Energy Vault Holdings, Inc. Q1 FY2025 earnings call

• Backlog growth: Up about 50% in bookings since Q4, with strength in Australia and U.S. markets. Revenue in the quarter up 10% Y/Y due to start of Australia projects and India license agreement.
• Gross margin: 57% in Q1, reflecting regional mix with Australia and license in India.
• Cash situation: Q1 cash finished at $47.2 million, with projected increases from project financings and ITC sales. First owned and operated asset in Cross Trails, Texas, operating and set to go into commercial operation June 1.
• Project financings: First project financing completed at Calistoga Resiliency Center, with expected proceeds from Cross Trails project financing and ITC sales.
• India license: Agreement with India's SPML Infra for 10-year, 30-gigawatt-hour license to manufacture and deploy B-VAULT battery energy storage technology platforms.

In the first quarter, revenue increased 10% year over year, driven by the start of Australia projects and an agreement with India for licensing battery hardware and software. Gross margin was 57% in the quarter, nearly double the 26% from the previous year. The company's revenue backlog is $648 million, which increased 49% year-to-date, including projects in the U.S., Switzerland, and Australia. There are 2.6 gigawatt-hours in projects in Australia either contracted or under acquisition, with additional developed pipeline opportunities totaling 8.8 gigawatt-hours or $2.1 billion.

• Maintains current revenue guidance. Potential upside from U.S.-China tariff pause, with 90% of backlog not impacted by U.S. tariffs. Secured up to 2 gigawatt hours of capacity for 2026 delivery if needed. Expects cash to increase to $50-60 million in 2Q and $60-75 million in 3Q from project financings and ITC sales.
• Owned and operated portfolio: First three projects expected to deliver ~$30 million in annual recurring project EBITDA over 15+ years, with seven targets aiming for ~$100 million in recurring annual EBITDA once in service.

• Tariffs and geopolitical uncertainties: Impacted project bookings and deliveries, but tariff pause provides potential for restarting contracting. Geopolitical factors could still affect project timelines and deliveries.

Q: Thoughts on project finance process for Calistoga and differences in explaining to different audiences?

A: Projects have long-term off-takers (e.g., PG&E for Calistoga), conventional bankable tech, and successful track record of delivering projects. Long-term off-takes de-risk lending, and the company's execution in delivering projects earns credibility. Dynamics vary by market, but long-term agreements and successful execution drive better project financing.