Summary of Innventure Year-End Conference Call Company Overview - **Company Name**: Innventure - **Ticker**: INV - **Business Model**: Innventure focuses on starting, building, and scaling disruptive industrial technology solutions through strategic collaborations with multinationals [2][3][4] Key Points Industry Focus - Innventure operates in the industrial technology sector, specifically targeting technologies that address unmet market needs [3][4] - The company has launched four companies to date, including PureCycle Technologies, AeroFlexx, Accelsius, and Refinity, each focusing on innovative solutions in recycling and data center cooling [7][10][11] Core Business Model - Innventure employs a closed-loop model that emphasizes unique technology solutions developed by multinationals, ensuring that these technologies are not easily replicated [4][5] - The model aims to mitigate risks associated with early-stage technology companies by ensuring that multinationals are involved as early adopters or customers [6][19] Recent Developments - **Accelsius**: A data center cooling solution that has gained significant market interest, with a pipeline exceeding $1 billion [11][36] - **Refinity**: A recycling business developed in collaboration with Dow Chemical, leveraging technology from VTT, a Finnish lab [10][11] Financial Performance - Innventure went public in October 2024 and has been focusing on reducing operational costs while managing cash burn [11][25][26] - The company has seen an increase in trading volume, averaging over a million shares, which is expected to enhance liquidity and capital access [26][43] Strategic Partnerships - Innventure has established relationships with major multinationals like Procter & Gamble and Nokia, which have facilitated the launch of new companies and technologies [20][23] - The recent strategic investment from Johnson Controls in Accelsius is seen as a validation of the technology and a potential revenue-generating relationship [30][32] Future Outlook - The company aims to continue accelerating the commercialization process for its technologies, with a focus on execution and building trust with clients [39][40] - Innventure is optimistic about its growth trajectory, particularly with Accelsius, and plans to leverage its recent addition to the Russell 2000 and 3000 indices to enhance capital raising efforts [41][43] Investor Relations - Innventure's insiders are reportedly increasing their holdings, indicating confidence in the company's long-term value creation [46][47] - The management emphasizes the importance of executing growth plans and managing capital costs effectively [47][48] Additional Insights - The company is focused on creating immediate economic value through disruptive technologies that compel changes in client behavior [14][19] - Innventure's approach is characterized by a low-throughput, high-conviction strategy, concentrating on a few selected technologies rather than spreading resources too thinly across many [19][20] This summary encapsulates the key points discussed during the Innventure Year-End Conference Call, highlighting the company's strategic focus, recent developments, financial performance, and future outlook.

