Energy Vault surges 25% on massive Q4 revenue beat, record backlog
Energy storage company reports first profitable quarter, triples backlog to $1.3 billion
Energy Vault Holdings shares soared approximately 25% in pre-market trading Thursday after the energy storage company delivered an unexpectedly strong fourth quarter that blew past analyst estimates and demonstrated the commercial viability of its gravity-based energy storage technology.
The California-based company reported revenue of $153.3 million for the quarter, shattering Wall Street expectations of $34 million—a 351% beat that represents a dramatic acceleration from its previous performance. Perhaps more significantly, Energy Vault achieved its first positive adjusted EBITDA of $9.8 million and adjusted net income of $3.7 million, marking a crucial milestone in its transition from development-stage company to operating business.
"This quarter represents a watershed moment for Energy Vault, demonstrating both the commercial demand for our technology and our ability to execute at scale," according to the company's earnings announcement. The results come at a critical time for the energy storage sector, which has faced investor skepticism about the economics of emerging storage technologies.
The company's backlog reached a record $1.3 billion, up 300% year-over-year, providing visibility into future revenue and signaling growing customer adoption. Energy Vault also raised its guidance for fiscal year 2026, projecting revenue of $225-300 million, representing approximately 30% growth from current levels.
Strategic partnerships in the artificial intelligence sector are positioning Energy Vault to capitalize on surging data center power demands. The company announced collaborations with Crusoe Energy Systems and Peak Energy, targeting the rapidly expanding market for energy storage solutions that support AI infrastructure. These partnerships address a critical bottleneck in the AI boom—power consumption and grid reliability—as tech companies race to expand data center capacity.
The stock's surge brings Energy Vault's market capitalization to approximately $554 million, still well below its 52-week high of $6.35 reached earlier this year. Analysts have maintained a generally positive outlook on the shares, with a consensus target price of $3.65 compared to Wednesday's closing price of $3.51. Two analysts rate the stock a buy, while one recommends hold, according to market data.
Energy Vault's gravity-based storage systems use heavy blocks to store energy by lifting them when power is abundant and lowering them to generate electricity when demand peaks. The technology competes with lithium-ion batteries but offers potential advantages in duration, environmental impact, and scalability for grid-scale applications.
The company's ability to achieve profitability just a few quarters after going public contrasts with the longer timelines typical for energy storage startups. Energy Vault's progress suggests that customers are increasingly willing to adopt non-battery storage solutions as renewable energy penetration grows and grid stability concerns intensify.
Thursday's rally marks a significant turnaround for a stock that has traded as low as $0.60 over the past year, reflecting the volatility common in emerging clean energy companies. The 25% pre-market gain would represent one of the stock's largest single-day moves, underscoring investor enthusiasm for the earnings surprise.
Looking ahead, investors will be watching whether Energy Vault can maintain its momentum and convert its substantial backlog into recognized revenue while navigating the capital-intensive nature of infrastructure projects. The company's FY2026 guidance suggests confidence in its growth trajectory, but execution risks remain in the competitive energy storage market.