Energy Vault Holdings, Inc. (NRGV) Earnings Call Transcript

Greetings. And welcome to Energy Vault's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to Mr. Nitin Dahiya, CFO. Please proceed, sir.

Thank you, Operator. Good afternoon, everyone -- for joining us today, and welcome to Energy Vault's Second Quarter 2026 Financial Results Call. Our earnings release and investor presentation are available on the Investor Relations section of our website, and we will refer to the presentation throughout today's call. Before we begin, I want to remind everyone that today's discussion contains forward-looking statements that are subject to risk and uncertainties. Actual results may vary materially from those expressed or implied by these statements. Please refer to our most recent SEC filings and the safe harbor language in today's earnings materials for a discussion of the factors that could cause actual results to differ. We undertake no obligation to update these statements except as required by law. We will also discuss certain non-GAAP financial measures. Reconciliation to the most directly comparable GAAP measures are included in our earnings materials. On a personal note, this is my first earnings call as Chief Financial Officer of Energy Vault. The combination of our differentiated power infrastructure platform, growing contracted asset base, strong execution, and disciplined approach to capital creates a compelling opportunity to build long-term shareholder value. I'm excited to join the team at this important inflection point in Energy Vault's journey. Joining me today is Robert Piconi, our Chairman and Chief Executive Officer. Robert will take us through the strategic and operational update, and then I will take you through the quarter, liquidity, backlog, and our increased full-year guidance. Robert, over to you.

