Shares of Bill Gates-backed Fervo Energy, which is developing geothermal energy to use at commercial scale, blew up Monday after it reported earnings.
Shares closed up 26% at $11.38.
The company has hardly any revenue and loses money, but it does have a big deal to supply Google with 396 megawatts of power once its Cape Station power plant in Utah is fully operational in 2028. Neither company has disclosed the financial terms of the deal, but it is likely worth billions of dollars.
The stock shot up because that project appears to be on track. Fervo said that the first of its 11 power blocks at the station achieved commercial operation on September 30. Called GeoBlock 1, it generates 33 megawatts of power. The next two blocks are set to go online by New Year's Day in 2027.
Blocks 4 through 11, which will supply power to Google, are under construction. The company said the first set of 50-watt turbines there have passed factory acceptance testing and that recuperators and 60% of air-cooled condensers have been delivered. Meanwhile, drilling below ground is 18 percent complete.
Fervo says it now has $11.9 billion in contracted revenue and 1,054 megawatts of capacity under "binding power purchase agreements." That's up from 658 megawatts and $7.2 billion at the end of the second quarter.
The company generated $116,000 in revenue in the third quarter, in line with analyst estimates. Its adjusted losses were seven cents a share, beating expectations of nine cents a share loss. It has $1.9 billion in cash and cash equivalents up from $462 million at the end of 2025. It also has $301.6 million in debts.
Fervo went public in May, raising $1.9 billion from its share sales.
Comments