Beyond the initial 1.25 GW deployment, what is the opportunity pipeline for this modular platform, what storage use cases are emerging, and is the focus on the initial hyperscaler or broader market?

The modular platform, integrating energy storage and gas generation with software for load optimization, is designed for "speed to power" and behind-the-meter deployment in 250 MW increments. It addresses the 3-5 year grid investment lag. The company sees large potential to expand this solution with the current partner and in the broader market, given high demand. “We've developed a solution that's a modular platform, and this is with a partner that we have not named for confidentiality purposes yet, but it's a large power generation EPC... it's all about speed to power. And these are platforms that are behind-the-meter, meaning we don't have to rely on grid power for them.”

With the backlog growing towards $3 billion, where does management expect the highest incremental value and recurring EBITDA growth to come from: traditional BESS, powered land, or AI infrastructure deployments?

The strategy remains building, owning, and operating assets for long-term recurring revenue. The most profit is expected from powered land solutions and modular data center solutions ("powered shell"). The company is also providing owned batteries (ESaaS model) to firm grid power or other generation. The 1.25 GW platform is build-and-transfer, reflecting market demand for their expertise. “I'd say there's no change in our strategy of building, owning, and operating assets over time, we believe and still believe and have conviction that, that is the best use of our capital to build longer term recurring revenue streams. I think the segments we're looking at to deliver the most profit on that will have a lot to do now with our powered land solutions and what we call our powered shell or the module data center solutions.”

What are the most active construction or installation sites currently?

Key active sites include Sosa and Stoney Creek in Australia (build, own, operate), and the ACEN project in Australia (200 MW battery project, build-and-transfer, nearing R2 milestone). In the U.S., sites related to the $250M-$270M H2 revenue ramp (e.g., Consumers Energy) and the 1.25 GW deal, as well as the Snyder, Texas AI campus (Crusoe project civil activities and high voltage upgrades). “From a pure U.S. perspective, you can imagine with the ramp we have coming in the second half of this year... So that involves some sites that we're sort of finalizing some of the deliveries and installations. Consumers Energy is one of those as an example from prior projects. But in addition, the work that's going on relative to what we just announced, that's been underway for the last three to five months, this -- the 1.25 gigawatt deal, there's a chunk of that revenue and things being delivered here for this year.”

NRGV

Energy Vault (NRGV) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 11, 2026

Source: earnings call transcript

Executive summary

Energy Vault Q2 FY26 — Strong Backlog Growth and Raised Full-Year Guidance

Energy Vault delivered a strong Q2 FY26, driven by robust commercial execution and increasing demand from AI compute infrastructure. The company significantly grew its backlog to $2 billion, doubled revenue year-over-year, and improved adjusted gross margins. Management raised full-year revenue guidance and narrowed cash guidance to the higher end, reflecting increased visibility and disciplined capital management, despite higher operating expenses.

Highlights

Backlog increased by $650 million to $2 billion, representing a 40% quarter-over-quarter increase and more than doubling year-over-year.
Revenue doubled year-over-year to $17.4 million, reflecting strong execution.
Adjusted gross margin improved by almost 900 basis points year-over-year to 38.6%, demonstrating healthy economics.
Cash and cash equivalents (including restricted cash) increased by $31 million sequentially to $148 million, marking the sixth consecutive quarter of increase.
Full-year 2026 revenue guidance was raised to $270 million to $310 million, from a prior range of $225 million to $300 million.