Great, Nitin. Thank you, and I'd like to welcome everyone to our Q2 earnings call. And also a friend, Nitin, pleasure to have you here. We're all very excited. Nitin just joined us just last month and excited for the contributions here and this very important phase in our company's growth profile. So welcome, Nitin. I also want to remind everyone that we have posted an investor deck out to the investor website. It would be helpful, I think, for those following through if you'd like to follow through that. I will be referring to some of those charts as we go through and before turning it back to Nitin on the results. Hopefully everyone's had a chance to take a brief read of our earnings announcement, and as I think the results reflect, I'd say two main things up front; I think number one, the execution of our strategy, and if you have been following us, that execution means delivering for customers, and that shows up in revenue. It shows up in profitable revenue and gross margins, and it shows up in the quality of the availability of the power solutions we provide. But secondly, I'd say it also reflects a commercial execution and capturing the demand being driven by AI compute infrastructure. This is something we've talked about strategically. If you go back the last 6 to 12 months, about positioning our company with our great expertise, with our strong execution capabilities with customers, that's not just here in the U.S., but that's globally as we've demonstrated, and very excited to see not only that begin to show up in the results this quarter, but as we'll talk about in our improved outlook, both for this year and for next. The strategy we've been describing is now in full translation mode into some of the results we've just seen. That means stronger growth, higher margins, increasing cash, a substantially larger backlog, and importantly, greater visibility into both near-term revenue and long-term recurring earnings. If you turn to Chart 3, which is the first page of the deck, three main messages there before I jump into some of the numbers. First, I think the '26 and '27 outlook has strengthened materially. As you've seen in the backlog, the backlog increased by about $650 million to roughly $2 billion. That's a strong 40% increase just quarter-over-quarter, let alone more than doubling that on a year-over-year basis, and what we see there is expectation also to convert that revenue over the next 12 to 18 months at attractive margins for about 40% of that backlog. This gives us substantial and greater visibility into the delivery ramp ahead of us, and that's both, I'd say, this year and into a very strong Q4 we're going to have, just as we did last year, but also as we look at 2027. Second, we're converting the AI data center and high compute platforms demand into real contracted wins. We've talked about the Crusoe win that was mentioned about six months ago as we began to enter the module data center space. But in addition, we recently announced a 1.25 gigawatt agreement, which is our largest contract in the history of the company, to support an integrated power generation and storage solution for hyperscale data centers. And then all of these efforts have given us substantially greater visibility into the delivery ramp ahead of us now. Third, we have strengthened the capital formation and the project financing capabilities. Now, the company mentioned Nitin's appointment here as our new CFO joining from BlackRock, where he had built a strong career also in the energy infrastructure in addition to other sectors. But also I've mentioned Cory Magnuson's appointment as President of Asset Vault in Q2. All of these things adding the deep capital markets, the structured finance, the IPP, and project finance expertise at exactly the point where the scale of opportunity is accelerating. And that matters because the next phase of growth is not simply about winning more projects. It's about financing the right projects efficiently, protecting our returns, bringing those assets online predictably and at the quality levels we've done to-date, and converting that execution into cash flow and long-term shareholder value. If you turn to Chart 4, we'll jump into just some of the numbers at a high level, Nitin will be covering them in more detail in a minute. I think you'll look at numbers we refer to immediately on the number of megawatts. We discussed the 1.1 gigawatt over the last three months as the last time we were together in May. That's important because those gigawatts are under our control. Some of them are operating, some of them are under construction, and some of them are now in a ready-to-build state. That 1.1 gigawatt is what's translating, and I'll share the chart and a few more charts here to look at the timeframes that they'll be coming online, but that will be translating into the $180 million of the recurring annualized EBITDA, which has been fundamental for our strategy the last two years. But importantly, if you shift to the right, the backlog, and we'll spend more time and we have a few charts here where we're actually going to share the composition of that backlog between what's the long-term recurring versus what's our more near-term revenue conversion opportunities. That's increased now to $2 billion, a large increase quarter-over-quarter, doubling on a year-over-year basis as you see, and gives us a lot of visibility. On the revenue side, we've doubled the revenue on a year-over-year basis. Again, a reflection of strong execution of the backlog we built last year in projects both in the U.S. and Australia. I think one of the most impressive performances as we looked at Q2 was our gross margin. Gross margin is fundamental because those are the dollars and the cash generated from the revenue to cover the operating expense as you go forward, and the fact that we've improved that both on a quarter-over-quarter basis and on a year-over-year basis from an adjusted gross profit up to 38.6%. And the reason we talk about adjusted gross profit, because it is the cash gross profit that does not include some of the non-cash depreciation elements associated with our build, own, and operate portfolio. But even the GAAP gross profit, even growing to 31% this quarter. Again, just a strong result. What that means is we are executing well. We are executing well in the field to avoid any issues that can come up when you're building large energy projects and doing it in a manner with high quality and with high safety. And I think ultimately here, this has to show up in cash and increasing our cash. I'm going to give you a look at what we've done the last six quarters now. So this is our sixth straight quarter of increasing cash. I think a great reflection of the focus and some of the discipline of the company to ensure that we are