Energy Vault Reports Second Quarter 2023 Earnings Results

Energy Vault Holdings, Inc. (NYSE: NRGV) (“Energy Vault” or “the Company”), a leader in sustainable, grid-scale energy storage solutions, announced financial results for the second quarter ended June 30, 2023.

Robert Piconi, Chairman and CEO of Energy Vault, stated, “I am pleased with our continued progress this quarter with our primary focus on project execution to customer and contractual commitments on our first energy storage systems. As recently announced, we have commenced commissioning of the world's first 100 MWh EVx™ gravity-based energy storage system in Rudong, China as planned. We expect this first of a kind system to be fully grid interconnected in Q4 while delivering renewable energy to the State Grid Corporation of China (“SGCC”), one of the largest utilities in the world.

Here in the US, we are also approaching final turnover of our first 275 MWh battery energy storage project with W Power and Wellhead Electric in Stanton, California. Based on our proprietary design and Energy Management Software, the Stanton system will be one of the largest energy storage systems in southern California, providing power for a high-demand load center after having met very challenging energy density requirements given the limited footprint available. Hardware and software performance has exceeded expectations and we are excited about the project’s ability to provide clean energy and grid resiliency for the community.”

Mr. Piconi continued, “Our technology-agnostic software platform coupled with deep domain, operational and project implementation expertise of our team is showing well as we begin system commissioning and final project turnover on our first systems. These strengths and unique technology portfolio form the foundation that allows us to craft distinctive solutions for energy storage across short, long, and ultra-long duration needs throughout our global customer base. We will continue our obsession with serving customer needs with the best technology, talent and ‘fit for purpose’ approach that has allowed Energy Vault to be a global leader in energy storage within such a short period.”

Second Quarter 2023 and Recent Business Highlights:

• Commenced commissioning of the first 100 MWh EVx™ gravity-based energy storage system with Atlas Renewables and their partner CNTY in Rudong, China. Commissioning of the power electronics is underway with full completion in Q4 2023 where we will begin to see 25-ton mobile masses releasing kinetic energy with roundtrip efficiencies expected to exceed 80% and delivering renewable energy to the SGCC, one of the largest utilities in the world.

• Executed our first US territory-based Gravity energy storage license and royalty agreement with a US-based renewable developer for multiple named states. The license portion will generate revenue of $33 million, coupled with royalty streams of 90% or greater gross margin tied to all future project deployments within the named states. The gravity technology license encompasses a new application of the current EVx technology that will be unveiled in more detail later.

• Nearing contract close out on first battery energy storage project, a 68.8 MW / 275.2 MWh system with W Power and Wellhead Electric Company, which we had previously announced in September 2022. The system is one of the largest energy storage systems in Southern California and will directly support and provide power for a high-demand load center. The system is based on Energy Vault Solutions’ (“EVS”) proprietary system design and EVS’s Energy Management Software for optimal economic dispatching. Testing has demonstrated that power output meets or exceeds the expected output of the project. Final site sign-off and approvals are expected to be completed within Q3.

• Procured hydrogen storage tank and fuel cells for the hybrid battery and green hydrogen system (BH-ESS) with Pacific Gas and Electric Company (PG&E) from world class suppliers, Chart Industries and Plug Power. Chart Industries will be providing an 80,000-gallon liquid storage and delivery system that is expected to allow for at least 48 hours of supply without refueling and Plug Power is expected to supply 8 megawatts of fuel cells for the system This long-duration energy storage system is the “first-of-its-kind” and is managed and dispatched by Energy Vault’s technology-agnostic Energy Management Software (“EMS”) to optimize performance and safety while minimizing operational cost. Further, the project is supported by a 10.5-year tolling agreement, which will make it one of the largest planned hydrogen-powered fuel cell installation the United States. Site mobilization to begin in the fall of 2023 with completion in mid-2024.

2023 Outlook:

Energy Vault is reiterating its previously announced 2023 financial outlook, including:

• Total revenue of $325 million to $425 million, which reflects growth of approximately 2x to 3x over 2022.
• Gross margin of 10 to 15%.
• Adjusted EBITDA of $(50) million to $(70) million.

Conference Call Information

Energy Vault will host a conference call today, August 8, 2023 at 8:30 AM ET to discuss the results, followed by a Q&A session. A live webcast of the call can be accessed at https://investors.energyvault.com/events-and-presentations/events. To access the call, participants may dial 1-877-704-4453, international callers may use 1-201-389-0920, and request to join the Energy Vault earnings call. A telephonic replay will be available shortly after the conclusion of the call and until, August 22, 2023. Participants may access the replay at 1-844-512-2921; international callers may use 1-412-317-6671 and enter access code 13739418. The call will also be available for replay via webcast link on the Investors portion of the Energy Vault website at https://www.energyvault.com/.

About Energy Vault

Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.

Non-GAAP measures

Energy Vault has provided a reconciliation of net loss to adjusted EBITDA, with net loss being the most directly comparable GAAP measure, for the historical periods in this press release. A reconciliation of projected non-GAAP measures for the full-year 2023 has not been provided because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.

Forward-Looking Statements

This press release 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 operations, including descriptions of our business plan and strategies. These statements often include words such as “ anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will” and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions, which we have made in light of our experience in our industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. These forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These forward-looking statements are only predictions based upon our current expectations and projections about future events. These forward-looking statements involve significant risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including changes in our strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, projected costs, prospects and plans; the uncertainly of our bookings and backlogs equating to future revenue; the lack of assurance that non-binding letters of intent and other indication of interest can result in binding orders or sales; the possibility of our products to be or alleged to be defective or experience other failures; the implementation, market acceptance and success of our business model and growth strategy; our ability to develop and maintain our brand and reputation; developments and projections relating to our business, our competitors, and industry; the ability of our suppliers to deliver necessary components or raw materials for construction of our energy storage systems in a timely manner; the impact of health epidemics, on our business and the actions we may take in response thereto; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; expectations regarding the time during which we will be an emerging growth company under the JOBS Act; our future capital requirements and sources and uses of cash; our ability to obtain funding for our operations and future growth; our business, expansion plans and opportunities and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on April 13, 2023, as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements.