Interest Expense Wipes Eos Energy’s Q1 Gains from Lower Cost of Goods Sold
Eos’ Q1 loss widens to 71.6 million; revenue up three-fold on higher shipments
May 17, 2023
Energy storage solutions provider Eos Energy Enterprises’ net loss widened to $71.6 million for the first quarter (Q1) of the financial year 2023 compared to $45.8 million year-over-year (YoY), mainly due to higher interest and other expenses even though the cost of goods came down by a quarter.
The cost of goods sold during the January-March quarter totaled $26.9 million, a 25% reduction in per unit cost from $35.6 million YoY. It helped narrow the operational losses for the quarter to $38.3 million compared with $51.7 million YoY.
Eos posted a 168% YoY increase in revenue at $8.8 million, primarily fueled by 208 MWh of total shipments of its new products for the Pine Gate Eastover system.
The U.S.-based company produces long-duration (3-12 hours) energy storage solutions that provide reliable power to applications across the energy supply chain, including utilities, industrial and commercial, and military market segments.
The company booked orders worth $86.3 million, resulting in an order backlog of $535.1 million, up by 152% compared to the backlog of $212 million in the same quarter a year ago.
Eos’ CEO Joe Mastrangelo said, “The Eos team delivered a solid first quarter, with continued backlog growth, strong manufacturing performance, and 1 GWh of discharged energy in the field, all while raising additional capital that enables us to scale operations and accelerate our market competitiveness. We are positioning ourselves to transition to the Z3 Energy Cube, which combines our patented electrolyte with a new mechanical design that is easier to build at a lower cost.”
During Q1, Eos signed a 300 MWh master supply agreement with Carson Hybrid Energy Storage. The company substantially completed due diligence for the U.S. Department of Energy Title XVII loan application, actively negotiating the final provisions of a term sheet with the Loan Program Office.
Eos Energy posted a 6.5% YoY increase in its revenue for Q1 2022 at $3.3 million. The company said that the increase was mainly due to the first energy block deliveries for the 80 Mwh Pine Gate Renewables’ Eastover project.
The net loss of Eos for the financial year 2022 widened to $229.8 million from $124.2 million in the previous year, significantly driven by higher expenses. The company’s revenue increased by 289% YoY to $17.9 million, supported by higher energy block shipments.