building that cash book, we're improving the balance sheet as we have a lot of attractive investments that we'd like to invest in. It was a 26% increase on a quarter-to-quarter basis and more than 150% on a year-over-year basis. I'd like to turn now to the backlog. If you turn to Charts 5 and 6, and we provided a little more detail here to give people some color into not only the existing backlog, but even how's that's going to evolve into the end of the year. As well as on Chart 6, we have broken down that backlog and characterized it between our build-and-transfer and our build and operate. And Slide 6, I think, is particularly important because it provides a more detailed composition showing how that 40% of that backlog is the build-and-transfer that supports more near-term revenue conversion and cash generation, while about 60% is the build, own, and operate component creates that long-term recurring revenue and earnings visibility. Standing at $2 billion today, that's roughly 3x where it stood at the end of 2024. But more important is that composition where we have about 60% of it tied to that long-term recurring revenue from our owned and operated assets, while 40% now, which has grown since last quarter, is supporting that near-term project delivery and revenue conversion over this next 12 to 18 months. And I'd say that's exactly what we wanted to see. While we're making this transition by building and transferring and operating some of these assets on the build, own, and operate strategy, that means we give up revenue as we do that. And that's where we wanted to see good conversion on our build-and-transfer business to continue to build that revenue and cash growth as we did that. And that's exactly what we're delivering and showing you today. Together, they give us a much more balanced, more predictable, and ultimately, a much more valuable earnings model. A little bit of time on Chart 6, because that is a new one. You're looking at our build-and-transfer breakdown of those megawatt hours. These are storage projects where we talk about them in megawatt hours instead of megawatts. You see there on the revenue side, the total in that backlog is about $700 million of that $2 billion backlog. But in particular, we are also showing the advanced contract negotiation, which represents about another $0.5 billion that we're expecting to execute and close on those. If you look at then the revenue for both this year and then into 2027, there's a total of about $1.2 billion that we have underway. So very excited about that. That's a reflection of some of the growth we're capturing in the execution on our commercial teams. And the other thing I point out there, if you look to the right, are the gross margins associated with that revenue. So as you saw in the earnings release, we'll be talking more in a minute, we are increasing our gross margin or lifting that to the upper end of the range. Again, this is driven by strong demand, but also speed. So you hear the term speed to power. If you can execute quickly in this market and -- with a high probability of strong execution and predictable execution, that's going to buy you not only winning contracts, but it's going to buy you the ability to also drive that growth and, in fact, profitable growth here with our margin profile. The second piece of this chart on Page 6 is the build, own, and operate side where we've segmented that. That represents the other $1.3 billion of the backlog. These are revenue streams that are going to be anywhere from 7 to 15 years. It's a substantial portion of the backlog, which you want to see that grow and you want to see that continuing to growing. That allows us to have a lot of visibility going forward. And remember, these are streams that are anywhere from 70% to 80% gross margins. So as we build these projects and they come online, we've mentioned $180 million annualized streams just EBITDA that you're going to see out of this, I think fundamental to our execution, to our longer-term strategy of owning and operating energy infrastructure. We'll continue to update this chart to give you that visibility, both in the near-term revenue on the build-and-transfer and as we execute on the build, own, and operate. If you go to Chart 7 then, and as you saw, I think, in the headline of our earnings release, we are increasing and raising the ranges of our guidance, starting with revenue, where we're increasing from the $225 million to $300 million to the upper end and even above the high end of the range, $270 million to $310 million. Just like last year, as we executed in Q4 in a very large way to over $150 million, last year in Q4, we're going to have another large ramp this year. That supply chain is secured. It includes batteries. It includes some of the other high voltage equipment driven off of some of the recent contract announcements. Expect to have that margin range then, also you see there we're raising to the higher end there and lifting that range up to the 20% to 25%. I think as you just saw in the Q2 results that I just reviewed, we're continuing to execute well. I would say that those numbers -- and if you look at our Q2, represent over 2x the market in terms as you're executing EPC contracts across the board. And if you look at any of the others in the space that are executing, we feel very good about that range and our ability to continue to execute to the upside of that range. And then very importantly, on the cash side, reiterating but narrowing to the higher end of the guidance. So we're lifting our guidance on cash there at $160 million to $200 million. And these near-term revenue contracts are going to be very helpful to that. We continue to manage that well. And I think the additions of Nitin and Cory, between the project financing and the broader capital formation expertise and network they bring to the table, will continue to keep us with a healthy and growing balance sheet. Turning to Chart 8 from the deck, we're reflecting both revenue here and its growth over the last three years, but also reflecting that backlog growth. And we are showing what we expect to be a backlog growth, even with some of the revenue recognition we're expecting in Q4 that's going to be approaching almost $3 billion. And again, that's a number we don't take lightly. We're executing with a lot of contracts underway that give us a lot of confidence, and that should give investors a lot of confidence, and that's both some of the near-term revenue for recognition, but more importantly, we're going to expect an increasing percentage of that backlog on those recurring revenue streams in our build, own, and operate portfolio. I'm going to jump everybody to Chart 11 because I want to spend a little time on our powered land portfolio. We summarized some of our existing powered