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the **Data Center Infrastructure** industry, particularly the developments and trends in cooling and power solutions for data centers, with a positive outlook on demand and infrastructure spending [1][4][9]. Core Insights and Arguments - **Strong Demand and Infrastructure Commitment**: The demand for data center infrastructure remains robust, with capital spenders committed to long-term investments, driven by productivity and diverse business models [1][4]. - **Technology Evolution**: Continuous advancements in cooling (CDUs) and power (HVDC) technologies are favoring major players, with larger format solutions becoming more prevalent. Smaller vendors are struggling to compete due to price pressures [1][4][9]. - **Competitive Landscape**: The competition is increasingly concentrated among larger, established players, with a growing moat around successful technology providers. The bear case of disruption and price pressure is being challenged by the emergence of critical partnerships and solutions [1][4][9]. - **AI and Infrastructure**: AI applications are driving demand for data centers, with companies like Microsoft highlighting the need for infrastructure that can support evolving AI workloads. The current demand exceeds supply, reinforcing the need for continued infrastructure investment [9][11]. Company-Specific Highlights Vertiv (VRT) - **Product Offerings**: Vertiv showcased AI-ready racks, modular power solutions, and advanced liquid cooling systems, emphasizing their comprehensive technology portfolio across power, cooling, and modular solutions [5][6]. - **Service Capabilities**: Vertiv has built a significant service organization with over 4,400 technicians globally, enabling them to provide lifecycle services and rapid response to customer needs [11][12]. - **Innovative Solutions**: The introduction of predictive maintenance services and advanced fluid management capabilities positions Vertiv as a leader in optimizing data center operations [12][11]. - **Power Management**: Vertiv is actively supporting the transition to 800V power systems, which will enhance efficiency and scalability for future data center architectures [13][9]. nVent - **New Product Launches**: nVent introduced a new portfolio of modular data center liquid cooling solutions, emphasizing reliability and user experience through a common control platform [18][19]. - **Market Positioning**: The company is participating in initiatives like Project Deschutes to accelerate liquid cooling adoption, positioning itself as a key player in the evolving data center landscape [20][19]. Motivair (Schneider Electric) - **Growth Projections**: Motivair is expected to achieve around $300 million in revenues, reflecting over 100% growth from the previous year, driven by its end-to-end liquid cooling portfolio [22]. - **Integration with Schneider**: The integration with Schneider Electric enhances Motivair's capabilities in deploying optimized electrical infrastructure alongside liquid cooling solutions [22]. Modine - **Innovative Chiller Design**: Modine announced a new stainless steel variant of its TurboChill DCS chiller, designed for high-pressure environments and optimized for liquid cooling systems [26]. - **Market Demand**: The company is experiencing strong demand, with significant orders anticipated from innovative hyperscalers, projecting potential revenues in the $250 million range [26]. Eaton - **HVDC Transition**: Eaton is preparing for the HVDC transition with new products and technologies that will support future data center power needs [27][28]. Boyd - **Advanced Cooling Technologies**: Boyd showcased its Chip to Ambient thermal circuit, designed to optimize energy consumption in liquid cooling systems for AI applications [29][30]. Additional Important Insights - **Market Dynamics**: The data center infrastructure market is witnessing a shift towards larger, more efficient cooling solutions, with significant growth expected in the adoption of CDUs and liquid cooling technologies [36]. - **Collaboration and Partnerships**: Companies are increasingly forming partnerships to enhance their product offerings and address the challenges of high-density computing environments [19][22]. - **Future Trends**: The industry is moving towards more integrated solutions that combine power and cooling, with a focus on modularity and scalability to meet the demands of modern AI workloads [25][29]. This summary encapsulates the key points discussed during the conference call, highlighting the positive outlook for the data center infrastructure industry and the strategic positioning of major players within it.

Financial Data and Key Metrics Changes - Innventure reported revenue of $0.5 million for Q3 2025, primarily from proof of concept sales at Accelsius, indicating early-stage revenue growth has taken longer than expected [15] - Total G&A expenses for the quarter were $16.9 million, down from $18.6 million in Q2 and $19.7 million in Q1, reflecting improved operational efficiency [15] - The net loss for the quarter was $34.7 million, with adjusted EBITDA showing a loss of $17.5 million [15] - Cash at the end of the quarter was $14.1 million, an increase of $3 million from the beginning of the year [15] Business Line Data and Key Metrics Changes - Accelsius's opportunity pipeline grew 79% quarter over quarter, exceeding $1 billion, with over 75% of the pipeline representing production opportunities for 2026 [4][5] - AeroFlexx achieved its fifth consecutive quarter of revenue recognition across multiple market categories, highlighting a strong customer pipeline in both the U.S. and EU [8][9] - Refinity is progressing towards commercializing its technology, with plans for a mid-scale demonstration in 2026 and larger commercial deployments thereafter [10][11] Market Data and Key Metrics Changes - Accelsius's bookings in Q3 surpassed all previous quarters combined, indicating a significant growth trend expected to continue into Q4 and beyond [5] - AeroFlexx received two prestigious awards in Q3, underscoring its leadership in sustainable packaging solutions [9] Company Strategy and Development Direction - The company is focused on building market-changing companies that deliver tangible value for shareholders, with a disciplined, data-driven model pairing transformative technologies with proven operators [12][13] - Accelsius's recent $25 million strategic investment from Johnson Controls is expected to enhance its growth capital and market position [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Accelsius's ability to create long-term value, citing robust growth projections and a strong opportunity pipeline [6][12] - The company acknowledges that its share price does not currently reflect the underlying value created, but remains committed to executing its strategy and expanding its pipeline [13][16] Other Important Information - The company has deployed approximately $160 million into its operating companies, producing net assets valued at an estimated $860 million [12] - Accelsius has expanded its manufacturing footprint with a dedicated facility in Austin and installed demonstration sites in various locations [5][6] Q&A Session Summary Question: Can you elaborate on the $1 billion opportunity pipeline for Accelsius? - The pipeline is significantly spread out with several hundred leads, and while large orders from hyperscalers are possible, the majority are smaller opportunities [18][19] Question: What is the expected conversion rate for the pipeline over the next 12 to 18 months? - Management indicated that the pipeline metrics are well calibrated, and while they cannot provide specific percentages, they are confident that a meaningful fraction will translate into revenue [29][32] Question: What investments or supply chain builds are required for Accelsius to support large-scale developments starting in 2026? - Accelsius has designed its supply chain thoughtfully, primarily using North American suppliers and dual-sourcing components to avoid supply chain challenges [28] Question: Are there any integration or regulatory milestones before transitioning pipeline orders into firm orders? - There are no significant technical or regulatory hurdles, and the company is well-positioned to deliver as customer needs arise [33]

