[Energy Vault First Quarter 2025 Financial Results](index=1&type=section&id=Energy%20Vault%20Reports%20First%20Quarter%202025%20Financial%20Results) [Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Energy Vault reported a 10% revenue increase to $8.5 million, with gross margin more than doubling to 57.1%, and contract backlog growing 49% to $648 million, while Adjusted EBITDA loss narrowed by 22% to $11.3 million Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 ($M) | Q1 2024 ($M) | Change | | :--- | :--- | :--- | :--- | | Revenue | $8.5 | $7.8 | +10% | | GAAP Gross Margin | 57.1% | 26.7% | +30.4 p.p. | | Net Loss | ($21.1) | ($21.1) | Flat | | Adjusted EBITDA | ($11.3) | ($14.5) | +22% (Improved) | - Contract revenue backlog increased by **49%** year-to-date, reaching **$648 million**. Nearly **90%** of this backlog is shielded from U.S. tariff risks due to a strong Australian presence, license agreements, and asset ownership[1](index=1&type=chunk)[3](index=3&type=chunk) - Total cash (including restricted cash) increased by **57%** from year-end 2024 to **$47.2 million**, primarily due to proceeds from the Calistoga Resiliency Center (CRC) project financing[1](index=1&type=chunk)[3](index=3&type=chunk) - Key operational milestones include the completion and initial revenue generation of the Cross Trails project in Texas, a **10-year** licensing agreement in India with SPML Infra, and continued expansion in Australia with over **2.6 GWh** of projects in development[1](index=1&type=chunk)[2](index=2&type=chunk)[7](index=7&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Energy Vault targets a 15-25% reduction in quarterly adjusted operating expenses to $12-14 million, expects $45-50 million in Q2/Q3 cash from project financing and ITC sales, with potential upside from tariff resolution - The company is targeting a **15-25%** reduction in quarterly adjusted operating expenses, aiming for a new quarterly run rate of **$12-14 million**, down from **$16.2 million** in Q1 2025[1](index=1&type=chunk)[7](index=7&type=chunk) - An additional **~$45 million** is expected in Q2 and Q3 from the Cross Trails project financing (**~$20M**), its associated ITC sale (**~$12M**), and other ITC sales[1](index=1&type=chunk)[7](index=7&type=chunk) - The first three build-own-operate projects are expected to deliver approximately **$30 million** in annual, recurring project EBITDA over a **15-year-plus** life[1](index=1&type=chunk) - While current guidance is maintained, a positive resolution and timing of the China/U.S. tariff pause could create potential revenue upside from accelerated U.S. battery deliveries in 2025[1](index=1&type=chunk)[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Consolidated financial statements for Q1 2025 show balance sheet growth from project financing, income statement improvements in revenue and gross margin despite flat net loss, and a net cash increase driven by financing activities [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $217.4 million from $183.9 million at year-end 2024, primarily due to an increase in property and equipment and restricted cash, while total liabilities rose to $102.5 million from $57.6 million, largely driven by long-term debt related to project financing, and total stockholders' equity decreased to $114.9 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $74,357 | $68,905 | | **Total Assets** | **$217,441** | **$183,889** | | **Total Current Liabilities** | $86,247 | $54,655 | | **Total Liabilities** | **$102,528** | **$57,633** | | **Total Stockholders' Equity** | **$114,913** | **$126,256** | | Cash and cash equivalents | $17,822 | $27,091 | | Restricted cash (current & long-term) | $29,333 | $2,982 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q1 2025, revenue increased 10% year-over-year to $8.5 million, gross profit surged to $4.9 million from $2.1 million, with gross margin expanding to 57.1% from 26.7% in Q1 2024, mainly due to a high-margin India license agreement, and despite lower operating expenses, the net loss remained flat year-over-year at $(21.1) million, resulting in an unchanged EPS of $(0.14) Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $8,534 | $7,759 | | Gross Profit | $4,876 | $2,068 | | Loss from Operations | ($20,893) | ($24,627) | | Net Loss | ($21,174) | ($21,139) | | Net Loss Per Share | ($0.14) | ($0.14) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company experienced a net cash usage of $2.7 million from operating activities and $7.3 million from investing activities, which were more than offset by net cash provided by financing activities of $27.1 million, primarily from debt financing proceeds, resulting in a net increase in total cash and restricted cash of $17.1 million for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($2,730) | $947 | | Net cash used in investing activities | ($7,313) | ($8,768) | | Net cash provided by (used in) financing activities | $27,060 | ($678) | | **Net increase (decrease) in cash** | **$17,082** | **($8,771)** | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) Energy