land projects. One of them underway, our Calistoga Resiliency Center, that's the two-day, the 48-hour backup to the City of Calistoga, Napa. That is supporting Pacific Gas and Electric. So we have a 10.5-year agreement with them. That project is operating as planned and is there to secure the city in the event of wildfires or any other events where that would cause the grid to shut down. Shifting to the right there, an update on Snyder and our AI campus. We recently announced just two months ago an update on breaking ground with our Crusoe project. That's the module data center project. It's starting with 8 megawatts and heading up to 25 megawatts for the initial deployment and very excited. We also announced plans for an expansion of that site, up to 500 megawatts. So that's going to involve a series of both generation, renewable, as well as storage as we expand our new AI campus there. That is a wholly owned facility and excited as a showcase center as well with multiple storage technologies already operating there today. For Mesa del Sol and our New Mexico campus, we mentioned this powered land opportunity. We actually had a single page on this in the last deck where we got right up to the 75 megawatt, which is the next milestone. So we're starting with that as an update. I'm on track to start with that in our Q1 there in the state of New Mexico. We have a lot of expansion planned given our ownership rights on the surrounding land. We had mentioned we had acquired 225 megawatts of also -- of gas generation and reciprocating engines capability and also would complement that with storage and solar over time up to the 1 gigawatt in that area. We have multiple locations in and around that area as well that we're advancing and having multiple discussions with hyperscaler off-takers and expecting to be announcing some things here in the coming months as we get to the second half of the year. So excited about these larger opportunities. They do create the 15-year plus revenue streams. We're investing for them in the right infrastructure and the assets. And as we've seen with the 1.25 gigawatt announcement of power generation and storage together that's behind-the-meter work adequately and I think very, very quickly advancing our knowledge and our execution here in the space. Page 12 is a chart that we've also showed for the first time last time, that shows the details of the projects that make up the $180 million of annualized recurring EBITDA. So these are the 1.1 gigawatt of projects and essentially all operating within the same timeframes we outlined before. The first two there on the left are already operating there for the 2025. They went online. That's Calistoga and Cross Trails. We're expecting to hear more about Sosa here in the coming months. We have already talked about the Crusoe deployment, and then there's a set of other listed projects that's both in Australia, and in Japan, where we announced the acquisition that was closed in a more near-term, two projects in particular, the 350-megawatt there that you'll be expecting to hear more of in the coming months. And then our New Mexico powered land project here. So all within line, I think, with what we reported before and good execution of the team to stay on track in various phases of the planning, the construction, and a lot of the financing efforts underway there. We also provided on Page 13 a level of detail that walked through each of the years and how we expect those megawatts to come online. These are annualized numbers. So the way you can read this chart is looking at the number of megawatts and gigawatts we bring online and the associated EBITDA that's an annualized number as we bring them online. So that's where, in this illustration that we have here. We have the walk year by year that we expect to achieve, getting up to roughly in almost 5 gigawatts by 2030 and approaching a number of about $2 billion on an annualized basis of the EBITDA. Again, this is another one we'll continue to keep investors updated about, and I think important to continue to look at the megawatt ads as we announce new projects here for the second half of the year. Finally, and just to finish and wrap up, now before I turn it over to Nitin, we'll talk about some of the focus areas on Page 15 for the second half of the year. I think primarily, and as job #1 with us, as you continue to hear, it always starts with execution. And that's for the second half of the year, we've outlined some additional revenue growth and upside on that revenue and margin that we expect to deliver. That's going to come through how we always do things in a very disciplined way, a very passionate way in serving our customers. And we see even upside to some of the projections we have here that we're expecting to close on now in the next coming months, and we'll be sharing more as we give additional updates in November. I think converting on this owned and operate pipeline to the megawatts under control is another key one to watch. We have multiple projects to add to that 1.1 gigawatt. This is fundamental, I think, to continue to build and execute on our strategy to build a recurring annualized EBITDA streams. Thirdly, as you saw in the announcement and executing around the large behind-the-meter modular generation and storage platform that we announced, again, this deal was all about speed to power. Recently executing it has a large amount of revenue for both the second half, and in particular Q4 this year, but also for 2027 as we announced. We're hoping to expand this platform and this relationship into many parts of the U.S. given the demand we see, and in particular, given some of the wait lists and the waiting lines you have to power. So with this behind-the-meter solution, we believe we can get customers to power much more quickly. Fourth, we're working on the further optimization around the capital structure of the company and ,essentially, reducing our overall cost of capital. That involves not only strengthening the balance sheet, but we're also building our own team and a self-financing team as opposed to paying a lot of fees and costs to outside advisors. So that's fundamentally to some of the leadership announcements that we've announced in the last three months. And then finally, as we look globally, you can expect to see continued footprint expansion in these key growth markets. So we've been very focused on only the largest and, I think, the most attractive storage markets, most recently adding that acquisition in Japan, continuing to expand in Australia will be important, and right here home in the U.S. continuing to build and expand given the tremendous demand we see in the AI compute infrastructure. With that, I'm going to turn it back to Nitin to go over some of the details of our financial results.

