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Energy Vault’s Pivot into Asset Ownership Gains Momentum Amid Stock Slide
Jul 25, 2025
Energy Vault (NYSE: NRGV) is a U.S.-listed energy storage company best known for its early gravity-based storage concepts. Today, it has transitioned into a vertically integrated developer and operator of battery storage systems globally, offering both hardware (B‑VAULT™), software (VaultOS™), and full turnkey project development.
While the company’s technology and ambitions have evolved rapidly, the market has been slower to reward it—shares are down over 40% year-to-date.
Financial Performance & Market Sentiment
Energy Vault’s most recent earnings (Q1 2025) showed $8.5M in revenue, falling well short of expectations (~$25M). While gross margins improved to ~57%, the company still posted a net loss of $18.9M and adjusted EBITDA of –$11.3M, reflecting continued pressure on scaling revenue profitably.
The stock has also been weighed down by:
A NYSE non-compliance notice for trading below $1/share for 30+ consecutive days
Ongoing execution delays in delivering on its project backlog
Insider selling and investor skepticism despite strong pipeline growth
High volatility (beta > 2.0) and concerns about financial health (Altman Z-score < 0)
Despite those headwinds, the company’s backlog has grown to $648M, up 49% YTD, and analysts remain cautiously optimistic with a median 12-month price target of $1.58 (~30% upside from current levels).
July 2025 Cross Trails BESS Financing
In July 2025, Energy Vault closed $18 million in project financing for its Cross Trails BESS—a 57 MW / 114 MWh battery system now commercially operating in Scurry County, Texas (ERCOT market).
The system was built under the company’s “Own & Operate” strategy, marking its first fully financed, developed, and owned BESS project. Energy Vault will retain long-term ownership and operate the asset using its VaultOS™ software platform.
Key highlights of the deal:
Offtake Partner: Gridmatic, under a 10-year, physically settled revenue floor contract (first of its kind in ERCOT)
Tax Credit Monetization: Expected $12M+ in ITC cash proceeds this quarter
Expected Returns: Levered IRR ~15%
Technology: First use of B‑VAULT™ AC Gen 2 hardware and proprietary EMS stack
Timeline: Completed construction and commissioning ahead of schedule in June 2025
This financing represents a pivotal shift: rather than just supplying systems, Energy Vault is now building recurring, infrastructure-like revenue streams by owning and operating assets directly.