Energy Vault Q2 2026 earnings: Revenue doubles as backlog reaches $2 billion

Energy Vault (NYSE: NRGV) reported Q2 2026 revenue of $17.4 million, up 104% from $8.5 million a year earlier, while basic GAAP loss per share narrowed to $0.17 from $0.22; diluted loss per share was $0.18 versus $0.22. Revenue growth came from progress on Australia-based battery energy storage system projects, and GAAP gross margin improved to 31.0%, although the adjusted EBITDA loss widened. Backlog reached approximately $2 billion as of August 10, supporting higher 2026 guidance but requiring a substantial second-half delivery ramp.

Core financial results

Gross profit increased faster than revenue, rising 114% to $5.4 million. GAAP gross margin expanded by 140 basis points to 31.0%, while adjusted gross margin—which excludes non-cash depreciation and amortization for owned and operated projects—rose by approximately 900 basis points to 38.6%.

The GAAP operating and net losses narrowed, but the non-GAAP results moved in the opposite direction. Adjusted EBITDA loss widened to $17.0 million, which the company attributed to higher operating expenses associated with global commercial and operational growth, partly offset by higher gross profit.

Adjusted net loss also widened to $24.6 million from $18.4 million, reinforcing the difference between the quarter’s improving GAAP loss and its weaker adjusted profitability.

Business and project performance

Backlog increased by approximately $650 million sequentially to about $2 billion, up 47% quarter over quarter and 107% year over year. Energy Vault said approximately 40% is expected to convert into revenue during the next 12 to 18 months, while around 60% relates to owned and operated projects with long-term offtake agreements.

Several projects underpin that backlog and the company’s longer-term operating targets:

• Energy Vault signed an agreement covering 1.25 GW of integrated power, storage, and software infrastructure for hyperscaler customers in Texas. The agreement is expected to generate $500 million to $600 million of revenue through the end of 2027.
• Construction began on the Snyder, Texas AI infrastructure campus for Crusoe. The first phase includes 8 MW of contracted powered-shell capacity targeted for commercial operation in the first half of 2027, with potential expansion to 25 MW and planned site capacity of up to 500 MW.
• The company completed its acquisition of an 850 MW BESS development portfolio in Japan. Approximately 350 MW of advanced-stage projects are expected to reach notice to proceed in the second half of 2027, with commercial operations expected to begin in mid-2028. Another 500 MW remains in earlier-stage development.
• Global capacity under control reached approximately 1.1 GW, up 476% year over year. Management expects this portfolio to generate about $180 million of annual run-rate EBITDA over the next 18 to 36 months; this is a future run-rate target rather than current EBITDA.

Profitability, cash, and the balance sheet

Total GAAP operating expenses were $30.0 million, modestly below $30.7 million a year earlier. General and administrative expense increased to $22.7 million from $19.1 million, but lower research and development spending and a decline in credit-loss provisions helped reduce total operating expenses and narrow the GAAP operating loss.

Cash and cash equivalents, including restricted cash, reached $148 million on June 30, up $31 million sequentially and $90 million year over year. Of that total, unrestricted cash and cash equivalents were $93.0 million, while current and long-term restricted cash totaled approximately $55.0 million.

The higher cash balance came alongside increased debt. Current and long-term debt totaled approximately $243.0 million at quarter-end, compared with approximately $94.6 million on December 31, 2025. Stockholders’ equity declined to $6.9 million from $67.5 million over the same period.

After the quarter ended, Energy Vault received $15 million in July from the sale of investment tax credits associated with the Calistoga Resiliency Center. Total proceeds from investment tax credit sales reached approximately $27 million year to date.

2026 guidance

Energy Vault raised both ends of its full-year revenue range. It also increased the lower bound of its GAAP gross margin outlook by five percentage points while keeping the upper bound unchanged.

The company is also targeting $160 million to $200 million of total cash at year-end, supported by financing activities, project execution, and capital discipline.

Raised guidance requires a steep second-half delivery ramp

Energy Vault generated $39.2 million of revenue in the first half of 2026. Based on the revised full-year range, the company would need to recognize approximately $230.8 million to $270.8 million in the second half to achieve its guidance.

This makes the timing of project milestones and revenue recognition particularly important. The $2 billion backlog provides greater visibility, but only about 40% is expected to convert over the next 12 to 18 months. In addition, the anticipated $500 million to $600 million from the 1.25 GW infrastructure agreement covers the period through the end of 2027 rather than 2026 alone.

Recent insider transactions

The supplied insider dataset reports 1,287,987 shares purchased across 17 transactions during the latest six-month period, compared with 130,000 shares sold in two transactions. That produced net insider purchases of 1,157,987 shares, equal to 4.50% of the reported 27.08 million shares held by insiders.

Recent reported transactions include stock awards, sales, and a derivative-security conversion. The award transactions below were reported at a grant price and transaction value of zero.

Risks investors should watch

• Second-half execution: The full-year guidance implies approximately $230.8 million to $270.8 million of second-half revenue, making project delivery and revenue-recognition timing central to the outlook.
• Backlog conversion: Backlog includes contracted revenue, contingent option bookings, and probable variable payments. It therefore may not convert into recognized revenue in full or on the expected schedule.
• Profitability pressure: Adjusted EBITDA and adjusted net losses widened despite higher revenue and gross profit. Continued expansion spending could delay progress toward positive adjusted profitability.
• Financing requirements: Total debt increased substantially during the first half, while the year-end cash target depends partly on financing activities. Scaling owned infrastructure projects may require continued access to external capital.
• Project schedules: The Snyder campus and Japanese portfolio have milestones extending into 2027 and 2028, leaving future revenue and run-rate EBITDA dependent on construction, financing, and commercial-operation timelines.

Summary

Energy Vault’s Q2 2026 results combined a doubling of revenue, higher gross margins, and a narrower GAAP net loss with wider adjusted losses and substantially higher debt. The larger backlog and AI infrastructure agreement support management’s raised outlook, but achieving the full-year target depends on a sharp increase in second-half revenue. Project conversion, adjusted profitability, financing, and the timing of major AI and storage developments are the main items to monitor.