AirJoule Technologies (AIRJ) 2026财年第二季度业绩电话会议：久保田交易与更高的商业化支出

要点速览

• AirJoule Technologies公布2026财年第二季度净运营费用为410万美元，净亏损为850万美元。该亏损包括与股票负债相关的510万美元非现金公允价值调整。
• 截至本季度末，AirJoule拥有的现金为4140万美元。AirJoule及其合资企业的合并现金总额为4300万美元，且无债务。
• 2026财年全年现金支出指引上调至约2700万至2800万美元，反映了新增的商业化项目与部署。管理层表示，现有流动资金应可支持计划中的运营活动至2028年。
• 该公司与久保田公司签署了德克萨斯州和加利福尼亚州住宅开发项目的独家协议。计划在科珀斯克里斯蒂附近及欧文部署两套AirJoule Core系统。
• 自5月以来，首个全尺寸Prime系统已在特拉华州纽阿克的设施内运行。管理层表示，该系统仍有望实现每日高达2000升的产水量目标，预计将于2026财年第三季度发往欧洲。
• 管理层继续预计，合资企业在2026财年将实现适度的付费部署收入，随后自2027财年开始获得更具规模的商业化收入。

核心财务数据

业务与运营表现

久保田住宅合作项目

AirJoule与久保田公司签署了涵盖德克萨斯州和加利福尼亚州住宅开发项目的独家销售协议。久保田将作为AirJoule系统在该领域的独家销售渠道。

双方计划于2026财年第三季度晚些时候部署两套Core系统，一套位于德克萨斯州科珀斯克里斯蒂附近，另一套位于加利福尼亚州欧文。这些系统旨在展示一种集中式模式，即AirJoule在提供水回收基础设施的同时，为多户住宅社区提供纯蒸馏饮用水。

管理层将该合作关系定位为解决可能拖延住宅审批的水资源供应限制的一种途径。AirJoule表示，其生产的水符合美国食品药品监督管理局（FDA）瓶装水标准和加利福尼亚州饮用水标准。

Prime平台与数据中心

AirJoule于5月在特拉华州纽阿克投入运行了首个全尺寸Prime系统。该设备正在户外连续运行，使公司能够收集不同温度和湿度条件下的性能数据。

管理层表示，在较高湿度条件下，该系统的日产水量正朝着高达2000升的目标推进。公司的最终目标是开发日产水量达10,000至20,000升的系统，但并未提供这些长期目标的具体时间表。

首个Prime设备预计将运往欧洲，通过数据中心零碳创新中心进行部署。该项目旨在展示如何将数据中心的低品位废热转化为纯蒸馏水。该中心参与者包括谷歌、微软、丹佛斯、施耐德电气和维谛技术。

Core DH除湿市场机遇

AirJoule正在与战略工业客户共同部署Core DH系统以进行性能验证。该产品将除湿与纯水制备结合在一起。

公司正瞄准在相对湿度30%至50%之间运行的应用场景，涉及估计已安装的120万台传统转轮除湿系统。管理层表示，对比测试继续显示在其目标湿度范围内实现了显著的节能效果，不过并未对节省的能源进行量化。

国际化与战略部署

AirJoule已将一套Core系统运抵阿联酋，用于在全国范围内进行演示。首个展示项目计划在迪拜世博城进行，此后该设备预计将支持跨多个阿联酋酋长国的客户演示和展览。

该公司还获得了迪拜世博城绿色许可证，从而能够参与政府背景的商务考察团并出席绿色模块领导力论坛。

GE Vernova正在位于纽约州尼斯卡尤纳的高级研究中心Frontier园区运行一套AirJoule Core展示系统。开利仍与AirJoule就长期暖通空调（HVAC）应用及潜在的数据中心余热回收整合保持合作。

管理层业绩指引

管理层将AirJoule与合资企业在2026财年的预计合并现金支出从约2500万美元上调至约2700万至2800万美元。增加的支出主要用于额外的合资企业设备和客户部署，而非增加公司的日常一般及行政费用。

该公司继续预计合资企业在2026财年将获得适度的付费部署收入。管理层预计，随着Core和Prime部署的上线，更具规模的商业化收入将在2027财年开始出现。

AirJoule预计将于2027年开始就Prime的合同代工展开洽谈。Core DH也仍按先前制定的2027年产品时间表推进。管理层尚未发布正式的2027财年财务指引，但表示当前的研发及一般和行政支出可能与2026财年的水平趋同。

