Fermi America FY2025 Shareholder Letter: Milestones, Financials, and Strategic Outlook

Key Highlights of FY2025

• Fermi America (FRMI) was incorporated in January 2025 and completed a dual-listed IPO (Nasdaq & London) by October 2025.
• Raised approximately \$1.8 billion in capital within its first year.
• Project Matador, the company’s flagship, is on track to become the world’s largest private energy campus, focusing on powering next-generation AI at scale.
• Physical progress includes 7,570 acres under development, 11.3 miles of perimeter fencing, 4.6 miles of gas pipeline, 7.2 miles of water lines, and significant horizontal construction completed.
• Formed strategic partnerships with industry giants: Siemens Energy, Westinghouse, Hyundai Engineering & Construction, Doosan Enerbility, MUFG Bank, and Keystone National Group.
• Secured substantial power generation equipment, including a multi-gigawatt pipeline of gas turbines (GE Frame 6B, Siemens SGT6-5000F, and SGT-800 series).
• Obtained a ~6 GW Clean Air Permit (with plans to file for an additional 5 GW), one of the largest permits ever issued for a private power project in the US.
• Filed a Combined Operating License Application (COLA) for four Westinghouse AP1000® reactors, accepted by the NRC—the first such acceptance in 15 years.
• Strong cash position at year-end: \$408.5 million
• Losses driven primarily by non-cash charges; actual cash burn in operations was limited to \$34.2 million.
• Shareholder alignment: Founder and executive team remain significant shareholders, focused on long-term value creation.

Strategic and Operational Progress

Project Matador: Building the Backbone for AI Power

Project Matador is situated in Carson County, Texas, adjacent to the DOE’s Pantex facility, leveraging one of the most strategically located and resource-rich sites in the US. The site sits atop the Hugoton Basin (North America’s largest conventional natural gas field) and the Ogallala Aquifer (America’s largest underground water reserve). These resources ensure abundant, reliable, and redundant supply of gas and water—a critical requirement for gigawatt-scale power generation.

Fermi has secured up to 18.5 million gallons per day (MGD) of water supply through municipal and private arrangements, and has implemented hybrid dry-wet cooling towers to reduce water usage by up to 85%. The campus sits on key fiber corridors, offering sub-10 millisecond latency to major US data hubs.

Power Generation Assets & Procurement

• GE Frame 6B Turbines (“Jersey Boys”): Three units being refurbished, expected to deliver 114 MW (simple cycle) and over 200 MW (combined cycle).
• Siemens SGT6-5000F Turbines: Three units under contract, financed by a \$500 million non-recourse loan from MUFG, capable of generating up to 1.1 GW in combined cycle mode.
• Siemens SGT-800 Series: Six turbines (478 MW at ISO in combined cycle) delivered via complex global logistics, leveraging tariff advantages to preserve capital.
• Grid Connection: Agreement with Southwestern Public Service (Xcel Energy); initial 86 MW ramping to 200 MW via a dedicated transmission system.
• Transformers and Switchgear: 800 MW on hand, with financing secured for an additional 1.6 GW.

Financing & Capital Markets Activity

• Pre-IPO Financing: \$108 million Series C equity and \$250 million senior loan facility anchored by Macquarie Group.
• IPO: \$785 million raised at \$21/share on Nasdaq and LSE, with greenshoe fully exercised.
• Equipment-Specific Debt: \$500 million from MUFG, \$120 million (expandable to \$220 million) from Keystone/Cape, and \$165 million from CSG Investments/Beal Bank USA.
• Balance Sheet Strength: \$935 million in property, plant, and equipment at year-end, reflecting rapid conversion of capital into tangible infrastructure.

