months, and we're pleased to be discussing those today. On our last call in May, we talked about the growing public opposition to data center development. This was driven in large part by the power and water demands these facilities place on their communities. While it started as local opposition in mostly rural areas where data center development was occurring, public perception has shifted, and that opposition has gone mainstream. Even cultural icons like Willie Nelson and Erin Brockovich are weighing in, issuing statements and launching campaigns to oppose data center development in the U.S. The political winds are shifting as well.

New York recently enacted a moratorium on data center permits for facilities over 50 megawatts, making it the first state to explicitly pause data center development. When signing the executive order, Governor Kathy Hochul specifically said that existing regulatory frameworks are, quote, "Not yet prepared to address the large-scale water use and treatment from data centers, which could strain aquifers, surface waters, and public infrastructure." In Texas, which has been welcoming data centers and thus has seen massive development in recent years, Governor Greg Abbott announced a pause on grid-connected data centers until a full and complete audit of all proposed development can be completed. He urged regulators to determine how much water proposed data centers will use and what their water supply is, as well as information about their cooling technology. These policy actions are unfolding against a backdrop of growing water scarcity across the U.S.

A few weeks ago, The Washington Post profiled Kearny, Arizona, a town of 2,000 people whose annual water allocation was cut by 75% after the reservoir that supplies that town fell to 1% of capacity. The town has prohibited lawn watering, car washing, and even Little League. The article concluded that other towns across the West could face the same fate. Communities are already running short on water, and the demands of new development are colliding with a shrinking water supply. These are the problems that AirJoule helps solve. Our systems produce pure distilled water on-site from the humidity in the air, powered by low-grade waste heat, without drawing on municipal supply or local aquifers. For data center operators, AirJoule offers a path to water access that does not put them in competition with the communities around them. It also helps solve a permitting problem.

Water use is increasingly the factor that delays approval of new data centers because communities worry about long-term water usage. By using AirJoule systems, data center operators can show local officials and residents that it has a long-term solution to securing water. Over time, excess water produced by AirJoule can flow back into the community, which eases local water stress rather than adding to it. For water-stressed regions, AirJoule provides a distributed source of clean water that does not depend on a distant reservoir. The same advantage applies well beyond data centers. In many water-scarce markets, water availability is constraining residential development. To that end, we recently announced an exclusive partnership with Kubota Corporation to deploy AirJoule systems for residential development in water-scarce regions of Texas and California. Bryan is going to talk about that in greater detail, but it is a huge milestone for us on the path to commercialization.

By partnering with Kubota, who has a 136-year legacy of environmental and water engineering expertise, we will be able to deploy AirJoule systems at scale and unlock residential development across the Southern U.S. Partnerships like the one we just announced with Kubota have been critical to our success so far. GE Vernova, our joint venture partner, delivered a powerful validation of our technology this summer. In July, GE Vernova held a grand opening for its new Advanced Research Center Frontier Campus in Niskayuna, New York. They specifically highlighted AirJoule as one of the innovative technologies that GE Vernova is helping to develop, and they have an AirJoule Core system operating there as a showcase unit for customers and partners who visit that facility. You can see it also on their website in their recent posts on LinkedIn.

This reflects the strength of our joint venture with GE Vernova, and we are grateful for their continued support through engineering and R&D initiatives. We've also got some very exciting technology in the hopper at AirJoule that we'll be sharing in upcoming communications. Before Bryan provides an update on our customer engagements and productization, I'll turn it over to Pat for an update on our international growth initiatives in the UAE.

Pat? Yeah, thanks, Matt. Good morning, everybody.

Since the end of the quarter, we've achieved two important milestones related to our ongoing commercialization efforts in the UAE. First, we shipped an AirJoule Core system to the UAE for a series of deployments to demonstrate the technology and validate performance for customers across the country. The first showcase of this Core unit will take place in Dubai at one of Expo City Dubai's landmark destinations. We intend to leverage Expo City's sandbox test environment for the sustainable urban deployment, including technologies addressing challenges like water security. This deployment puts AirJoule in front of the visitors and industry leaders who visit the iconic location. Following the deployment at Expo City, the AirJoule system will be used for on-site customer demonstrations and exhibitions across various Emirates of the UAE. Second, AirJoule was awarded one of UAE's first Expo City green licenses.

The green license is the first of its kind in the UAE, and it is the key enabler of the Green Innovation District, the country's first location dedicated to sustainable innovation. It admits only companies that can demonstrate a commitment to sustainability, and we were in the first cohort. It provides us with access to business missions throughout the Ministry of Economy and Tourism and a seat in the Green Modulus Leadership Forum. In a region where government engagement is paramount, this is a meaningful milestone for us. Our progress in the UAE is taking place as the region is increasingly focused on water security. The Gulf supplies roughly 40% of the world's desalinated water, and more than 90% of that comes from about 56 plants. Several countries in the region draw 70%-99% of their drinking water from the concentrated base. That was always an efficiency story.

Events in the region over the past several months have made it a resilience story as well. AirJoule produces pure distilled water on-site across a range of climate conditions without drawing on municipal supplies, local aquifers, or a connection to centralized infrastructure. That is what we are demonstrating with this latest AirJoule Core deployment. With that, I'll hand it over to Bryan for the commercial update.

Thanks, Pat. I want to walk through three areas this morning. Our commercial progress, headlined by our recently announced partnership with Kubota, an update on our two product platforms, Prime and Core, and our productization efforts. Let's start with commercialization. In July, we signed an exclusive sales agreement with Kubota Corporation covering residential developments in Texas and California. Kubota will serve as the exclusive sales channel for AirJoule systems in that segment. As a part of the collaboration, we're also deploying two AirJoule Core systems with Kubota, one near Corpus Christi, Texas, and the other in Irvine, California. These will start later this quarter. Kubota, which was founded in 1890, operates in more than 150 countries and brings wastewater treatment, water reclamation, pipe systems, and operations and maintenance capabilities to our partnership. They also have tremendous experience in supporting residential development in water-constrained regions. The opportunity here is clear.