8-K: Energy Vault Soars with Record Backlog, Positive Q4 Adjusted EBITDA

Energy Vault reported record Q4 2025 contract revenue backlog of $1.3 billion, a 42% sequential increase, alongside positive adjusted EBITDA and net income for the quarter.

Summary

• Q4 2025 contract revenue backlog soared to a record $1.3 billion, representing a 42% sequential increase from Q3 2025 and over 300% growth from the prior year.
• Full year 2025 revenue reached $203.7 million, growing over 340% compared to the prior year and falling within the original 2025 guidance range.
• Full year 2025 GAAP gross profit was $48.0 million, an increase of nearly 8x versus the prior year, resulting in a 2025 gross margin of 23.6%, significantly higher than the prior year's 13.4% and well above the original 2025 guidance range.
• Q4 2025 Adjusted EBITDA improved by $23.2 million versus the prior year, delivering a positive $9.8 million compared to a loss of $13.4 million in the prior year.
• Q4 2025 Adjusted Net Income turned positive to $3.7 million, a substantial improvement from a loss of $25.0 million in the prior year period.
• Q4 2025 GAAP Net Loss of $20.7 million improved by $41.1 million from a loss of $61.8 million in the prior year.
• Cash as of December 31, 2025, climbed to $103.4 million, up 67% sequentially from Q3 2025 and over 300% versus the prior year, exceeding the original guidance range.
• Total Megawatts (MW) now contracted, in operation, and under construction accelerated from 65 MW to 540 MW in the last 12 months across Asset Vault and the new AI Digital Infrastructure portfolio.
• The company estimates full year 2026 revenue of $225-300 million, projecting approximately 30% growth year-over-year at the midpoint, and anticipates year-end cash of $150-200 million.
• In February 2026, Energy Vault completed a $150 million 5.250% Senior Convertible Notes offering due 2031, with proceeds used for a capped call and repayment of $45 million in existing debt.
• A strategic framework was entered with Crusoe in February 2026 for the phased deployment of Crusoe Spark modular data centers, scalable up to 25 MW, with planned deployments expected in 2026.
• Energy Vault's Australian development partner, Bridge Energy, was awarded a 14-year Long-Term Energy Service Agreement (LTESA) for the 100 MW / 870 MWh EBOR Battery Energy Storage System project, expected to commence operations in 2028, with Energy Vault holding an exclusive option to acquire and construct.
• A definitive supply agreement was announced with Peak Energy in February 2026, securing 1.5 gigawatt-hours of Peak Energy's U.S. manufactured sodium-ion battery systems and exclusive regional channel rights for Peak Energy's technology in the APAC region.
• The company closed a $300 million preferred equity agreement with OIC for the Asset Vault business, which is expected to contribute $100-150 million in recurring Adjusted EBITDA by year-end 2029.
• The 150 MW / 300 MWh SOSA Battery Energy Storage System (BESS) Project in Texas was acquired, marking the fourth project in the Asset Vault portfolio.
• The 8.5 MW / 293 MWh Calistoga Resiliency Center and 57 MW / 114 MWh Cross Trails projects were placed in service, collectively expected to contribute annualized Adjusted EBITDA of $10 million.
• An agreement was announced with EU Green Energy to deploy up to 1.8 GWh of BESS over the next four years, including a 400 MWh project in Albania, subject to final legislative approval.
• Energy Vault earned a 2025 Corporate Sustainability Assessment score of 74/100 from S&P Global Sustainable1, placing it in the 98th percentile of the Machinery and Electrical Equipment industry.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, highlighting significant financial improvements, strong growth in backlog and contracted capacity, and strategic expansion into high-growth markets like AI digital infrastructure, all exceeding prior guidance in key areas.

