Fervo Energy (FRVO) Q2 2026 earnings summary

Executive summary

• Completed IPO in May 2026, raising $2.2 billion in gross proceeds to accelerate geothermal project development, expansion, and strategic priorities.

• Advanced Cape Station with 500 MW under construction, mechanical completion of Phase I GeoBlocks 1 and 2, and first power from GeoBlock 1 targeted for Q4 2026; full ramp-up by early 2027.

• Signed 658 MW of binding PPAs, representing $7.2 billion in contracted revenue backlog, with strong demand from utilities, hyperscalers, and industrial customers.

• Raised long-term installed capacity target to 1.1 GW by 2030, reflecting a robust pipeline and growing commercial confidence.

• Achieved record drilling pace with Sawtooth 7 well, reaching 19,500 feet at 460°F in 21 days, and introduced advanced 3.0 well design.

Financial highlights

• Q2 2026 operating loss was $28.7 million and net loss was $55.9 million, compared to $11.4 million in Q2 2025.

• Capital expenditures in Q2 2026 were $226.5 million, up from $108 million in Q2 2025, driven by Cape Station development.

• Cash and cash equivalents at June 30, 2026, totaled $2.1 billion; current and long-term debt was $228.4 million.

• Revenues for Q2 2026 were $113,000, with general and administrative expenses rising year-over-year.

• Weighted average shares outstanding for Q2 2026 were 157 million, with net loss per share of $(0.38).

Outlook and guidance

• Expects capital expenditures of $850–$900 million in H2 2026, with full-year capex projected at $1.3 billion.

• Targets first power from Cape Station GeoBlock 1 in Q4 2026, with full production by early 2027; Phase II (400 MW) on track for 2028 delivery.

• Anticipates 2027 revenue between $60–$80 million, with range reflecting potential transmission-related curtailments.

• Sufficient liquidity to fund operations and development for at least the next 12 months.

• Projected installed capacity target for 2030 increased to 1.1 GW, up from 1 GW.