Energy Vault (NRGV) Q3 2024 earnings summary

Executive summary

• Revenue backlog increased 33% quarter-over-quarter to $350 million, driven by new U.S. contracts and Australian project awards, supporting a significant revenue ramp into 2025 and beyond.

• Q3 2024 revenue was $1.2 million, down sharply from $172.2 million in Q3 2023, primarily due to fewer energy storage product sales as BESS projects neared completion; new revenue streams from operation and maintenance services and software licensing began in 2024.

• Q3 2024 marked a transition to a build, own, and operate strategy, with a focus on long-term value creation and recurring high-margin revenue streams.

• Major project milestones include mechanical completion of the Calistoga Resiliency Center (largest hybrid green hydrogen storage system), new partnerships in Australia and the U.S., and the first EV0 gravity system installed in Italy.

• Innovation recognized by Time Magazine as one of the best inventions of 2024 for gravity energy storage technology.

Financial highlights

• Q3 2024 gross margin was 40.3%, up from 4.2% a year ago, driven by favorable software and services mix; gross profit was $0.5 million.

• Adjusted operating expense for Q3 was $15.2 million, down 13% year-over-year and 7% sequentially; operating expense improved to $27.6 million.

• Q3 adjusted EBITDA was negative $14.7 million, improved 5% quarter-over-quarter.

• Net loss attributable to shareholders was $26.6 million for Q3 2024, compared to $18.9 million in Q3 2023.

• Cash and cash equivalents at quarter-end were $77.7 million, including $26.6 million restricted cash, with no debt.

Outlook and guidance

• Annual revenue guidance reaffirmed and range tightened to the lower end, with Q4 expected to be back-loaded due to project delivery timing.

• Full-year adjusted EBITDA expected between negative $45 million and negative $60 million.

• Management expects to retain ownership of ~$100 million in storage assets in 2024, shifting from prior guidance of selling those projects.

• Project financing for California and Texas storage projects expected to add $60–80 million in cash over the next two quarters.

• Attractive pipeline of storage assets in the U.S. and Australia expected to improve earnings visibility and drive long-term value.