Financial Performance - Revenue for the three months ended September 30, 2025 was $0.53 million, compared to $0.32 million for the same period in 2024[42] - Adjusted EBITDA for the three months ended September 30, 2025 was $(17.5) million, compared to $(3.0) million for the same period in 2024[42] - Net loss for the three months ended September 30, 2025 was $(34.735) million, compared to $(7.641) million for the same period in 2024[48] - Net loss for the nine months ended September 30, 2025 was $(429.684) million, compared to $(26.481) million for the same period in 2024[48] - Adjusted EBITDA for the nine months ended September 30, 2025 was $(55.466) million, compared to $(12.968) million for the same period in 2024[48] Business Highlights - Accelsius secured a $25 million strategic investment from Johnson Controls on October 2, 2025[27,44] - The opportunity pipeline grew by 79% quarter-over-quarter, exceeding $1 billion[27,44] - Over 80% of the pipeline represents production opportunities for Shift to Production 2026[27] - Q3 commercial bookings for Accelsius surpassed all previous bookings combined[44]

Group 1 - Accelsius secured a strategic investment from Johnson Controls and introduced its NeuCool® MR250 system, with a sales pipeline exceeding $1 billion, positioning the company to capitalize on the growing demand for advanced liquid cooling solutions [1][3] - AeroFlexx achieved its fifth consecutive quarter of revenue generation and is expanding its customer pipeline in the U.S. and Europe, including a partnership with ĕleeo brands for innovative, recyclable packaging [1][3] - Refinity is on track to demonstrate pilot scale and finalize the initial site selection for its first plant by the end of the year, indicating progress in its operational capabilities [1][3] Group 2 - Innventure's CEO, Bill Haskell, emphasized the company's focus on unlocking value through the advancement of its operating companies and a high-quality pipeline of technology opportunities, suggesting a commitment to long-term shareholder value [3] - The company reported revenue of $534 million for the quarter ended September 30, 2025, compared to $317 million for the same period in 2024, indicating significant growth [19] - Operating expenses for the same quarter were $29.7 million, up from $14 million in the previous year, reflecting increased investment in operations [19]

Core Viewpoint - The article discusses the urgent need for advanced cooling technologies in data centers due to the increasing power density of computer chips, particularly driven by artificial intelligence applications. Traditional fan-based cooling methods are becoming inadequate as chip power consumption rises significantly, necessitating a shift towards liquid cooling solutions [2][3][20]. Group 1: Current Challenges in Data Centers - The average power density of racks is currently around 8 kW, but it is expected to rise to 100 kW for AI applications, creating a pressing need for improved cooling methods [3]. - The power consumption of GPUs has escalated dramatically, with the latest models reaching up to 1200 watts, and projections suggest future chips may exceed 2000 watts [2][3]. Group 2: Liquid Cooling Technologies - Liquid cooling is seen as the future for AI-focused data centers, with various methods being explored, including single-phase direct chip cooling, two-phase direct chip cooling, single-phase immersion cooling, and two-phase immersion cooling [4][5][10][12][15]. - Single-phase direct chip cooling involves circulating a coolant, typically a water and glycol mixture, directly over the hottest chips to absorb heat [5][7]. - Two-phase direct chip cooling utilizes the latent heat of vaporization, allowing a special dielectric fluid to boil and absorb heat more efficiently than single-phase methods [8][10]. Group 3: Immersion Cooling Techniques - Single-phase immersion cooling involves submerging servers in a dielectric fluid, which can lead to significant energy savings and a dust-free environment [12][14]. - Two-phase immersion cooling is emerging as a promising technology, where servers are submerged in a boiling liquid, providing up to 100 times the cooling capacity of single-phase methods [15][17]. - The total cost of ownership for two-phase immersion cooling systems is estimated to be lower than that of single-phase systems due to reduced power requirements and simplified mechanical systems [18]. Group 4: Industry Outlook - The demand for cooling technologies is expected to grow alongside the increasing power requirements of AI systems, with industry experts emphasizing the need for continued innovation in cooling solutions [19][20]. - Companies are actively researching and developing new cooling technologies to address the challenges posed by high-density computing environments [20].