Vault utilizes non-GAAP measures like Adjusted EBITDA and adjusted operating expenses to provide a clearer view of ongoing operations, with Q1 2025 adjusted operating expenses narrowing to $16.2 million and Adjusted EBITDA loss improving 22% to $(11.3) million - Management believes non-GAAP financial measures are useful for evaluating ongoing operational results by excluding certain non-cash or non-recurring items, such as stock-based compensation[21](index=21&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Net loss (GAAP)** | **($21,136)** | **($21,139)** | | Interest income, net | (220) | (1,818) | | Provision for income taxes | 383 | — | | Depreciation and amortization | 305 | 295 | | Stock-based compensation expense | 9,276 | 9,684 | | Other adjustments | 122 | (1,528) | | **Adjusted EBITDA (non-GAAP)** | **($11,270)** | **($14,506)** | Reconciliation of Operating Expenses (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Operating expenses (GAAP)** | **$25,769** | **$26,695** | | Stock-based compensation expense | (9,276) | (9,684) | | Depreciation and amortization | (305) | (295) | | Benefit for credit losses | 11 | 88 | | **Adjusted operating expenses (non-GAAP)** | **$16,199** | **$16,804** |

Company Overview and Market Position - The company has a limited operating history and has only completed three Battery Energy Storage Systems (BESSs) and one Gravity Energy Storage System (GESS) to date, which may affect investment decisions [89]. - The company expects future growth to be driven by rising demand for clean electric power solutions and a rapidly growing energy storage market, but predicting future revenues is challenging due to limited operating history [90]. - The company relies on a limited number of customers for the majority of its revenue, and the loss of any significant customer could substantially reduce revenue and impact liquidity [96]. - The company’s business model depends on the acceptance of its technology by customers and the successful commercialization of its energy storage systems [94]. - The company’s growth strategy includes establishing strategic relationships with various market players, but the success of these initiatives is uncertain [115]. - The growth of the energy storage market is dependent on the adoption of renewable energy sources and government regulations [141]. - Competition in the energy storage industry is intensifying, with several established companies having more resources and advanced technologies [145]. - The company’s technology must remain cost-effective compared to competitors to maintain its market position and profitability [144]. Financial Performance and Projections - The company has incurred significant expenses and expects to continue to do so, with a history of losses and uncertainty regarding future profitability [94]. - The company anticipates increased costs associated with transitioning to lower emissions technologies and potential risks related to the viability of these technologies [160]. - As of December 31, 2024, the company had accumulated deficits of $383.8 million and net losses of $135.8 million for the year ended December 31, 2024 [170]. - The company expects to continue incurring significant operating expenses without generating sufficient revenues, indicating a capital-intensive business model [171]. - The total backlog as of December 31, 2024, was $433.9 million, representing contracted but unrecognized revenue [180]. - Bookings for the year ended December 31, 2024, totaled $223.9 million, reflecting the total aggregate contract value from customer contracts signed during the period [181]. - The developed pipeline as of December 31, 2024, amounted to $2.1 billion, indicating potential revenue from projects where the company is in advanced negotiations [182]. Operational Risks and Challenges - The company faces risks associated with operational performance and costs, including unexpected malfunctions and the need for repairs, which could adversely affect business [101]. - The company’s projections regarding construction costs, timelines, and future revenues are highly sensitive to inaccuracies, which could materially affect profitability [92]. - The company faces risks associated with construction delays and cost overruns, which could impair project development and financial performance [121]. - The successful installation of energy storage systems is dependent on timely interconnection with local electric grids, which may face delays affecting revenue recognition [122]. - The lengthy sales and installation cycle for energy storage systems could lead to significant fluctuations in operating results from period to period [174]. - The company faces risks related to customer cancellations and delays, which could materially affect its business and financial condition [185]. Supply Chain and Production - The company’s energy storage systems have significant upfront costs, necessitating third-party financing for both the company and its customers [103]. - The company relies on a limited number of third-party suppliers for components, and