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Net Power Inc. (NPWR)
:NPWR
US Market
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NET Power (NPWR) AI Stock Analysis

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NPWR

NET Power

(NYSE:NPWR)

Rating:53Neutral
Price Target:
$3.00
▲(3.81%Upside)
The overall score is primarily influenced by the company's financial challenges and market valuation concerns, despite strong strategic focus and technical momentum. The financial performance highlights the need for improving profitability, while positive earnings call sentiment gives a slight boost.
Positive Factors
Liquidity and Partnerships
An attractive entry point exists due to approximately $533M in liquidity, a runway of about three years, and well-resourced partners, positioning the company to pursue large power generation opportunities.
Strategic Partnerships
Longer-term oriented strategic partners may provide follow-on support to sustain the company's mission, with around three years of liquidity available to raise additional capital.
Negative Factors
Cost Pressures
Rising cost estimates for Project Permian are driven by increased expenses in natural gas purification, transportation, labor, and cooling systems.
Funding Challenges
There is a crucial funding shortfall of $600-900M for Project Permian, and securing this financing is essential for the project's final investment decision.
Stock Performance
NPWR stock experienced a significant decline of approximately 60%, likely influenced by cost inflation and new concerns about liquidity.

NET Power (NPWR) vs. SPDR S&P 500 ETF (SPY)

NET Power Business Overview & Revenue Model

Company DescriptionNET 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 MoneyNET 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 Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 36.97%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company that is financially robust and strategically focused on cost optimization and operational excellence. However, concerns about market valuation and share price indicate challenges in external perception. Despite these concerns, progress in operational strategies and strong financial health present a positive outlook.
Q1-2025 Updates
Positive Updates
Strong Financial Position
Exited the first quarter with approximately $500 million of cash and cash equivalents, earning 5% interest per year, and no debt.
Operational Focus and Strategy
Focus on improving project economics for the first utility scale plant, reducing total installed cost, and achieving a competitive levelized cost of energy (LCOE).
La Porte Testing Advancements
Significant progress with La Porte testing to prove performance expectations for commercial scale clean power plants.
Major Shareholder Support
85% of the company's equity is owned by major strategic investors including Oxy, Constellation, Baker Hughes, SK Group, and the Rice family.
Cost Optimization Initiatives
Value engineering process for Project Permian to identify cost savings without compromising performance or safety.
Negative Updates
Share Price Concerns
Current trading price is near cash value, implying the market assigns little value to the technology.
Project Permian Cost Challenges
Project Permian is likely to be the most expensive and least efficient deployment.
Market Valuation Discrepancy
Significant dislocation in market valuation compared to other clean power technology companies.
Company Guidance
During the first quarter 2025 earnings call, Net Power Inc. outlined its strategic focus areas and financial guidance for the year. The company aims to enhance the economics of its first utility-scale plant by reducing the total installed cost and achieving a competitive levelized cost of energy (LCOE) through improvements in cycle thermal efficiencies and reductions in per unit capital costs. Net Power plans to spend approximately $190 million, net of interest income, which includes $45 million for general and administrative expenses, $50 million for R&D activities including La Porte testing, and $100 million for SN1 and Baker turbine development. The company ended the first quarter with $500 million in cash and cash equivalents, earning about 5% interest annually, and anticipates closing the year with $350 million in cash. These investments are directed towards advancing operational capabilities and preparing for commercial deployment, with the aim of completing two phases of La Porte testing and refining a cost-effective design for future projects.

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 company’s strong equity position provides some financial stability, but improvements in profitability and cash management are essential.
Income Statement
30
Negative
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
55
Neutral
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue250.00K175.00K580.00K2.10M45.00K
Gross Profit219.00K-50.67M290.00K1.27M8.00K
EBITDA-99.70M-130.86M-36.64M-10.19M-23.39M
Net Income-49.19M-77.23M-54.78M-9.80M-36.40M
Balance Sheet
Total Assets2.29B2.47B351.85M348.37M107.08M
Cash, Cash Equivalents and Short-Term Investments507.57M636.93M1.63M2.57M12.78M
Total Debt3.10M2.15M786.00K7.01M0.00
Total Liabilities131.93M140.14M41.57M42.32M8.50M
Stockholders Equity655.60M785.01M310.51M306.44M98.58M
Cash Flow
Free Cash Flow-100.30M-60.65M-972.53K-1.33M-25.20M
Operating Cash Flow-31.65M-49.00M-857.53K-1.33M-24.98M
Investing Cash Flow-168.67M-103.70M-115.00K-345.03M-220.00K
Financing Cash Flow-4.93M335.39M21.47M348.93M29.00M

NET Power Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.89
Price Trends
50DMA
2.41
Positive
100DMA
2.68
Positive
200DMA
6.07
Negative
Market Momentum
MACD
0.12
Positive
RSI
54.10
Neutral
STOCH
21.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPWR, the sentiment is Positive. The current price of 2.89 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.41, and below the 200-day MA of 6.07, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPWR.

NET Power Risk Analysis

NET Power disclosed 69 risk factors in its most recent earnings report. NET Power reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
by holders of our warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our company. Q4, 2024
2.
An impairment in the carrying value of our goodwill or long-lived assets, principally other intangible assets and property, plant and equipment, could negatively impact our consolidated results of operations and financial condition. Q4, 2024
3.
capital investment from us and our partners. If we cannot secure sufficient finding to construct our first commercial-scale plant, our business could fail. Q4, 2024

NET Power Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.92B23.61185.56%17.92%173.25%
70
Neutral
$1.87B277.343.53%52.99%
68
Neutral
€2.79B22.927.73%2.81%-1.29%-31.61%
53
Neutral
$633.10M43.62-24.23%100.00%6.28%
48
Neutral
$16.00M-90.36%-87.59%51.14%
47
Neutral
$101.36M29.28%-29.45%39.40%
35
Underperform
$1.53B-45.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPWR
NET Power
2.89
-6.63
-69.64%
AMSC
American Superconductor
42.96
17.92
71.57%
BW
Babcock & Wilcox Company
1.07
-0.50
-31.85%
PSIX
Power Solutions
91.51
79.65
671.59%
CETY
Clean Energy Technologies
0.25
-0.90
-78.26%
NNE
Nano Nuclear Energy Inc.
36.92
23.20
169.10%

NET Power Corporate Events

Executive/Board Changes
NET Power Board Member Eunkyung Sung Resigns
Neutral
Jul 15, 2025

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.

The most recent analyst rating on (NPWR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on NET Power stock, see the NPWR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
NET Power Announces New Chief Accounting Officer
Neutral
Jun 6, 2025

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.

The most recent analyst rating on (NPWR) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on NET Power stock, see the NPWR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025