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Michael Beer | executive |
Robert Piconi | executive |
Justin Clare | analyst |
Alec Scheibelhoffer | analyst |
Christopher Ellinghaus | analyst |
Noel Parks | analyst |
Greetings, and welcome to Energy Vault's Third Quarter 2024 Earnings Call. [Operator Instructions] And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you Michael Beer, Chief Financial Officer. Thank you, Michael.
You may begin.
you. Thank to Quarter welcome Conference Financial Vault's Call. Energy and XXXX Third Results Hello,
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Thanks, Rob.
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EBITDA. Now adjusted OpEx and on to
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of in has XX, cash XXXX, $XXX completion. versus a million total had a final million on cash $XX increased and for cash to the received June As of project September cash, associated credit million $XX company XX. in that equivalents Restricted since with restricted letter
have Australia. chosen additional projects credits. largely billion cash with offset from still tax in to our for by of and of $XX.X the uses to to monetization range timing operate, likely in our we million, expenses both balance and use with project operating the strategy. and our equipment the operate million upon for purchases excess of depending investing from own year-end in which expects of Our $XXX million, in and will those be associated capital associated and cash to expenditures progress bonding of financings, increased cash of activities mainly to U.S. and anticipated projects cash working capacity own primary finance are company maintains needs those and energy within growth Year-to-date, projects facilitate $XX build, storage construction project for $X the Management be
With tax the of project $XX Cross in back with monetization financings million we to credits. sheet including to completed, $XX balance onto expect for bring Calistoga million the now Trails the once underway cash and Jefferies,
Calistoga own infrastructure a and X operate We storage development from expect hours. totaling to project and the U.S. ownership projects company Meanwhile, The another expect in return has return XX close Australia strategy over over build, the million the next continues to $XX anticipated on $XX we million strong year-end. to and quarters. Trails pipeline execute for gigawatt the Cross the to and by project asset from identified
as We business also leverage approach our our expertise, and product project see across management diversified a advantages storage portfolio. host synergies legacy and solutions-based of we
the capital deliver While XX% accretive Once and to project credits each call capital the owned project EBITDA margin agreements. look back use profile. by underpinned offtake IRRs visibility over the projects to EPC our margins to I'll the enhance projects inherently on hand the and intensive that, unlevered expect double-digit Rob. these available in more of XX% structure project completed, nature optimize tax agreement, depending earnings than to offtake long-term finance. and of business, we and these the We range, then operated of With
Great. Thank you, Michael.
these projects will investing and projects work this of them. own go one on operate on this as them as and EBITDA the capital some been margins the our few for is to we designing think returns I through. that questions predictable range. projects And as walked continue think, leverage asking emphasize building how financing a especially we thing and there is be these reputation understand Michael at low also for the And bit our other, experience you side. how revenue understanding that something announced The investors with look in and Jefferies double-digit just things read execution in just you then, streams with fundamental work. the how long-term team back, we and through these the point creating The dynamics the just built, some gotten the I and expertise, highlight, these in are can working we we have last projects our and investors. attractive, our the CapEx built. very associated project add in flows, as with as weeks believe, reducing criteria of operating and But We've are just for I that. think, for returns be you optimizing, the went OpEx well and I'll from will as a forward projects that -- the with just to CapEx strong as and that to have and a unlevered getting they We've
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the continue commissioning them brings to our it the with platform, experience, the things some will experience from then have that way we've ensure with field, only we on our we And strength way, comes designed about his get projects, industry, software from do developed environment. lot aerospace and a our to to a EMS mentioned leverage by across expertise twins is as operating that the we leads do the these industry of not with our up in energy who but earlier of also that and storage, and when to development team. that do surprises. not digital team I own Prakhar, the Shaheen the So we bringing software creating
that where of other innovation operate for our thank be look the see that, projects. few invest I'd again, the executed as we to where it the battery and to whether projects, last here mechanical rapidly as and on positioned at deliver I we to and of cell all here Energy questions. from and sets opportunity our these safety very, manage to that customer and have all to or we've operator we some of And that technology at an to as level lithium-ion and years. look our comes very to investors up we with doing back and we people positioning supported something partners all and have first as and dealing it our appreciate. leverage, work It's is and that, customers COD get when With systems, own technology company quickly, to with it fundamental full just Our come projects some so will of the product brought for things our on our our thank Vault done we important our like uptick that time. And a want over monitoring turn completion for to have as and systems uniquely
question [Operator comes Instructions] And the the from line first ROTH Capital of Justin Partners. Clare with
you're ask could in just how how then ownership see that needed you I thinking if you're about much XXXX? to of the and the to sheet And XXXX looking funding add to you to potentially about first, in I trying balance projects or think capacity be share that to different capital Just wanted wanted your the also the be to here. looking at could volume So sources. order would finance these and opportunities
Justin. Thanks,
as Jefferies, we're attractive associated in project announced the market we previously there with So funds with raising the and opportunities. the
I well availability attractive see think IRR one the high of of the market we is operating and returning things the capital good for in projects.
