NET Power (NPWR) Q2 2025 earnings summary

Executive summary

• Unprecedented energy demand from AI and data centers is driving grid load growth, outpacing new 24/7 generation and increasing prices and reliability concerns.

• Market signals a need for reliable, affordable gas power with credible decarbonization pathways; Net Power's technology offers inherent CO2 capture and integration flexibility.

• Project Permian's integrated configuration with gas turbines and Net Power cycle aims to deliver reliable power now and lower emissions over time, targeting LCOE below $100/MWh.

• Revenue remained minimal at $238,000 for both the quarter and year-to-date, with no gross profit as cost of revenue matched revenue for both periods.

• Operating expenses surged, driven by a $359.8 million goodwill impairment and $56.1 million in expensed construction costs for Project Permian, resulting in a total operating loss of $565.1 million for the first half of 2025.

Financial highlights

• Project Permian's LCOE improved from over $150/MWh to under $100/MWh in a few months, driven by value engineering, tax incentives, and product integration.

• Favorable tax legislation (OBBA) and 45Q parity for CO2 utilization provide significant economic benefits, reducing power prices by nearly $10/MWh and improving LCOE by ~$20/MWh.

• Goodwill impairment and expensed construction costs totaled $415.9 million for the first half of 2025.

• Cash and cash equivalents at June 30, 2025 were $284.0 million, with total liquidity (including investments) of $472.3 million.

• Total installed cost for SN1 Net Power plant is $1.6-$1.9 billion, with gas turbines adding $300-$400 million.

Outlook and guidance

• Project Permian's 300 MW ERCOT interconnect expected to be ready by mid-2028; Net Power plant could come online by 2029-2030, with commercial operations not expected before 2029 pending successful value engineering.

• Gas turbines to be deployed 1-2 years ahead of Net Power core facility, providing immediate power and enabling a staged decarbonization pathway.

• La Porte test facility resumed validation work, with phased testing scheduled through 2027.

• Management believes current liquidity is sufficient for the next 12 months but additional funding will be required to construct the first utility-scale plant.

• MISO project development remains on track for early deployment, with ongoing evaluation of integrated product configuration.