any failure in their delivery could lead to installation delays and reputational damage [117]. - The company relies on suppliers and subcontractors for manufacturing components of its energy storage systems, which may lead to potential liabilities and recovery challenges [216]. Regulatory and Compliance Issues - The company is subject to legal and regulatory restrictions that could increase compliance costs and expose it to litigation risks [130]. - Increasing scrutiny of ESG matters could adversely impact the company's reputation, share price, and access to capital [131]. - The company may face increased regulatory requirements regarding environmental impacts, potentially leading to higher compliance costs [161]. - The company is subject to various environmental, health, and safety laws that could result in significant compliance costs and liabilities [226]. - Any actual or perceived failure to comply with privacy and data protection laws could subject the company to liability and damage its reputation [231]. - The company may face increased privacy and security obligations due to state and federal laws, such as the California Consumer Privacy Act [233]. Intellectual Property and Cybersecurity - The company may face challenges in protecting its intellectual property (IP) rights, which could adversely affect its growth and success [193]. - IP rights may not be as strongly enforced outside the United States, leading to potential revenue loss due to competitors copying designs and technology [194]. - The company's pending patent applications may not result in issued patents, hindering its ability to prevent competitors from selling similar products [195]. - The company may face third-party claims of IP infringement, which could result in substantial legal costs and harm its reputation [198]. - Cybersecurity risks threaten the confidentiality and integrity of the company's IT systems, which are critical to its operations [204]. - The company has experienced rapid growth, which may strain its IT systems and increase vulnerability to data security breaches [208]. Market and Economic Conditions - Economic uncertainty, including inflation and interest rate fluctuations, has negatively impacted demand for the company's products [154]. - Fluctuations in fuel prices could decrease incentives for transitioning to renewable energy, impacting demand for the company's products [162]. - The U.S. has implemented a 25% additional tariff on imports from Canada and a 20% additional tariff on imports from China, which may negatively affect the company's financial condition [221]. - The company may face reduced revenue due to the potential reduction, modification, or elimination of government economic incentives such as rebates and tax credits [223]. - Inflation could adversely impact operations due to rising material, labor, and construction costs, potentially affecting financial results [388]. Corporate Governance and Structure - As of December 31, 2024, executive officers, directors, and their affiliates beneficially own approximately 29.7% of the outstanding common stock, allowing significant control over corporate decisions [242]. - The company qualifies as an "emerging growth company" and intends to take advantage of exemptions from various reporting requirements until it exceeds a market value of $700 million or total annual gross revenue of $1.235 billion [243]. - Increased legal, accounting, and administrative costs are expected as a public company, which could negatively impact financial condition and results of operations [247]. - The company may issue additional shares or other equity securities without stockholder approval, potentially diluting ownership interests [252]. - The trading price of the company's common stock is likely to be volatile, influenced by various market and operational factors [253]. - Activist stockholders may attempt to effect changes that could adversely affect corporate governance and financial condition [256]. - Anti-takeover provisions may delay or prevent beneficial acquisitions and management changes, potentially limiting stockholder influence [257]. - The company is governed by Section 203 of the DGCL, which restricts individuals owning 15% or more of voting stock from merging for three years [258].

Core Viewpoint - Energy Vault Holdings, Inc. (NRGV) has experienced a significant decline of 33.9% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - NRGV's current RSI reading is 25.52, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding NRGV, with a 9.8% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7] - NRGV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8]

Energy Vault (NRGV) Q4 2024 Earnings Call March 18, 2025 12:37 AM ET Company Participants Michael Beer - CFO & Head of Corporate ServicesRobert Piconi - Chairman & CEOChris Ellinghaus - Managing Director Conference Call Participants Thomas Boyes - Analyst Operator Greetings, and welcome to the Energy Vault's Fourth Quarter twenty twenty four Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. It is now my pleasure to int ...

