Energy Vault Holdings, Inc. Q4 FY2025 earnings call

• Third quarter marked formal launch of asset vault platform, solid execution across global project base, and establishment of financial foundation for growth.
• Built, commissioned, and started operating initial projects in Texas and California, with revenue included in Q3 results.
• Closed two consecutive project financings, with cash growing for three consecutive quarters and expecting more in Q4.
• Announced close of $300 million preferred equity transaction with Orion Infrastructure, used capital to purchase projects.
• Project total at 4 and 340 megawatt operating or in construction, set to deliver over $40 million in recurring annual EBITDA.
• Deepening collaboration with Crusoe, vertically integrating in energy storage.
• Q3 revenue ramped with $33 million, expecting larger jump in Q4 with deliveries in Australia and U.S.
• Strong unit economics with gross margins of 27% in Q3 and YTD near 33%.
• EBITDA loss narrowed to $6 million on $33 million revenue.
• Cash creation continued with project financings and expected investment tax credits in Q4.

Q3 2025 revenue was $33.3 million, a 27x increase year-over-year. Q3 gross profit was $9 million, improving nearly 18 times versus the prior year. Q3 gross margin was 27% and year-to-date gross margin was 32.6%. Q3 adjusted EBITDA loss narrowed to $6 million. Cash as of September 30, 2025, was $61.9 million, up 7% sequentially. Revenue backlog was $920 million, up 112% year to date. Total developed pipeline for advanced projects was around $2.1 billion or roughly 8.7 gigawatt hours.

• Estimating full year 2025 revenue of $200 to $250 million within prior guidance range.
• Estimating full-year 2025 gross margin of between 14% and 16%.
• Estimating $75 to $100 million in total cash at end of 2025, unchanged versus previous guidance.
• AssetVault assets expected to contribute annualized adjusted EBITDA of $10 million standalone.
• Fund 1 of AssetVault expected to contribute roughly $40 million in recurring adjusted EBITDA by year-end 2027 and $100 to $150 million by year-end 2029.

• Macro uncertainty and volatility in the market, including tariff side impacts on battery shipments from China.
• Delays in deal structures due to changing tariffs and market dynamics.
• Need to carefully evaluate projects in the asset vault side to ensure they meet criteria.

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

A: 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 a reflection of some of those activities. Furthermore, you know, the company was in a different phase, you know, following the IPO and in 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 does not include the recently announced projects in Albania, right? Also, any plans to add these projects to Asset Vault 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'd 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. Okay. And one would expect those to be added to backlog. Yeah. No, to asset vault. They'll be added to the backlog for the broader company, and it'll also be part of asset vault. That's correct.

Q: The development pipeline showed a massive increase from 5.9 to 8.7 gigawatt hour. 300 million added. Which projects specifically were added to this?

A: We've not disclosed the specific projects. These are what we internally classify as stage four or stage five 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.