Energy Vault (NYSE:NRGV) Q4 2025 Earnings call March 17, 2026 04:30 PM ET Company ParticipantsMichael Beer - CFONoel Parks - Managing Director of Energy ResearchRobert Piconi - Chairman and CEOSid Rajeev - Head of ResearchOperatorPlease note this conference is being recorded. I will now turn the conference over to your host, Michael Beer, Chief Financial Officer. Please go ahead, sir.Michael BeerThank you. Hello, and welcome to Energy Vault's fourth quarter and full year 2025 financial results conference ca ...

Financial Data and Key Metrics Changes - Q4 revenue reached $153.3 million, a significant increase from $33.5 million in the prior year quarter, reflecting strong project execution in Australia and the US [35] - Full year revenue was $203.7 million, representing over 340% growth year-over-year, driven by energy storage solutions ramp-up [35] - GAAP gross profit for Q4 was $31.6 million, compared to $2.6 million in the prior year quarter, resulting in a gross margin of 20.6% versus 7.8% [36] - Full year GAAP gross profit reached $48 million, improving nearly eight-fold versus the prior year, with a gross margin of 23.6%, up 10 percentage points from 13.4% [36] - Adjusted EBITDA turned positive at $9.8 million in Q4, compared to a loss of $13.4 million in the prior year quarter [36] - Total cash as of December 31, 2025, was $103.4 million, up more than three-fold versus the prior year [37] Business Line Data and Key Metrics Changes - The company reported a contract backlog of $1.3 billion, representing 3x growth versus the prior year and 42% sequential growth [39] - Contracted megawatts increased to 540 MW, which includes projects in operation and construction [8][16] - The Asset Vault platform is expected to generate $10 million in annualized adjusted EBITDA from the first two operational assets [43] Market Data and Key Metrics Changes - The company is actively progressing opportunities valued at more than $3 billion associated with 1.8 gigawatts of capacity [42] - The Australian development partner was awarded a 14-year long-term energy service agreement for the Ebor battery project [39] Company Strategy and Development Direction - The company is transitioning to an Asset Vault model, focusing on owning and operating energy storage projects rather than just delivering technology [15][19] - The strategy aims to create predictable, recurring, and high-margin infrastructure cash flows while unlocking synergies with the EPC integration business [43] - The company is targeting to scale to over 3 gigawatts by 2030, with a projected EBITDA of $1.5 billion+ [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in liquidity and the ability to execute the growth strategy, highlighting the importance of cash for project financing [11][14] - The company faced challenges in the first half of 2025 due to tariffs and market uncertainty but managed to achieve its original revenue guidance [10][21] - The outlook for 2026 estimates revenue in the range of $225-$300 million, reflecting growth from third-party projects and contributions from the Asset Vault [44] Other Important Information - The company completed a $300 million preferred equity agreement to support the Asset Vault platform [38] - The company is focusing on sustainability, finishing in the top 2% in S&P Global's corporate sustainability assessments [25] Q&A Session Summary Question: Can you discuss the evolution of the EMS platform? - Management highlighted significant investments in software to optimize operations and asset management, including predictive analytics for safety and efficiency [50][51] Question: What are the market trends for fuel cells in data centers? - The company is exploring various technologies to optimize data center operations, including hybrid systems that combine renewable and storage assets [56][57] Question: Can you provide details on project financing for Sosa and Stony Creek? - The Sosa project is expected to cost $125 million-$150 million, while Stony Creek is quoted at AUD 350 million, with expected project leverage exceeding 50% [70][71] Question: How much of the 2025 revenue comes from third-party deployments versus Asset Vault? - The majority of revenue in 2026 is expected to come from third-party projects, with Asset Vault contributing upwards of $10 million in recurring EBITDA [72][76] Question: Does the contract backlog include the latest project signed after December? - Yes, the backlog includes the fifth project, with additional upside associated with the fourth project [78]