风险与关注领域

• 商业化产品仍需进行可制造性设计（DFM）、降本、可靠性测试和产品认证。
• Prime的产水量随环境湿度而变化。所述的每日高达2000升的产水水平适用于较高湿度的条件。
• 随着AirJoule在多个应用领域推进更多部署，2026财年的现金支出预测有所上调。
• 管理层预计2026财年仅有适度的付费部署收入，因此能否顺利过渡到2027财年更具规模的收入，将取决于Core和Prime的成功商业化。
• 合同代工尚未开始。该公司仍在简化其物料清单（BOM）并评估制造合作伙伴。

分析师问答亮点

• Core DH部署：管理层表示，首批系统正部署于战略工业客户处，以验证除湿性能并展示同步制水的价值。
• 制造准备情况：Prime和Core的可制造性设计项目按计划推进。管理层强调，大多数系统组件相对标准，而涂有金属有机框架（MOF）的接触器是核心专有组件。
• 久保田部署模式：AirJoule预计将通过集中式制水和水回收系统为规划中的多户住宅社区提供服务，而不是在每栋住宅单独安装一套系统。
• Prime产能目标：管理层表示，纽阿克的设备正在全天候运行且正常运行率高，并已确定具体的优化措施，以缩小与每日2000升目标之间的差距。
• 2027财年资金需求：未提供正式指引。管理层表示，采用合同代工可以减少内部扩大生产规模原本所需的资本支出。
• 数据中心商业化：欧洲的部署旨在展示与数据中心废热的整合，并支持与行业参与者的后续合作机会。

业绩电话会议完整文字记录

完整财报电话会议逐字稿

管理层陈述

Operator

Greetings, and welcome to the AirJoule Technologies' Second Quarter 2026 Earnings Call. [Operator Instructions] Please note that this conference is being recorded.

It's now my pleasure to turn the call over to your host, Tom Divine, Vice President of Investor Relations and Finance. Thank you. You may begin.

Tom Divine

Thank you, and good morning. With me today for our second quarter 2026 earnings call are Matt Jore, Founder and Chief Executive Officer; Pat Eilers, Executive Chairman; Bryan Barton, Chief Commercialization Officer; and Stephen Pang, Chief Financial Officer. During this call, we will be referring to a presentation, which is available on the webcast platform and on the Investors section of our website.

I would like to point out that many of the comments made during the prepared remarks and during the Q&A section are forward-looking statements that involve risks and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the Risk Factors and the forward-looking statements sections of our filings with the SEC. Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance and actual results or developments may differ materially.

And now I will turn it over to Matt Jore.

Matthew Jore

Thanks, Tom. Good morning, everyone, and thanks for joining us today for our second quarter 2026 earnings call. We've had some exciting developments over the last few months, and we're pleased to be discussing those today. On our last call in May, we talked about the growing public opposition to data center development. This was driven in large part by the power and water demands these facilities place on their communities. While it started as local opposition in mostly rural areas where data center development was occurring, public perception has shifted, and that opposition has gone mainstream even cultural icons like Willie Nelson and Erin Brockovich are weighing in, issuing statements and launching campaigns to oppose data center development in the United States. The political winds are shifting as well. New York recently enacted a moratorium on data center permits for facilities over 50 megawatts, making it the first state to explicitly pause data center development.

When signing the executive order, Governor, Kathy Hochul, specifically said that existing regulatory frameworks are "Not yet prepared to address the large-scale water use and treatment from data centers, which could strain aquifers, surface waters and public infrastructure." in Texas, which has been welcoming data centers and thus has seen massive development in recent years Governor Greg Abbott announced a pause on grid connected data centers until a full and complete audit of all proposed development can be completed.

He urge regulators to determine how much water proposed data centers will use and what their water supply is as well as information about their cooling technology. These policy actions are unfolding against the backdrop of growing water scarcity across the U.S. A few weeks ago, the Washington Post profiled Kearny, Arizona, a town of 2,000 people whose annual water allocation was cut by 75% after the reservoir that supplies that town fell to 1% of capacity. The town has prohibited lawn watering, car washing and even little league. The article concluded that other towns across the West could face the same fate. Communities are already running short on water and the demands of new development are colliding with a shrinking water supply.

