Energy Vault projects $40M recurring EBITDA from Asset Vault Fund 1 as platform launches

Earnings Call Insights: Energy Vault Holdings, Inc. (NRGV) Q3 2025

MANAGEMENT VIEW

* Robert Piconi, Co-Founder, Chairman & CEO, emphasized that "our third quarter of 2025 was one of the most pivotal in Energy Vault's history." He highlighted the formal launch of the Asset Vault platform, the first operation of two projects in Texas and California with their revenue included in Q3 results for the first time, and two consecutive project financings closed in the last six months.
* Piconi stated that the company announced the close of a $300 million preferred equity transaction with Orion Infrastructure, which is part of a broader $1.1 billion capital deployment strategy. "We immediately put that capital to work last month with the purchase of a 150-megawatt interconnect site outside of Houston, Texas from Savion, a U.S. division of Shell."
* He further mentioned the addition of the Stoney Creek site in Australia and projected that with four projects either operating or in construction, they will deliver over $40 million in recurring annual EBITDA within the next 12 to 24 months.
* Piconi explained, "contract backlog remains near $1 billion for us to execute upon in the years to come, which has more than doubled this year and about 4x what it was from this time last year in 2024."
* Michael Beer, CFO & Head of Corporate Services, reported, "We delivered Q3 revenue of $33.3 million compared to $1.2 million a year ago, representing a 27x increase year-over-year, driven by strong execution on Australia projects and the initial contribution from the Asset Vault assets."
* Beer also stated that "Q3 '25 GAAP gross profit of $9 million improved nearly 18x versus the prior year, driven by increased revenue and favorable business mix, resulting in a Q3 2025 gross margin of 27% and 32.6% year-to-date."
* Beer noted the closing of a $300 million preferred equity agreement with OIC for Asset Vault and an expected $40 million of investment tax credit proceeds in Q4, projecting a year-end cash balance of $75 million to $100 million.

OUTLOOK

* Beer maintained guidance for full year 2025 revenue of $200 million to $250 million and a full year gross margin of between 14% and 16%, stating this is "in line with our historical averages."
* The company expects $75 million to $100 million in total cash at year-end, unchanged versus previous guidance.
* Asset Vault's four maiden projects are expected to contribute roughly $40 million in recurring adjusted EBITDA by year-end 2027, with a target of $100 million to $150 million in recurring adjusted EBITDA by year-end 2029 from yet-to-be-disclosed projects.

FINANCIAL RESULTS

* Q3 revenue was $33.3 million, up significantly from $1.2 million a year ago, with the increase driven by project execution in Australia and initial Asset Vault contributions.
* GAAP gross profit for the quarter was $9 million, with gross margin at 27% for Q3 and 32.6% year-to-date.
* Adjusted EBITDA loss narrowed to $6 million from a loss of $14.7 million in the prior-year quarter.
* Cash as of September 30, 2025, was $61.9 million, a 7% sequential increase.
* The revenue backlog is $920 million, up 112% year-to-date.

Q&A

* Noel Parks, Tuohy Brothers, asked about the sequential decline in R&D expense. Michael Beer responded, "it's a confluence of a handful of things," citing cost discipline and a shift of focus from R&D to activities such as Asset Vault.
* Parks also questioned the effect of macro uncertainty on customer acquisition. Robert Piconi acknowledged, "this year, for sure, if anything, has been quite volatile and dynamic ... that's definitely caused some delays." He added, "from an Asset Vault perspective, we're seeing a pretty target-rich environment."
* Parks followed up regarding the pace of business with utilities; Piconi indicated the company is "holding our guidance" despite market volatility.
* Siddharth Rajeev, Fundamental Research Corp., asked if the backlog includes new projects in Albania and about pipeline growth. Beer confirmed the $920 million backlog does not include the SOSA project or the EU Green project and expects them to be added upon meeting milestones. He explained the pipeline increase comes from "Stage 4 or Stage 5 opportunities where we've either been shortlisted or awarded opportunities."

SENTIMENT ANALYSIS

* Analysts raised concerns about expense management, macro volatility, and project pipeline clarity, displaying a neutral to slightly positive tone, with congratulatory remarks on results and new initiatives.
* Management maintained a confident and optimistic tone during prepared remarks, focusing on execution and growth: "I think we were going to open it up for some questions now," and "we feel really good about that."
* Compared to the previous quarter, analyst sentiment remained consistent, while management's confidence increased with the successful launch of Asset Vault and capital raises.

QUARTER-OVER-QUARTER COMPARISON

* Guidance for full-year revenue and cash was maintained from the previous quarter, with specific reiteration of revenue in the $200 million to $250 million range and year-end cash projections.
* Strategy shifted from announcing funding for Asset Vault in Q2 to executing on project purchases, construction, and pipeline expansion in Q3, including new sites in Texas and Australia.
* The contract backlog and development pipeline saw increases, with backlog now at $920 million compared to $954 million in Q2, and pipeline growing from $2.4 billion (6 GWh) to $2.1 billion (8.7 GWh).
* Management’s tone was more assertive and forward-looking, highlighting execution and capital deployment, while analyst focus remained on project pipeline clarity and financial discipline.

RISKS AND CONCERNS

* Management acknowledged ongoing volatility from tariffs and the macro environment, which has caused delays and required adaptation in deal structures.
* The company noted only about 10% of backlog is exposed to U.S. tariff volatility and emphasized its agile response to battery price declines.
* Analyst questions highlighted concerns about R&D expense reductions, project pipeline transparency, and backlog composition.

FINAL TAKEAWAY

Energy Vault management underscored a transformative quarter marked by the formal launch of the Asset Vault platform, a significant revenue increase, and the successful closing of a $300 million preferred equity investment. With multiple projects advancing in the U.S. and Australia, a growing backlog, and recurring EBITDA from new assets projected to reach $40 million by year-end 2027, the company emphasized its commitment to execution, capital discipline, and long-term growth while navigating ongoing industry volatility.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/nrgv/earnings/transcripts]

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