Core Insights - Johnson Controls International plc (JCI) has made a multi-million-dollar investment in Accelsius to enhance innovative cooling technologies for data centers [1][6] - The investment is aimed at advancing Accelsius' patented NeuCool platform, which provides energy-efficient two-phase, direct-to-chip liquid cooling solutions [1][6] Industry Trends - The demand for Artificial Intelligence (AI) is driving the need for effective cooling solutions in high-capacity data centers, as cooling systems can account for up to 40% of a data center's total energy consumption [2] - There is an increasing requirement for smarter, energy, and water-efficient cooling solutions in the industry [2] Technology Advancements - Accelsius' cooling technology utilizes non-conductive fluids in a liquid-to-vapor phase-change process, which can lower operating expenses by 35% compared to single-phase cooling technology [3][6] - This technology allows data centers to operate more efficiently with reduced energy costs and improved overall performance [3] Other Developments - Johnson Controls has introduced several advanced solutions for data centers, including the YORK YVAM magnetic bearing chiller, which uses 40% less power annually than other options and requires no on-site water [4] - The company also launched the Silent-Aire Coolant Distribution Unit (CDU) platform, offering customizable cooling capacities from 500 kilowatt to over 10 megawatt [4] Company Performance - Johnson Controls is experiencing solid momentum in its Americas unit, driven by increased demand for HVAC platforms and strength in controls businesses [5] - The company currently holds a Zacks Rank 3 (Hold), with shares gaining 41.9% over the past year compared to the industry's 3.3% growth [5]

Core Insights - Innventure has announced a strategic investment in Accelsius, a company specializing in two-phase, direct-to-chip liquid cooling systems, facilitated by Johnson Controls [2] - Innventure has also completed a private placement of common stock and warrants, raising gross proceeds of $9.75 million, which will support its ongoing business operations [3] Company Overview - Innventure focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions, often acquired or licensed from multinational corporations [4] - The company aims to commercialize breakthrough technologies, mitigating risks while building disruptive companies with a target enterprise value of at least $1 billion [4]

Group 1 - Innventure, Inc. has successfully closed a private placement of common stock and warrants, raising gross proceeds of $9.75 million [2] - The capital raised will provide working capital to support Innventure's ongoing business operations, alongside a recent issuance of convertible debentures to Yorkville totaling up to $15 million [2] - Innventure focuses on transformative, sustainable technology solutions, aiming to commercialize breakthrough technologies with a target enterprise value of at least $1 billion [3] Group 2 - Johnson Controls has made a strategic investment in Accelsius, a company specializing in two-phase, direct-to-chip liquid cooling systems [1]

Core Insights - Innventure, Inc. reported a strong performance in the second quarter of 2025, with expectations for continued revenue growth in the latter half of the year [3] - The company highlighted significant advancements in its operating companies, including Accelsius, AeroFlexx, and Refinity, which are positioned for market success [3] - Innventure aims to unlock value from its technology solutions pipeline, which is currently underappreciated in the market [3] Financial Performance - For the quarter ended June 30, 2025, Innventure generated revenue of $476 million, a substantial increase from $223 million in the same quarter of 2024 [20] - The total operating expenses for the quarter were $143.05 million, compared to $11.51 million in the same quarter of the previous year [20] - The net loss for the quarter was $141.275 million, compared to a loss of $11.314 million in the same quarter of 2024 [20] Company Developments - Accelsius has strengthened its market position with new deployments at major facilities, achieving industry-leading thermal milestones with its NeuCool technology [3] - AeroFlexx achieved its fourth consecutive quarter of revenue generation and received Critical Guidance Recognition for recyclability from the Association of Plastic Recyclers [3] - Refinity has engaged an engineering, procurement, and construction partner for its first plant design, marking a significant milestone for the company [3] Strategic Outlook - The CEO of Innventure expressed confidence that the remainder of 2025 will be an inflection point for revenue growth across the enterprise [3] - The company is focused on delivering long-term value for shareholders and believes that the progress made across its operating companies is just the beginning [3] - Innventure has a high-quality pipeline of technology solutions from multinational corporations, which it plans to leverage for future growth [3]