AirJoule Technologies (NASDAQ:AIRJ) said its second-quarter efforts centered on expanding commercial channels for its atmospheric water-generation and dehumidification systems, including an exclusive residential-development sales agreement with Kubota Corp. and planned deployments in the United States, Europe and the United Arab Emirates.
Founder and Chief Executive Officer Matt Jore said water constraints and growing scrutiny of data-center development are creating demand for systems that can generate distilled water on-site from air humidity using low-grade waste heat. He cited recent policy actions in New York and Texas concerning data-center development and water use, arguing that access to water is increasingly becoming a permitting issue for new facilities.
Kubota Agreement Targets Residential Development
In July, AirJoule signed an exclusive sales agreement with Kubota covering residential developments in Texas and California. Under the arrangement, Kubota will be the exclusive sales channel for AirJoule systems in that market segment.
Chief Commercialization Officer Bryan Barton said the companies expect to deploy two AirJoule Core systems later in the third quarter, with one near Corpus Christi, Texas, and the other in Irvine, California. The deployments are intended to demonstrate the technology to developers in regions where water availability can limit residential construction.
Barton said the anticipated model is a centralized system serving a planned, multi-home residential community rather than an AirJoule unit installed at every individual home. AirJoule would provide distilled potable water, alongside a community water-recycling system, he said.
The company said its water meets FDA bottled-water standards and California drinking-water standards. Barton cited California’s requirement that residential developments of more than 500 units obtain verification of adequate water supplies over a 20-year horizon.
When asked whether the Kubota relationship could extend into other verticals, Barton said current partnership discussions are focused on multi-home residential communities.
Data Center and International Deployments
AirJoule also outlined activity related to data centers. The company said it completed the NetZero Innovation Hub for Data Centers’ technology acceleration program in June after being selected from more than 70 applicants in late 2025. The program included collaboration with members such as Google, Microsoft, Data4, Danfoss, Schneider Electric and Vertiv.
The company plans to ship its first Prime unit to Europe for a deployment designed to demonstrate the conversion of low-grade data-center waste heat into distilled water. Jore said data-center operators could use such systems to demonstrate a long-term water solution that does not rely on depleting local aquifers.
AirJoule commissioned its first full-scale Prime system at its Newark, Delaware, facility in May. Barton said the system has operated outdoors since commissioning and is running continuously with high uptime. The company is targeting production of up to 2,000 liters per day under higher-humidity conditions, while noting that output depends on environmental humidity levels.
Barton said engineering work has focused on fan timing, vacuum-pump sequencing and thermal management of sorbent chambers. He added that the company has identified measures intended to close the gap to the system’s operating specification.
For its Core platform, AirJoule said it sees demand for industrial dehumidification applications, particularly facilities that operate between 30% and 50% relative humidity. The company is targeting an estimated installed base of 1.2 million conventional desiccant-wheel systems and has begun deploying Core dehumidifier units with strategic customers for demonstrations and validation.
Separately, Executive Chairman Pat Eilers said AirJoule shipped a Core system to the UAE for customer demonstrations. The first showcase will take place at Expo City Dubai, followed by deployments and exhibitions across other Emirates. AirJoule also received one of the UAE’s first Expo City green licenses, which the company said provides access to business missions and participation in the Green Modulus Leadership Forum.
Productization and Manufacturing Plans
Management said it is pursuing field deployments while simultaneously preparing both the Prime and Core platforms for commercial manufacturing. Barton said the company has established a component reliability program using dedicated test rigs and accelerated duty cycles to identify potential problems.
The company is also working to simplify bills of materials, reduce costs and complete design-for-manufacturing work. Barton said Prime is on schedule for contract-manufacturing discussions in 2027, while the Core dehumidification product remains on track for a 2027 commercial product timeline.
Jore said most components used in the Core and Prime systems are relatively common components surrounding the company’s metal-organic-framework-coated contactor, which he described as the core of the system.
Second-Quarter Financial Results and Outlook
Chief Financial Officer Stephen Pang said AirJoule reported second-quarter net operating expenses of $4.1 million, including $0.8 million of administrative and engineering expenses reimbursed by its joint venture under a statement of work. Net loss was $8.5 million, primarily reflecting $5.1 million in non-cash losses tied to increases in the fair value of earn-out share and vesting-share liabilities.
- Joint venture operating expenses totaled about $5 million in the quarter.
- AirJoule contributed $2.5 million in additional capital to the joint venture.
- Quarter-end cash totaled $41.4 million, including $14.2 million of net proceeds from a June registered direct offering.
- Combined cash between AirJoule and the joint venture was $43 million, with no debt.
The company raised its 2026 cash-spend outlook slightly to approximately $27 million to $28 million, citing increased commercialization activity across multiple projects and deployments. Pang said AirJoule expects modest paid deployment revenue at the joint venture during 2026, followed by more meaningful commercial revenue beginning in 2027 as Core and Prime deployments come online.
Management said current liquidity is sufficient to fund operations, the joint venture and planned commercial deployments into 2028.
About AirJoule Technologies (NASDAQ:AIRJ)
Montana Technologies Corporation operates as an atmospheric renewable energy and water harvesting technology company. It provides energy and dehumidification, evaporative cooling, and atmospheric water generation through its AirJoule technology. The company is headquartered in Ronan, Montana.