Concerns

Adjusted operating expenses increased to $23.7 million, up from $16.2 million a year ago, primarily due to scaling commercial support and project development.
Adjusted EBITDA was a loss of $17 million, compared to a loss of $13.6 million in the prior year period.
Quarterly revenue recognition can be uneven due to project timing and milestone accounting, with a vast majority of second-half revenue expected in Q4.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$270 million to $310 million high materiality	FY26	High
Full-year 2026 GAAP Gross Margin	20% to 25% medium materiality	FY26	High
Year-end 2026 Cash and Cash Equivalents	$160 million to $200 million medium materiality	FY26	High
Backlog	approaching $3 billion high materiality	FY26	High
Backlog Conversion to Revenue	40% medium materiality	next 12 to 18 months	High
Annualized EBITDA	approaching $2 billion high materiality	by 2030 · FY30	Medium
Gigawatts Online	almost 5 gigawatts high materiality	by 2030 · FY30	Medium

Orderbook & backlog

Total Backlog $2 billion August 10

up $650 million QoQ, more than doubled YoY

Roughly 3x where it stood at the end of 2024; gives substantial and greater visibility into delivery ramp.

Backlog (Build-and-Transfer) 40% of total August 10

Supports near-term revenue conversion and cash generation over the next 12 to 18 months.

Backlog (Build, Own, and Operate) 60% of total August 10

Creates long-term recurring revenue and earnings visibility, with revenue streams typically 7 to 15 years and 70% to 80% gross margins.

Advanced Contract Negotiation another $0.5 billion August 10

Expected to execute and close on these contracts.

Total Underway (current backlog + advanced negotiations) $1.2 billion August 10

Total revenue expected for both this year and into 2027.

Expected Backlog approaching $3 billion end of FY26

Expected even with some revenue recognition in Q4; expected to have an increasing percentage of recurring revenue streams from build, own, and operate portfolio.

Product announcements

Product	Type	Timeline	Details
Modular Power Infrastructure Platform	launch	recently announced

Deals & partnerships

unnamed large power generation EPC partner 1.25 gigawatt agreement to support an integrated power generation and storage solution for hyperscale data centers $500 million to $600 million

Second of a framework agreement. Involves a modular platform for behind-the-meter deployment, integrating energy storage, Caterpillar gas generation, and software for load optimization to ensure five nines quality and 'always on' availability.

ACEN 200 megawatt battery project

Located in Australia, this is a build-and-transfer project, one of the largest in the country. Finalizing the R2 milestone (grid sign-off).

New South Wales government Long-Term Energy Service Agreement (LTESA) for Stoney Creek project 14-year agreement

Secured for the Stoney Creek build, own, operate project in Australia.

unnamed company in Japan Acquisition of a company with two projects

Part of the company's strategy to expand in key growth markets, specifically in Japan.

Capital programs

Calistoga Resiliency Center operating

Benefit:48-hour backup

Supports Pacific Gas and Electric with a 10.5-year agreement, securing the City of Calistoga in the event of grid shutdowns. Operating as planned.

Snyder AI Campus (Crusoe project) underway

Start: recently announced breaking ground

Benefit:initial deployment 8 MW, heading up to 25 MW; plans for expansion up to 500 MW

Wholly owned facility and showcase center with multiple storage technologies. Involves a series of generation, renewable, and storage expansions. Civil activities and high voltage upgrades are underway.

Mesa del Sol New Mexico Campus underway up to 1 GW

Start: on track to start Q1 FY27

Benefit:starting with 75 MW; acquired 225 MW of gas generation; complement with storage and solar

Significant expansion planned given ownership rights on surrounding land. Multiple locations are being advanced with discussions with hyperscaler off-takers.

Risks & headwinds

Data center moratorium in Texas ongoing

not quantified, but acknowledged as a theme in some parts of the country

Mitigation:The company's announced 1.25 GW solution is behind-the-meter and does not rely on the grid, so execution for 2026 and 2027 is not impacted. Management has accounted for this in its planning and guidance and continues to monitor the situation.

Uneven quarterly revenue recognition H2 FY26

vast majority of second half revenue is expected to be recognized in the fourth quarter

Mitigation:Management is aware of this dynamic, which is due to project timing and milestone accounting, and has guided accordingly, including a large Q4 revenue ramp.

Increased operating expenses Q2 FY26

Adjusted operating expenses were $23.7 million compared to $16.2 million a year ago

Mitigation:The increase primarily reflects necessary investments in commercial support, project development, and legal expenses for scaling owned and operated and AI infrastructure platforms. Management expects to see the benefit of this higher OpEx over the next 12 months in contract activity and remains focused on managing controllable OpEx.