These are the problems that AirJoule helps solve. Our systems produce pure distilled water on site from the humidity in the air, powered by low-grade waste heat without drawing on municipal supply or local aquifers for data center operators, AirJoule offers a path to water access that does not put them in competition with the communities around them. It also helps solve a permitting problem. Water use is increasingly the factor that delays approval of new data centers because communities worry about long-term water usage.

By using AirJoule systems, data center operators can show local officials and residents that it has a long-term solution to securing water. And over time, excess water produced by AirJoule can flow back into the community. Which eases local water stress rather than adding to it. For water-stressed regions, AirJoule provides a distributed source of clean water that does not depend on a distant reservoir. The same advantage applies well beyond data centers. In many water-scarce markets, water availability is constraining residential development.

To that end, we recently announced an exclusive partnership with Kubota Corporation, to deploy AirJoule systems for residential development in water-scarce regions of Texas and California. Bryan is going to talk about that in greater detail. But it's a huge milestone for us on the path to commercialization. By partnering with Kubota, who has a 136-year legacy of environmental and water engineering expertise will be able to deploy AirJoule systems at scale and unlock residential development across the Southern U.S. Partnerships like the one we just announced with Kubota have been critical to our success.

So far, GE Vernova, our joint venture partner, delivered a powerful validation of our technology this summer. In July, GE Vernova held a grand opening for its new Advanced Research Center Frontier campus in Niskayuna New York. They specifically highlighted AirJoule as one of the innovative technologies that GE Vernova is helping to develop. And they have an AirJoule Core system operating there as a showcase unit for customers and partners who visit that facility. You can see it also on their website and their recent posts on LinkedIn.

This reflects the strength of our joint venture with GE Vernova, and we are grateful for their continued support through engineering and R&D initiatives. We've also got some very exciting technology in the hopper at AIRJ that we'll be sharing in upcoming communications.

Before Bryan provides an update on our customer engagements and productization, I'll turn it over to Pat for an update on our international growth initiatives in the UAE. Pat?

Patrick C. Eilers

Yes. Thanks, Matt. Good morning, everybody. Since the end of the quarter, we've achieved 2 important milestones related to our ongoing commercialization efforts in the UAE. First, we shipped an AirJoule Core system to the UAE for a series of deployments to demonstrate the technology and validate performance for customers across the country. The first showcase of this Core unit will take place in Dubai at one of Expo City Dubai's landmark destinations. We intend to leverage Expo City's sandbox test environment for the sustainable urban deployment, including technologies addressing challenges like water security.

This deployment puts AirJoule in front of the visitors and industry leaders who visit the iconic location. Following the deployment at Expo City the AirJoule system will be used for on-site customer demonstrations and exhibitions across various Emirates of the UAE. Second, AirJoule was awarded one of UAE's first Expo City green licenses. The green license is the first of its kind in the UAE and it is the key enabler of the Green Innovation District, the country's first location dedicated to sustainable innovation.

It emits only companies that can demonstrate a commitment to sustainability, and we were in the first cohort. It provides us with access to business missions throughout the Ministry of Economy and Tourism and a seat in the Green Modulus Leadership Forum. In a region where government engagement is paramount, this is a meaningful milestone for us. Our progress in the UAE is taking place as the region is increasingly focused on water security.

The Gulf supplies roughly 40% of the world's desalinated water and more than 90% of that comes from about 56 plants. Several countries in the region draw 70% to 99% of their drinking water from the concentrated base. That was always an efficiency story. Events in the region over the past several months have made it a resilient story as well. AirJoule produces pure distilled water on-site across a range of climate conditions without drawing on municipal supplies, local aquifers or a connection to centralized infrastructure. That is what we are demonstrating with this latest AirJoule Core deployment.

With that, I'll hand it over to Bryan for the commercial update.

Bryan Barton

Thanks, Pat. Thanks, Matt. I want to walk through 3 areas this morning. Our commercial progress headlined by our recently announced partnership with Kubota, an update on our 2 product platforms, Prime and Core and our productization efforts.

Let's start with commercialization. In July, we signed an exclusive sales agreement with Kubota Corporation, covering residential developments in Texas and California. Kubota will serve as the exclusive sales channel for AirJoule systems in that segment. As a part of the collaboration, we're also deploying 2 AirJoule Core systems with Kubota, one, near Corpus Christi, Texas, and the other in Irvine, California. These will start later this quarter. Kubota, which was founded in 1890, operates in more than 150 countries and brings wastewater treatment, water reclamation, PIPE systems and operations and maintenance capabilities to our partnership.