Positives

• Record Q4 2025 contract revenue backlog of $1.3 billion, up 42% sequentially and over 300% year-over-year.
• 2025 revenue of $203.7 million, growing over 340% compared to the prior year and within original guidance.
• 2025 GAAP gross profit of $48.0 million, nearly 8x higher than the prior year, with a gross margin of 23.6% (well above original guidance of 13.4%).
• Q4 2025 Adjusted EBITDA turned positive to $9.8 million, a significant improvement from a $13.4 million loss in the prior year.
• Q4 2025 Adjusted Net Income turned positive to $3.7 million, compared to a $25.0 million loss in the prior year.
• Cash as of December 31, 2025, reached $103.4 million, up 67% sequentially and over 300% year-over-year, exceeding original guidance.
• Total megawatts contracted, in operation, and under construction accelerated from 65 MW to 540 MW in 12 months.
• Secured rights to ~500 acres of powered land in the US Southwest for AI digital infrastructure.
• Successful completion of a $150 million 5.250% Senior Convertible Notes offering in February 2026, enhancing liquidity and financial flexibility.
• Strategic framework with Crusoe for modular data center deployment (up to 25 MW) in Snyder, Texas.
• Australian partner awarded a 14-year Long-Term Energy Service Agreement (LTESA) for the 100 MW / 870 MWh EBOR project, with Energy Vault holding an exclusive option to acquire and construct.
• Definitive supply agreement with Peak Energy for 1.5 GWh of U.S. manufactured sodium-ion battery systems and exclusive APAC regional channel rights.
• Closed $300 million preferred equity agreement with OIC for Asset Vault, targeting substantial recurring Adjusted EBITDA by 2029.
• Acquisition of the 150 MW / 300 MWh SOSA BESS Project in Texas, expanding the Asset Vault portfolio.
• Placement of Calistoga Resiliency Center and Cross Trails projects into service, expected to contribute $10 million in annualized Adjusted EBITDA.
• Agreement with EU Green Energy to deploy up to 1.8 GWh of BESS, including a 400 MWh project in Albania.
• Achieved a 2025 Corporate Sustainability Assessment score of 74/100 from S&P Global Sustainable1, placing in the 98th percentile of the Machinery and Electrical Equipment industry.

Negatives

• 2025 GAAP Net Loss of $103.6 million, although improved from $135.8 million in the prior year.
• 2025 Adjusted EBITDA remained a loss of $21.2 million, though improved from $58.0 million loss in prior year.
• 2025 Adjusted Net Income remained a loss of $42.1 million, though improved from $65.4 million loss in prior year.
• Full year 2026 gross margin is estimated at 15-25%, which is lower than the 23.6% reported for full year 2025.

Risks

• Changes in strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, expected monetization of tax credits, expected financings, projected costs, prospects and plans.
• Uncertainty of awards, bookings, backlog, and developed pipeline equating to future revenue.
• Lack of assurance that non-binding letters of intent and other indications of interest can result in binding financings, orders, or sales.
• Possibility of products being or alleged to be defective or experiencing other failures.
• Implementation, market acceptance, and success of the business model and growth strategy.
• Ability to develop and maintain brand and reputation.
• Developments and projections relating to the business, competitors, and industry.
• Impact of macroeconomic uncertainty, including with respect to uncertainty about the future relationship between the United States and other countries with respect to trade policies, taxes, government regulations, and tariffs.
• Investment in development projects that may not achieve commercial operations in the predicted timeframe or at all.
• Efforts to diversify the supply chain to lessen the impact of tariffs.
• Ability of suppliers to deliver necessary components or raw materials for construction of energy storage systems in a timely manner.
• Impact of health epidemics on the business.
• Expectations regarding the ability to obtain and maintain intellectual property protection and not infringe on the rights of others.
• Future capital requirements and sources and uses of cash.
• International nature of operations and the impact of war or other hostilities on the business and global markets.
• Ability to obtain funding for operations and future growth.
• Other important factors discussed under the caption Risk Factors in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 1, 2025.

Future Outlook

Energy Vault estimates full year 2026 revenue between $225-300 million, representing approximately 30% growth year-over-year at the midpoint, and anticipates year-end cash of $150-200 million. The company projects a full year 2026 gross margin of 15-25%. They expect to complete project financing for the 150 MW / 300 MWh SOSA project in Q2 2026 and the 125 MW / 1 GWh Stoney Creek project in H2 2026. The Asset Vault platform is targeted to generate $100-150 million in recurring Adjusted EBITDA by year-end 2029.

