Energy Vault Holdings, Inc. Q3 FY2025 earnings call

• Launched the Asset Vault platform, with $300 million preferred equity agreement closed with Orion Infrastructure.
• Purchased a 150-megawatt interconnect site outside Houston, Texas and had a 125-megawatt site in Australia.
• Executed global projects, with revenue from 2 initial projects in Texas and California included in Q3 results.
• Gross margins improved due to strong project delivery and supply chain management.
• Continued to grow cash balance through project financings and expected investment tax credits in Q4.

In the third quarter of 2025, Energy Vault reported revenue of $33 million, a substantial increase year-over-year and sequentially. Gross margins were 27% for the quarter, with year-to-date gross margins nearly 33%. EBITDA loss narrowed to $6 million on $33 million revenue. The contract backlog remained near $920 million, up 112% year-to-date. Cash balance as of September 30, 2025, was $61.9 million, up 7% sequentially. The total development pipeline for advanced projects, third party and those within Asset Vault is around $2.1 billion or roughly 8.7 gigawatt hours.

• Estimates full year 2025 revenue of $200 million to $250 million within prior guidance range.
• Estimates full year 2025 gross margin of between 14% and 16%.
• Expect $75 million to $100 million in total cash at the end of 2025, unchanged versus previous guidance.
• Asset Vault Fund 1 expected to contribute roughly $40 million in recurring adjusted EBITDA by year-end 2027 and $100 million to $150 million by year-end 2029.

• Macro uncertainty and volatility in the market, including tariff fluctuations.
• Need to navigate through various transactions and regulatory approvals for projects.

Q: Just one item I noticed in the P&L is it looks like R&D expense actually declined sequentially a bit. And I was just curious if you had any updated thoughts on with some of the structure changes, just what the -- how the expense lines might be affected as if there's more capitalization going on going forward or something.

A: Sure. Happy to take this one. I would say it's a confluence of a handful of things. As you know, we've been tightening the belt from a cost perspective really over the last year. So this is the reflection of some of those activities. Furthermore, the company was in a different phase following the IPO and around that time where we were investing heavily in R&D. And at this stage, we're looking to harvest the benefits of some of those earlier investments. And so a little less focus around R&D and more around certain activities such as Asset Vault and so forth.

Q: Just to confirm, the current backlog, it does not include the recently announced projects in Albania, right? And also, any plans to add these projects to asset in the future?

A: That's right. So the $920 million backlog today does not include either the SOSA project or the project that we had announced with EU Green. The SOSA project is part of Asset Vault and will contribute to a lot of those recurring EBITDA numbers that we had guided previously. I would expect those to be added to backlog, yes.

Q: Just one more. The development pipeline showed a massive increase from 5.9 to 8.7 gigawatt hour, $300 million added. What -- which projects specifically were added to this?

A: We've not disclosed the specific projects. These are what we internally classify as Stage 4 or Stage 5 opportunities where we've either been shortlisted or awarded opportunities. And obviously, as we curate the pipeline around Asset Vault, there certainly are -- there's been some ins and outs, and that is likely reflected in that change.