They also have tremendous experience in supporting residential development in water constrained regions. The opportunity here is clear. In California and Texas, as well as other water constrained areas, water is now a primary gating item for residential development. Under California law, a residential development of more than 500 units cannot obtain approval without written verification that the water supply is sufficient over a 20-year horizon. That requirement is getting more and more difficult to meet.

The state's owned water supply strategy projects that California could lose up to 10% of its water supply by 2040 due to hotter and drier weather conditions. When a developer cannot verify sufficient water supply, the projects stall. In Texas, the population is expected to grow by 53% by 2080. However, the state's recently adopted water plan projects that water supplies will be declining by 10% in the same time frame. Water supply is decreasing while the population is booming. This is the market we are addressing with Kubota.

AirJoule unlocks residential projects by generating pure water on-site independent of municipal allocations and groundwater rights. Importantly, water produced by AirJoule is pure and distilled meeting not only FDA bottled water standards, but also meeting California's drinking water standards, which are the most stringent in the nation. Designing our system for the most demanding standard in the U.S. positions us well for the rest of our addressable markets.

When it comes to performance, our systems produce water across a wide range of temperature and humidity conditions. This is what enables a single AirJoule product to serve both the U.S. Gulf Coast and Southern California. Also on the topic of customer engagement, our work with the Net Zero Innovation Hub for data centers will soon move from preparation to deployment. After being selected from more than 70 applicants in the fall of 2025, we successfully completed the Hub's technology acceleration program back in June. And throughout this program, we worked closely with the hub's members, including Google, Microsoft, Danfoss, Schneider Electric and Vertiv. We work with them to align AirJoule's waste heat-to-water capabilities with the real-world operation of data centers. We'll soon be shipping our first Prime unit to Europe for a deployment to show how AirJoule can convert low-grade data center waste heat into pure distilled water.

Now let's talk about our products. I'll start with Prime. We commissioned our first full-scale Prime system at our Newark, Delaware facility back in May and has been operating ever since. After the initial start-up, we focused our engineering work on optimizing the run conditions for specific operating cycles. The learnings we gained from our field deployments of the Core systems have transferred directly to Prime. This includes the timing of fans, the sequencing of our vacuum pumps and the thermal management of our sorbent chambers. Our decision last year to concentrate our build and development activity on the Core platform is paying off now by compressing the Prime optimization time line.

We are very pleased with the initial performance of the system. And we're tracking toward our expectation of 2,000 liters per day for this system. In late June, we held an unveiling ceremony of the Prime system, and we hosted both Delaware Governor Matt Meyer and U.S. Senator, Chris Coons as well as several local elected officials and representatives from economic development organizations. It was great to show off the Prime system, and we're grateful for their continued support. As I mentioned earlier, this first Prime system will be deployed in Europe, and we will be building additional systems over the coming months. This will this will allow us to continue optimizing the system at Newark as well as provide showcase systems for customer demonstrations.

Turning to the Core system as a reminder, we've been using the Core system to demonstrate the technology for customers, but there is significant market demand for the Core product as a dehumidifier that also generates pure water, and we refer to this product as Core DH. Our head-to-head testing of Core DH against the incumbent desiccant wheel standard continues to demonstrate significant energy savings across our target humidity range. With this product, we're

targeting the estimated 1.2 million unit installed base of conventional desiccant wheel systems and more specifically, applications where facilities operate between 30% and 50% relative humidity. We've already begun to deploy these systems, these dehumidifier systems with strategic customers for demonstrations and technology validation.

The third area I want to cover is productization. In 2025 and 2026, we deployed several AirJoule systems for pilot projects and customer demonstrations, and these units have been critical in improving the technology in the field.

We're continuing that work with a limited number of strategic customers this year. And in parallel, we're advancing the engineering that turns AirJoule into a commercial product designed for manufacturing, cost reduction, reliability testing and product certification. Running these efforts together rather than in sequence is deliberate. It lets commercial deployment and product development proceed at the same time and accelerates market adoption. Reliability has been a huge factor for us this year, huge focus for us this year. Since it's one of the most important factors that customers look for when evaluating a new product. We've built a component reliability program that evaluates every major component in the AirJoule system, and we operate dedicated test rigs through accelerated duty cycles, allowing us to identify problems and mitigate them early.

