Brenmiller Energy Ltd.

Brenmiller Energy Ltd. is an energy company specializing in thermal energy storage (TES) technology, providing energy supply to industrial clients through its patented bGen™ systems. The company's technology enables vertical integration from renewable energy assets and grid management to reliable end-customer delivery for factories requiring power and heat. Brenmiller Energy's solutions are designed to facilitate the electrification and decarbonization of industrial processes, improve integration with renewable energy sources, and reduce carbon emissions. The company operates in an evolving field of TES technologies, which are still in their early stages with limited implementations and track records.

Brenmiller Energy's core business model revolves around the development, production, marketing, and sale of TES systems based on its proprietary bGen™ technology. The company generates revenue through direct equipment sales and its Energy-as-a-Service (EaaS) model. Under the EaaS model, Brenmiller Energy finances the project, installs systems at customer sites, provides ongoing Operations and Maintenance (O&M), and sells thermal energy at fixed rates, aiming to generate recurring and diversified revenue streams. Primary customer segments include industrial facilities with heavy thermal consumption, such as the food, beverages, pulp and paper, steel, plastic, chemical, and pharmaceuticals industries, as well as organizations seeking to reduce their carbon footprint like hospitals.

The company's primary product is the bGen™ TES system, which stores heat in crushed rock at temperatures up to 1,400 degrees Fahrenheit (760 degrees Celsius) ¹. This system integrates thermal storage, electric heaters, heat exchangers, electricity-to-heat conversion, and steam generation within a single durable unit. The bGen™ ZERO is a next-generation TES system unveiled on August 9, 2023, designed for cost-efficient, zero-carbon emissions heat, offering improved efficiency with a 33% reduction in heat loss, 99% charging efficiency, 97% cycle efficiency (power to heat), and 98% year-round availability ². It also boasts a 34% improvement in energy density and 40% improvement in discharge power ³. The bGen™ ZERO is modular, flexible, and engineered for a fast one-second response rate ⁴. Other product developments include bGen™ Cool, a Cold Thermal Energy Storage (CTES) solution for data centers announced on July 18, 2024, and bGen™ ZTO, a TES system designed to electrify thermal oil for industrial applications, announced on February 4, 2025 ⁵, ⁶. On February 11, 2026, the company launched bGen™ ONE, a next-generation TES system designed to reduce installed and on-site project costs through a standardized, factory-built architecture ⁷. In June 2025, the bGen™ Thermal platform, a family of modular TES systems, was launched to provide clean, flexible, and electrified heat for industrial and commercial applications ⁸.

For the fiscal year ended December 31, 2025, Brenmiller Energy reported revenues of $387 thousand ⁹, compared to $0 thousand in the prior year ¹⁰. The cost of revenues increased to $3,596 thousand ¹¹ from $985 thousand in 2024 ¹², primarily due to a $1,642 thousand ¹³ write-down of work-in-progress inventory to net realizable value. Research and development expenses, net, increased by approximately 10% to $3,960 thousand ¹⁴ from $3,589 thousand in 2024 ¹⁵. Selling and marketing expenses increased by approximately 3% to $1,238 thousand ¹⁶ from $1,197 thousand in 2024 ¹⁷. General and administrative expenses decreased by approximately 5% to $4,332 thousand ¹⁸ from $4,557 thousand in 2024 ¹⁹. The operating loss for 2025 increased by approximately 21% to $12,738 thousand ²⁰ from $10,562 thousand in 2024 ²¹. The net loss for 2025 increased by approximately 105% to $13,905 thousand ²² from $6,772 thousand in 2024 ²³. Basic and diluted loss per ordinary share for 2025 was $57.14 ²⁴, based on a weighted average of 408,792 ordinary shares outstanding ²⁵, compared to $45.27 ²⁶ based on 149,585 ordinary shares in 2024 ²⁷. Cash and cash equivalents and restricted deposits increased by approximately 20% to $4,945 thousand ²⁸ as of December 31, 2025, from $4,130 thousand as of December 31, 2024 ²⁹.

The year-over-year comparison highlights an initial inflection point in revenue recognition, with $387 thousand ³⁰ in revenues from the sale of a thermal energy storage unit in Europe in 2025, compared to no revenues in 2024. This indicates early-stage commercial execution following a period of development. The significant increase in cost of revenues was primarily driven by a one-time write-down of work-in-progress inventory of approximately $1,642 thousand ³¹, reflecting project-specific commercial and contractual developments rather than a recurring structural cost increase. Operating loss and net loss both increased, driven by the pre-commercialization cost structure and a shift from net financial income in 2024 to net financial expenses in 2025, which included material foreign exchange losses.