Permits, Regulatory, and Nuclear Progress

• Clean Air Permit: ~6 GW permit received (one of the largest ever), with an additional ~5 GW application filed.
• Tax incentives: 10-year abatement from Carson County and Panhandle ISD; Foreign Trade Zone application pending for tariff relief.
• Nuclear Licensing: COLA for four AP1000® reactors filed and accepted by NRC, the first new application in 15 years; Fermi selected for NRC’s new pilot program to accelerate environmental reviews.
• Manufacturing Readiness: Hyundai E&C (FEED agreement) and Doosan Enerbility (forging dies, materials) engaged to de-risk nuclear construction timeline even before final NRC license approval.
• Nuclear Fuel: Supply solution inked with ASP Isotopes.

Construction, Infrastructure, and Site Development

• 99-year ground lease on 5,236 acres (expanded to 7,570 acres), with further acquisitions pending.
• Firm commitments for 300,000 MMBtu/day of gas from Energy Transfer; 5.5 MGD water agreement with Amarillo City (expandable to 10 MGD).
• 11.3 miles of perimeter fencing, 4.6 miles of gas pipeline, 7.2 miles of 20-inch water pipeline, and AI campus sites (500,000 sq. ft. hyperscale buildings) graded and prepped.
• Turbine pads, transformers, and high-voltage electrical infrastructure installed and ready for initial operations.

Tenant Pipeline and Commercialization

A key question for shareholders: When will Fermi sign its first definitive tenant lease? In 2025, Fermi executed a non-binding LOI with an investment-grade counterparty for a 20-year triple-net powered shell lease, followed by a \$150 million Advance in Aid of Construction Agreement (AIAC). The AIAC was terminated by the tenant in December 2025 (no funds spent), but the LOI remains in place.

Since the expiration of the tenant’s exclusivity, the commercial pipeline has expanded, with ongoing negotiations involving hyperscale cloud operators, AI infrastructure companies, chip manufacturers, and enterprise compute users. Fermi’s disciplined approach prioritizes securing a creditworthy anchor tenant, which is necessary to unlock non-recourse project debt and set the standard for future agreements.

• All eight covering analysts rate FRMI as Buy or Strong Buy, with an average price target of \$29.
• Management believes the current share price undervalues Fermi’s \$1.4 billion in year-end assets, 6 GW permits, and advanced commercialization pipeline.

Financial Performance (FY2025)

• Net Loss: \$486.4 million, primarily due to \$441.8 million in non-cash charges (charitable contribution, fair value losses on notes and loans, share-based compensation, inducement expenses).
• Operating Cash Burn: Only \$34.2 million (after adjusting for non-cash items).
• Investing Cash Outflow: \$570.3 million, mainly for property, plant, and equipment for Project Matador.
• Financing Cash Inflow: \$1.0 billion raised through IPO, notes, and credit facilities.
• Cash & Equivalents: \$408.5 million at year-end.
• Balance Sheet: \$1.41 billion in total assets, \$317 million in total liabilities, and \$1.1 billion in equity.

Looking Ahead: Catalysts and Outlook

• Execution of binding tenant agreements expected in the next 12 months.
• Vertical construction of powered shell buildings to begin.
• Additional 5 GW air permit application to be pursued.
• AP1000® nuclear program to advance through next NRC review milestones, with groundbreaking for the first large-scale US nuclear build anticipated.
• Grid connection expected to go live within the year, supporting initial tenant operations.
• Active and competitive tenant discussions for near and long-term capacity through 2028.

Shareholder Alignment & Commitment: The Neugebauer family and executive team remain deeply invested, with limited share dispositions anticipated (mainly for REIT compliance and tax obligations). The company stresses that binding agreements and milestones will only be announced upon execution—not before.

Potential Price-Sensitive Items for Shareholders

• Major asset and permit milestones delivered: 6 GW Clean Air Permit, nuclear COLA acceptance, and advanced construction/financing status.
• First definitive tenant lease not yet signed, but a robust pipeline of high-quality counterparties is under negotiation. The successful signing of a creditworthy anchor tenant is expected to unlock project financing and could be a major share price catalyst.
• Strong asset base and cash position provide significant runway for continued execution.
• Any future announcement regarding tenant agreements, grid energization, or further nuclear licensing progress should be considered highly price sensitive.

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