In parallel with reliability and component testing, we're completing design for manufacturing work to prepare both platforms for scaled production. We're continuing to reduce and simplify the bill of materials, and we're working through a clear sequence to get us ready for contract manufacturing. Putting it all together, we're executing the commercialization plan that we've laid out for several quarters and I look forward to providing more updates on our next call.

Now I'll pass it over to Stephen for the financial updates.

Sze-Yin Pang

Thank you, Bryan. I'll walk through our financial results for the second quarter of 2026 and then provide an update on our 2026 outlook and liquidity position. For the second quarter, AirJoule Technologies reported net operating expenses of $4.1 million. This is inclusive of $0.8 million in administrative and engineering expenses reimbursed to us by the joint venture under a statement of work. Our net loss for the quarter was $8.5 million, the primary components below the operating line was $5.1 million of noncash losses due to the increase in the fair value of our earn-out shares liability and subject vesting shares liability.

Now turning to the joint venture. Total JV operating expenses for the second quarter were approximately $5 million. The joint venture received $2.5 million in additional capital contributions from AirJoule Technologies during the quarter to support ongoing productization, manufacturing and commercial deployment activities. AirJoule Technologies ended the second quarter with $41.4 million of cash on the balance sheet. This includes $14.2 million of net proceeds from a registered direct offering we completed in early June.

Combined cash across AirJoule Technologies and the JV was $43 million with no debt. Our guidance for the full year 2026 cash spend at AirJoule Technologies and the JV is now slightly higher at approximately $27 million to $28 million. This reflects increased commercialization activities as we pursue multiple projects and deployments across different market applications. Our liquidity is sufficient to fund our operations, the JV and our planned commercial deployments into 2028.

Looking ahead, we still expect modest paid deployment revenue at the JV during 2026, with more meaningful commercial revenue beginning in 2027 as our Core and Prime deployments come online. We continue to maintain strong flexibility in managing our capital position and balance sheet, and we'll remain opportunistic and disciplined in evaluating anyfinancing and strategic opportunities that enhance our balance sheet and support long-term value creation.

With that, I'll pass it back for the Q&A portion of the call.

Operator

[Operator Instructions] Our first question comes from the line of Jeffrey Campbell with Seaport Research Partners.

分析师问答

Jeffrey Campbell

Congratulations on all the progress that you're making. You said that AirJoule is deploying the Core DH to strategic customers beginning in the third quarter of [indiscernible]. Just provides some colors maybe [indiscernible] areas that you're targeting or maybe just some specific types of businesses.

Bryan Barton

I'm sorry, Jeff, you were breaking up a little bit. We got that this is about the Core DH deployments. Can you repeat?

Jeffrey Campbell

As the Core DH, I was wondering if you could give us a little color on maybe where these initial strategic applications are being located geographically and maybe specific types of businesses that you're targeting if that's relevant?

Bryan Barton

Yes. Thank you for the question. And as we said, we are deploying Core DH systems to strategic customers for industrial dehumidification. And really this segment where spaces need to be kept dry. And I would maybe just elaborate that this is a strategic deployments. These are seeking to validate the performance and the efficacy of the Core operating system, and we're focusing on both deployments that can enhance our commercial product adoption with strategic customers in that sense as well as some industrial focused customers that see the value of both the dehumidification and the water that's generated.

Jeffrey Campbell

Okay. And Bryan, you discussed preparations for contract manufacturing, specifically highlighting cost reduction and simplifying materials. I wondered if you could add any color with regard to, a, are both models in the optimization is the effort on time? And when do you expect to be ready to present enhancing designs to manufacturing partners?

Bryan Barton

Yes. I think both DFM activities and kind of cost simplification activities are on track for Prime and Core. The Prime engineering is effectively going through, right, those cost component changes and some simplifications for manufacturing. And it's on time for this 2027 contract manufacturing conversations, and we're preparing on schedule for that.

For the Core product, it's a little bit even though we've had Core for a while, getting that product to be really ready for Prime time. I'm very excited about the dehumidification market opportunity in front of us with this product. And we are pushing to -- we're on time. We're also pushing to accelerate that effort. In the past, and we've clearly communicated a 2027 products there for Core DH, and we're on track for that.

