Core Insights - Energy Vault Holdings, Inc. reported a quarterly loss of $0.35 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, marking an earnings surprise of -150% [1] - The company generated revenues of $33.47 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 14.07% and down from $118.24 million year-over-year [2] - Energy Vault shares have declined approximately 49.6% year-to-date, significantly underperforming the S&P 500's decline of -4.1% [3] Earnings Outlook - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.11 on revenues of $36.4 million, and for the current fiscal year at -$0.41 on revenues of $261.9 million [7] - The Zacks Rank for Energy Vault is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Alternative Energy - Other industry, to which Energy Vault belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

F O U R T H Q U A R T E R 2 0 2 4 FINANCIAL RESULTS © 2024 ENERGY VAULT, ALL RIGHTS RESERVED | Confidential FOUO (For Official Use Only) - PROPRIETARY INFORMATION OF ENERGY VAULT, INC 1 Disclaimer Forward-Looking Statements This presentation includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operatio ...

Exhibit 99.1 Q4 2024 GAAP gross margin of 7.7% doubled versus the 3.4% a year ago reflecting mix of hardware deliveries in the quarter; Full Year 2024 GAAP Gross Margins of 13.4% improved significantly versus the 5.1% recorded a year ago reflecting strong execution and supply chain ef iciency Project financing for the Calistoga Green Hydrogen project for PG&E received a binding funding commitment earlier in March inclusive of the tax credit with expected closure in April 2025, returning ~$28 million to the ...

Financial Data and Key Metrics - Revenue backlog grew by over 33% in Q3 2024, supporting future revenue ramp in 2025 and beyond [16] - Gross margin for Q3 2024 was 40.3%, up from 4.2% a year ago, driven by favorable revenue mix from software and services [34] - Year-to-date gross margin is 28.3%, above the guided range of 15% to 25% for full-year 2024 [34] - Adjusted operating expense was $15.2 million in Q3, down 13% YoY and 7% QoQ, reflecting organizational realignment [35] - Adjusted EBITDA was negative $14.7 million in Q3, improving 5% QoQ but weaker YoY due to project timing and lower gross profit [35] - Cash and cash equivalents stood at $78 million as of September 30, 2024, down from $113 million in Q2 2024 [37] Business Line Performance - The company announced new projects in the US, including a Gridmatic offtake agreement for a Texas battery site and a new project with Jupiter Power [17] - The company is transitioning to a build, own, and operate strategy, which is expected to deliver long-term revenue streams with attractive margins [18] - The company is focusing on reducing capital expenditure and operating expenses through optimal design and maintenance of storage assets [18] - The company is leveraging its expertise in software development and multi-technology battery storage integration to enhance execution and reduce project timelines [10] Market Performance - The Australian market is a key focus, with a pipeline of projects exceeding 5 gigawatt hours and plans to double the team size and triple investment in the region [15] - The company announced a 1 gigawatt hour project in New South Wales, Australia, in partnership with EnerVest [15] - The company is also