NET Power 2025 Q3 Earnings Sharp Loss Amid Strategic Shift to Clean Gas Power

The company's Q3 2025 results fell far below expectations, with a net loss of $5.28 per share and $1.16 billion, marking a 52900% decline from the prior year. Despite a strategic pivot to clean gas power with Entropy, the earnings miss and significant loss highlight immediate financial challenges. Guidance for near-term projects remains ambitious, but execution risks persist.

Revenue

The total revenue of NET Power decreased by 100.0% to $0 in 2025 Q3, down from $12,000 in 2024 Q3.

Earnings/Net Income

NET Power swung to a loss of $5.28 per share in 2025 Q3 from a profit of $0.01 per share in 2024 Q3 (52900.0% negative change). Meanwhile, the company's net loss widened to $-1.16 billion in 2025 Q3, representing a 16920.9% increase from the $-6.81 million loss recorded in 2024 Q3. The dramatic EPS decline underscores the company's urgent need for strategic adjustments to restore profitability.

Price Action

The stock price of NET Power has surged 25.61% during the latest trading day, has plummeted 17.78% during the most recent full trading week, and has plummeted 41.86% month-to-date.

Post-Earnings Price Action Review

The strategy of buying NET Power (NPWR) shares on the date of its revenue raise announcement and holding for 30 days resulted in a significant loss. The 3-year backtest shows an average annual return of -28.3%, with a maximum drawdown of 45.4% during the period. This indicates a challenging risk-return profile for the strategy, suggesting that while there is some recovery, the overall performance is lackluster. Investors may need to reconsider their approach, given the volatile and underperforming nature of this strategy.

CEO Commentary

Daniel Rice, CEO, highlighted the urgent need for scalable, reliable power amid surging demand from AI, data centers, and manufacturing, emphasizing natural gas with carbon capture (CCS) as the lowest-cost, clean solution. He outlined a strategic pivot to accelerate deployment of conventional gas turbines with post-combustion carbon capture (PCC) via a partnership with Entropy, leveraging NET Power’s existing sites in West Texas and Northern MISO to achieve below $80/MWh LCOE. Challenges include high costs for oxy-combustion projects, with a $1.7B first plant delayed to 2030–2031. The CEO stressed prioritizing near-term projects to capture market demand while advancing long-term oxy-combustion technology, expressing optimism about the “arms race” for AI-driven energy solutions and the company’s unique position to deliver clean power faster than competitors.

Guidance

Daniel Rice provided explicit targets: Project Permian’s Phase 1 aims for FID in Q1 2026, COD by late 2028/early 2029, with LCOE under $80/MWh and 90%+ carbon capture. The Northern MISO project targets COD 2029–2030, with $100/MWh LCOE. The Entropy JV is expected to finalize by Q1 2026, enabling 600MW+ deployments. Capital allocation will prioritize PCC projects, with Phase 1 CapEx estimated at $375–425M, partially financed via equity (NET Power’s ~$75–90M share) and project financing. The CEO emphasized scaling to 1GW+ at both sites, leveraging 45Q tax credits ($85/ton) and industrial CO2 buyers to optimize economics.

Additional News

NET Power announced a strategic partnership with Entropy to accelerate clean gas power deployment using post-combustion carbon capture (PCC) technology. This collaboration aims to leverage Entropy’s amine-based solvent technology for faster market entry and carbon capture rates exceeding 90%. The CEO emphasized the shift from oxy-combustion to PCC as a response to market demands for speed and cost efficiency. Project financing and credit stacking, including 45Q tax credits, are expected to enhance returns. The company also highlighted its focus on Project Permian and Northern MISO, with COD targeting late 2028 and 2029, respectively.