Fermi America held its first investor call since going public in October, providing shareholders with a detailed update on the development of its 5,769-acre Project Matador campus in Texas. Chief Financial Officer Miles Everson outlined operational milestones, regulatory progress, strategic partnerships, and financial performance for the third quarter.
Site Development and Infrastructure
Fermi reported continued progress in campus construction and infrastructure. As of the third quarter, the company had installed 6,500 feet of roads, 34,000 feet of fencing, 9,500 feet of barriers, and 12,000 feet of water lines. Approximately 85 acres have been graded for data center, substation, and generation sites, with additional clearing underway.
The company is also advancing water infrastructure, including wells, pipelines, and pump stations, expected to be completed by January 2027. Water will be sourced through an agreement with the City of Amarillo, initially supplying 2.5 million gallons per day, increasing to 5.5 million next year, with potential for up to 10 million gallons per day. Fermi is also exploring a 2,000-acre expansion that could support 23 million gallons of daily water usage.
Partnerships and Equipment
Fermi advanced several strategic relationships during the quarter. The company signed a memorandum of understanding with Hyundai Engineering and Construction for nuclear energy planning, a letter of intent with Siemens Energy for nuclear turbine generators and three F-class gas turbines, and an MOU with Doosan Enerbility for reactor deployment at Project Matador.
The company has secured or placed under letter of intent roughly 2.2 gigawatts of gas-fired generation, including nine industrial turbines—six from Siemens and three from General Electric—along with steam turbines and balance of plant equipment.
A natural gas supply agreement with Energy Transfer will provide up to 300,000 MMBtu per day via a new Transwestern interconnect, expected to be operational in early 2026. This will support approximately 1.5 gigawatts of combined-cycle generation, forming part of Fermi’s hybrid gas-nuclear-renewable strategy.
Regulatory Progress
Regulatory approvals remain a focus for the company. Fermi submitted a combined operating license to the Nuclear Regulatory Commission in June, which was accepted for review in September. Air Quality Permit applications were submitted to the Texas Commission on Environmental Quality in August and received preliminary approval, pending a public meeting scheduled for December 4.
Financial Update
Fermi remains pre-revenue as it continues project development. The company projects that one gigawatt of gross capacity could generate roughly $1.5 billion in annualized revenue, with about $1 billion in net operating income. The first gigawatt is under letter of intent with an investment-grade tenant, and discussions are ongoing for additional tranches.
The company recently executed a $150 million Advance in Aid of Construction Agreement with a prospective tenant to fund shared infrastructure and utility systems ahead of occupancy.
For the third quarter ending September 30, Fermi reported a net loss of $346.8 million. Of this, $198.2 million reflected the fair value of shares assigned as employee compensation or charitable donations, and other non-cash adjustments accounted for $135.3 million. Everson noted that these items are non-cash and do not reflect long-term operational costs. The company held $183 million in cash and cash equivalents at the end of the quarter and has raised approximately $1 billion in total cash equity, including proceeds from its IPO.
CEO Remarks and Future Outlook
CEO Toby Neugebauer emphasized that the company remains focused on delivering reliable power for emerging energy demands, particularly artificial intelligence applications. Fermi does not plan to accelerate acquisition of additional tenants, though capacity could be expanded with a second tenant in 2027.
Executives also noted that construction contracts will be disclosed as required by U.S. securities laws, but negotiations remain confidential.
Looking Ahead
Fermi’s update underscores progress on Project Matador, including site preparation, infrastructure, strategic partnerships, and regulatory approvals. The company is positioning itself as a hybrid energy provider combining gas, nuclear, and renewable sources. Operations are expected to begin generating revenue in 2026 with the onboarding of the first tenant. Shareholders will likely monitor infrastructure execution, regulatory milestones, and tenant agreements as indicators of the project’s readiness and long-term viability.
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