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 - The contract revenue backlog increased by 47% quarter over quarter to $954 million, and up 120% year to date, driven by new third-party project and service agreements, as well as long-term off-take agreements in the US and Australia [11][15] - Revenue for Q2 was $8.5 million, representing a 126% increase year over year, attributed to activity across the Australian project portfolio and the commencement of the Cross Trails battery energy storage system in Texas [16][12] - GAAP gross profit rose by 140% year over year to $2.5 million, with a gross margin of 29.6% [12][16] - Adjusted EBITDA improved by 11% year over year, narrowing the loss to $13.7 million from a loss of $15.4 million in Q2 2024 [12][17] - Cash improved by 23% sequentially to $58.1 million at June 30, finishing at the high end of previous guidance [13][17] Business Line Data and Key Metrics Changes - The company has successfully placed its first two owned projects in Texas and California into service, which are expected to generate nearly $10 million in recurring annual EBITDA [20] - The recently acquired Stoney Creek project is expected to generate approximately $20 million in annual recurring EBITDA once operational, further accelerating the path to a $100 million recurring EBITDA goal over the next three to four years [20] Market Data and Key Metrics Changes - The total developed pipeline for advanced projects is around $2.4 billion, or roughly 6 gigawatt hours, expected to be strengthened by the launch of AssetVault [16] - The company anticipates full-year 2025 revenue between $200 million and $250 million, maintaining prior guidance [18] Company Strategy and Development Direction - The company is focusing on leveraging its technology and operational expertise to develop, own, and operate energy storage systems, aiming for more predictable and profitable revenue streams supported by long-term off-take agreements [4][5] - A $300 million preferred equity investment has been announced to fund the development, construction, and operation of storage projects, enabling over $1 billion in CapEx spending [19] - The Asset Vault subsidiary will contract with Energy Vault for product design, construction, commissioning, and long-term service agreements, providing additional cash flow streams [7][19] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of execution and maintaining a strong reputation in the market, highlighting successful project delivery and operational reliability [10] - The company expects to see benefits from the new capital investment as it focuses on executing its development portfolio without being involved in capital raise processes [68] Other Important Information - The company completed the Cross Trails project financing of $17.8 million in July and anticipates another $27 million in net investment tax credit proceeds in September [13][18] - The Stoney Creek project is expected to achieve ready-to-build status by Q1 2026, with construction commencing thereafter [63] Q&A Session Summary Question: Can you share more details on the preferred equity transaction? - Management stated that details regarding the return structure and preferred dividend yield will be discussed in a virtual investor call post-transaction close [24][25] Question: What is the financing strategy for the $1 billion CapEx? - Management indicated that approximately half of the project costs would be covered through project financing, with 30% to 40% from investment tax credits, and the remaining 20% would involve a split between common and preferred equity [27][29] Question: Can you provide updates on the development status of projects planned for 2027? - Management confirmed that several projects are in mid to later development stages, with Stoney Creek being a significant one expected to be operational by early 2027 [34][36] Question: What does the exclusivity of the preferred financing arrangement imply? - Management clarified that the exclusivity pertains specifically to the Asset Vault and the preferred equity for funding these projects [40][41] Question: How does the Asset Vault business relate to the current business? - Management explained that the $100 million EBITDA from the Asset Vault is complementary to the existing energy storage solutions business, with additional cash flow streams expected to flow back to the parent company [56][58]