Management Comments

• "2025 marked a pivotal year of focused execution by our employees of our strategy and to our customers, in what started as one of the most volatile and challenging years that we faced as a company."
• "Through a strong second half revenue ramp and project execution resulting in positive adjusted EBITDA in Q4, we significantly strengthened our balance sheet to support our Asset Vault and AI Digital Infrastructure growth initiatives while continuing to aggressively acquire megawatts of projects within those sectors now totaling 540 MW from just 65 MW one year ago."
• "These milestones reinforce our strategy to deliver, own and operate mission-critical energy infrastructure supporting renewable generation, grid resiliency and the accelerating energy demands of AI computing."
• "Together, these efforts position Energy Vault to scale recurring, highly profitable infrastructure revenues and deliver predictable and long-term value creation for shareholders."

Industry Context

StockSavvy.ai notes that Energy Vault's expansion into AI digital infrastructure and long-duration storage solutions aligns with broader industry trends of increasing demand for reliable, sustainable power for data centers and grid stabilization. The strategic partnerships with Crusoe and Peak Energy, along with the Asset Vault model, position the company to capitalize on these high-growth sectors, differentiating itself from traditional battery storage providers by offering a comprehensive, technology-agnostic approach.

Comparison to Industry Standards

• The 2025 gross margin of 23.6% is a strong improvement over the prior year's 13.4% and is well above the original guidance, indicating improved operational efficiency and unit economics. This compares favorably to many emerging energy technology companies that often struggle with profitability in early growth stages.
• The rapid increase in contracted MW from 65 MW to 540 MW in 12 months demonstrates aggressive market penetration and project acquisition, outpacing the growth rates of some competitors in the nascent long-duration storage and AI power infrastructure markets.
• The target of $100-150 million in recurring Adjusted EBITDA by year-end 2029 from the Asset Vault platform suggests a robust long-term revenue strategy, comparable to infrastructure-as-a-service models seen in other utility-scale sectors.
• The 2025 Corporate Sustainability Assessment score of 74/100, placing in the 98th percentile, indicates strong ESG performance relative to peers in the Machinery and Electrical Equipment industry, which can attract sustainability-focused investors.

Stakeholder Impact

• Shareholders: Potential for long-term value creation through scaling recurring, highly profitable infrastructure revenues; increased liquidity and financial flexibility from convertible notes offering.
• Customers: Expanded offerings in grid-scale energy storage, long-duration storage, and AI digital infrastructure; enhanced reliability and reduced levelized energy costs.
• Employees: Continued focused execution of strategy and growth initiatives.
• Suppliers: Increased demand for components and raw materials for energy storage systems.
• Creditors: Strengthened financial foundation through strategic financing initiatives.

Next Steps

• Complete project financing for the 150 MW / 300 MWh SOSA project during 2Q 2026.
• Complete project financing for the 125 MW / 1 GWh Stoney Creek project in 2H 2026.
• Phased deployment of Crusoe Spark modular data centers (up to 25 MW) expected in 2026.
• EBOR Battery Energy Storage System project expected to commence operations in 2028, subject to necessary contractual and regulatory approvals.
• Continue to bring contracted projects online over the next 18-36 months to yield $150 million in annualized EBITDA.
• Target $100-150 million in recurring Adjusted EBITDA from Asset Vault by year-end 2029.

Key Dates

Recommendation

The company demonstrated exceptional financial performance in Q4 and full year 2025, significantly exceeding prior guidance in gross margin and cash, and achieving positive adjusted EBITDA and net income for the quarter. The record $1.3 billion backlog, rapid expansion of contracted megawatts, and strategic entry into the high-growth AI digital infrastructure market, supported by substantial financing, indicate strong operational momentum and future revenue potential. While GAAP net loss persists, the positive adjusted metrics and robust growth trajectory suggest a compelling investment opportunity for long-term value creation.

Keywords

Energy storage, Grid-scale, Battery energy storage, BESS, AI digital infrastructure, Asset Vault, Renewable energy, Corporate sustainability, Convertible notes, Gross margin, EBITDA, Revenue backlog, Sodium-ion battery, Long-duration storage