Financial Data and Key Metrics Changes - The company reported a revenue of $46.2 million for the full year 2024, slightly below the low end of guidance due to declining battery prices and project timing [48] - Gross margins improved year-over-year from 5.1% in 2023 to 13.4% in 2024, although still below the guidance range due to a one-time warranty impact [50][25] - The company ended 2024 with total cash and cash equivalents of just over $30 million and no debt on the balance sheet [53] Business Line Data and Key Metrics Changes - Contract bookings increased significantly by 90% quarter-over-quarter, growing the backlog to $660 million from $350 million [22][44] - Recognized revenue for Q4 2024 was $33.5 million, primarily from equipment deliveries [48] - The company invested $59 million into energy storage assets during the year, focusing on retaining ownership for long-term revenue [49] Market Data and Key Metrics Changes - The main regional drivers for growth were identified in Australia and the United States, particularly with utilities and independent power producers [23] - The company has a total of 2.6 gigawatt hours in projects in Australia, with significant contracts awarded [44] - The company is experiencing a 40% decline in battery prices, which is impacting project economics and revenue sizing [45] Company Strategy and Development Direction - The company is focusing on a build, own, and operate strategy to create predictable revenue streams and higher margins [8][31] - The energy infrastructure strategy aims to develop a portfolio of large megawatt projects, which is expected to contribute significantly to future revenue [32] - The company is adapting its resource allocation to prioritize promising projects while optimizing costs [29] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite short-term challenges, emphasizing the importance of adapting to market conditions [30] - The company expects a large uptick in recognized revenue in 2025 due to a strong backlog and ongoing project execution [36] - Management acknowledged the impact of tariff increases on project costs but highlighted the benefits of global diversification [72] Other Important Information - The company is in the process of finalizing project financing for the Calistoga Resiliency Center, with a funding commitment expected to close in April 2025 [54] - The company maintains significant bonding capacity in excess of $1 billion to facilitate growth projects [55] - The company is actively working on monetizing tax credits associated with its projects [92] Q&A Session Summary Question: What are the gating factors to hitting operational targets for Calistoga? - The project is in commissioning, and the focus is on energizing the system within the next 30 to 60 days [62] Question: What mitigating steps are being taken regarding tariff impacts? - The company is working to secure project deliveries before tariff increases and is leveraging global diversification to mitigate risks [70][72] Question: Can you provide an update on Snyder? - The company has completed gravity demonstration systems and is using the site for customer hosting [88] Question: What is the expectation for Cross Trails project financing? - The company is actively in the market for financing and is optimistic about securing it in the coming months [96] Question: Is there any material CapEx remaining for 2025? - There are no near-term plans for additional CapEx at Snyder as all hardware is already acquired [90] Question: Will the decline in lithium-ion prices lead to higher margins in 2025? - The company expects margin expansion due to improved supply chain management and project pricing [102]

Core Insights - Energy Vault Holdings, Inc. reported a quarterly loss of $0.35 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, marking an earnings surprise of -150% [1] - The company generated revenues of $33.47 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 14.07% and down from $118.24 million year-over-year [2] - Energy Vault shares have declined approximately 49.6% year-to-date, significantly underperforming the S&P 500's decline of -4.1% [3] Earnings Outlook - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.11 on revenues of $36.4 million, and for the current fiscal year at -$0.41 on revenues of $261.9 million [7] - The Zacks Rank for Energy Vault is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Alternative Energy - Other industry, to which Energy Vault belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance (Q4 2024) - Revenue for Q4 2024 was $33.5 million, primarily driven by Jupiter SG2 and the delivery of major equipment for a BESS project in Texas[10, 14] - GAAP gross margin for Q4 2024 was 7.7%, resulting in a gross profit of $2.6 million[10, 14] - Adjusted operating expenses for Q4 2024 were $16.1 million, a 15% year-over-year improvement[10, 14] - Adjusted EBITDA for Q4 2024 improved by 10% year-over-year to -$13.4 million due to spending controls and higher gross profit[10, 14] - Total cash and cash equivalents as of December 31, 2024, were $30.1 million, with approximately $59 million invested in CAPEX for the 'Build, Own and Operate Strategy'[10, 14] Financial