Eos Energy targets $150M–$190M 2025 revenue with accelerated manufacturing and backlog focus

Earnings Call Insights: Eos Energy Enterprises (EOSE) Q2 2025

Management View

CEO Joseph R. Mastrangelo highlighted a record quarter for the company, stating, “we had record revenue, 122% higher quarter-over-quarter shipments, great performance by the operating team here.” He emphasized the company’s role in modernizing the U.S. energy grid and the importance of bulk stationary storage, with 50% of the current pipeline in stand-alone energy storage projects.
Mastrangelo noted progress in scaling operations, referencing the ramp-up of subassemblies to unlock full capacity of the first manufacturing line and announcing the signing and ordering of a second line. He described a 40% increase in energy output from the Z3 product since launch and consistent round-trip efficiency between 87% to 89% on sub-4-hour cycles.
The CEO stressed the company’s ability to deliver under challenging conditions, referencing product abuse testing, field performance, and recyclability. He added, “if you want something that’s America’s battery made in the U.S.A. with the U.S. supply chain that’s had extensive testing and operating out in the field, we’ve abuse tested it and learned that it’s safe for the environment.”
Interim CFO Nathan G. Kroeker reported, “In Q2, we generated record quarterly revenue of $15.2 million, a 46% increase from Q1, accompanied by a 122% increase in shipments.” He highlighted the impact of the One Big Beautiful Bill Act, which preserves Section 45X production tax credits for the company and supports over $90 million in annual credits per manufacturing line at full capacity. Kroeker also pointed to a strong commercial pipeline, ending the quarter with $18.8 billion in opportunities, a 21% quarter-over-quarter increase.
Kroeker noted the company’s strengthened capital structure after raising $336 million in new capital, reducing the interest rate on the Cerberus term loan to 7%, and ending the quarter with $183 million in total cash. He described the overall transaction as resulting in approximately $400 million in total interest savings over the term of the company’s debt.

Outlook

Management reaffirmed full-year 2025 revenue guidance of $150 million to $190 million, with $26 million already booked for the first half of 2025. Kroeker stated, “we see a clear path to our full-year revenue range of $150 million to $190 million.”
The company expects to achieve positive contribution margin in the fourth quarter of 2025 and positive gross margin as it exits the first quarter of 2026.
There was a shift in project timelines with the passing of the One Big Beautiful Bill Act, as management observed accelerated activity from customers following the resolution of regulatory uncertainty.

Financial Results

Eos Energy reported $15.2 million in Q2 revenue, a 46% increase from Q1, and highlighted a 122% increase in shipments. The majority of Q2 revenue was driven by a single strategic customer project at a lower price point, affecting near-term margins but serving as a growth catalyst.
The company reported a gross loss of $31 million and spent $32.9 million on operating expenses, with $5.4 million attributed to one-time items. Net loss for the quarter was $222.9 million, including noncash fair value adjustments tied to a 35% increase in the company’s stock price. Adjusted EBITDA loss was $51.6 million.
Backlog at the end of Q2 stood at $672 million, representing 2.6 gigawatt hours of storage.
Service revenue for the second quarter exceeded $1 million, with management indicating this segment is expected to grow as the installed asset base expands.

Q&A

Stephen David Gengaro, Stifel: Asked for clarity on bridging revenue and production growth in the second half. Kroeker responded, “we’re doubling production quarter-over-quarter for the last 9 months. Double it again, double it again, and you’re firmly in the middle of our guidance range.”
Martin Whittier Malloy, Johnson Rice & Company: Inquired about quantifying improvements in LCOE or IRR for customers. Kroeker stated, “should translate into a couple of percentage points on IRR on a typical project… Every project is going to be different, but it’s a meaningful difference in the amount of upfront CapEx.”
Ryan James Pfingst, B. Riley: Asked about external risks impacting second-half sales. Kroeker answered, “I don’t know that there’s one single thing that’s holding back orders at this point. I think we’re delivering on everything that customers need, and they’re working through their timelines and their financing.”
Jeffrey David Osborne, TD Cowen: Queried whether the majority of a strategic customer project’s revenue was recognized in Q2. Mastrangelo confirmed, “the majority of it was in Q2… the shipments are behind us on that project.”

Sentiment Analysis

Analysts focused on risks to guidance, production scalability, backlog conversion, and the impact of regulatory developments, with a neutral to slightly positive tone. Questions centered on the achievability of revenue targets and operational improvements.
Management maintained a confident and positive tone in both prepared remarks and Q&A, frequently referencing operational progress and financial improvements. Kroeker said, “I’m confident that we’ll be announcing some larger orders soon.”
Compared to the previous quarter, the tone has shifted from cautious optimism amid regulatory and supply chain uncertainties to greater confidence, particularly following the passage of favorable legislation and improved capital structure.

Quarter-over-Quarter Comparison

Revenue increased from $10.5 million in Q1 to $15.2 million in Q2, with shipments up 122% quarter-over-quarter.
Backlog decreased slightly from $681 million to $672 million, but the pipeline of commercial opportunities grew from $15.6 billion to $18.8 billion.
Management’s focus shifted from addressing supply chain and automation ramp-up challenges to emphasizing manufacturing scale, software enhancements, and the impact of legislative support.
Analyst questions in Q1 centered on automation ramp, tariffs, and backlog pricing variability; in Q2, attention shifted more toward production scalability, revenue trajectory, and risk factors affecting second-half guidance.
The company’s tone has become more confident regarding guidance and the ability to scale, in contrast to the more guarded optimism seen in Q1 amid regulatory uncertainties.

Risks and Concerns

Management cited the timing of customer financing and project execution as ongoing risks, though recent legislative clarity has alleviated some uncertainties.
Analysts highlighted possible delays in customer order finalization and the impact of single large projects on revenue and margin variability.
The company is still negotiating the site for Factory 2.0 and adjusting expansion timelines based on order flow and capital efficiency.
While operating expenses increased, management attributed much of the rise to noncash items and strategic headcount investments to support future growth.

Final Takeaway

Eos Energy Enterprises emphasized a transformative quarter, with record revenue, accelerated manufacturing scale, and a reinforced capital structure. Management is confident in achieving its full-year revenue target of $150 million to $190 million, supported by a growing pipeline and expectations for margin improvement as automation and strategic projects progress. The company sees positive tailwinds from recent legislative support and is focused on ramping both production and backlog conversion to meet robust demand for long-duration energy storage solutions.

Read the full Earnings Call Transcript