Energy storage solutions provider Eos Energy Enterprises reported a revenue of $854,000 for the third quarter (Q3) of 2024, a 24.9% year-over-year (YoY) increase from  $684,000. However, this figure was lower than the expected $5.79 million due to supply chain delays affecting the delivery of new Z3 inline enclosures, its latest generation battery module.

The company reported a net loss of $342.9 million in Q3 2024, compared to a net income of $14.9 million in the same period last year. This significant swing was primarily due to changes in the fair value of derivatives and warrants.

Adjusted EBITDA loss for Q3 2024 was $46.1 million, representing a 49.7% YoY increase from the $30.8 million loss reported in Q3 2023.

The company reported earnings per share (EPS) of—$1.77 for Q3, missing estimates by $1.60 due to ongoing supply chain challenges affecting product deliveries.

As of September 30, 2024, Eos had a cash balance of $23.0 million, excluding $7.6 million in restricted cash.

Eos has also made progress in securing a loan from the Department of Energy (DOE) and is nearing the final stages of closing and receiving funding for the previously announced DOE loan commitment.

This loan will reimburse eligible capital and operating expenditures associated with Project Amaze and fund additional manufacturing capacity at a lower cost of capital compared to the Cerberus Revolver. Eos anticipates receiving between $50 million and $60 million in the first advance before funding certain DOE reserve accounts.

Eos achieved its second set of performance milestones, securing an additional $65 million in funding from Cerberus Capital Management LP.

The company announced a 216 MWh purchase order with City Utilities of Springfield, Missouri, its largest municipal community-owned order to date.

Eos also signed an agreement with Cerberus Technology Solutions to develop an integrated AI-driven software platform for energy management.

Due to supply chain challenges, Eos has revised its full-year 2024 revenue forecast to approximately $15 million. The company expects to recognize the difference between its prior and current guidance in the first half of 2025.

Eos reported a commercial pipeline of $14.2 billion, up over $400 million from the second quarter, with a 23% increase in signed letters of intent. The company’s orders backlog stood at $588.9 million as of September 30, 2024.

Manufacturing Efficiency and Cost Reduction

The company has reported a 57% reduction in direct labor costs through incremental automation in battery manufacturing.

This automation reduces the need for additional labor and improves the reliability and performance of the production line as volume increases. The company expects manufacturing overhead to continue improving, leading to lower costs and more profitable growth.

Market Positioning

Eos is emphasizing its position as a U.S. manufacturer, aligning with potential shifts in U.S. policy regarding imports from China.

The company’s product is manufactured in Pennsylvania, with suppliers across Ohio, Michigan, New York, and Massachusetts. Currently, 91% of their product is U.S.-manufactured, with plans to reach 100%.