Performance (2024) - Revenue for 2024 was $46.2 million, a decrease compared to the previous year, mainly due to the company's shift to building owned and operated projects[16, 20] - GAAP gross margin for 2024 was 13.4%, with a gross profit of $6.2 million, attributed to a more favorable revenue mix with higher margin O&M services and SAAS license accounting[16, 20] - Adjusted operating expenses for 2024 were $64.5 million, reflecting a 19% year-over-year improvement[16, 20] - Adjusted EBITDA for 2024 was -$57.9 million, improved 7% year-over-year[16, 20] Commercial Pipeline and Backlog - The company's backlog as of March 17, increased 90% vs prior quarter to $660 million[10] - The developed pipeline includes 9.4 GWh of projects, representing a potential revenue of $2.1 billion[22]

Revenue and Financial Performance - Q4 2024 revenue was $33.5 million, with full-year 2024 revenue at $46.2 million, reflecting a 7% decline from the low end of guidance due to lower lithium-ion battery prices[6] - Total revenue for the year ended December 31, 2024, was $341,543, a decrease of 10.5% compared to $381,236 in 2023[16] - Net loss for the year ended December 31, 2024, was $135,813, an increase of 37.9% from a net loss of $98,443 in 2023[16] - Cash and cash equivalents stood at $30.1 million with no debt as of December 31, 2024, down from $145.6 million the previous year[6] - The company experienced a net cash used in operating activities of $55,860, compared to $92,655 in the previous year, indicating improved cash flow management[18] Margins and Profitability - Q4 2024 GAAP gross margin improved to 7.7%, up from 3.4% a year ago, while full-year 2024 GAAP gross margin was 13.4%, significantly improved from 5.1% the previous year[6] - Gross profit for the year ended December 31, 2024, was $17,531, representing a gross margin of 5.1% compared to 5.4% in 2023[16] - Adjusted EBITDA for Q4 2024 improved to a loss of $(13.4) million, while full-year 2024 Adjusted EBITDA loss was $(57.9) million, within the guidance range[6] - Adjusted EBITDA (non-GAAP) for Q4 2024 was $(13,391,000), slightly improved from $(14,901,000) in Q4 2023[22] Project and Revenue Backlog - Contract revenue backlog increased 90% to $660 million from $350 million in the prior quarter, more than quadrupling year-over-year[1] - The developed pipeline remains robust at $2.1 billion, adjusted for prevailing battery prices, tariffs, and foreign exchange rates[1] - Six projects totaling 840 MW are expected to come online in the next 18-24 months, generating approximately $2 billion in long-term recurring revenue[1] - 2025 revenue outlook anticipates a 4-6x increase to $200-300 million, impacted by a $150 million reduction from converting "build and transfer" projects to "own and operate" assets[1] Expenses and Cost Management - Research and development expenses for the year were $25,999, down 29.5% from $37,104 in 2023[16] - Operating expenses increased to $136,183 for the year, up 9.6% from $124,267 in 2023[16] - GAAP operating expenses for Q4 2024 were $52,996,000, an increase of 87.8% from $28,214,000 in Q4 2023[22] - Cost optimization initiatives will continue in 2025, focusing on accretive and cash-generative projects[1] Equity and Assets - Total current assets decreased significantly to $68,905 from $279,582, a decline of 75.3% year-over-year[14] - The company reported a total stockholders' equity of $126,256, down 43.6% from $223,793 in 2023[14] - Total liabilities decreased to $57,633 from $116,960, a reduction of 50.8% compared to the previous year[14] Other Financial Metrics - Provision for credit losses will be treated as a non-GAAP adjustment starting September 30, 2024, reflecting management's view on operational performance[20] - GAAP S&M expenses for Q4 2024 were $2,461,000, down 46.5% from $4,601,000 in Q4 2023[20] - Adjusted S&M expenses (non-GAAP) for Q4 2024 were $1,590,000, a decrease of 44.3% from $2,851,000 in Q4 2023[20] - GAAP R&D expenses for Q4 2024 were $6,378,000, a decline of 15.5% from $7,552,000 in Q4 2023[20] - Adjusted R&D expenses (non-GAAP) for Q4 2024 were $4,192,000, down 31.9% from $6,145,000 in Q4 2023[20] - GAAP G&A expenses for Q4 2024 were $16,373,000, an increase of 2.8% from $15,924,000 in Q4 2023[20] - Adjusted G&A expenses (non-GAAP) for Q4 2024 were $10,284,000, up 3.6% from $9,923,000 in Q4 2023[20]

Financial Data and Key Metrics - Revenue backlog grew by over 33% in Q3 2024, supporting future revenue ramp in 2025 and beyond [16] - Gross margin for Q3 2024 was 40.3%, up from 4.2% a year ago, driven by favorable revenue mix from software and services [34] - Year-to-date gross margin is 28.3%, above the guided range of 15% to 25% for full-year 2024 [34] - Adjusted operating expense was $15.2 million in Q3, down 13% YoY and 7% QoQ, reflecting organizational realignment [35] - Adjusted EBITDA was negative $14.7 million in Q3, improving 5% QoQ but weaker YoY due to project timing and lower gross profit [35] - Cash and cash equivalents stood at $78 million as of September 30, 2024, down from $113 million in Q2 2024 [37] Business Line Performance - The company announced new projects in the US, including a Gridmatic offtake agreement for a Texas battery