Energy Vault’s Earnings Call: Growth Amid Challenges

Energy Vault Holdings, Inc. ((NRGV)) has held its Q1 earnings call. Read on for the main highlights of the call.

Energy Vault’s recent earnings call painted a picture of optimism tempered by challenges. The company reported significant revenue growth and an increased backlog, driven by successful project execution and new international agreements. However, the U.S. market posed challenges due to tariff uncertainties, and the company reported an adjusted EBITDA loss. Despite these hurdles, Energy Vault’s strong performance metrics and strategic progress provided a positive outlook.

Revenue Growth and Backlog Increase

Energy Vault reported a notable 10% year-over-year increase in revenue for the first quarter of 2025, primarily fueled by projects in Australia. The company’s revenue backlog saw a substantial 49% increase year-to-date, reaching $648 million, highlighting the robust demand for its innovative energy solutions.

Strong Gross Margin

The company achieved an impressive gross margin of 57.1% for Q1, nearly doubling from the previous year’s 26%. This improvement was largely attributed to a favorable revenue mix stemming from the India license agreement, showcasing the company’s strategic focus on high-margin projects.

Cash Position and Project Financing

Energy Vault’s cash position strengthened significantly, rising from $30 million at the end of 2024 to $47 million by the end of Q1 2025. This increase was bolstered by the completion of its first project financing for the Calistoga Resiliency Center, underscoring the company’s ability to secure funding for its ambitious projects.

Notable International Agreements

The company signed a significant 10-year license agreement with SPML Infra in India for its battery storage technology. This agreement reflects Energy Vault’s expansion into the growing battery storage sector in India, positioning the company as a key player in the international market.

Successful Project Execution

Energy Vault’s first owned and operated asset, Cross Trails in Texas, commenced operations ahead of schedule. The company anticipates these projects will contribute approximately $30 million in annual recurring project EBITDA over the next 15 years, highlighting its operational efficiency and strategic foresight.

U.S. Market Challenges

Despite the positive developments, Energy Vault faced challenges in the U.S. market due to tariff-related uncertainties. These issues caused delays in securing new bookings and impacted customer confidence, presenting a hurdle that the company is actively working to overcome.

Adjusted EBITDA Loss

The company reported an adjusted EBITDA loss of $11.3 million for Q1 2025, marking an improvement from the $14.5 million loss in the previous year. This reduction in loss was driven by improved gross margins and reduced operating costs, indicating a positive trend in financial management.

Forward-Looking Guidance

Energy Vault’s forward-looking guidance remains optimistic, with expectations of continued revenue growth driven by projects in Australia and a licensing agreement in India. The company anticipates its cash position to grow to $75 million as project financings and investment tax credits are realized. Despite the U.S.-China tariff pause, Energy Vault maintained its revenue guidance, supported by a diverse project portfolio largely unaffected by the tariffs.

In summary, Energy Vault’s earnings call highlighted a company on the rise, with strong revenue growth, an expanding backlog, and strategic international agreements. While challenges in the U.S. market and an adjusted EBITDA loss were noted, the overall sentiment was positive, driven by strong performance metrics and strategic progress. Investors and stakeholders can look forward to a promising future as Energy Vault continues to execute its ambitious growth strategy.