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NET Power (NPWR)
NYSE:NPWR
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NET Power
(NYSE:NPWR)
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Rating:52Neutral
Price Target:
$3.00
▼(-0.99% Downside)
NET Power's stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow issues. The positive momentum from technical analysis and promising earnings call insights provide some optimism, but valuation concerns due to ongoing losses weigh heavily on the overall score.
Positive Factors
Technological Integration
The integration of gas turbines enhances efficiency and power output, positioning NET Power to offer reliable, affordable power while reducing emissions, which is crucial for long-term competitiveness in the clean energy sector.
Cost Reduction
Significant cost reductions in Project Permian improve economic viability, making NET Power's offerings more competitive and attractive to potential partners and customers, supporting sustainable growth.
Tax Incentives
The increase in 45Q tax credits improves project economics, making NET Power's clean energy solutions more financially attractive and supporting long-term project deployment and expansion.
Negative Factors
High Initial Costs
High initial costs for plant development pose a challenge to financial sustainability and could deter investment, impacting NET Power's ability to scale and compete effectively in the market.
Delayed Commercialization
Extended timelines for commercialization delay revenue generation and market entry, potentially affecting NET Power's competitive position and ability to capitalize on clean energy demand.
Market Hesitation
Market hesitation towards new technology could slow adoption and deployment, impacting NET Power's growth and necessitating reliance on proven technologies, which may limit innovation.
NET Power (NPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$664.25M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)43.6
Beta (1Y)1.29
Revenue Growth-94.96%
EPS Growth-579.85%
CountryUS
Employees68
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.36
Shares Outstanding77,882,960
10 Day Avg. Volume1,339,885
30 Day Avg. Volume1,105,274
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue3.46K
Enterprise Value/Gross Profit-300.94
Enterprise Value/Ebitda-5.60
Forecast
1Y Price Target
$4.00Price Target Upside32.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
NET Power Business Overview & Revenue Model
Company DescriptionNET Power Inc. operates as a clean energy technology company. It invents, develops, and licenses clean power generation technology. The company was founded in 2010 and is headquartered in Durham, North Carolina.
How the Company Makes MoneyNET Power generates revenue primarily through the sale of electricity produced from its Allam Cycle power plants. The company partners with utilities and energy companies to develop and operate these plants, receiving payments for the energy generated. Additionally, NET Power may enter into long-term power purchase agreements (PPAs) that secure revenue over extended periods. The company also benefits from potential licensing agreements for its technology, allowing other firms to implement its Allam Cycle technology in their operations. Partnerships with key industry players enhance its market reach and facilitate investments in new projects, contributing to its overall revenue streams.
NET Power Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in cost reduction and technological integration, particularly with the addition of gas turbines, which positions NET Power well for future deployment. However, high initial costs and extended commercialization timelines remain challenges. The integration strategy aligns well with market needs, providing a pathway to decarbonization and positioning NET Power as a flexible solution provider.Q2-2025 Updates
Positive Updates
Integration with Gas Turbines
The integration of gas turbines with the NET Power cycle leads to a higher efficiency configuration. This integration enables the company to provide reliable, affordable power now and lower emissions in the future, significantly increasing power export capability from 200 megawatts to 415 megawatts.
Project Permian Cost Reduction
Project Permian LCOE improved significantly from over $150 per megawatt hour to under $100 per megawatt hour due to value engineering and tax incentives. Pipe quantities and diameter have been reduced by 20% and 25% respectively, and ASU equipment costs came in 15% lower than expected.
Turboexpander Program Progress
Significant advancements in the turboexpander validation program with Baker Hughes, including infrastructure repairs and increased testing cadence, are moving the project toward Phase 2.
45Q Tax Credit Parity
The 45Q tax credit parity for sequestration and utilization pathways enhances the economic viability of projects like Project Permian, offering a nearly $10 per megawatt hour lower power price.
Negative Updates
High Initial Costs
Despite cost reductions, the initial cost range for the NET Power plant remains high at $1.6 billion to $1.9 billion, with the integration of gas turbines adding an additional $300 million to $400 million.
Delayed Commercialization Timeline
The timeline for commercial deployment is extended, with the NET Power plant potentially coming online by 2029-2030, depending on securing offtake agreements and financing.
Market Hesitation for First-of-a-kind Technology
There is some market hesitation to colocate with first-of-a-kind technology, affecting the deployment strategy and reliance on proven gas turbine technology to lead.