site and a new project with Jupiter Power [17] - The company is transitioning to a build, own, and operate strategy, which is expected to deliver long-term revenue streams with attractive margins [18] - The company is focusing on reducing capital expenditure and operating expenses through optimal design and maintenance of storage assets [18] - The company is leveraging its expertise in software development and multi-technology battery storage integration to enhance execution and reduce project timelines [10] Market Performance - The Australian market is a key focus, with a pipeline of projects exceeding 5 gigawatt hours and plans to double the team size and triple investment in the region [15] - The company announced a 1 gigawatt hour project in New South Wales, Australia, in partnership with EnerVest [15] - The company is also expanding in the US, with projects in Texas and California, including the Calistoga Resiliency Center, the largest hybrid green hydrogen energy storage system in the world [10][17] Strategic Direction and Industry Competition - The company is focusing on long-term value creation by retaining ownership of cash-generative storage assets, such as the Cross Trails battery energy storage project in Texas [31] - The company is leveraging its expertise in energy storage to address grid resiliency and meet rising energy demand, particularly from data center expansions [6][7] - The company is innovating in gravity energy storage, with the Rudong project in China achieving 80% to 85% round-trip efficiency, a significant milestone in long-duration energy storage [23][24] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the team in navigating capital market volatility and geopolitical uncertainties [5][6] - The company reaffirmed its annual guidance, tightening the range as it approaches the end of the year, with strong shipment and revenue recognition expected in Q4 [28][29] - Management emphasized the importance of the build, own, and operate strategy for long-term shareholder value, with expected unlevered double-digit IRRs and EBITDA margins of 70% to 80% [40][43] Other Important Information - The company is working with Jefferies on project financing for the Calistoga and Cross Trails projects, expecting to bring $60 million to $80 million in cash back onto the balance sheet [39] - The company is exploring non-dilutive financing options, including partnerships with strategic investors, to fund future projects [69] - The company is recognized by Time Magazine as one of the best inventions in 2024 for its gravity energy storage technology [25] Q&A Session Summary Question: Ownership Opportunities and Financing - The company is looking to add significant capacity to its balance sheet in 2025 and 2026, with opportunities in the hundreds of millions of dollars, leveraging its reputation for execution and positive unit economics [52] - The company is considering both immediate revenue recognition through EPC projects and long-term value creation through owned and operated projects, depending on the best interest of shareholders [53][55] Question: 2024 Guidance and Quarterly Revenue Progression - The company expects Q4 revenue to be at the lower end of the guidance range, with potential upside from expedited shipments and revenue recognition [58][59] - The company is transitioning to a more predictable revenue model with long-term offtake agreements, aiming for annualized EBITDA of $50 million to $100 million over the next 12 to 24 months [61][62] Question: Snyder Project Adjustments - The Snyder project has been expanded to include multiple gravity technologies (EVx, EVy, and modular pumped hydro) and will serve as a demonstration site for the company's latest innovations [65][66] Question: Battery Storage Technology Improvements - The company is focusing on achieving higher energy density and safety in battery storage projects, leveraging its expertise in civil and structural engineering [74][75] Question: Rudong Gravity Storage Project Efficiency - The Rudong project in China has achieved 82% to 83% round-trip efficiency, with future iterations expected to be customized by region, potentially improving efficiency and reducing timelines [78]

Company Performance - Energy Vault Holdings, Inc. reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.15, and compared to a loss of $0.13 per share a year ago, indicating a negative earnings surprise of -20% [1] - The company posted revenues of $1.2 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 75.02%, and a significant decline from year-ago revenues of $172.21 million [2] - Energy Vault has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in financial performance [2] Stock Performance - Energy Vault shares have declined approximately 11.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current Zacks Rank for Energy Vault is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $39.9 million, and for the current fiscal year, it is -$0.60 on revenues of $56.25 million [7] - The outlook for the Alternative Energy - Other industry, to which Energy Vault belongs, is currently in the bottom 41% of over 250 Zacks industries, which may negatively impact stock performance [8]