expanding in the US, with projects in Texas and California, including the Calistoga Resiliency Center, the largest hybrid green hydrogen energy storage system in the world [10][17] Strategic Direction and Industry Competition - The company is focusing on long-term value creation by retaining ownership of cash-generative storage assets, such as the Cross Trails battery energy storage project in Texas [31] - The company is leveraging its expertise in energy storage to address grid resiliency and meet rising energy demand, particularly from data center expansions [6][7] - The company is innovating in gravity energy storage, with the Rudong project in China achieving 80% to 85% round-trip efficiency, a significant milestone in long-duration energy storage [23][24] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the team in navigating capital market volatility and geopolitical uncertainties [5][6] - The company reaffirmed its annual guidance, tightening the range as it approaches the end of the year, with strong shipment and revenue recognition expected in Q4 [28][29] - Management emphasized the importance of the build, own, and operate strategy for long-term shareholder value, with expected unlevered double-digit IRRs and EBITDA margins of 70% to 80% [40][43] Other Important Information - The company is working with Jefferies on project financing for the Calistoga and Cross Trails projects, expecting to bring $60 million to $80 million in cash back onto the balance sheet [39] - The company is exploring non-dilutive financing options, including partnerships with strategic investors, to fund future projects [69] - The company is recognized by Time Magazine as one of the best inventions in 2024 for its gravity energy storage technology [25] Q&A Session Summary Question: Ownership Opportunities and Financing - The company is looking to add significant capacity to its balance sheet in 2025 and 2026, with opportunities in the hundreds of millions of dollars, leveraging its reputation for execution and positive unit economics [52] - The company is considering both immediate revenue recognition through EPC projects and long-term value creation through owned and operated projects, depending on the best interest of shareholders [53][55] Question: 2024 Guidance and Quarterly Revenue Progression - The company expects Q4 revenue to be at the lower end of the guidance range, with potential upside from expedited shipments and revenue recognition [58][59] - The company is transitioning to a more predictable revenue model with long-term offtake agreements, aiming for annualized EBITDA of $50 million to $100 million over the next 12 to 24 months [61][62] Question: Snyder Project Adjustments - The Snyder project has been expanded to include multiple gravity technologies (EVx, EVy, and modular pumped hydro) and will serve as a demonstration site for the company's latest innovations [65][66] Question: Battery Storage Technology Improvements - The company is focusing on achieving higher energy density and safety in battery storage projects, leveraging its expertise in civil and structural engineering [74][75] Question: Rudong Gravity Storage Project Efficiency - The Rudong project in China has achieved 82% to 83% round-trip efficiency, with future iterations expected to be customized by region, potentially improving efficiency and reducing timelines [78]

