Energy Vault Holdings' Stock Drops After Earnings Miss
Energy Vault Holdings Inc. (NRGV) shares are experiencing a decline on Thursday following the company's fourth-quarter earnings and revenue miss reported on Monday.
Declining lithium-ion battery prices: This impacted the company's margins.
This led to a delay in recognizing revenue.
This resulted in these projects not being recognized as revenue.
Energy Vault is transitioning towards an "own and operate" model, which is expected to generate long-term, high-margin revenue streams. This model involves the company owning and operating its energy storage systems, rather than selling them to customers.
Despite the current challenges, Energy Vault remains optimistic about its future prospects. The company expects revenue to increase significantly in 2025, with projections ranging from $200 million to $300 million. This growth is anticipated to be driven by accelerating business in Australia and the U.S. However, the company acknowledges that global lithium-ion battery price declines and increased U.S. tariffs could impact results.
As of the time of writing, NRGV shares were down 12.2% at 87 cents. This decline reflects investor concerns about the company's near-term prospects and the impact of the business model shift on revenue.