Eos Energy Enterprises, a leading provider of safe, scalable, efficient and sustainable zinc-based long-duration energy storage systems, announced its financial results for the third quarter ended September 30, 2024 on Tuesday.
-$0.44 non-GAAP earnings per share (EPS) beat analysts’ expectations by $0.28.
It reported revenue of $0.9 million, which was lower than expected due to supply chain delays in receiving “Z3 inline enclosures.” It was up 28.6% from the prior year, but still $5.79 million below estimates.
The company emphasized, however, that its committed backlog was unaffected and that it was working with customers on updated delivery schedules.
Cost of goods sold (this metric is defined as sales price minus direct labor and materials) was $25.8 million, up 21% from the prior year, due to larger customer projects and higher labor costs.
Operating expenses increased 65% year-over-year to $28.4 million due to costs related to manufacturing developments, legal fees, and non-cash equipment write-downs.
The company’s net loss was $342.9 million, and its adjusted EBITDA loss was $46.1 million. As of September 30, Eos had a cash balance of $23 million (excluding restricted cash of $7.6 million).
Eos’ commercial pipeline increased by 23% to $14.2 billion in signed letters of intent.
The company also signed a significant 960 MWh letter of intent with a solar-plus-storage developer in Puerto Rico, which is expected to convert into backlog once customer financing is secured.
For 2024, Eos revised its revenue guidance to approximately $15 million due to supply chain issues impacting shipments.
However, it expects a positive contribution margin by year-end, supported by production tax credits, and the shortfall is expected to be recouped in early 2025.
The company also waived its September 30 revenue commitment under its agreement with Cerberus, and a similar waiver is expected for its December 31 commitment.
Eos unlocked $65 million in additional funding by achieving all four performance milestones set by Cerberus.
These milestones reflect significant progress in optimizing Eos’ automated production line, reducing material costs, improving the performance of its Z3 technology, and accelerating the conversion of backlogs into firm orders.
The company also announced its largest municipal order to date, a 216 MWh order with City Utilities in Springfield, Missouri.
To strengthen its commercial credibility, Eos is launching a suite of insurance products expected to be available before the end of the year.
Additionally, Eos is working with Cerberus Technology Solutions to develop a Battery Management software platform that includes AI to optimize energy storage performance.
Despite the challenges in the third quarter, Eos remains confident in its long-term growth strategy. With a strong commercial long-term portfolio, strategic partnerships, and continued innovation, the company is well-positioned to meet the growing demand for long-duration energy storage solutions in critical markets.
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