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table are looking terms investors very lot millions the it, So a lot of things of to to you that and experience especially of in and if and range the cap getting working in some on in given hundreds at the on given putting the look investors of we deployed of we've capital strategic that our work at with dollar interested a different bring table. us got sources capital of
immediately, targets could provided point? might given and this about a the the you've just and deliver you're follow-up. then how EPC or projects thinking And batteries affect and essentially how that that own the approaches do you the Curious, for revenue wondering the outlook you a essentially and at XXXX project for that could different recognize
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we very turn By things So turning those we're projects decisions be also over cash our of I decide and we're customers on decide we or way, build sheet. the be that to always the and question seriously, we'll keep cognizant ensuring terms appropriately. to answer on commitments guidance going next to to take whether made. We to would them of say cognizant year, the of your going balance to in make for
to we deliver in given for may term. access to may the result or projects scenarios that So the cash long holding decide have, them turn otherwise, that we where and capital
of Scheibelhoffer with And the Alec from question line next Stifel. the comes
Naturally, hit the But So I guidance was if little bit progression just focus I revenue the quarterly 'XX provide on in could here. just you here. little to want wondering a a be lumpy what could timing what have us like to with feel some you the and you just the benchmark expect confident on you fourth most of the that the in a quarter, pending? little projects
announcement, there Sure. Yes, as in think, this and tightening formally Michael up we're a range we this the -- well, the guidance, in our referenced I was but bit. specific
revenue today. recognition how I we see think see what end shipments of to lower coming on just based we said mid to we in the range and that and
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part remains upper end items how into on go, get other determine a but dynamic visibility to low where or the depending side, that bit the guidance the that range. have into And will it that getting and So we then we good very a operational items shipping mid-part of on we of range. of feel
conference of that of the to basis? the when there. get bit just visibility. the fall you've term? own was Appreciate hallmark follow-up. and highlighted into to And is more as operate your or just just and And how we think kind what today, building time curious frame strategy 'XX kind just slipping I XXXX quarterly 'XX, a maybe May and kind to longer enshrine of progress you of quarterly versus during about a going progression out that into color would trying of in kind little that it. call a a Naturally, expect some investor is Got then on during of
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the license basis sets. on and $XXX gravity and will gave royalties technology on the that's in duration those going that. annualized We times the at of signing here around to And that executing agreements, XX tolling time. royalties. getting annualized build-outs to million, XX going some agreements long be in with to EBITDA going supporting we still is you're looking licenses X start of those project and company are quarterly those have them, be guidance to to that be to or obviously, million, those XX-year we're that think, of basis build from we annualize is on can on to If that quarterly next rate quarterly going those just And a EBITDA some the be coming. And that's million a an long-term XX over run unique, over monetize PPA us want that this agreements. And We're as to rate energy $XX we an up the I on you at way coming look storage $XX if actually months.
that's exciting. So
think gravity things around we've to the and in role. the some built of gravity is I going and formed a where mentioned partnerships regions I some play world the of that
different projects, And energy all There's grid a and tight straight that's are large address or areas new and battery we a premium. using our places But technologies centers address that been the have for centers energy unique and of in continue about technology and material at different our places is but build-out in to also domains, for especially of centers in and projects, before innovating in data to leveraging that center of as in data middle expertise and way of difficult example, So looking the only density about out data landscapes. leveraging engineering our desires and there think space solutions where science the to and the desert that data and are to spans new have we're excited to knowledge, evolve. civil lot to spaces. that. execution, at have been Not help a the where built middle in that not optimize what's structural we core density in are
our various bring technologies, table creativity. So we that across thinking the to about expertise bringing
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Energy I think that's unique to Vault.
