KEEL Q2 Earnings Call Highlights 2027 Power and Leasing Push

KEEL Keeps 2027 Power at Center of Leasing Push

CEO Ben Gagnon said commercial engagement deepened during the quarter, with hyperscalers, AI companies, GPU cloud providers and large enterprises active across the portfolio. He said interest exceeds lease capacity.

At Moses Lake, Gagnon expects the 18-megawatt site to be Keel’s first fully commissioned data center in 2027. The first Vertiv modules have arrived, with long-lead equipment secured or in production.

Gagnon said Sharon discussions center on triple-net structures, while larger AI companies lead engagement at Panther Creek. Both Pennsylvania sites are attracting customers seeking 2027 capacity.

Keel Pushes Permitting Toward Execution Readiness

CEO Ben Gagnon said Moses Lake’s go-vertical permitting should finish later in the third quarter. Site development is underway, and management still expects it to be Keel’s first data center online next year.

Gagnon said Sharon secured zoning in April and land-development approval during the quarter. Final environmental permits remain in process, while management is evaluating one 110-megawatt phase.

Gagnon said Panther Creek received zoning and conditional land-development approval, but final environmental permitting is taking a few months longer than anticipated. He said this does not change the planned 2027 power-delivery schedule or project economics.

KEEL Targets More Power Through Expansion Pipeline

CEO Ben Gagnon said applications tied to nearly 2 gigawatts of potential Pennsylvania expansion capacity are progressing well with utility partners. Securing additional megawatts remains a focus.

Gagnon said Keel is increasingly confident it can convert part of that pipeline into signed energy service agreements supporting HPC deployments through 2030. An update could come as early as December or January.

Gagnon said Keel also advanced plans to consolidate three legacy Bitcoin power agreements into a single 96-megawatt HPC and AI agreement in Sherbrooke. Local approvals are secured, with provincial approval still outstanding.

Keel Uses Liquidity To Preserve Financing Flexibility

CFO Jonathan Mir said Keel strengthened its capital position after raising $458 million through convertible senior notes. Liquidity reached $819 million as of Aug. 7.

Mir said that liquidity supports development through lease signing, expansion opportunities and cash SG&A through 2028. The CFO also said Keel prefers to assess project financing after leases are signed, when management expects its cost of capital to decline.

Second-quarter revenue was $30.4 million, down 50% year over year and below the $35 million Zacks Consensus Estimate. The company incurred adjusted loss per share of 18 cents, wider than the Zacks Consensus Estimate of 8 cents. The loss also widened from 2 cents per share incurred in the year-ago period.

KEEL Q&A Keeps Focus on Timing and Regulation

Analysts tested whether permitting delays or political scrutiny could disrupt leasing activity. CEO Ben Gagnon said Keel believes secured power remains unaffected to date and described Pennsylvania’s industrial permitting framework as an advantage.

A Northland Capital Markets analyst asked whether Keel still targets three lease announcements in 2026. Gagnon did not restate that target, instead emphasizing active due diligence and negotiations across all three sites.

A KBW analyst asked how tenant quality is assessed as AI leadership changes. Gagnon said Keel intends to stay model-agnostic and prioritize counterparties capable of supporting contracted revenue for one to two decades.

Keel Maintains Discipline on Lease Economics

CEO Ben Gagnon closed with an emphasis on patience rather than speed. He said customer quality, lease economics and financing support matter more than signing contracts simply to produce announcements.

The next phase centers on converting negotiations into leases while completing permits and protecting 2027 delivery. Management said its liquidity provides room to pursue those steps without near-term funding pressure.

KEEL’s Zacks Signals Remain Mixed

KEEL carries a Zacks Rank #3 (Hold). Its Momentum Score of B is its strongest Style Score, while its Value Score of F, Growth Score of D and VGM Score of F reflect weaker readings across the other styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Style Scores complement the Zacks Rank, with A and B representing stronger characteristics. KEEL’s mix combines favorable momentum with weaker value, growth and VGM scores and does not match the framework’s strongest Rank-and-Style profile. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

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