Company Performance - Energy Vault Holdings, Inc. reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.15, and compared to a loss of $0.13 per share a year ago, indicating a negative earnings surprise of -20% [1] - The company posted revenues of $1.2 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 75.02%, and a significant decline from year-ago revenues of $172.21 million [2] - Energy Vault has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in financial performance [2] Stock Performance - Energy Vault shares have declined approximately 11.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current Zacks Rank for Energy Vault is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $39.9 million, and for the current fiscal year, it is -$0.60 on revenues of $56.25 million [7] - The outlook for the Alternative Energy - Other industry, to which Energy Vault belongs, is currently in the bottom 41% of over 250 Zacks industries, which may negatively impact stock performance [8]

Financial Performance - Revenue for Q3 2024 decreased by $171.0 million to $1.2 million compared to $172.2 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by $210.6 million to $12.7 million compared to $223.3 million for the same period in 2023[121]. - Cost of revenue for Q3 2024 decreased by $164.3 million to $0.7 million compared to $165.1 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by $200.7 million to $9.1 million compared to $209.8 million for the same period in 2023[124]. - Gross profit for Q3 2024 was $483,000, a decrease of $6.7 million compared to $7.1 million for Q3 2023, and for the nine months ended September 30, 2024, gross profit was $3.6 million, down $9.9 million from $13.5 million for the same period in 2023[120]. - Loss from operations for Q3 2024 was $(27.1) million, an increase of $5.8 million compared to $(21.2) million for Q3 2023, and for the nine months ended September 30, 2024, the loss was $(79.6) million, a decrease of $2.9 million from $(82.5) million for the same period in 2023[120]. - Revenue from the sale of energy storage products for Q3 2024 was $811,000, down from $172.1 million in Q3 2023, and for the nine months ended September 30, 2024, it was $11.5 million compared to $222.9 million for the same period in 2023[122]. - The net loss for the nine months ended September 30, 2024, was $74.0 million, compared to a net loss of $76.3 million for the same period in 2023[142]. Cost Management - The company anticipates annual cost savings of $6.0 million to $8.0 million from recently implemented cost-saving measures[102]. - Operating expenses for Q3 2024 totaled $27.6 million, a decrease of $826,000 compared to $28.4 million for Q3 2023, while for the nine months ended September 30, 2024, total operating expenses were $83.2 million, down $12.9 million from $96.1 million for the same period in 2023[120]. - Research and development expenses decreased by $2.5 million to $5.7 million for the three months ended September 30, 2024, compared to $8.2 million for the same period in 2023, primarily due to cost controls and headcount reduction[127]. - General and administrative expenses increased by $1.5 million to $17.3 million for the three months ended September 30, 2024, compared to $15.8 million for the same period in 2023, mainly due to a $1.9 million increase in the provision for credit losses[128]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $29.4 million, down from $34.5 million in the same period of 2023[151]. Revenue Streams and Future Outlook - Energy Vault's new bookings for the three months ended September 30, 2024, amounted to $137.4 million, compared to $170.5 million for the same period in 2023[104]. - The developed pipeline reached $2.73 billion, with a total capacity of 10.7 GWh as of September 30, 2024[104]. - The backlog as of September 30, 2024, was $264.4 million, down from $314.9 million in the same period of 2023[104]. - The company expects future revenue of $90.7 million from recent equipment supply and offtake agreements, which include both fixed and variable pricing components[102]. - The Company expects to generate future revenue from the sale of GESSs and through tolling arrangements related to energy storage systems it intends to own and operate[109]. Market Conditions and Risks - The energy storage market is projected to grow at a 27% compound annual growth rate through 2030, with annual additions reaching 110 GW/372 GWh[97]. - Inflationary pressures and supply chain disruptions are identified as potential risks that could impact revenue and profit generation[98][100]. - The Inflation Reduction Act is expected to enhance the economics of energy storage solutions, potentially accelerating market adoption[101]. - The company faces foreign currency risk as a portion of its revenue and operating expenses are incurred in currencies other than the U.S. dollar, which may adversely affect its results of operations[159]. - Inflation could impact the company's operations due to higher material, labor, and construction costs, potentially affecting its financial condition and results of operations[160]. - Credit risk is present as the company relies on its customers for revenue, and the loss of significant customers could negatively impact its cash flows and results[161]. - The company is exposed to commodity price risk from fluctuating market prices of raw materials like cement, steel, aluminum, and lithium, which could reduce operating margins if costs increase[163]. Cash Flow and Financing - Total cash, cash equivalents, and restricted cash decreased to $77.7 million as of September 30, 2024, from $145.6 million as of December 31, 2023[136]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(21.0) million, a significant improvement from $(116.1) million in the same period of 2023[141]. - Cash used in investing activities increased to $48.1 million in the nine months ended September 30, 2024, from $33.2 million in 2023, primarily due to property and equipment purchases[144]. - Cash provided by financing activities was $0.6 million for the nine months ended September 30, 2024, a turnaround from cash used of $4.7 million in the same period of 2023[145]. - The company has entered into an open market sales agreement to sell shares of common stock with an aggregate offering price of up to $50.0 million[135]. Accounting and Compliance - The company is classified as an "emerging growth company" and will continue to take advantage of the extended transition period for new financial accounting standards until the end of 2026[156]. - The company has not made any changes to its critical accounting policies and estimates compared to those disclosed in the 2023 Annual Report[155]. - The company has not yet recognized any revenue related to certain licensing agreements where collectability is uncertain[137].