really and going for recurring I business, to choose quite of to company bring we and to home that say experience, be getting with our that, to predictable I thesis going expertise our formidable, operate as driving margin. own complementing high what investment of as table. revenue would to and with software an that And that think and to percentage that be innovation is I going are part think, investors a the larger looking at a the that's we're
line next Williams the comes with the from And Siebert Ellinghaus question of Chris Shank.
made capital adjustments thoughts Snyder the in to project on terms costs guys at or of capacity all you lines? your those anything any Have or along
a working team, they adjustments their We there. There's I did our to interconnect on we gravity asks series in up that what wanted had in would buying announced storage end see initially, of some announced project that us with Trails we cooperation they in R&D with say That's the with technology. Enel been energy that, and of that Chris. what Cross project, as
which operate announced bought our the can scale, you which pre-existing our did that not own what we're gravity. the we out landscapes it but other So is Enel's slope-based technology full And as we technology. that includes going we call our modular which Analyst only of land EVx slopes in that's so of there. But sites to interconnect to different that look the because and products and the we hydro announced the as at applications what and also is line well and with get request also demonstrated that we one apply and our at at our Investor our to Day, EVy, EVX, -- technologies, pump in
coming technology be to that is end arrived first in for and site running ago about And going then be year. online the example, will have all EVy QX. So that a the up EVy month and EVX Snyder. equipment, the the in and customer for EVx be after at visits actually and will just before we planned, up The of running,
will Snyder in latest with also site our software built now we've capabilities. of what a is So multi-technology multi-asset, represent our innovations all that
energy highlighting that of charging put those be site, one as and we'll the be taking that from PV of as building discharging, well storage orchestrating other B-Vault our So doing systems, capabilities will power the we're generation there battery the is we at be systems that our software.
into more been of gravity build that that we're collaboration a demonstrate going developed with operate. than other have interconnect technologies on lot well addition, assets we one then in But in using site and as out the center, EVx, that using and own that's essentially to we're capabilities Enel. So broadly more to to of just and
for get there. be excited to that. of in area we'll bringing host those that Dallas of there to in X outside be months, you a X we'd X-hour ever at about systems you It's into site the out excited if Snyder. And drive up the essentially very some next, and So
you have that provide hour, public? might That's XX-megawatt on helpful. can Australian Do you insight the when unannounced that be any
and know color about Chris, was I'm here. feedback you repeating I breakup don't getting get But you Australia sorry, my repeat some I'm line. Can end. if it's would I on didn't the you the question? heard in but mind there some specifically projects, the that? wanted. I
XXX-megawatt unannounced when insight have The might an publicly be into hour you project, that do announced?
Yes, sure. quarter. announcement expecting that We're this
of was that the to I Australia in and project, announced expect quarter. there we met So with be some that principles just but this of
forward, the paradigm? going you're As see financing you working credits of far future what goes at monetization project as that the as the other on the as do foreseeable toolkit moment. foresee and things you financing Or Is to adding for well?