Thank you, Robert. I will cover the second quarter financial results, liquidity, and capital discipline, backlog, and then our updated full year outlook. Revenue for the second quarter was $17.4 million, compared with $8.5 million in the prior year period, an increase of 104%. This increase was driven by progress on our Australian projects. GAAP gross profit was $5.4 million compared to $2.5 million a year ago, an increase of 116%. GAAP Gross margin came in at 31%, up 140 basis points. Adjusted gross margin, which excludes depreciation and amortization associated with owned and operated projects, was up almost 900 basis points year-on-year. So the gross margin performance is important because it demonstrates that the growth we are seeing is not simply volume-driven. The gross margin was exceptionally strong this quarter and product mix -- a project mix and execution continues to support healthy economics as the business scales. Adjusted operating expenses were $23.7 million compared to $16.2 million a year ago. The increase primarily reflects commercial support, project development, and legal expenses associated with scaling the owned and operated and AI infrastructure platforms. We expect to see the benefit of this higher OpEx over the next 12 months in contract activity. As such, we remain focused on managing controllable OpEx while investing in growth where warranted. GAAP net loss for the quarter was $29.7 million from $34.9 million in the prior year period. And the GAAP EPS was a loss of $0.17 compared to $0.22 last year. Adjusted net loss was $24.6 million compared to $18.4 million a year ago. Coming to adjusted EBITDA, adjusted EBITDA was a loss of $17 million compared to a loss of $13.6 million in the prior year period, with higher operating expenses partly offset by higher gross profit. Turning now to liquidity. Total cash and cash equivalents, including restricted cash, were $148 million on June 30th. This was approximately $31 million higher sequentially and $90 million higher year-over-year. I want to emphasize here that we remain focused on ensuring adequate liquidity for the business as it grows. As the company moves towards a larger owned and operated portfolio, ensuring adequate parent liquidity and optimizing each project's capital structure are fundamental to creating value for shareholders. We intend to extensively use project-level financings, including tax equity, and use corporate capital where -- only where appropriate with clear return to thresholds and disciplined allocations. That discipline is especially important as the opportunity set expands. We intend to grow in a way that focuses capital on projects with more attractive risk-adjusted economics for the parent while ensuring a resilient capital stack. Backlog, as we talked about previously, as of August 10th was about $2 billion, more than doubling versus a year ago. About 60% is attributable to owned and operated projects, and 40% to third-party projects. The increase in third-party backlog materially improves near-term visibility across '26 and '27. And at the same time, the owned and operated component creates a growing base of contracted, longer-duration earnings as those assets reach commercial operations. And again, as we talked about previously, the additional disclosure on Slide 6 should give you a better sense of how each of these components is expected to drive future earnings mix for the company. Moving on to guidance, we are increasing our full year 2026 revenue guidance to $270 million to $310 million from a prior range of $225 million to $300 million. The increases in guidance reflects stronger commercial execution and stronger visibility in contract timelines. That sell -- sorry, that said, quarterly revenue recognition can be uneven because of project timing and milestone accounting. So, there, I would flag that a vast majority of second half revenue is expected to be recognized in the fourth quarter. We are narrowing our full year GAAP gross margin range to 20% to 25% from 15% to 25%. And year-end cash, we are currently targeting it to be $160 million to $200 million compared to $150 million to $200 million previously. Together the raised revenue outlook, revised gross margin, and strong liquidity demonstrate the increasing financial capacity of the platform as we continue to grow the owned asset portfolio. As we look to the second half, our priorities are straightforward. Execute the backlog, maintain margin discipline, ensure adequate liquidity, and deploy capital against the highest return opportunities. With that, I will hand the call back over to Robert for a few closing comments before Q&A.

