NET Power (NPWR) Q2 2026 earnings summary

Executive summary

• Strategic shift to prioritize rapid deployment of unabated natural gas power generation for large-load customers, especially data centers and AI, with carbon capture as a future option based on market demand and economics.

• Project Permian in West Texas is the primary development focus, redesigned for co-located demand, with initial phases excluding post-combustion carbon capture but preserving retrofit capability.

• Ongoing commercial discussions and equipment procurement for Project Permian, with two modular gas turbine generator sets contracted (68 MW nominal gross power); no binding power offtake or project-level financing secured, and FID delayed beyond 2026.

• Suspended development of Oxy-Combustion Cycle technology and fully impaired related assets, with no current plans to resume development.

• Emphasis on reliability (99.9% uptime) through modular design, battery storage, and reciprocating engines, with a focus on behind-the-meter, off-grid solutions for hyperscalers and data centers.

Financial highlights

• Ended Q2 2026 with $310 million in cash, cash equivalents, and investments, and no debt; total liquidity at June 30, 2026 was $308.4 million.

• Net loss attributable to shareholders was $80.3 million for Q2 2026 and $90.1 million for the six months ended June 30, 2026.

• Operating expenses for Q2 2026 were $209.9 million, driven by a $193.7 million impairment charge.

• Current cash position supports ongoing operations and initial project development; further buildout will require additional financing.

Outlook and guidance

• Near-term focus on natural gas power generation with flexibility to add carbon capture as market and financing conditions allow.

• No revenue expected until commercial operations commence; FID for Project Permian Phase I not expected in 2026.

• Expectation to secure additional power equipment and customer offtake agreements in the coming months; additional capital will be required for equipment commitments and project-level financing.

• Anticipate continued power shortages into the early 2030s or beyond, especially in ERCOT, MISO, and PJM markets.