Eos Energy Enterprises Meets 2024 Revised Revenue Guidance and Reports Fourth Quarter & Full-Year 2024 Financial Results; Reaffirms 2025 Revenue Guidance

   -- Achieved Cerberus third tranche of operational performance milestones and 
      secured final $40.5 million to fully fund $210.5 million Delayed Draw 
      Term Loan 
 
   -- Closed $303.5 million loan guaranteed by the U.S. Department of Energy's 
      Loan Programs Office and secured first funding of $68.3 million 
 
   -- Secured $8 million standalone BESS order for Naval Base of San Diego to 
      advance American energy independence 
 
   -- Grew customer orders backlog to $682 million, a 28% increase year over 
      year 
 
   -- Launched Factory 2 Works with eight states responding to Requests for 
      Proposals and multiple sites now shortlisted 
 
   -- Reiterates 2025 full-year revenue guidance range of $150 million - $190 
      million 
 
   -- Strengthened executive leadership, appointed current Chief Financial 
      Officer, Nathan Kroeker to Chief Commercial Officer; welcomed new Chief 
      Financial Officer, Eric Javidi, who brings extensive investing, operating 
      and leadership experience within the energy and energy infrastructure 
      spaces, along with a track record of success with high growth companies 

EDISON, N.J., March 04, 2025 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. $(EOSE)$ ("Eos" or the "Company"), America's leading innovator in designing, manufacturing, and providing zinc-based long duration energy storage (LDES) systems sourced and manufactured in the United States, today announced its financial results for the fourth quarter and full-year ended December 31, 2024.

Fourth Quarter Highlights

   -- Revenue totaled $7.3 million, a 10% increase compared to the prior year 
      and 749% increase compared to last quarter. 
 
   -- Gross loss of $23.5 million, consistent with prior year, on lower Z3 
      material costs offset by higher project execution costs related to 
      commissioning and field operations. 
 
   -- Operating expenses totaled $28.2 million, a 52% increase compared to 
      prior year, with 45% of the total representing non-cash items. Cash 
      operating expenses remained relatively flat, with $8.5 million (or 88% of 
      the increase over prior year) driven by non-cash items such as PP&E write 
      offs and stock-based compensation expense as a result of a significant 
      stock price increase. 
 
   -- Net loss attributable to shareholders of $268.1 million, largely driven 
      by non-cash change in fair value tied to mark-to-market adjustments 
      related to the Company's increased December 31, 2024, stock price. 
      Adjusted EBITDA loss of $44.6 million, a 20% increase compared to the 
      prior year, driven by an increase in Gen 2.3 PP&E write offs and Cerberus 
      debt issuance costs. 
 
   -- Total cash of $103.4 million, including restricted cash, as of December 
      31, 2024. 
 
   -- $14.4 billion commercial opportunity pipeline, a 9% increase from prior 
      year, with a $682 million orders backlog, an increase of 16% compared to 
      prior quarter and 28% compared to December 31, 2023. 
 
   -- Achieved SOX compliance by strengthening the Company's internal controls, 
      eliminating previously disclosed material weakness. 

Full-Year 2024 Highlights

   -- Revenue totaled $15.6 million in line with the Company's revised 2024 
      revenue guidance. 
 
   -- Gross loss of $83.3 million, a 13% increase compared to the prior year; 
      lower Z3 material costs were more than offset by labor and overhead 
      inefficiencies related to manual sub assembly and increased project 
      execution. 
 
   -- Operating expenses totaled $91.9 million, a 16% increase compared to the 
      prior year, with 29% of the total representing non-cash items. The year 
      over year increase included $7.7 million in cash expenses which was 
      primarily driven by strategic investments in sales, sourcing, software 
      engineering, and controllership to position the Company for scaled 
      growth. 
 
   -- Net loss attributable to shareholders of $685.9 million, largely driven 
      by non-cash change in fair value tied to mark-to market adjustments 
      stemming from the increase in stock price as of December 31, 2024. 
      Adjusted EBITDA loss of $156.6 million. 