What to watch in Q3 FY26

Backlog conversion to revenue

next quarter (Q3 FY26) and into FY27

Current 40% of $2B backlog expected to convert over next 12-18 months

Target Progress on converting $1.2B of current backlog + advanced negotiations into 2026/2027 revenue

Why it matters

Demonstrates execution capability and provides near-term revenue, crucial for meeting raised full-year guidance and setting up FY27.

This gives us substantial and greater visibility into the delivery ramp ahead of us, and that's both, I'd say, this year and into a very strong Q4 we're going to have, just as we did last year, but also as we look at 2027.

Find out whether NRGV delivers this. Inve re-checks your case every morning.

Q&A highlights

How will the $500M-$600M revenue from the 1.25 GW agreement split between 2026 and 2027, and will its margin profile be consistent with the 20-25% guidance?

A portion of the revenue from the 1.25 GW agreement will be recognized in Q4 2026, with the majority expected in 2027. The margin profile for this project is anticipated to be consistent with the 20-25% range, supporting the company's raised guidance.

“You can assume on that split that there'll be a portion of that $500 million to $600 million into our Q4. So that's a recently announced deal that had been in the works, so for three to four months. So we are able to execute a portion of that delivery in Q4. And I think you can obviously assume that's not going to be the majority of it, but there will be a portion of that. And I'd say the majority of that revenue will be in 2027.”

asked by Justin Clare · answered by Robert Piconi

2 min read 6 chapters

Detailed narrative

Strategic Focus on AI Data Centers

Energy Vault is actively converting demand from AI data centers and high-compute platforms into contracted wins, exemplified by a recently announced 1.25 GW agreement, the largest in company history, for hyperscale data centers. This strategy is translating into stronger growth, higher margins, and increased visibility for near-term revenue and long-term recurring earnings.

The company's expertise and execution capabilities are proving critical in capturing this demand globally.

Strengthened Capital Formation and Project Financing

The company has enhanced its capital markets and project finance capabilities with key appointments, including a new CFO from BlackRock and a President of Asset Vault. This focus aims to efficiently finance projects, protect returns, and convert execution into cash flow, aligning with the accelerating scale of opportunities.

The goal is to grow in a way that prioritizes projects with attractive risk-adjusted economics and a resilient capital stack.

Backlog Composition and Conversion

The $2 billion backlog, which has more than doubled year-over-year, is composed of approximately 40% build-and-transfer projects for near-term revenue conversion (12-18 months) and 60% build, own, and operate components for long-term recurring revenue. This balanced approach aims for a more predictable and valuable earnings model. The company also has an additional $0.5 billion in advanced contract negotiations expected to close.

Powered Land and AI Campus Development

Energy Vault is advancing its powered land portfolio, including the Calistoga Resiliency Center (operating with PG&E), the Snyder AI campus (starting with 8 MW, expanding to 500 MW), and the Mesa del Sol New Mexico campus (on track for 75 MW, with plans for 1 GW expansion).

These wholly-owned facilities are expected to create 15-year plus revenue streams and serve as showcase centers for integrated generation and storage solutions.

Operational Execution and Margin Discipline

The company demonstrated strong operational execution, doubling revenue year-over-year and significantly improving adjusted gross margin to 38.6%. This reflects efficient project delivery, high quality, and safety standards in building large energy projects, contributing to consistent cash generation. Management is focused on maintaining margin discipline and managing controllable operating expenses while investing in growth.

Global Expansion and Market Focus

Energy Vault continues to expand its footprint in key growth markets, including a recent acquisition in Japan and ongoing expansion in Australia and the U.S. The company remains selective, focusing on the largest and most attractive storage markets, particularly driven by the tremendous demand from AI compute infrastructure. This strategic focus aims to leverage innovation and speed to power in these high-growth regions.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.