Loss-Making Energy Vault Holdings, Inc. (NYSE:NRGV) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse Energy Vault Holdings, Inc.'s (NYSE:NRGV) business as it appears the company may be on the cusp of a considerable accomplishment. Energy Vault Holdings, Inc. develops and sells energy storage solutions. On 31 December 2023, the US$179m market-cap company posted a loss of US$98m for its most recent financial year. As path to profitability is the topic on Energy Vault Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Energy Vault Holdings

Consensus from 6 of the American Electrical analysts is that Energy Vault Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$70m in 2026. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Energy Vault Holdings given that this is a high-level summary, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Energy Vault Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Energy Vault Holdings, take a look at Energy Vault Holdings' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Historical Track Record: What has Energy Vault Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Energy Vault Holdings' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.