Energy Vault Holdings, Inc. Q2 FY2025 earnings call

• Announced $300 million preferred equity investment for Asset Vault, enabling over $1 billion in CapEx and project financing for storage IPP projects. • First two owned projects in Texas and California placed in service and financed. • Q2 financial results: contract revenue backlog up, revenue increased, gross profit and adjusted EBITDA improved, cash position strengthened. • Achieved final close of acquisition of Stoney Creek Battery Energy Storage System in Australia, with construction expected in Q1 2026 and operational in 2027. • Continued cost discipline with $6.5 million in annualized savings, offset by strategic investments in Australia.

Contract revenue backlog increased quarter-over-quarter by 47% to $954 million, up 120% year-to-date. Q2 revenue was $8.5 million, up 126% year-over-year, driven by Australian project portfolio and Cross Trails in Texas. GAAP gross profit increased 140% year-over-year to $2.5 million, with a gross margin of 29.6%. Adjusted EBITDA improved 11% year-over-year, narrowing the loss to $13.7 million from $15.4 million in Q2 2024. Cash improved 23% from last quarter to $58.1 million at June 30.

• Full year 2025 revenue estimated between $200 million and $250 million. • Cash expected to be between $60 million and $75 million at the end of the third quarter. • Asset Vault expected to drive growth, with Stoney Creek project expected to generate $20 million in annual recurring EBITDA once operational.

• Forward-looking statements subject to risks and uncertainties, including factors that could cause actual results to differ from estimates. • Diligence required from banks, infrastructure funds, government entities, etc., which involve checking prior customers and partners.

Q: Congratulations on the preferred equity transaction. Could you share more details on the return structure, preferred dividend yield, or milestones tied to equity participation?

A: Robert Piconi and Michael Beer responded that details will be walked through at the virtual investor call post-close.

Q: Could you speak broadly about the financing strategy in terms of project level debt, tax equity, and Energy Vault's equity contribution?

A: Michael Beer explained a typical split for a $100 million project, with half covered by project financing, 30-40% by ITCs, and remaining 20% split between common equity and preferred.

Q: Could you share more detail on projects in the pipeline, like permits, interconnection, and contracts?

A: Robert Piconi discussed that projects like Stoney Creek are in various development stages, with some in mid-development, others in later stages, and progress on permits, interconnection, and contracts.