"Over the past 12 months the team delivered significant results. The organization brought the first state-of-the-art manufacturing line into full operation, reduced Z3 costs, increased commercial opportunity pipeline and orders backlog and secured two major financing investments with Cerberus and the Department of Energy," said Joe Mastrangelo, Eos Chief Executive Officer. "These two critical proof points strongly validate our long-term strategy and capabilities, positioning the Company to scale with the growing demand for long-duration energy storage. With the announcement of Factory 2 Works and plans to order three additional manufacturing lines, Eos is now hyper-scaling its capacity expansion to secure larger orders and deliver for customers and shareholders."

2025 Outlook

   -- For the full-year 2025, Eos expects to achieve revenue between $150 
      million and $190 million. This projected growth is expected to be driven 
      by increased production volume on the Company's first state-of-the-art 
      manufacturing line as staged sub-assembly automation comes online. 

Recent Business Highlights

Cerberus Strategic Investment

As announced in January, Eos successfully achieved the third tranche of performance milestones previously agreed upon between Eos and an affiliate of Cerberus Capital Management LP ("Cerberus") as part of their strategic investment in the Company. Meeting these performance milestones allowed the Company to access the final $40.5 million of the Delayed Draw Term Loan (DDTL), fueling ongoing operations and U.S. production expansion. The $210.5 million DDTL announced in June 2024 is now fully funded, driven by the Company consistently achieving key operational milestones related to the Company's state-of-the-art manufacturing line, raw materials cost-out, Z3 technology performance improvement and customer cash conversion. The Company surpassed its January raw materials cost-out target by 6% while delivering manufacturing cycle times below 10 seconds and maintaining 98% first pass yield to further demonstrate continued operational efficiency and progress towards profitable growth.

Commercial Growth & Bankability

In the fourth quarter, the Company secured several key standalone storage orders including contracts with a municipal cooperative in Springfield Missouri, the U.S. Marine Corps Base at Camp Pendleton in San Diego and most recently the Naval Base of San Diego. Eos deployment of American-made energy storage systems is becoming increasingly vital, not only for enhancing military resilience but also for strengthening the U.S. against global energy disruptions and securing America's energy independence.

To drive further growth, the Company launched a comprehensive insurance program in partnership with Ariel Green, a division of Ariel Re, to enhance the bankability of the Company's technology. These products include investment tax credit (ITC) and ITC recapture protections, along with contractual warranty and performance guarantee backstop coverage. Most recently, the Company also updated its standard warranty to a 3-year term with the option to extend to 5 or 10 years. These customer-focused solutions, combined with extensive third-party validations and a more robust Company balance sheet, provide greater risk mitigation, enhanced operational stability and increased economic certainty.

Operational Capacity Expansion

Demand for safe, multi-cycle, American-made energy storage has reached a level that requires significant capacity expansion. As announced in December 2024, the Company launched its search for Factory 2 Works, submitting Requests for Proposals (RFPs) to eight states, with multiple sites now shortlisted. In parallel, Eos is progressing with plans to procure three additional manufacturing lines, including sub-assemblies, battery manufacturing, and cube assembly to support 6 GWh of additional annualized manufacturing capacity. This expansion is a crucial step in scaling operations to meet the growing demand for reliable, high performance energy storage.

The Company is expanding its first manufacturing line from 1.25 GWh to 2 GWh annualized capacity and continues to progress through Factory Acceptance Testing with its staged sub-assembly automation implementation. The Company expects full implementation to occur in the second and early third quarter, which is essential for increasing throughput and reducing labor and overhead costs.

Earnings Conference Call and Webcast

Eos will host a conference call to discuss its fourth quarter and full-year 2024 results on March 5, 2025, at 8:30 a.m. ET. The live webcast of the earnings call will be available on the "Investor Relations" page of the Company's website at Eos Investors or may be accessed using this link (registration link). To avoid delays, we encourage participants to join the conference call fifteen minutes ahead of the scheduled start time.

The conference call replay will be available via webcast through Eos' investor relations website for twelve months following the live presentation. The webcast replay will be available from approximately 11:30 a.m. ET on March 5, 2025, and can be accessed by visiting Eos Investors.

About Eos Energy Enterprises

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March 04, 2025 16:05 ET (21:05 GMT)