Fervo Energy Company (NASDAQ:FRVO) reported Wednesday a second-quarter 2026 net loss of $55.9 million, or a 38-cent loss per diluted share, compared with an $11.4 million loss, or a $1.31 per share loss, a year earlier.

The per-share loss missed the 12-cent loss estimate, while revenue of $113,000 missed the $420,000 estimate.

Financial Position and IPO

Operating loss widened to $28.7 million from $10.3 million, while capital expenditures rose to $226.5 million from $108 million on continued Cape Station investment.

Fervo ended June with about $2.1 billion in cash and equivalents and $228.4 million in current and long-term debt.

The company raised about $2.2 billion in its May IPO and repaid the XRC Facility using proceeds from the $421 million non-recourse Project Granite Facility.

Fervo reported a revenue backlog of $7.2 billion and 658 megawatts in current binding power purchase agreements.

Cape Station Execution

Cape Station Phase I GeoBlocks 1 and 2 reached mechanical completion.

Fervo targets first power from GeoBlock 1 in the fourth quarter and full production by year-end. The company expects GeoBlocks 2 and 3 to reach initial power in early 2027.

Phase II comprises eight 50-megawatt GeoBlocks slated for 2028 delivery.

Sawtooth 7 reached a measured depth of nearly 19,500 feet in a 460°F resource in 21 days, setting a company drilling pace record.

Fervo continues to expect Phase II to achieve an all-in cost of $5,500 per kilowatt, toward its long-term target of $3,000 per kilowatt.

Development Pipeline

Fervo raised its 2030 development target to 1.1 gigawatts and reported a development pipeline exceeding 50 gigawatts.

During the quarter, 400 megawatts moved into Advanced Development, while two GeoClusters totaling 10.5 gigawatts entered Early Development.

The company is also pursuing behind-the-meter delivery alongside conventional grid-delivered power purchase agreements to serve customers outside conventional grid interconnection timelines.

Outlook

Fervo expects second-half 2026 capital expenditures of about $850 million to $900 million, in line with previously disclosed expectations.

The spending reflects Cape Station construction and broader pipeline development, including long-lead procurement and appraisal work.

The company cited economic conditions, market demand, environmental regulation, energy and material costs, interest rates, capital availability and global economic and political conditions among its risks.

FRVO Stock Price Activity: Fervo Energy shares were up 4.05% at $25.15 on Wednesday, according to Benzinga Pro data.

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