Matthew Jore

Sorry, Matt here. Just wanted to add on the first topic. Keep in mind, Bryan mentioned the $1.2 million installed base for that dehumidification market. I'm pretty excited about that. That gives you a little bit of color on where we're heading with it.

On contract manufacturing, it's important to recognize that the vast majority of the components that go into a Core or Prime system are built around the heart of the system, the coated contactor, the metal organic framework coated contactor. So there are name many manufacturers who already have ERP system, supply chain all set up for all the rest of the relatively commodity components. So it's not a heavy lift is my point.

Jeffrey Campbell

Yes. Understood. If I can ask one last one. With regard to Kubota and the development work that's going on there? Can you just give us a little color on what the thought is? Like I am wondering are the installation is going to be more centralized maybe for a planned development? Or will each home have an AirJoule? And would one Core enough water supply for each home. Just anything you can tell us there so we can start to visualize it a little bit.

Sze-Yin Pang

Yes, Jeff, thanks. I think we have a rendering that was, I believe, released. But the idea is a planned residential community. This is a multi-home community where there are several houses, and there would be a centralized water generation system and recycling system. So AirJoule brings the pure distilled portable water for the drinking water for the community. And then there's water recycling system as well for the community. So it's kind of that centralized community picture.

Operator

Our next question comes from the line of Alex Fuhrman with Lucid Capital Markets.

Alex Fuhrman

Congratulations on all of your recent announcements and progress towards commercialization.

Matt, I wanted to ask about the path to 2,000 liters per day. It sounds like you're very happy with the progress that you're making and that you're confident you're going to be able to hit that target. Can you give us an update on where you've been performing lately and just what that arc has looked like over the past 6 months? And just give us a sense of what other kinds of tweaks and optimizations we're talking about that are getting you to that 2,000 liters per day?

Matthew Jore

Alex, this is -- I know that the correct question was directed to me, but I'm going to let Bryan answer it before I do. I think it's important that you recognize long term, these communities are looking and regulators are looking at permitting where companies, data centers or residential developers can show 20 or 100 years in the case of Arizona water supply. So that's really what we're pointing to long term 2,000 liters a day is just the start.

Long term, we want to do 10,000 and 20,000 liters, and that's what we're focusing on. But for now, I'll let Bryan answer the current state of Prime.

Bryan Barton

Thanks, Matt. Thank you for the question, Alex. We commissioned this system in May. It's been operating outdoors ever since. And we've been really impressed with the speed upon which it's come online and operated. It's running 24/7 with high uptime. And there's a lot of water and data that's being generated through a lot of different environmental conditions. And I guess as a reminder, to everyone, right, the system operates depending on the humidity levels in the air.

So when we talk about 2,000 liters per day, up to 2,000 liters per day, that's at the higher side of the humidity levels. And what makes AirJoule unique is the ability to not only run on waste but to generate humidity under a wide range of environmental conditions. And thankfully, we've been blessed with hot warm days that are humid as well as dry days. And so we've been getting really great data across the gamut. We are really, I'm very pleased with its performance coming online. And yes, we are on track to hitting the 2,000 liters per day. And we have a specific measures now identified to close the gap and to have the system really operating aspect.

Alex Fuhrman

Okay. That's really helpful. And then if I could ask 1 on capital. It sounds like a very high-class problem that you're going to be burning a little bit more cash than expected at the JV, given the accelerated commercialization, how much capital do you envision committing to the JV this year and next?

Sze-Yin Pang

Yes, Alex, this is Stephen here. We haven't provided 2027 guidance. But as we think about to slightly higher $27 million, $28 million guidance that we provided for this year. The incremental capital above the $25 million is geared towards the JV. The additional capital has really helped -- helps steer some incremental units that we have earmarked for additional customer interest that we're seeing. So from a G&A standpoint, certainly nothing higher at the corporate entity but all of this is earmarked towards enhanced deployments. I would think about next year as similar to kind of what we're thinking about right now.

I think from a CapEx standpoint, certainly, we're evaluating the contract manufacturing partners to help eliminate some of the incremental CapEx we'll likely need if we were to scale up production on our own. But from a R&D and current G&A spend perspective, we expect next year right now to kind of trend similarly from what we're seeing.

Operator

Our next question comes from the line of Ryan Pfingst with B. Riley Securities.