question. I'd Yes, it's say great a
we'll what project standard more financing is be I'll to So continuing do mechanisms. call
there's those As liquid market quite models I tax and well ITC on side. are mentioned very the earlier, including attractive, equity the proven, a
also, other on some with already of Jefferies we in think in But he working mechanisms what So as walked are order. Michael referenced that I through. just announced,
working be Australia, not pipeline we're creating be to we going which we're the execute large. is that and projects So able us only quite on mentioned that U.S., we the there, to for to abilities see multiple
not of year, may forward capital. That we're as company, projects to include for we ahead sheet have or the that having own to in a mentioned. getting at forward, partners, strategically, are is this we say in pre-IPO and ways, that I So this the of off obviously example, people of done. going the had financing back, cash and in debt, include where did post. project go we like of the We've -- invested more mode would case sheet. going parallel, balance And for us X ways we're our sources we've off ways meaning past the make our flexibility the putting it little while the going whether nondilutive to going financing to then invest be happened balance first to nondilutive and look as may thoughtful creating partners, having no working, But strategic be this okay, think, I and choices
are seem kind had over I other about you next XX, curious details gloss you doing year? to if date. Snyder, Snyder since of up you that. December XX And any kind event guys at some the was thinking of for bring You
the excited sure and but Calistoga a did it's not We in mean great of some way, I hosting to we're that, to the there question. By and finish comment was event with about gloss for to over. folks. going
We about more of Calistoga chose given the in microgrid. that. be there'll there So uniqueness the
I the have to to the I but community, of think the we're time word online, local another hot passion, know to the they and excitement have the it, choosing don't how commissioning. prior a say full system
will soft it commissioning mode. a around actually, to and where there interact in allow us we're the So site in
site. able I be will closer little it get a the to think, to, So there everything at
different running push and the appreciate X coexistence and up to gravity between the something in that's there. technologies proactive I be this the full first and the that's multi-day other set months, So get multiple to with generation EVy really will I case that kind. a pumped just given absolutely, And -- in And think orchestrating point idea planning ultra-long a X your that, duration, the project of the we sustainable and EVx, we of PV will And to modular software think type of the next first there. that's what fit online. going absolutely Snyder, in of kind as be I going meaning including some set to of a storage the hydro with storage X on its first combined be the of kind -- of be technologies,
quarter here for sure that I us list next. guess coming We yet, that announcing and our you're action not on it's announced have now, for we'll but and the make
next the Parks of from comes And the Tuohy with Noel line question Brothers.
I battery had storage question question. a a and gravity storage
advances, longer what over so mention that modules about expertise you of energy what an time might in to replace would would like them, have was if say, thinking on you greater you forth, contracts those over impact? And look do maybe increase economics storage did could So something battery at density. achieving life, the technology applying thinking what to your also And such improvements side. be in I general battery to time? that I'm and upgrade as look able project terms
be say to first civil think, we'll are of structural looking very and very science storage. innovative expertise I some what we density relative material Look, battery things ways announcing broadly, all, structural example, combined relative options I'll to achieve new with at ultra-high with for high to our integrating, energy
we've volume reinforcements, rebar example, and structural That the and and of through benefits if heat be energy that temperatures had experience safety, of storage. And looking a duration in So lot fiber reducing impact of think with duration example. about container-based with that up on concrete for example, the eliminating which focus has replacing type. short storage that materials. low design in any and It may types might LFP be it at those and, for in a of for the steel as concrete cost, longer optimization of impact
We mentioned other on new the around we premium and think outskirts And in for a and thinking I'll systems. we right to density you density and technology building and achieve a we're fundamental constituents those that. at cities, These to and approach if go that ways where solving have as higher to interested customers fit the where those about with example, using customers solutions not We're things or And I that So just new there densities the Calistoga on safety could think we a ready the at with again, how like function is about in. areas not okay? look energy actively there. problems, And about mind that are aspect That's, to collaborating yet. and what so are at to that announce with we're has structures do with customer design you even customers. ensuring foremost, looking back second Noel. that's working few been able are historically our energy some
you battery there's I'm Hopefully, you some from As be you event, customers, by announce about And could announce that much density. least scale, batteries the we it. get other energy product we've thinking will customer and can any tell are feedback last with with year fundamental know, potentially we to hear that. what be world pricing, haven't over announcements LFP going longer of on attempting in us But the focusing that expect plenty aren't sorry, curve, there here. when on and generally, some to what's that you duration. technologies happening that innovation the there so bigger XX% on to okay? than line. and at seen the us to to going seen in market them You looking also at not drops case there's be we're we're necessarily meaning that people are in drives out that me. generally, I But with that that's that someone accompanied things,
bidding, lot wrapper, focused manage this down. that availability for management You our can consider and as those around some technology with around getting of reliability, platforms that's volume the be the asset of few to higher-level built the safety, of and in functions even on move getting going that add, that systems team also the for last expertise. price surround, what's power we've example, software not bidding commodity only and going software happening years that's up a We're about to and the stack to value ability in in but something optimization and broader guaranteeing
So that's playing going to that area we're be in.
will about, how And which around it innovation our some we achieve you of do of better like is include density. product some just asked energy own
just to to excited on say a come going I more, bit little we're I'm could I more have wait to But to. So wish there. that.
