Eos Energy Q3 Revenues Decrease by 89% YoY as Sales Drop
The company, however, reported profits for Q3 due to one-time non-cash accounting adjustments
Energy storage solutions provider Eos Energy Enterprises recorded a revenue of $684,000 in the third quarter (Q3) of 2023, an 89% year-over-year (YoY) drop from $6.07 million, primarily due to lower sales during the period.
The company’s net income, however, was boosted to $14.93 million profit, a 121% improvement from the $70.72 million of losses reported in Q3 2022. The profits were mainly due to the one-time non-cash accounting adjustments for project commissioning and inventory reserves, which helped reduce $61.80 million from the overall operating expenses and net taxes.
The total operating expenses dropped by 45% YoY from $69.63 million to $38.52 million, driven by a reduction in services.
The cost of goods sold decreased by 57% YoY to $21.3 million on lower sales volume.
In August 2023, Eos Energy also announced the issuance of conditional commitment from the U.S. Department of Energy Loans Program Office for a Title XVII loan of $399 million to support the company’s plans to scale annual production to 8 GWh of storage by 2026.
The company also began commercial production and shipped its first EoS Z3 energy storage systems.
Eos Chief Executive Officer Joe Mastrangelo said, “In just 12 months, we completed the design and developed, manufactured, and shipped our first Eos Z3 cube, incorporating our time-tested 15-year chemistry in a simpler manufacturing process, along with a streamlined energy system configuration. The team is focused on providing stationary storage solutions that are fully manufactured in the United States and provide both the flexibility and safety the market requires.”
First Nine Months
For the first nine months (9M) of 2023, Eos Energy’s revenues dropped to $9.77 million, a 36% YoY drop from $15.26 million.
The net loss for the period also went up 8.7% YoY from $173.2 million to $188.3 million.
The total operating expenses for the period decreased to $120.47 million, a 36% drop from $187.91 million.
The company booked orders of $92.7 million during 9M 2023, increasing the order backlog by 19% YoY to $539 million.
Dominion Energy Virginia also selected Eos Energy to provide longer-duration energy storage for a regional pilot project.
The company has proposed a manufacturing capacity expansion program for the upcoming quarters.
Eos Chief Financial Officer Nathan Kroeker said, “The capacity expansion consists of four state-of-the-art manufacturing lines that would be added over time as supported by customer demand, financial and production forecasts, as well as construction costs. We are currently building out the first line, which we expect to come online in the second quarter of 2024, with additional lines to follow thereafter. Each of the lines are capable and expected to produce over 2 gigawatt hours of storage annually when run at capacity, but we plan to run the first line at 1.25 gigawatt hours annually, which is less than the anticipated nameplate capacity until we implement subassembly automation in the future.”
Eos Energy’s net loss widened to $131.6 million for Q2 2023 from $56.7 million YoY, mainly due to higher interest and other expenses, even though the cost of goods came down.
According to Mercom Capital Group’s 9M and Q3 2023 Funding and M&A Report for Storage and Grid, the global corporate funding in the energy storage sector witnessed a 31% YoY decrease during the 9M 2023, with a total of $15.2 billion raised across 94 deals.