Ryan Pfingst

Maybe starting with the collaboration with Kubota. I think residential is the main opportunity. But are you exploring broader commercialization efforts with those guys in other verticals?

Bryan Barton

Yes. Thanks, Ryan, for the question. Today, our partnership and conversations with Kubota are focused on the residential multi-home communities.

Ryan Pfingst

Appreciate that. And then maybe turning to Europe, with the Prime expected to shift near term for the Net Zero Innovation Hub for data centers I'm curious what you envision resulting from that program, whether it be technology partnerships, commercial deployment opportunities or anything else that you're looking for?

Bryan Barton

Yes, thanks. I think this is a really great opportunity for us to highlight our product and how it's integrated for data center waste heat operation. And as shared on the call, the hub includes major key members in the sector, so Microsoft, Google, Data4, Danfoss and then Schneider and Vertiv to round it out. But highlighting the system and integration into data centers is really a key showcase for these guys. And I think the expected success is really the carry on from there into how AirJoule can specifically enable data center operations for those players.

Matthew Jore

Yes. Ryan, I would add to Bryan's comment, this whole theme of permitting unlocking the opportunity if these data centers look at the air for their next source of water and demonstrate that. That's all it takes. They need to demonstrate a long-term solution to not deplete aquifers. And so that's what I view the Net Zero Innovation Hub is all about that, demonstrate the efficacy of the water from air system. The alternative is aquifers that are going to deplete. And so that's what it offers data centers. That's what I get excited about because it's a long-term initiative that they can point to now just entering into a contract with us. So thank you for your question.

Operator

[Operator Instructions] Our next question comes from the line of Amit Dayal with H.C. Wainwright.

Amit Dayal

Just trying to confirm if Carrier did invest in AirJoule and where that relationship stands in terms of commercialization efforts?

Bryan Barton

Are you asking as it relates to the most recently completed offering or just more broadly speaking?

Amit Dayal

Well, just in relation to the deal with Kubota.

Bryan Barton

Yes, Amit, thanks. I think Carrier is very interested in a couple of things. One, obviously, the HVAC market sectors. HVAC being over $300 billion market and Carrier being a key leader in that sector.

And also, they're a great strategic partner as it comes to data centers, Carrier providing some, let's call it a heat recovery system for -- to keep data centers, cold while also providing warm water, for example, for AirJoule to be used on location. So those are 2 really important strategic initiatives under Carrier, and they are engaged in both of those efforts. So thinking about the dehumidification and where that technology is going at large in terms of our longer-term product road map in the HVAC sector as well as, yes, the data center engagement.

Amit Dayal

Okay. Understood. And then are there any regulatory incentives that could be growing at a state or federal level that could support the commercialized efforts for these types of offerings?

Matthew Jore

That's a great -- sorry, Bryan. That's a great question, and we're definitely exploring those. We're -- in my remarks, I talked about the attention that's being paid on water we aim to do our best to inform Congress and all government regulatory bodies that water is a real issue. And Bryan hosted Senator Chris Coons, as he made in his remarks, as he referenced and that part of that is to make sure that everyone at the policymaking level understands how serious this issue is and what a fantastic solution AirJoule is. So we're active in terms of communication there.

Amit Dayal

And then the 2 just last one for me here, guys. The 2 units that are deployed, I guess, in relation to be development. Is this just to continue sort of benchmarking performance, et cetera, or to start showcasing these offerings to developers? Any clarity on that would be helpful.

Bryan Barton

Yes, Amit, it's really the latter, showcasing the technology development -- sorry, the technology opportunity to the developers and how we can actually unlock residential communities. So 2 of the areas that are of key focus, right, are the Irvine, California and Corpus Christi, Texas, both locations that are facing difficulty expanding development in general, but specifically on residential communities. So Kubota selected these 2 locations really as a focus for them to highlight the technology to the developers.

Operator

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Jore for any final comments.

Matthew Jore

Thanks, Melissa. Thanks, everyone, for joining us this morning. The second quarter moved air jewel from validating the technology to building defined commercial channels. Our exclusive sales agreement with Kubota gives us a channel into residential development in 2 states where water decides whether projects get built.

Our first Prime system is operating at Newark and ships to Europe this quarter, we have a Core system operating at GE Vernova's Frontier campus and another in the UAE supporting customer demonstrations. Every deployment we execute over the balance of this year builds towards scaled commercial activity in 2027. Thank you very much.

Operator

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.