lines of now available I mind. since up forth. becoming so there, it And But maybe you the about and gravity about mentioned you project gravity so with all having it's wonder might iterations that Rudong, so I'm if thoughts you how experience top running. see that point for forward have can I future just see and built come storage projects. additional data better thinking China you to just forth. there's at out and project as doesn't been then in anything was anymore that's out might first just storage Great. up if and a wondering know it's any you this not the stands look subsequent And new time the reduced product efficiency, of
a question. customize that, flexibility level its of learning to we allowing to country a And share it's let technology a that you're when few or me real And as there. the needs. okay, do a been for certain great here things region license because own technology, It's you individual
we in So of concrete, some China, fiber other take innovation to in out for serves you example, in for have of there, lot had example, that we and pure would we place. a licensed licensed, in reinforced the around the while core volume cast technology which
cost, low very because, was chose again, example. the R&D So it. cheaper lot known. for do. we've at automation cost do always place for they we done had because being the use they labor construction of proven site they've how China, some what labor have we chose they to it in cast in example, of our so in they lot a at with to in cases, there, to in innovation Switzerland. of and that, and even how out pre-casting, that Snyder That's low in That's Due that's In go a
in choose have to on efficiency their example. cage want they where carries and an increasing source to of will to question. innovation way the safety on components thicker mechanical standards. that's most to okay? liquid we ribbon scope their any there with of think, compressed point going in not our any they the pumped of increase because -- that that an made impact safety first lithium-ion, It's and okay, we're look from example, therefore, but the of all there, and Sticking is world in the But counterweight, how initial design that I why the factor full of locally, them which have it's China, the the all the shared, let's your lifting in there's gravity customized XX%, belt be And changes new the a involved impact changes the maximize the basis, which may that's efficient slight for that any doesn't it system, those air, example, bit, innovative cases, gravity India, system, the thickness, the they most gives any energy on And chose increasing weight of like, all too, like dependent performance, just an and all, of beauties steel data these South storage process, around of that's they China, say, terms of great build of a to that is the weight, with countries implement and for fact performance mentioned, where increasing in share which we've because the things okay? choose block own They for the some The in storage, that's flexibility the local that I have to we what type of And was technology the So based itself hydro. for unprecedented in very other did. that like locally. And design of on some to XXX% large and that on it's efficiency of can iterations did the region to impact this the weight a of of and it increases XX% the, designed ribbon just innovative even I exciting. the that's excited ribbon in I implement, increasing efficiency. the data different achieving air, it example, one the a size, therefore, trip that changes thermodynamic But Africa basically cost.
on Helena, XX a with the finish Switzerland That's we've and also both think CTO close they to Pedretti, working Caltech side engineering engineering practicality and how been that, they're I and how chunk of our our lot days. team interesting, built. all the our and Wiese our from in structural our group group, learned just designs Chris labs who software will and party from implementation were helping runs of the innovations Skidmore in And for academic so think, Baker software third spends, Merrill Jose us. civil And good region. it's and a came question, how be design, China but and Andrea as engineering your We an is out with is us of out. developing Owings their this through as just had who's which partners a last data Andrade, in where actually this really well there engineering, and his of time I'll And and to all and different has customized, and it apply let's with experience think, these I his from with, Bill with that us research say, us. example, by core
where density, innovations, energy more of is excited we're question, the about which that sharing putting and started last future. in innovation about that what you all new we're into So is achieving your
have end closing the comments. of now we turn question-and-answer and to floor over any And Ladies the this gentlemen, time, at Piconi I'd back reached to Robert the like for session.
and I'm finish following an making want here, but excited, the didn't more We're And get the Great. the everybody all here sorry, in as Well, the again, up year. But a folks we're think we thank to to with for importantly, their normal we'll on and of the progress to seeing look, hopefully, definitely time. sense I in exciting execution get call. as going you be think, questions I post and manifest long getting for that's built and out seeing announcements in term the now our of more recent to itself, doing lot of a come how you're what And employees the and Vault strategy and there. and finally, to and keep partners their and all investors at all support of the thank customers again people do. that we the our us what just Energy I
much. everyone, you, thank very So
that and does conclude teleconference. gentlemen, ladies today's And
your time. disconnect at lines this You for Thank may you your participation.
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