Revenue and Financial Performance - Revenue backlog increased by 33% quarter-over-quarter to $350 million, driven by new contracts in the U.S. and Australia[1] - Total revenue for the three months ended September 30, 2024, was $1,199 thousand, a significant decrease from $172,205 thousand in the same period of 2023[15] - Gross profit for the nine months ended September 30, 2024, was $3,600 thousand, down from $13,514 thousand in the prior year[15] - The company anticipates full-year 2024 guidance for revenue, gross margin, and adjusted EBITDA to be within the mid to low end of the range due to timing of equipment deliveries[3] Operating Expenses and Losses - Operating expenses improved to $27.6 million in Q3 2024, with adjusted operating expenses of $15.2 million, reflecting a 13% year-over-year and 7% quarter-over-quarter improvement[3] - GAAP net loss for the quarter was $(26.6) million, partially offset by lower operating expenses compared to prior periods[3] - Net loss attributable to Energy Vault Holdings, Inc. for the three months ended September 30, 2024, was $26,593 thousand, compared to a net loss of $18,942 thousand in the same period of 2023[15] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(44,508), compared to $(47,062) in 2023, an improvement of 5.5%[25] Cash and Assets - Total cash and cash equivalents stood at $77.7 million with no debt as of September 30, 2024[3] - Cash and cash equivalents at the end of the period were $51,124 thousand, down from $74,236 thousand at the end of September 30, 2023[17] - Total current assets decreased to $131,668 thousand as of September 30, 2024, from $279,582 thousand as of December 31, 2023[13] - The company had total assets of $252,858 thousand as of September 30, 2024, compared to $340,753 thousand as of December 31, 2023[13] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $19,621 thousand, down from $29,552 thousand in the prior year[15] - GAAP R&D expenses for Q3 2024 were $5,704, down from $8,156 in Q3 2023, representing a decrease of 30.1%[21] - Non-GAAP adjusted R&D expenses for the nine months ended September 30, 2024, were $12,591, compared to $20,720 for the same period in 2023, a decrease of 39.3%[21] General and Administrative Expenses - GAAP G&A expenses for Q3 2024 were $17,270, an increase of 9.2% from $15,810 in Q3 2023[22] - Adjusted G&A expenses (non-GAAP) for the nine months ended September 30, 2024, were $28,085, down from $31,772 in 2023, a decrease of 11.0%[22] Project Development and Strategy - The developed pipeline of projects improved by 11% quarter-over-quarter to 10.8 GWh, stable at $2.7 billion[2] - Energy Vault is executing a growth strategy in Australia with multiple projects under construction and awarded, including a 1 GWh project in New South Wales[4] - The company expects to retain ownership of approximately $100 million in storage assets instead of generating revenue through sales in 2024[3] Efficiency and Performance Metrics - GAAP gross margin for Q3 2024 was 40.3%, with a gross profit of $0.5 million, attributed to higher margin software and service revenue[2] - The EVx Gravity Energy Storage System achieved a Round Trip Efficiency (RTE) of approximately 83%, ranking among the highest in long-duration energy storage technologies[4] Credit Losses - The company reported a provision for credit losses of $1,861 in Q3 2024, compared to $(5) in Q3 2023[22]

Core Viewpoint - The global transition to cleaner energy is accelerating, but the intermittency of renewable sources like solar and wind presents challenges that create a market for energy storage solutions, with Energy Vault (NYSE: NGRV) at the forefront of this innovation [1][3]. Company Overview - Energy Vault is recognized for its gravity-based energy storage technology, which addresses the intermittency of renewable energy sources and has been acknowledged by TIME magazine as one of the Best Inventions of 2024 [3][4]. - The company offers a diverse portfolio of energy storage technologies, including gravity-based systems, water-pumping solutions, and hybrid hydrogen fuel cell and battery technologies [5][6]. Financial Performance - In Q2 FY2024, Energy Vault reported a GAAP gross margin of 27.8% and quarterly revenue of $3.77 million, alongside a net loss of $26.2 million [8]. - The company is transitioning from selling technology to owning and operating energy storage projects, which is expected to provide more predictable and recurring revenue streams [9][10]. - Despite initial earnings challenges, the company maintains a debt-free status and has over $100 million in cash runway, positioning it well for future growth [11][17]. Strategic Growth Plans - Energy Vault forecasts achieving positive cash flow EBITDA by 2025, supported by a backlog of projects, including a 1.0 GWh energy storage project in Australia valued at over $350 million [14][15]. - The company is expanding its global presence with significant projects in Australia, the United States, and China, aiming to create stable revenue streams [16]. Market Response - Energy Vault's stock has experienced volatility due to market adjustments to its strategic shift, but fundamentals and strategic direction have led to a nearly doubling of stock price over the past 30 days [12][13]. - The company is currently rated as a "Hold" by analysts, indicating a cautious outlook amidst its strategic transition [19].

