Energy Vault Holdings, Inc.

What they do

Energy Vault designs, integrates, and operates energy storage systems using gravity, battery, and green hydrogen technologies, plus software-enabled controls. The company also provides power infrastructure for AI data centers. Its portfolio includes standalone storage, hybrid generation-storage configurations, and long-term services. It manages projects from development through construction, commissioning, and operations.

Revenue drivers

• Project delivery and integration — Revenue from build-and-transfer and EPC-like contracts, historically the main source, with 2025 revenue of $203.7M.
• Owned and operated energy storage — Newer recurring revenue from owned BESS assets like Cross Trails (57 MW/114 MWh) and Calistoga Resiliency Center (8.5 MW), with 10-year offtake agreements and long-term services.
• AI compute infrastructure — Growing segment; a 1.25 GW integrated power, storage and software contract with a hyperscaler in Texas is expected to generate $500-600 million in 2026-2027.

Recent performance

Q2 2026 revenue was $17.4M, up 104% year-over-year, though down sequentially from $153.3M in Q4 2025. GAAP gross margin was 31% with $5.4M gross profit, and adjusted gross margin was 38.6%. Quarterly revenue has been volatile, with Q1 2026 at $21.9M and Q2 2026 at $17.4M. Cash grew to $148M, but shareholder equity was only $6.9M as of June 30, 2026.

Strategy

Transition from build-and-transfer to an integrated 'Own & Operate' model, using the Asset Vault platform (with $300M preferred equity from Orion Infrastructure Capital) to develop and own storage assets. Target deployment of ~1.5 GW across U.S., Australia, and Europe. Expanding into AI infrastructure with modular powered-shell deployments, and acquiring BESS development portfolios (e.g., 850 MW in Japan). Focus on recurring revenue and higher-margin contracts.

Risks

• Tariff exposure — U.S. tariffs on Chinese imports, including B-VAULT products and batteries, cause project delays/cancellations and materially affect cost and competitiveness; refunds uncertain after IEEPA invalidation.
• Project execution risk — Owned projects (Stoney Creek, SOSA) may not achieve commercial operation on schedule or at all; development and construction involve significant capital and permitting risks.
• Thin equity cushion — Shareholder equity was only $6.9M against $165M long-term debt as of June 30, 2026, limiting financial flexibility.
• Backlog revenue conversion — Much of the $2B backlog includes non-binding LOIs and indications of interest that may not convert to binding orders, and 40% is near-term (12-18 months) with execution risk.

Outlook

Management raised full-year 2026 revenue guidance to $270-310 million and lifted GAAP gross margin guidance to 20-25%. Backlog reached $2 billion, up 107% year-over-year, with 60% expected to be long-term recurring revenue. The company expects to deliver initial $180 million of recurring annual EBITDA over the next 18-36 months from ~1.1 GW under operation, construction, or control.