TeraWulf Q2 Earnings Call Highlights HPC Execution and Expansion

TeraWulf Centers Strategy on HPC Delivery

Revenues of $44.80 million edged above the Zacks Consensus Estimate of $44.60 million. The reported adjusted loss of 37 cents per share was wider than the consensus loss of 20 cents.

CFO Patrick Fleury said HPC lease revenues rose 52% sequentially to $31.9 million and represented about 71% of total revenues. TeraWulf entered the third quarter with 102 critical megawatts operating at Lake Mariner.

Chairman and CEO Paul Prager said CB-3 was fully delivered in early July. Its completion also made $600 million of Google's credit support for FluidStack's lease obligations effective.

WULF Adds Long-Term Capacity in Kentucky

Prager highlighted the post-quarter lease with Anthropic for about 401 megawatts of critical IT capacity at the Justified Data campus. Management said the 20-year agreement represents approximately $19 billion of contracted revenues.

CTO Nazar Khan said the Muskie campus has contracted electric service for up to 1 gigawatt through Kentucky Power, with initial service expected in the fourth quarter of 2028.

Management is evaluating expansion of Muskie to as much as 2 gigawatts and said commercialization discussions are active. Prager tied the opportunity to controlling power infrastructure before committing development capital.

TeraWulf Works Through Construction Pressures

Khan said electrical labor remains highly constrained. TeraWulf added a second electrical contractor at Lake Mariner and expects roughly 1,000 electricians at peak to support the revised schedules.

The first CB-4 data hall is expected to generate lease revenues in late September, while CB-5 is targeted for initial energization in very early January. Fleury estimated project costs at about $9.1 million per critical IT megawatt, within the original $8-$10 million range.

FluidStack lease amendments require about $150 million of incremental TeraWulf funding for tenant fit-out costs. Fleury said the broader amendments should add more than $500 million of lease revenues over the initial terms.

WULF Uses Capital Recycling to Fund Growth

TeraWulf agreed after quarter-end to sell its 50.1% interest in the Abernathy joint venture for about $530 million. Fleury said the transaction represents a 20% internal rate of return on the initial investment.

Parent-level unrestricted cash totaled about $1.2 billion at quarter end and increased to roughly $1.45 billion after the first $250 million Abernathy payment in July.

Fleury said existing liquidity and expected Abernathy proceeds can fund remaining Lake Mariner commitments, planned Justified equity, Muskie requirements, the proposed Chesapeake acquisition and other sites without accessing the equity capital markets.

TeraWulf Q&A Focuses on Power, Costs and Returns

A B. Riley Securities analyst asked about tenant credit quality. Fleury emphasized counterparty strength and long-duration credit support, while Prager said the direct Anthropic relationship brings TeraWulf closer to the ultimate customer.

An Oppenheimer analyst pressed management on scarce electrical labor. Prager pointed to the company's relationship with Fluor and efforts to lock in pricing, while Khan tied labor availability to annual development capacity.

A Bank of America analyst asked about cost protection and returns. Khan said hourly labor costs have been rising, while equipment costs generally have better visibility. Management reiterated a mid-teens target yield on new contracts.

WULF Keeps Execution Ahead of Expansion

Management reaffirmed its target of contracting an incremental 250-500 megawatts of critical IT capacity annually. Prager and Khan tied that pace to labor availability, power certainty, financing capacity and project delivery.

The overarching message was disciplined expansion: secure credible power, contract with high-quality customers, deliver capacity in phases and recycle capital where greater control and scale can be achieved.

What Zacks Signals Say About TeraWulf

WULF carries a Zacks Rank #3 (Hold). Its Momentum Score of A is the strongest Style Score, while the Value Score, Growth Score and VGM Score are all F, the weakest grade in the Zacks hierarchy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Style Scores are designed to complement the rank, with A and B grades more favorable than lower scores. The profile combines a neutral rank with strong momentum but weak value, growth and VGM readings. The Zacks Rank can change as earnings estimates are revised following the just-reported results.

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