Great. Thank you very much. And again, I want to thank everyone for -- and in particular our employees for all their focus and execution as we delivered another solid and very strong quarter. I think it's a great precursor, and as we look at the second half, Nitin just mentioned some of those key priorities, and you can continue to expect from us a strong focus on our customers, but also a very, very strong focus on only the most attractive and largest growth opportunities. We referenced a big milestone, a landmark for the company in the signing of what is our largest contract since inception, a little over $0.5 billion. We liked, obviously, those types of relationships, not just for the size, but for the ability to grow that relationship over time. And that's why, generally, we've maintained being very selective with customer sets. We don't go out too far to really all customers really focus on ones that can be those partners that we build a lot of trust with, with initial projects, and then expand over time. And you can continue to expect to hear that from us as we look at this year. And in particular, very encouraged for what this is yielding for next year with the type of backlog now that we've grown, but in particular, the size of that backlog that's in the next 12 to 18 months, which makes us -- I think puts us in a very, very strong position as we look at 2027. I will mention that, at our next earnings in November, we'll be sharing more about what we see in 2027 and what can be expected at that time. And with that, operator, I'll turn it back over to you for the Q&A.

[Operator Instructions] The first question comes from Justin Clare with ROTH Capital Partners.

I wanted to start out on the 1.25 gigawatt hyperscaler agreement and just wondering how we should think about the $500 million to $600 million of revenue in terms of the split between 2026 and 2027, if you can share. And then just wondering if the margin profile you anticipate there is consistent with that 20% to 25% that you had guided to for 2026 here. And also you indicated for the projects in advanced discussion. So, yes, if you can comment on the potential margins there.

Sure. Yes, happy to, Justin. Regarding the split, you can assume on that split that there'll be a portion of that $500 million to $600 million into our Q4. So that's a recently announced deal that had been in the works, so for three to four months. So we are able to execute a portion of that delivery in Q4. And I think you can obviously assume that's not going to be the majority of it, but there will be a portion of that. And I'd say the majority of that revenue will be in 2027. As far as margins go, we feel very good, hence the raise there to the higher end of the range, of the 20% to 25%. You saw the results that we just delivered that began with a [ 3 ]. I think we feel very strong about not only the range we just gave, but I think to your question, for having that continue in that range we outlined into 2027.

Got it. Okay. That's helpful. And then just on the same, the 1.25 gigawatt agreement here, you described this as a repeatable platform. So I just wonder if you speak to, beyond the initial deployment, how would you characterize the opportunity pipeline? Maybe what storage use cases you're seeing emerge, like where you're seeing the most significant demand. And then just wondering if discussions have kind of move beyond the initial hyperscaler there, or are you more focused on the one customer at this stage?

Sure. A few questions here. Let me just generally, and as we announced, we've developed a solution that's a modular platform, and this is with a partner that we have not named for confidentiality purposes yet, but it's a large power generation EPC. We mentioned in the release that this first portion, this 1.25 gigawatt, is associated with Caterpillar gas generation. But generally, it's a platform, and to be deployed, it's all about speed to power. And these are platforms that are behind-the-meter, meaning we don't have to rely on grid power for them. We deploy these and are planning to deploy them in 250 megawatt modular solutions. And so you can do the math on that into the 1.25. And we also see quite a large opportunity to take this platform, both with this partner, but also in the market, and expand that. You hear the term speed to power. You've heard me say that a few times. It's a -- there's a lot of opportunities where over the next 12, 24, 36 months, while grid investments are being made, while transmission lines have to be built, all the capacity upgrades now that are being executed, those things are going to take three, four, to five years. So the fact that we've created a platform now integrating energy storage, gas generation and, in particular, I'll mention the strength of our software and that plays, because that software is doing that load optimization and orchestrating how that power gets delivered for five nines quality. So that's not a small thing, as you know, given the expectations that the customers have. And it's something we are looking to, the second part of your question, that is something that we, can expand and deploy upon. And we're very excited about that. And as you can imagine, with the announcement we made and with some of the work we've done planning, in particular, as we look at next year and the customers we're having now, we see a lot of potential to deploy the solution.

