Energy Vault Holdings, Inc. Q4 FY2024 earnings call

• Announcement of the Stoney Creek BESS Long-Term Energy Service Agreement (LTESA) with Enervest, a 14-year contract with minimum $20M and potential merchant revenue sharing. • Contract bookings grew 90% quarter-over-quarter to $660 million, with significant regional drivers in Australia and the US. • 2024 recognized revenue was just over $46 million, slightly below guidance due to strategic choices to own energy infrastructure assets. • Progress on the Calistoga Resiliency Center, including mechanical completion and expected Q2 operation. • Snyder commercial demonstration unit has completed gravity demonstrations and is in commissioning. • Build, own and operate portfolio has 840 megawatts with potential revenue over $2B to $2.5B over 10-15 years.

The company's build and transfer business saw contract bookings increase significantly quarter-over-quarter by 90%, growing the backlog to $660 million from $350 million. The build, own and operate strategy includes projects like the Calistoga Resiliency Center, which is under commissioning. In 2024, recognized revenue finished just over $46 million. Gross margins improved year-over-year from about 5% to 13.5%, but were slightly below expected due to a supplier issue. The build, own and operate portfolio now consists of six projects totaling 840 megawatts with potential revenue streams over 10-15 years.

• 2025 revenue outlook is $200 million to $300 million (midpoint $250 million), impacted by the Enervest project conversion to LTESA and battery price declines. • Expect large uptick in recognized revenue from projects under execution and pending opportunities, with desire to secure deliveries prior to 2026 tariff increases. • Project financing for Calistoga expected to close in April 2025, returning $28 million to the balance sheet. • Expect margin expansion in 2025 due to higher revenues and better supply chain management.

• Supply chain issues, such as a supplier bankruptcy affecting a project in 2024, though the same customer awarded a second project. • Tariff impacts on US projects, with potential cost increases and delays, but global diversification (Australia) helps mitigate. • Market volatility and battery price fluctuations affecting project sizing and revenue.

Q: What are the gating factors to hitting operational targets for Calistoga?

A: Calistoga is in commissioning, mechanically complete, and expected to ramp up through software testing, system energization, and filling green hydrogen tanks, with project financing committed and expected in April.

Q: What are the gating factors to hitting operational targets for Calistoga?

A: Calistoga is in commissioning, mechanically complete, and expected to ramp up through software testing, system energization, and filling green hydrogen tanks, with project financing committed and expected in April.

Q: Can you give an update on Snyder?

A: Snyder has completed gravity demonstrations (EVy and EVx) and is commissioning, with a full orchestration of renewable generation, storage, and software.

Q: What's the color on Q4 credit provision?

A: There was a credit asset from a gravity license in 2022, and a reserve was taken due to delayed payments, with ongoing communication to collect the outstanding balance.

Q: Any color on Cross Trails project financing timing?

A: Actively in the market, having conversations, and aiming to secure financing and complete the project over the next couple of months.

Q: Are licensing royalties included in 2025 revenue guidance?

A: Licensing royalties are de minimis in the $200 million to $300 million guidance, though gravity is high margin but not a meaningful part of the mix.

Q: With lithium-ion price decline, will margin be higher in 2025?

A: Expect margin expansion in 2025 due to supply chain management, aggressive supplier pricing, and growing revenue base from backlog.