Significant operational developments during the period include the unveiling of the bGen™ ZERO TES system on August 9, 2023, and the commencement of its commissioning phase at Tempo Beverages Ltd. in February 2026, with construction completed on March 2, 2026 ³², ³³, ³⁴. This project is estimated to mitigate over 6,200 tons of carbon emissions annually and save Tempo an estimated $7.5 million over 15 years ³⁵. The company also announced the groundbreaking of a TES system project at Wolfson Medical Center in February 2026 ³⁶. On July 18, 2024, the company announced the development of bGen™ Cool for data center applications ³⁷, and on February 4, 2025, the development of bGen™ ZTO for electrifying thermal oil in industrial applications ³⁸. On February 11, 2026, the bGen™ ONE next-generation TES system design was launched ³⁹. The company's manufacturing facility in Dimona, Israel, inaugurated on May 2, 2023, reached full automation by the end of the first quarter of 2025, supporting an annual production capacity of 1 GWh ⁴⁰, ⁴¹. This facility is designed to scale up to 4 GWh per year ⁴², with estimated potential annual system revenues of approximately $200 million at that expanded capacity ⁴³.

Brenmiller Energy expects that revenues from the sale of TES systems and related services will increase over time; however, the company does not expect such revenues to fully support operations in the near term. The independent auditor's report includes an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern, which management plans to address through continued focus on commercialization, execution of initial projects, and securing additional financing as required.

The company's BNRG360 integrated energy platform, announced in January 2026, represents a major growth area, aiming to offer bundled clean heat and power solutions combining TES, solar photovoltaic, and battery energy storage systems under long-term contractual arrangements. This strategy involves financing, developing, owning, or otherwise supporting long-term energy assets, which could significantly increase capital expenditure and working capital requirements. Projects under the BNRG360 framework are currently subject to development sequencing, commercial prioritization, and capital allocation considerations.

Another growth vector is the expansion into new markets through distribution agreements and joint ventures. On June 3, 2024, the company entered into a definitive 5-year distribution agreement with Rock Energy Storage LLC to sell and distribute bGen™ systems in the northeast region of the United States, with cumulative projected sales milestones exceeding $150 million ⁴⁴. On September 25, 2024, Brenmiller Europe, a joint venture with Integrated Renewable Energy Solutions S.L. (IRES), was formed to distribute products in Spain, Hungary, Germany, and Portugal, with Brenmiller Energy holding 60% ⁴⁵ of the shares. In July 2025, the bGen™ TES system was selected for a large-scale sustainable heat project led by a major European utility company, with Brenmiller Europe expected to supply systems representing approximately €4 million ⁴⁶ in potential equipment revenues. The company also signed a non-binding memorandum of understanding with a major Japanese corporation in June 2025 to explore TES deployment opportunities in Japan's industrial sector.

Operationally, the company expects a slight decrease in research and development expenses as it transitions from the primary development phase of its core storage product to ongoing optimization and incremental improvements. The Dimona manufacturing facility, which reached full automation by the end of the first quarter of 2025, has an annual production capacity of 1 GWh ⁴⁷ and is designed with flexibility to scale up to 4 GWh per year ⁴⁸. This scalable manufacturing platform is intended to support a global pipeline of commercial opportunities. The company plans to prioritize investment in localized production facilities in Europe and the U.S. to support its global expansion strategy, rather than drawing on the remaining €3.5 million ⁴⁹ tranche of the EIB credit facility.

Planned capital allocation includes continued investment in research and development, partly financed by cash flow and grants from the Israeli Ministry of Economy and Industry, the IIA, the Israeli Ministry of Energy, the BIRD Foundation, and the NYPA. The company may also use its "at-the-market" offering facility opportunistically, which as of December 31, 2025, had sold 260,641 Ordinary Shares ⁵⁰ for aggregate gross proceeds of $10,566 thousand ⁵¹. Financing activities in 2025 provided $11,500 thousand ⁵², primarily from equity instrument issuances. The company has outstanding preferred shares that accrue dividends at an annual rate of 8% ⁵³ of their stated value.

Management has explicitly flagged several structural headwinds and execution risks. The company's management has limited prior experience in EaaS business operation, and there is no assurance of successful implementation and management of new business models. The EaaS model increases exposure to market dynamics such as energy prices and grid balancing costs. The company may enter into agreements to operate projects at a financial loss to penetrate certain markets or demonstrate technological capabilities, which could materially affect its financial condition. The BNRG360 strategy may require substantial capital commitments and could increase financing needs and exposure to long-term contractual and project risks. The company is exposed to volatility in the commodity price of fossil fuels and electricity prices, which could adversely impact the cost of alternative energies and related products.