The next question comes from Julien Dumoulin-Smith with Jefferies. Please proceed.

This is [ Leonard ] on for Julien. Congratulations, again, on the great results. So the current 1.1 gigawatt portfolio underpins the roughly $180 million annualized EBITDA. But as you add new projects and potentially grow that backlog from roughly $2 billion today to towards $3 billion, where do you expect the highest incremental value to come from? Like traditional BESS assets, powered land projects, or AI infrastructure deployments? Where are you expecting the largest share of occurring EBITDA growth and like backlog expansion over the next several years?

Yes, look, I'd say there's no change in our strategy of building, owning, and operating assets over time, we believe and still believe and have conviction that, that is the best use of our capital to build longer term recurring revenue streams. I think the segments we're looking at to deliver the most profit on that will have a lot to do now with our powered land solutions and what we call our powered shell or the module data center solutions. We will own and operate those. We also have delivery models of delivering sets of batteries. We actually call it our ESaaS model for battery delivery, where we can own and operate those batteries as a part of firming up grid power or firming up other types of generation to customers. So it's a very interesting segment where I think owning and operating those megawatts over time, we believe, will have the longest-term value for shareholders. And no change, of course, to -- as an example, the 1.25 gigawatt platform that we just announced. I mean, that is actually RevRec, so that is build-and-transfer. And I think that's, that may have been a little bit of a surprise that we were building out our backlog and also now increasing, let's say, the size of the backlog with more near-term deliveries and build-and-transfer. But that is the nature of this market because we built a very strong reputation for high-quality delivery and knowledge of the grid. We that see a lot of demand for customers that want to integrate different types of technologies and leverage our expertise as we've done that across multiple regions, multiple technologies, and in different business models. And the last thing I'll leave you with is we are being very selective in the projects that we take on and the customers we take on. We like to focus, as I said, on larger customers, one that share our culture, share our way of working and our focus on high quality, our focus on the longer-term path to sustainability that remains, I think, front and center here with us. And we're being very selective on the most attractive projects in terms of where we put our capital.

The next question is from Noel Parks with Tuohy Brothers.

A couple things. So among your portfolio, just as a reference point, what's your sort of most active construction or installation site at the moment?

Oh, we probably have, I guess, a few of them. There's in [ Sosa ] in Australia where we're building out and have our on a build, own, operate side, we have Stoney Creek that we've announced in our beginning some of the construction activity there. But in particular, on the build-and-transfer side in Australia, we have our first and our largest project in one of the larger projects in the country with a customer called ACEN. We are deploying 200 megawatt of a battery project there and already delivering 200 megawatts of power on that facility. So we're finalizing now the turnover and what's called in Australia the R2, meaning the R2 is the milestone where you've actually gotten the grid sign off formally. It's an important milestone for us there because having that now will enable us to actually bid on larger projects in the market. So that's I say remains very active right now in terms of the construction side. From a pure U.S. perspective, you can imagine with the ramp we have coming in the second half of this year. So if you look at our guidance and look at the revenue today, you'll see that we're looking at another $250 million to $270 million of revenue here in the second half of the year. So that involves some sites that we're sort of finalizing some of the deliveries and installations. Consumers Energy is one of those as an example from prior projects. But in addition, the work that's going on relative to what we just announced, that's been underway for the last three to five months, this -- the 1.25 gigawatt deal, there's a chunk of that revenue and things being delivered here for this year. And then in Snyder, Texas there's work going on, as we announced, the construction start on the civil activities and a lot of the high voltage upgrade and work with the utility there at Snyder for the module data center work with Crusoe. So I'd say those are -- those three areas are the most active right now for us globally.

Great, thanks. And you just mentioned that for the 1.25 gigawatt project, you've been active on it for, you said, three, four, five months. And is it -- well, I guess I'm curious about the project, assuming it's had some considerable lead time. Whether they have been proceeding along what had been an original plan for a behind-the-meter installation or whether it's the sort of thing that they started development and became aware of the intensity of grid limitations, the difficulties, of interconnects, and at some point along the way decide they need to sort of pivot in a direction that also embrace energy storage as well.