Company Guidance
During the NET Power, Inc. Second Quarter 2025 Earnings Call, the company provided guidance highlighting several key metrics and strategic initiatives. The 2025 PJM capacity auction saw a significant increase in cleared prices to $329 per megawatt per day, an 11-fold rise over two years. The company aims to leverage its NET Power cycle technology, which converts nearly 80% of natural gas BTU energy into electricity while inherently capturing CO2. By integrating gas turbines to cover auxiliary loads, NET Power aims to boost core cycle efficiency by approximately 15 megawatts, effectively doubling power output with half the emissions compared to standalone gas turbines. The project Permian Levelized Cost of Electricity (LCOE) has improved significantly, dropping from over $150 per megawatt-hour to under $100, thanks to value engineering and recent tax incentives, including a 45Q credit increase from $60 to $85 per ton for CO2 utilization. The company plans to install 200-megawatt gas turbines ahead of its core facility to meet immediate demand, transitioning to a cleaner, more efficient power source as NET Power facilities come online, effectively reducing emissions by 50% while doubling power output.NET Power Financial Statement Overview
Summary
NET Power shows potential for growth with increased revenue, but persistent negative profitability and cash flow challenges raise concerns about operational efficiency and long-term viability. The strong equity position provides some financial stability, but improvements in profitability and cash management are essential.Income Statement
NET Power has experienced inconsistent revenue growth, with a marked increase in total revenue from 2023 to 2024. However, the company has struggled with negative net income and gross profit margins over multiple years, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further highlight the operational inefficiencies that need addressing.30
Negative
Balance Sheet
The company maintains a solid equity base with a high equity ratio, suggesting financial stability. However, the negative net income has led to low return on equity (ROE), which indicates inefficient use of equity capital. The debt-to-equity ratio remains low, suggesting low leverage and potential for future borrowing if needed.55
Neutral
Cash Flow
While NET Power has improved its free cash flow position from 2023 to 2024, the operating cash flow remains negative, which is concerning for long-term sustainability. The free cash flow to net income ratio is unavailable due to negative net income, which complicates the assessment of cash flow efficiency.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 262.00K | 250.00K | 175.00K | 580.00K | 2.10M | 45.00K |
| Gross Profit | -3.01M | 219.00K | -50.67M | 305.00K | 1.27M | 8.00K |
| EBITDA | -161.99M | -99.70M | -130.86M | -36.64M | -24.97M | -23.39M |
| Net Income | -180.99M | -49.19M | -77.23M | -54.78M | -9.80M | -36.40M |
Balance Sheet | ||||||
| Total Assets | 1.79B | 2.29B | 2.47B | 351.85M | 348.37M | 107.08M |
| Cash, Cash Equivalents and Short-Term Investments | 403.40M | 507.57M | 636.93M | 5.16M | 2.57M | 12.78M |
| Total Debt | 4.23M | 3.10M | 2.15M | 786.00K | 7.01M | 0.00 |
| Total Liabilities | 58.99M | 131.93M | 140.14M | 41.57M | 42.32M | 8.50M |
| Stockholders Equity | 616.20M | 655.60M | 785.01M | 64.40M | 306.44M | 98.58M |
Cash Flow | ||||||
| Free Cash Flow | -129.98M | -100.30M | -60.65M | -972.53K | -1.33M | -25.20M |
| Operating Cash Flow | -65.79M | -31.65M | -49.00M | -857.53K | -1.33M | -24.98M |
| Investing Cash Flow | -50.19M | -168.67M | -103.70M | -115.00K | -345.03M | -220.00K |
| Financing Cash Flow | -5.09M | -4.93M | 335.39M | 21.47M | 348.93M | 29.00M |
NET Power Technical Analysis
Positive
3.03
Price Trends
2.57
Positive
2.45
Positive
4.41
Negative
Market Momentum
0.11
Negative
65.77
Neutral
85.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPWR, the sentiment is Positive. The current price of 3.03 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.57, and below the 200-day MA of 4.41, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 85.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPWR.
NET Power Risk Analysis
NET Power disclosed 69 risk factors in its most recent earnings report. NET Power reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
by holders of our warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our company. Q4, 2024
2.
An impairment in the carrying value of our goodwill or long-lived assets, principally other intangible assets and property, plant and equipment, could negatively impact our consolidated results of operations and financial condition. Q4, 2024
3.
capital investment from us and our partners. If we cannot secure sufficient finding to construct our first commercial-scale plant, our business could fail. Q4, 2024
NET Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 2.39B | 21.55 | 106.17% | ― | 40.10% | 147.12% | |
71 Outperform | 4.67B | 55.29 | 5.10% | 0.55% | 4.99% | 169.24% | |
69 Neutral | 9.87B | 27.95 | 14.02% | ― | 9.69% | 54.29% | |
52 Neutral | $664.25M | 43.62 | -26.88% | ― | -94.96% | -579.85% | |
49 Neutral | 19.57M | -3.79 | -150.29% | ― | -80.89% | 50.92% | |
46 Neutral | 47.12M | -20.89 | -3.73% | ― | -18.38% | -128.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
NPWR
NET Power
3.03
-3.98
-56.78%
BWEN
Broadwind Energy
2.04
-0.23
-10.13%
NPO
Enpro
222.03
60.89
37.79%
GNRC
Generac Holdings
168.27
9.39
5.91%
PSIX
Power Solutions
103.72
83.17
404.72%
CETY
Clean Energy Technologies
0.28
-0.72
-72.00%
NET Power Corporate Events
Executive/Board Changes
NET Power Board Member Eunkyung Sung Resigns
Neutral
Jul 15, 2025
On July 10, 2025, Eunkyung Sung resigned from the board of directors of NET Power Inc., effective immediately. Her resignation was not due to any disagreement with the company’s management or board.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.