Geographic, regulatory, and macro factors identified as constraints include the need to obtain and uphold permits, certifications, and authorizations in various jurisdictions, which can be costly, lengthy, and unpredictable. The rapidly developing regulatory scheme for energy storage integration may affect operations. International activities expose the company to operational risks in new territories, including navigating unfamiliar regulatory environments and potential compliance and financial exposure. Political, economic, and military instability in Israel, where the company's headquarters and production facilities are located, may adversely affect operations and results. Fluctuations in currency exchange rates, particularly between the NIS, USD, and EUR, could adversely affect results of operations, as approximately 72% ⁵⁴ of expenses in 2025 were NIS-denominated. The company does not currently hedge foreign currency exchange risk.

Brenmiller Energy faces several material risks, including its high dependence on the successful development, marketing, and sale of its proprietary technology, with no certainty that potential customers will prefer its technology over competitors, especially those with stronger liquidity positions. The company's field of thermal energy storage (TES) is new, with limited implementations and track records, and the evolving nature of its Energy-as-a-Service (EaaS) model poses risks due to limited management experience in this area. Volatility in commodity prices for fossil fuels and electricity could materially impact the prices of alternative energies and related products, affecting commercial efforts and profitability. The company is dependent on third-party manufacturers and suppliers for proprietary custom subcomponents, making it vulnerable to supply shortages, increased costs, and quality issues. Similarly, reliance on third-party service providers for infrastructure, maintenance, and operation could impair product utility and harm business. Changes in the price or availability of raw materials like crushed rocks and metals may impact production efficiency. International expansion exposes the company to unfamiliar regulatory environments and logistical challenges, with no assurance of success in new markets. The company has a history of net losses and negative operating cash flows, with an accumulated deficit of $116,105 thousand ⁵⁵ as of December 31, 2025, raising substantial doubt about its ability to continue as a going concern. Substantial additional funding is required, which may not be available on acceptable terms, or at all, potentially forcing curtailment of commercialization and development efforts. The company is required to pay annual royalties to the Israeli government at a rate of between 3% and 5% ⁵⁶ on revenues from technology developed under grants, and to the EIB at a rate of 2.0% ⁵⁷ on gross sales of TES systems, which will impact profitability. The BNRG360 strategy may require significant capital commitments and increase exposure to long-term contractual and project risks. If the company is unable to obtain and maintain effective patent rights or protect trade secrets, it may not be able to compete effectively. The market price of its Ordinary Shares may be highly volatile, and the company faces risks of delisting from Nasdaq if it fails to maintain compliance with listing criteria, such as the minimum bid price of $1.00 per share ⁵⁸ or stockholders' equity of at least $2.5 million ⁵⁹, which was $3,494 thousand ⁶⁰ as of December 31, 2025. Political, economic, and military instability in Israel, where operations are concentrated, could adversely affect results, and the company's commercial insurance does not cover losses from terrorist attacks or cyberattacks. Fluctuations in currency exchange rates, particularly the NIS against the USD and EUR, could adversely affect results, as approximately 72% ⁶¹ of expenses in 2025 were NIS-denominated.

Management's message to shareholders emphasizes the company's position as a leading energy company powered by proprietary thermal energy storage (TES) technology, specializing in energy supply to industrial clients through its patented bGen™ systems. They highlight the critical infrastructure challenges of sustainable energy and power system resilience, driven by the rapid global expansion of data centers and artificial intelligence, which is projected to significantly increase electricity demand to about 945 terawatt-hours by 2030, up from approximately 415 TWh in 2024 ⁶². Management believes Brenmiller Energy addresses this need through advanced economical models, proprietary TES technology, and a differentiated commercial strategy. They are focused on the sale of TES equipment through various business models, including direct equipment sales and the Energy-as-a-Service (EaaS) model, which was launched in 2023. A key strategic priority is the BNRG360 integrated energy platform, announced in January 2026, which aims to expand the business model to offer bundled clean heat and power solutions combining TES, solar photovoltaic, and battery energy storage systems under long-term contractual arrangements. Management also emphasizes the importance of its manufacturing facility in Dimona, Israel, which has a designed annual production capacity of approximately 1 GWh ⁶³ and is scalable up to 4 GWh ⁶⁴, with estimated potential annual system revenues of approximately $200 million ⁶⁵ at that expanded capacity. They are actively pursuing commercial projects in various geographic regions, such as the 32 MWh bGen™ ZERO TES system for Tempo Beverages Ltd. ⁶⁶, which is expected to mitigate over 6,200 tons of carbon emissions annually and save Tempo an estimated $7.5 million over 15 years ⁶⁷. Management acknowledges the need for substantial additional funding to support ongoing operations and project execution, as the company has incurred recurring operating losses and negative cash flows from operating activities, with an accumulated deficit of $116,105 thousand ⁶⁸ as of December 31, 2025.