Eos Energy Enterprises (EOSE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 261% year-over-year to $0.9 million, driven by higher component and commissioning revenues, while commercial production of the Z3 battery line and a state-of-the-art manufacturing line were launched.

• Secured a strategic investment of up to $315.5 million from Cerberus, including a $210.5 million delayed draw term loan and $105 million revolver, supporting growth, Project AMAZE, and profitability.

• Commercial opportunity pipeline reached $13.8 billion (~52 GWh), with an orders backlog of $586.8 million as of June 30, 2024, and a 960 MWh Letter of Intent signed post-quarter.

• Recognized as a BNEF Tier 1 Energy Storage Provider, one of five U.S. companies to receive this distinction.

• Achieved a $68.5 million gain on extinguishment of the Senior Secured Term Loan in June 2024.

Financial highlights

• Q2 2024 revenue was $0.9 million, up from $0.2 million in Q2 2023, but six-month revenue declined 17% to $7.5 million due to production transition.

• Cost of goods sold was $14.1 million in Q2, up 26% year-over-year, mainly due to commissioning costs and lower labor utilization during the new line installation.

• Operating loss for Q2 was $29 million, a 16% improvement year-over-year; net loss attributable to common shareholders for Q2 was $51.8 million, and for the six months was $98.6 million.

• Cash and cash equivalents at June 30, 2024, were $52.5 million (excluding $5.1 million restricted cash), with working capital of $115.1 million.

• Achieved a $68.5 million gain on debt extinguishment by retiring a $100 million senior secured term loan for $27 million.

Outlook and guidance

• 2024 revenue expected between $60–$90 million, with positive contribution margin anticipated before year-end as production scales and cost reductions are realized.

• Management expects continued losses and negative cash flows until profitability is achieved at scale.

• The company is progressing through the DOE loan process for up to $398.6 million, but funding is not assured.