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 deferred to future phases based on market demand and economics.

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

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

• Ongoing commercial discussions and customer engagement for Project Permian, with two modular gas turbine generator sets contracted (68 MW nominal gross power) and additional equipment procurement aligned with customer needs.

• Emphasis on reliability (99.9% uptime) through multiple smaller units, battery storage, and redundancy.

Financial highlights

• Ended Q2 2026 with $310 million in cash, cash equivalents, and investments, and no debt.

• Net loss attributable to shareholders was $80.3 million for Q2 2026, with a $193.7 million impairment charge related to suspended technology development.

• Operating expenses for Q2 2026 were $209.9 million, up from $90.6 million in Q2 2025.

• Total liquidity at June 30, 2026 was $308.4 million, with current liabilities of $17.6 million.

• No project-level financing, customer deposits, or partner capital committed for Project Permian as of the release date.

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.

• Additional capital will be required for equipment commitments and project-level financing; no committed customer deposits or partner capital as of the report date.

• Expectation to secure additional power equipment and customer contracts in the coming months.

• Anticipate prolonged power supply constraints, especially in ERCOT, MISO, and PJM, potentially lasting into the 2030s or beyond.