NET Power (NPWR) AI Stock Analysis

• Market Cap: $488.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.26
• Revenue Growth: -94.96%
• EPS Growth: -579.85%
• Country: US
• Employees: 68
• Sector: Industrials
• Sector Strength: 74
• Industry: Industrial - Machinery
• EPS (TTM): -0.36
• Shares Outstanding: 77,882,960
• 10 Day Avg. Volume: 859,342
• 30 Day Avg. Volume: 1,337,665
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 3.46K
• Enterprise Value/Gross Profit: -300.94
• Enterprise Value/Ebitda: -5.60
• 1Y Price Target: $3.63
• Price Target Upside: 65.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $2.50 ▲(13.64% Upside)

NET Power's overall stock score reflects a mix of potential and challenges. The most significant factor is the company's financial performance, which shows growth potential but is hindered by negative profitability and cash flow issues. Technical analysis indicates a bearish trend, while valuation metrics are weak due to ongoing losses. The earnings call provides a positive outlook with strategic initiatives, but high costs and commercialization delays are concerns.

Positive Factors

Cost Efficiency

The integration of a traditional gas plant has reduced the LCOE of NPWR's solution from $150 to $100/MWh due to bonus depreciation and operational improvements.

Financial Performance

There is an attractive entry point as there is ~$533M of liquidity, ~3 years of runway, and well-resourced partners that can position the company to pursue large power generation.

Strategic Partnerships

Longer-term oriented strategic partners may do a follow-on to keep the company mission alive, with ~3 years of liquidity to work with to raise capital.

Negative Factors

Cost Inflation

Rising cost estimates for Project Permian are mainly driven by higher natural gas purification costs, transportation costs, labor costs, and cooling system costs.

Funding Challenges

There is a $600-900M funding shortfall for Project Permian, and securing this financing is crucial for the project's final investment decision.

Stock Performance

NPWR stock was down ~60% likely on cost inflation and new liquidity concerns.

NET Power Business Overview & Revenue Model

Company Description

NET Power (NPWR) is an energy technology company focused on the development and commercialization of clean and efficient natural gas power plants. The company utilizes its proprietary Allam Cycle technology, which aims to generate electricity without emitting carbon dioxide into the atmosphere, making it a leader in sustainable energy solutions.

How the Company Makes Money

NET Power makes money by licensing its Allam Cycle technology to power plant developers and operators around the world. The company also generates revenue through strategic partnerships and joint ventures with energy companies seeking to implement NET Power's carbon-neutral technology in their operations. Additionally, NET Power may earn income from engineering services and technical support provided to its partners to facilitate the integration and optimization of its technology. The company's revenue model is significantly influenced by the growing demand for clean energy solutions and regulatory pressures to reduce carbon emissions.

NET Power Financial Statement Overview

Summary

NET Power shows potential for growth with increased revenue, but persistent negative profitability and cash flow challenges raise concerns about operational efficiency and long-term viability. The strong equity position provides some financial stability, but improvements in profitability and cash management are essential.

Income Statement

NET Power has experienced inconsistent revenue growth, with a marked increase in total revenue from 2023 to 2024. However, the company has struggled with negative net income and gross profit margins over multiple years, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further highlight the operational inefficiencies that need addressing.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, suggesting financial stability. However, the negative net income has led to low return on equity (ROE), which indicates inefficient use of equity capital. The debt-to-equity ratio remains low, suggesting low leverage and potential for future borrowing if needed.

Cash Flow

While NET Power has improved its free cash flow position from 2023 to 2024, the operating cash flow remains negative, which is concerning for long-term sustainability. The free cash flow to net income ratio is unavailable due to negative net income, which complicates the assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.00K	250.00K	175.00K	580.00K	2.10M	45.00K
Gross Profit	-3.01M	219.00K	-50.67M	305.00K	1.27M	8.00K
EBITDA	-161.99M	-99.70M	-130.86M	-36.64M	-24.97M	-23.39M
Net Income	-180.99M	-49.19M	-77.23M	-54.78M	-9.80M	-36.40M
Balance Sheet
Total Assets	1.79B	2.29B	2.47B	351.85M	348.37M	107.08M
Cash, Cash Equivalents and Short-Term Investments	403.40M	507.57M	636.93M	5.16M	2.57M	12.78M
Total Debt	4.23M	3.10M	2.15M	786.00K	7.01M	0.00
Total Liabilities	58.99M	131.93M	140.14M	41.57M	42.32M	8.50M
Stockholders Equity	616.20M	655.60M	785.01M	64.40M	306.44M	98.58M
Cash Flow
Free Cash Flow	-129.98M	-100.30M	-60.65M	-972.53K	-1.33M	-25.20M
Operating Cash Flow	-65.79M	-31.65M	-49.00M	-857.53K	-1.33M	-24.98M
Investing Cash Flow	-50.19M	-168.67M	-103.70M	-115.00K	-345.03M	-220.00K
Financing Cash Flow	-5.09M	-4.93M	335.39M	21.47M	348.93M	29.00M

NET Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPWR, the sentiment is Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.71, and below the 200-day MA of 5.14, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 8.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPWR.

NET Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSIX	80 Outperform	$2.00B	18.05	138.29%	―	40.10%	147.12%
AMSC	70 Neutral	$2.19B	123.78	6.41%	―	63.73%	―
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
BW	56 Neutral	$221.40M	―	29.28%	―	-33.75%	6.01%
NPWR	50 Neutral	$488.87M	43.62	-26.88%	―	-94.96%	-579.85%
CETY	45 Neutral	$16.43M	―	-58.13%	―	-80.89%	50.92%
NNE	35 Underperform	$1.36B	―	-28.84%	―	―	―

NET Power Corporate Events

NET Power Board Member Eunkyung Sung Resigns

On July 10, 2025, Eunkyung Sung resigned from the board of directors of NET Power Inc., effective immediately. Her resignation was not due to any disagreement with the company’s management or board.

NET Power Announces New Chief Accounting Officer

On June 6, 2025, NET Power Inc. announced the departure of Kelly Rosser as Chief Accounting Officer, effective June 15, 2025, with a compensation package including salary, bonus, and healthcare coverage. Caleb Van Dolah, with extensive experience in accounting and financial reporting, will assume the role of principal accounting officer on the same date. Additionally, during the annual stockholders’ meeting on June 3, 2025, the election of three directors and the ratification of KPMG LLP as the independent registered public accounting firm were confirmed.