First Read: Fermi Inc. "Strategic reset under way with momentum in tenant..."

Research evidence excerpt

First Read: Fermi Inc. "Strategic reset under way with momentum in tenant..."

Global Research

14 May 2026ab

First Read

EquitiesFermi Inc.

Strategic reset under way with momentum in United States

tenant conversations Communications Technology

12-month rating Neutral *

12m price target US$6.00

Acceleration in tenant discussions; Execution remains key

Fermi’s 1Q results highlighted its strategic repositioning following recent management

changes. Over the next ~90 days, management’s key priorities include securing an Price (13 May 2026) US$6.00

anchor tenant, managing liquidity, appointing a new CEO, exploring strategic RIC: FRMI.O BBG: FRMI US

partnerships and progressing site power delivery. Management noted a significant

Trading data and key metrics

acceleration in its tenant pipeline over the past three weeks, with a broader set of

counterparties evaluating a range of deal structures and sizes. Capex in 1Q totaled 52-wk range US$32.53-4.80

$441M (vs. UBSe $305M; ~$480M in 4Q25), while operating cash flow was -$7M (vs. Market cap. US$3.77b

UBSe -$23M; -$26M in 4Q), benefiting from working capital. The company ended the Shares o/s 629m (COM)

quarter with $243M of cash and equivalents and raised ~$440M in equipment Free float 5%

financing. Management indicated the equipment financing facilities should cover most Avg. daily volume ('000) 13,429

remaining turbine and electrical power equipment, with incremental site development Avg. daily value (m) US$85

contingent on commercial progress. Common s/h equity (12/26E) US$1.65b

P/BV (12/26E) 2.5x

Key takeaways from the call Net debt to EBITDA (12/26E) NM

Partnership momentum building: Management highlighted increasing

EPS (UBS, diluted) (USD)

inbound interest from data center operators, driven by Fermi’s relatively near-term