Energy Vault (NRGV) Is Up 30.9% After Eskom Gravity Storage Deal at Hendrina Power Station

• Earlier in May 2026, Eskom Holdings announced a development agreement with Energy Vault Holdings to deploy a 25 MW, 4-hour gravity energy storage system at the Hendrina Power Station in South Africa, using the latest EVx 2.0 technology and aiming for up to 4 GWh of storage across the Southern African region by 2035.
• This partnership not only expands Energy Vault’s international footprint but also tests its gravity-based storage at coal-to-renewables transition sites, where successful execution could be important for future long-duration storage opportunities.
• Next, we’ll examine how this Eskom long-duration storage agreement may influence Energy Vault’s shift toward higher-margin, recurring energy storage projects.

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Energy Vault Holdings Investment Narrative Recap

To own Energy Vault Holdings, you need to believe gravity and battery storage can scale into a recurring, higher-margin asset platform, not just a project business. The Eskom agreement directly supports that thesis by putting EVx 2.0 into long-duration, coal-to-renewables use, but the biggest near term catalyst and risk still center on converting its large backlog into on-time, on-budget projects while the company remains unprofitable with a limited cash runway.

The recent reaffirmation of 2026 revenue guidance to US$225 million to US$300 million is especially relevant here, because it frames how much of the Eskom work and other storage wins might realistically show up in reported results. With Q1 2026 revenue at US$21.88 million and a net loss of US$32.49 million, any slippage in project timing or margin on these new gravity and Asset Vault deals could matter more than the headline size of the pipeline.

Yet behind the excitement around Eskom, there is a sharper execution and funding risk that investors should be aware of if project delays start to compound...

Read the full narrative on Energy Vault Holdings (it's free!)

Energy Vault Holdings' narrative projects $370.1 million revenue and $41.6 million earnings by 2029.

Uncover how Energy Vault Holdings' forecasts yield a $4.18 fair value, a 29% downside to its current price.

Exploring Other Perspectives

While the Eskom news may support long term gravity storage demand, the most bearish analysts were only assuming about 23 percent annual revenue growth and no profitability within three years, so their more cautious view on margins and project risk could shift meaningfully from here.

Explore 2 other fair value estimates on Energy Vault Holdings - why the stock might be worth 29% less than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Energy Vault Holdings research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Energy Vault Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Energy Vault Holdings' overall financial health at a glance.

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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.

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