Energy Vault Reports First Quarter 2025 Financial Results

Contract revenue backlog of $648 million, up 49% year-to-date on Australia and U.S. strength

Q1 2025 Revenue increased by 10% versus prior year to $8.5 million driven by Australia projects and India license

Q1 2025 GAAP gross margin more than doubled to 57.1% versus prior year on favorable regional and revenue mix

Quarter-end Cash improved 57% versus year-end 2024 to $47.2 million as the Calistoga project financing was completed; additional $45 million from the Cross Trails project financing and sale of ITC's expected in Q2 and Q3

Milestone achieved of Energy Vault's first owned & operated energy storage asset, Cross Trails in Texas, now complete and generating revenue during the commissioning process ahead of commercial operations this month

Q1 2025 Adjusted EBITDA improved 22%, narrowing the loss to $11.3 million from $14.5 million in Q1 2024, aided by improved gross margin and reduced operating costs

Implementing a 15-25% reduction in quarterly adjusted operating expense given ongoing sector volatility impacting the U.S. market and portfolio optimization while continuing to ramp up activity/investments in Australia

Energy Asset Management (build-own-operate) portfolio continues to progress, with first three projects expected to deliver $30 million in annual, recurring project EBITDA over 15 year-plus life

Encouraging news today on China/U.S. Tariff pause; pending final positive resolution and timing, no change to current guidance, with potential revenue upside on accelerated U.S. battery deliveries in 2025

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--May 12, 2025-- 

Energy Vault Holdings, Inc. (NYSE: NRGV) ("Energy Vault" or "the Company"), a leader in sustainable, grid-scale energy storage solutions, announced financial results for the first quarter ended March 31, 2025.

"We made good progress in the quarter across a series of growth drivers including first battery project construction in Australia, a 10-year license of our innovative B-Vault battery hardware and software architecture to support local manufacturing in India given the growing market demand, and having our first wholly owned energy storage asset operating in the market in Texas," said Robert Piconi, Chairman and CEO of Energy Vault. "Our geographic customer diversity and existing owned storage assets under operation and commissioning in Texas and California has helped to offset a very volatile U.S. market environment for new battery projects given recent China-US tariff disputes. Importantly, as expected, Q1 also saw the first project financing close and thus a 57% increase in total cash for the quarter with another roughly $45-50 million upcoming as we begin to return cash back on the balance sheet, including already executed contracts for monetization of our investment tax credits."

First Quarter 2025 Financial Highlights

   -- Contract revenue backlog reached $648 million, 49% higher year-to-date, 
      and is largely shielded from U.S. tariff risks due to a strong Australian 
      presence, license agreements and enhanced asset ownership, representing 
      nearly 90% of the backlog today. 
 
   -- Q1 2025 revenue, at $8.5 million, rose 10% year-over-year and was driven 
      chiefly by Australian battery storage projects plus a high-margin 
      licensing deal in India. 
 
   -- Q1 2025 GAAP gross margin climbed to 57.1% from 26.7% a year ago, driven 
      mainly by the favorable revenue mix stemming from the India license 
      agreement. 
 
   -- Q1 2025 cash finished at $47.2 million, up approximately $17 million 
      compared to $30.1 million at year-end 2024, reflecting proceeds from the 
      Calistoga Resiliency Center $(CRC)$ project financing. 
 
   -- Q1 2025 GAAP operating expenses of $25.8 million and adjusted operating 
      expenses of $16.2 million decreased by 3% and 4%, respectively, 
      year-over-year reflecting disciplined cost-side management. 
 
   -- Q1 2025 Net loss remained flat at ($21.1) million year-over-year 
 
   -- Q1 2025 Adjusted EBITDA improved 22% to ($11.3) million from ($14.5) 
      million year-over-year, aided by additional high-margin license revenue 
      and reduced operating costs. 
 
   -- Q1 2025 Adjusted Net loss improved 10% to ($11.7) million from ($13.0) 
      million year-over-year. 

Operating and Other Highlights

   -- Energy Vault signs a 10-year, 30+ GWh license and royalty agreement with 
      India's SPML Infra to manufacture and deploy the B--Vault battery energy 
      storage technology platform. 
 
   -- 8.5 MW / 293 MWh Calistoga Resiliency Center (CRC) remains on track for 
      commercial operation in June following the $28 million project financing 
      with Eagle Point Capital announced previously. 
 
   -- 57 MW / 114 MWh Cross Trails project mechanically complete ahead of 
      schedule and has begun revenue generation during the commissioning phase 
      associated with the 10-year Gridmatic offtake agreement. 
 
   -- Active projects continue to expand in Australia, including more than 2.6 
      GWh of projects in various stages of construction or development. 
 
   -- Leveraging our global supply chain and manufacturing partnerships to 
      reduce tariff impacts on U.S. customers. 

Business Outlook

   -- Near-term targets include reducing most recently reported quarterly 
      adjusted operating expenses by 15-25% to a quarterly run rate of $12-14 
      million as compared to $16.2 million in Q1 2025 while continuing to 
      invest in profitable engagements as Australia's market demonstrates 
      robust growth potential. 
 
   -- The 57 MW / 114 MWh Cross Trails project financing is expected to close 
      during Q2 2025, yielding approximately $20 million in gross proceeds 
      (with an additional $12 million anticipated for the transfer/sale of the 
      ITC under the IRA). 
 
   -- Transfer and sale of three ITCs with a reputable buyer expected to 
      generate proceeds in September in excess of $40 million (of which roughly 
      $13 million of which are included in the CRC project financing structure 
      and the $12 million associated with Cross Trails). 
 
   -- Encouraging news today on China/U.S. Tariff pause; pending final positive 
      resolution and timing, no change to current guidance, with potential 
      revenue upside on accelerated U.S. battery deliveries in 2025. 

Conference Call Information

Energy Vault will host a conference call today, May 12, 2025 at 4:30 PM ET to discuss the results, followed by a Q&A session. A live webcast of the call can be accessed at https://investors.energyvault.com/events-and-presentations/events. Participants may access the call at 1-877-704-4453, international callers may use 1-201-389-0920, and request to join the Energy Vault Holdings earnings call. A live webcast will also be available at https://investors.energyvault.com/events-and-presentations/events. A telephonic replay of the call will be available shortly after the conclusion of the call and until Monday, May 26, 2025. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13753464. An archived replay of the call will also be available on the investors portion of the Energy Vault website at https://investors.energyvault.com/.

About Energy Vault

Energy Vault$(R)$ develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company's hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault's innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault's gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.

Non-GAAP Measures

Energy Vault has provided a reconciliation of net loss to adjusted EBITDA, with net loss being the most directly comparable GAAP measure, for the historical periods in this press release. Energy Vault has also provided a reconciliation of reported S&M, R&D and G&A expenses to adjusted S&M expenses, adjusted R&D expenses, and adjusted G&A expenses, respectively, and a reconciliation of reported operating expenses to adjusted operating expenses for the historical periods in this press release. A reconciliation of projected non-GAAP measures for the full-year 2024 has not been provided because certain information necessary to calculate such measures on a GAAP basis is not available without unreasonable efforts or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.

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