Fermi Inc.

What they do

Fermi is building a private power campus, Project Matador, intended to supply large-scale, reliable power to AI and advanced computing customers. The company describes its model as a turnkey leased-power offering and is assembling on-site natural gas generation, including Siemens F-class turbines. It has no commercial revenue yet, having reported a net loss of $486.4 million for 2025 while in development.

Revenue drivers

• TensorWave anchor lease — A 15-year turnkey binding lease signed with TensorWave for phase one of 222 MW of total facility power, representing approximately $6.5 billion of total revenue over the contract life. This is currently the company's only announced customer contract, and it includes two expansion options that could triple TensorWave's footprint.
• Hillcore power purchase agreement — Fermi will serve as anchor offtaker under a 20-year power-purchase agreement for a facility Hillcore and its partners finance, construct, own and operate under a ground sublease. Fermi commits no capital and issues no debt for that plant, and holds an option to acquire it at fair market value after year 10.
• Future campus leases — The company states it has engaged multiple prospective customers and strategic and joint-venture partners, but none beyond TensorWave have been disclosed as signed. Expansion revenue would depend on converting that pipeline into leases.

Recent performance

For the six months ended June 30, 2026, Fermi reported total assets of $1.76 billion, total liabilities of $731.5 million and shareholder equity of $1.03 billion, with cash and equivalents of $62.5 million. Long-term debt stood at $520.1 million. Full-year 2025 net loss was $486.4 million, or $1.13 per diluted share, with operating cash flow of negative $34.2 million. The company has not reported any revenue from operations.

Strategy

Management said it executed all five of the 90-day objectives it set out in May 2026: signing the TensorWave anchor customer, appointing Lee McIntire as CEO, forming a strategic alliance with Hillcore, receiving three Siemens F-class turbines, and raising over $431 million via an upsized convertible note offering. The Hillcore framework agreement targets approximately 2.6 GW of incremental generation, which the company says would double planned on-site generation to 4.8 GW within roughly 30 months. Fermi has also signed partnerships with Primoris for balance-of-plant work and TSK for engineering on the Siemens turbines. The Board appointed McIntire as CEO to lead the transition from development into construction and first power.

Risks

• Material weakness in internal controls — Management concluded disclosure controls and procedures were not effective as of June 30, 2026, and the previously reported material weakness in internal control over financial reporting still existed at that date.
• Senior leadership turnover — Toby Neugebauer was removed as President and CEO in April 2026 and terminated for Cause effective April 30, 2026; CFO Miles Everson resigned April 19, 2026, with Robert L. Masson appointed Interim CFO on April 29, 2026.
• Customer concentration and pre-revenue status — The company has no operating revenue, and its disclosed commercial backlog rests on a single anchor tenant, TensorWave, with approximately $6.5 billion of contracted revenue over 15 years.
• Construction and financing execution — Delivering 222 MW to TensorWave and the broader Hillcore program requires buildout that has not yet occurred, and the company reported $62.5 million of cash and equivalents against $520.1 million of long-term debt as of June 30, 2026.

Outlook

Management states that first power of approximately 350 MW from the Hillcore facility is targeted within 24 months of notice to proceed, with subsequent blocks triggered only by contracted end-user demand. Fermi expects to act as anchor offtaker under the 20-year Hillcore power-purchase agreement while pursuing additional customers. The company says it remains focused on moving from development into construction and first power under new CEO Lee McIntire.