Eos Energy Enterprises reported record third-quarter revenue as shipments and production increased, while margins improved from a year earlier but remained negative. The battery-storage maker also said it received an $87 million advance under a U.S. Department of Energy loan and announced a plan to consolidate two Pennsylvania manufacturing facilities, with restructuring charges expected.
Third-quarter results and business updates
- Revenue was $82.7 million, up 171% year over year and 20% from the second quarter. Cube shipments rose 216% from a year earlier and 23% sequentially; deliveries served 10 projects.
- Gross margin was negative 53%, an improvement of 58 percentage points year over year and 18 points sequentially. Eos cited lower material costs, higher production volumes and lower conversion costs. The company still recorded a $44.2 million gross loss, compared with $33.9 million a year earlier.
- Adjusted EBITDA margin improved 96 percentage points year over year. Eos said this was the eighth consecutive quarter in which both gross margin and adjusted EBITDA margin improved year over year.
- Eos received an $87 million first advance under the second tranche of its Department of Energy loan.
- The company announced a project with MN8 Energy to supply 10 megawatts/100 megawatt-hours of its Z3 zinc-based long-duration storage technology in West Virginia, serving Google data centers.
- Cumulative energy discharged from Eos systems reached 6.9 gigawatt-hours, an increase of nearly 400 megawatt-hours from the prior quarter.
- Eos said Line 2 reached first-pass yield parity with Line 1 within three months of operation. Its Thorn Hill facility moved to around-the-clock operations in October.
- The company reaffirmed its 2026 revenue outlook of $300 million to $350 million, saying it expects results in the lower half of that range.
Manufacturing consolidation
- Eos’s board approved a plan to consolidate manufacturing facilities in Turtle Creek and Thorn Hill, Pennsylvania. The company said the move is intended to align costs and manufacturing capacity with current and anticipated business needs and support its gross-margin targets.
- Eos expects the production line to be operational in the first quarter of 2027, with the plan’s actions largely completed by the end of June 2027.
- The plan is expected to generate $16 million to $18 million in cash restructuring charges, primarily for moving and cleanup costs.
The consolidation brings planned near-term cash costs alongside an effort to align the manufacturing footprint with Eos’s production needs. Separately, the loan advance is financing, not sales revenue; the company’s reported revenue growth came alongside continued negative gross margin.