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    NRGV
    Earnings call· Jun 2026(Q2 FY26)

    Energy Vault Holdings Q2 FY26 earnings call NRGV

    Aug 11, 2026 Source

    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

    5

    • 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

    3

    • 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

    7
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $270 million to $310 million
    high materiality
    High
    Full-year 2026 GAAP Gross Margin
    20% to 25%
    medium materiality
    High
    Year-end 2026 Cash and Cash Equivalents
    $160 million to $200 million
    medium materiality
    High
    Backlog
    approaching $3 billion
    high materiality
    High
    Backlog Conversion to Revenue
    40%
    medium materiality
    High
    Annualized EBITDA
    approaching $2 billion
    high materiality
    Medium
    Gigawatts Online
    almost 5 gigawatts
    high materiality
    Medium

    Operational metrics

    15
    Revenue
    $17.4 million104% YoY
    Q2 FY26

    Increase driven by progress on Australian projects.

    GAAP Gross Profit
    $5.4 million116% YoY
    Q2 FY26

    Compared to $2.5 million a year ago.

    GAAP Gross Margin
    31%up 140 bps
    Q2 FY26

    Demonstrates strong execution and healthy economics.

    Adjusted Gross Margin
    38.6%up almost 900 bps YoY
    Q2 FY26

    Excludes depreciation and amortization associated with owned and operated projects.

    Adjusted Operating Expenses
    $23.7 millionvs $16.2 million a year ago
    Q2 FY26

    Increase primarily reflects commercial support, project development, and legal expenses associated with scaling.

    GAAP Net Loss
    $29.7 millionfrom $34.9 million in prior year
    Q2 FY26

    Improved from prior year period.

    GAAP EPS
    loss of $0.17vs $0.22 last year
    Q2 FY26

    Improved from prior year period.

    Adjusted Net Loss
    $24.6 millionvs $18.4 million a year ago
    Q2 FY26

    Increased from prior year period.

    Adjusted EBITDA
    loss of $17 millionvs loss of $13.6 million in prior year
    Q2 FY26

    Higher operating expenses partly offset by higher gross profit.

    Total Cash and Cash Equivalents (including restricted cash)
    $148 millionup $31 million sequentially, up $90 million YoY
    June 30

    Sixth straight quarter of increasing cash.

    Annualized Recurring EBITDA
    $180 million
    annualized

    Fundamental to the company's strategy of owning and operating energy infrastructure.

    Revenue expected in H2 2026
    $250 million to $270 million
    H2 FY26

    Reflects a large ramp, similar to Q4 last year, with supply chain secured.

    Calistoga Resiliency Center Availability
    above 99%
    YTD FY26

    Operating as planned.

    Cross Trails System Availability
    99.4%
    YTD FY26

    Running smoothly.

    Outstanding ITCs to be closed
    $15 million
    early September

    The third remaining ITC, expected to close in the next month.

    Industry KPIs

    5
    MetricValueDetails
    Orders bookings growth40%%
    Gigawatts under contract1.1 gigawattGW
    M a acquisition contribution—
    Backlog by segment end market$2 billionUSD
    Data center exposure pipeline1.25 gigawattGW

    Orderbook & backlog

    6
    Total Backlog$2 billionAugust 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 totalAugust 10

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

    Backlog (Build, Own, and Operate)60% of totalAugust 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 Negotiationanother $0.5 billionAugust 10

    Expected to execute and close on these contracts.

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

    Total revenue expected for both this year and into 2027.

    Expected Backlogapproaching $3 billionend 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

    1
    ProductTypeDetails
    Modular Power Infrastructure Platformlaunch

    Deals & partnerships

    4
    unnamed large power generation EPC partner1.25 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.

    ACEN200 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 governmentLong-Term Energy Service Agreement (LTESA) for Stoney Creek project14-year agreement

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

    unnamed company in JapanAcquisition of a company with two projects

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

    Capital programs

    3
    Calistoga Resiliency Centeroperating

    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 Campusunderwayup 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

    3
    Data center moratorium in Texasongoing

    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 recognitionH2 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 expensesQ2 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

    5

    Backlog conversion to revenue

    next quarter (Q3 FY26) and into FY27
    Current40% of $2B backlog expected to convert over next 12-18 months
    TargetProgress 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.

    Q&A highlights

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.