Energy Vault Reports Second Quarter 2024 Financial Results

• Announced new 400MWh battery storage project in Australia with ACEN, hired new Head of Global Sales and entered into a partnership with structural engineering firm Skidmore Owings & Merrill (SOM) to integrate gravity energy storage within superstructure building design
• Q2 GAAP Gross margin of 27.8% driven by strong management and execution on U.S. battery projects
• Q2 GAAP Net Loss of $(26.2) million; Q2 Adjusted EBITDA improved $2.3 million or 12% year-over-year, to $(15.8) million
• Q2 GAAP Operating Expenses of $28.1 million; Q2 Adjusted Operating Expenses of $16.9 million, improved 23% year-over-year
• Q2 results include a $1.7 million charge associated with previously announced organizational realignment and cost savings measures, expected to result in realized cost savings of $6–8 million annually, including $3–4 million in the second half of 2024
• Cash and Cash Equivalents of $113.0 million with no debt as of June 30, 2024
• Reaffirming full-year 2024 guidance

Energy Vault Holdings, Inc., a leader in sustainable, grid-scale energy storage solutions, announced financial results for the second quarter ended June 30, 2024.

“We recently outlined a vision for the next two years during our inaugural Investor & Analyst Day to deliver $500–700 million of revenue addressing the largest energy storage markets, while prioritizing our product mix and business model to deliver larger and more predictable cash flow streams,” said Robert Piconi, Chairman and CEO of Energy Vault. “We are executing on that plan with new announcements this past quarter of a 400MWh battery project in Australia as the first of many to come on the continent, continued traction across the portfolio of gravity-related technologies in Europe and the U.S., and progress on our own portfolio of standalone storage projects in California and Texas that we will own and operate. We remain poised to capture this growth given our energy solutions approach in solving customer problems with the best ‘fit for purpose’ technology, while meeting new energy storage requirements being driven by the massive upticks in power demand from generative AI and data center build-outs.”

Second Quarter 2024 Financial Highlights

• Exited second quarter 2024 with a developed pipeline of $2.8 billion and revenue backlog of $264 million, reflecting an increase of approximately 4% and 17%, respectively, compared to May 2024, reflecting new project wins and long-term service agreements
• Revenue of $3.8 million for second quarter 2024, driven by storage projects with U.S. utilities and IPP’s; initial contribution from the recently announced Australian project expected to increase in the second half of 2024 and into 2025
• GAAP gross margin of 27.8% and gross profit of $1.0 million for second quarter 2024, driven by strong commissioning and construction project management, and a favorable mix of higher margin software and service revenue
• Adjusted operating expense of $16.9 million, improved 23% year-over-year, excluding a $1.7 million charge associated with previously announced organizational realignment and cost savings measures, expected to result in realized cost savings of $6–8 million annually, including $3-4 million in second half of 2024
• GAAP net loss of $(26.2) million during the quarter was flat year-over-year despite the significantly lower revenue recognition due to strong gross margins, cost controls and reduction in operating expenses
• Adjusted EBITDA improved $2.3 million year-over-year, or 12%, to $(15.8) million from $(18.0) million due to lower cash operating expenses
• Total cash and cash equivalents of $113.0 million and no debt on the balance sheet as of June 30, 2024; Restricted cash of $6.1 million as of June 30, 2024 increased modestly from $1.0 million as of March 31, 2024, but remains well below the $35.6 million figure as of December 31, 2023
• The Company reaffirms full-year 2024 guidance for revenue, gross margin, adjusted EBITDA and year-end cash balance along with expectations for quarterly adjusted operating expense of approximately $15 million in the second half of 2024, following cost-side measures implemented in Q4 2023 and the first half of 2024

Operating and Other Highlights

• EPC and O&M contract executed with ACEN Australia for 200MW / 400MWh battery energy storage project in New South Wales
• Commenced commercial operations of 100MW / 200MWh Jupiter Power battery energy storage system in St. Gall, Texas
• Announced 100MW hybrid gravity energy storage project with Carbosulcis S.p.A. to accelerate carbon-free Technology Hub at Italy’s largest coal mining site in Sardinia; this unique solution leverages Energy Vault EV0^TM gravity technology through a “modular pumped hydro” application
• Exclusive global gravity energy storage partnership formalized with renowned architecture firm, Skidmore, Owings & Merrill (SOM) to integrate energy storage into building design
• Implemented strategic decision to own and operate select energy storage projects with high IRR’s to improve margin profile and earnings visibility, leveraging existing capabilities and project expertise; initial projects to include the largest green hydrogen ultra-long duration energy storage system (293MWh) in the U.S. with PG&E in Calistoga, California and the Cross Trails battery storage project (114MWh) in Snyder, Texas
• Hired new Head of Global Sales, Wes Fuller, most recently of Powin, where he delivered on large growth initiatives in North America, building upon prior roles at Sunfolding, Schneider Electric and Siemens; announced organizational realignment initiatives to accelerate growth and market adoption of its diversified portfolio of energy storage solutions across all durations, enhancing and streamlining go-to-market strategy while rapidly expanding regional operations in Australia