Core Insights - The article discusses a long-term, contrarian approach to equities investing, emphasizing the importance of navigating the energy transition in the context of commodities and energy sectors [1]. Group 1: Investment Strategy - The investment strategy focuses on a long-term perspective, which may involve taking positions contrary to prevailing market trends [1]. - The analyst has transitioned from a focus solely on technology to also covering commodities and energy, reflecting the evolving market landscape [1]. Group 2: Analyst Background - The analyst has 10 years of experience in investment banking, specializing in industry and company research [1]. - The article is authored by an individual who expresses personal opinions and does not have any financial interests in the companies mentioned [1].

Financial Data and Key Metrics Changes - The company reported revenue of $3.8 million for Q2 2024, reflecting a decrease compared to the previous year due to project timing and percentage of completion accounting [20] - Gross margin improved to 27.8%, up from 9.8% year-over-year, indicating a favorable revenue mix as projects were completed [20] - Adjusted EBITDA was negative $15.8 million, an improvement of 12% year-over-year, with adjusted operating expenses declining by 23% to $16.9 million [21][22] Business Line Data and Key Metrics Changes - The company is focusing on owning and operating specific projects, with notable projects including the largest green hydrogen storage project in the U.S. and a battery project in Texas [8][9] - The backlog increased to $264 million, reflecting new long-term service agreements and projects with ACEN in Australia, up approximately 17% since the last Analyst Day [13] Market Data and Key Metrics Changes - The developed pipeline reached $2.8 billion, with over half associated with projects from existing customers or strategic partners, indicating strong confidence in conversion to contract bookings [12] - The company is expanding its regional presence with new projects in Australia and Brazil, highlighting growth in key markets [19] Company Strategy and Development Direction - The company outlined a strategy focusing on high-growth regions for energy storage, predictable revenue streams, and optimizing product mix for profitability [4][5][6] - A new hybrid gravity and lithium-ion energy storage project was announced in Sardinia, Italy, showcasing the company's innovative approach to energy storage [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural trends in the energy storage industry, particularly due to increased demand for renewable energy solutions driven by generative AI and data centers [15] - The company aims to leverage its unique technology and solution-based approach to create a competitive advantage in the energy storage market [16] Other Important Information - The company maintains a strong balance sheet with over $110 million in cash and no debt, positioning itself well for future growth [14][23] - Management expects adjusted operating expenses to be reduced by $3 million to $4 million in the second half of 2024 [22] Q&A Session Summary Question: Focus on owning and operating specific projects - Management clarified that there is no specific technology focus for owning and operating projects, but rather an emphasis on project economics and financing attractiveness [25][26] Question: Performance update for Rudong EDx system - Management is awaiting final approval for full operation and is currently measuring performance metrics [27][28] Question: Revenue guidance and pipeline opportunities - Management highlighted the importance of converting projects from the developed pipeline into actual bookings to meet revenue guidance [30][31] Question: Balance between build and transfer vs. own and operate - Management indicated that the decision is based on the attractiveness of the project rather than being purely customer-driven [34][36] Question: Implementation timeframe for new projects - Management noted that the new modular pumped hydro system is expected to move quickly due to existing infrastructure and prior testing [41][43] Question: Development of the software layer - Management confirmed that the software is productized and has been successfully operating across multiple projects, with potential for standalone sales [46][50]