Energy Vault Holdings Inc. is demonstrating remarkable financial progress, with projections indicating robust revenue growth and a positive shift in profitability. This surge is primarily attributed to the company's aggressive scaling strategies and successful project expansions. Complementing this operational success, Energy Vault has also undertaken significant financial maneuvers, including a convertible senior notes offering, to bolster its capital structure and facilitate further development. These combined efforts underscore a period of dynamic expansion and strategic financial management for the energy storage firm.
Energy Vault's strategic scaling initiatives, particularly its innovative "Asset Vault" program and the accelerated development of its battery energy storage project in Australia, are pivotal to its impressive financial performance. The company's preliminary estimates for the fourth quarter of fiscal year 2025 forecast revenues between $150 million and $155 million, significantly surpassing market expectations and representing a substantial year-over-year increase of 355%. This growth also marks an approximate fivefold sequential increase from the previous quarter's performance. The expanded contract revenue backlog, reaching between $920 million and $954 million prior to Q4, further illustrates the robust demand for Energy Vault's solutions and the effectiveness of its market penetration strategies. These operational achievements are foundational to the company's current financial upswing and future prospects.
The company's operational excellence is translating into a notable financial turnaround, highlighted by expected quarterly gross profits ranging from $28 million to $33 million, with gross margins projected between 18% and 22%, a significant improvement from 8% in Q4 2024. Furthermore, Energy Vault anticipates a positive adjusted EBITDA of $5 million to $10 million in Q4, a substantial reversal from a $13.4 million loss in the same period last year. While a net loss of $9.5 million to $22.1 million is still expected for the quarter, this represents a considerable reduction from the $61.8 million net loss in Q4 2024, signaling a strong move towards profitability. The successful pricing of a $140 million convertible senior notes offering, upsized from an initial $125 million, provided approximately $154.8 million in net proceeds, a portion of which is designated for redeeming existing convertible debt. This financial restructuring is crucial for strengthening the company's balance sheet and supporting its ongoing expansion plans in grid-scale energy storage solutions.