Q1 2025 Eos Energy Enterprises Inc Earnings Call

May 7, 2025

Santiago, Mexico Ophelia Dorado, Africa Yusuf's Unrest Adam Mostaafi, R.I.P. Written and Directed by Edited by

Speaker Change: Good morning, and welcome to the EOS Energy First Quarter 2025 earnings conference call.

Speaker Change: I am friends and I'll be the operator assisting you today. All lines have been placed on you to prevent any background noise. After the speakers remarks, there will be a question in the answer session. If you would like to ask a question,

Speaker Change: Simply press star one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

Speaker Change: I would now like to turn the call over to Liz Higley, Vice President of Investors Relations. Please go ahead.

Liz Higley: Good morning, everyone, and welcome to Eos' first quarter, 2025 conference call. Today I'm enjoying my Eos CEO , Joe Mastrangelo, CCO Nathan Kroeker, and CFO Eric Javiti.

Liz Higley: This call, including the Q&A portion of the call, may include forward-looking statements including but not limited to current expectations with respect to future results in outlook for our company. Should any of these risk materialized or should our assumptions prove to be incorrect, our actual results may differ materially from our expectation or those implied by these forward-looking statements?

Liz Higley: The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings.

Liz Higley: For relooking statements, represent our belief in assumptions only as of the date such statements are made. We undertake no obligation to update these statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of un-anticipated events accepted as required by law.

Liz Higley: Today's remarks will also include references to non-gape financial measures. Additional information including reconciliation between non-gape financial information to US GAAP financial information is provided in the press release.

Liz Higley: non-GAAP information should be considered as supplemental and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Liz Higley: This conference call will be available for replay via webcast or EOS's Investor Relations website at investors.eosc.com

Speaker Change: Joe Eric and Nathan will walk you through our business outlook and financial results before we proceed to Q&A. With that, I'll now turn the call over to EO CEO , Joe Mastrangelo.

Speaker Change: Thanks, Liz, and welcome everyone to the one-two earnings call. Thanks for the time this morning. Starting off on our classic operating highlights page I'm not going to really spend a lot of time on the top half of the page as well as Nathan talk about that and his new role as chief commercial officer for the company, but I do want to spend some time talking around the activity inside of the pipeline and the water's booking. Thank you very much.

Speaker Change: Critical in our one-two-orders booking projects in California, California, a large market for energy storage, one of those projects being at a military base, critical to have safety and an NBA compliant product which EOS brings.

Speaker Change: Second, you saw two large MOUs showing that not only does our product

Speaker Change: as quickly as possible as they get their approvals. Next I would say after the quarter you know we signed a microgrid project in Florida, critical to talk about this for two reasons.

Speaker Change: One, it's out of school. You want the stages product mix for our children and Eos brings that safety. Second, it's with a large operator of energy storage and gives us another proof point with that operator of the benefits of...

Eos and bring to the market.

Speaker Change: Shipped down to the bottom of the page where I'd really like to spend the majority of my time talking about is what I believe is one of our strongest quarters operation to date as a company. We deliver $10.5 million of revenue, we really saw the team step up and start to ramp in and overcome some of the supply chain challenges that we've had previously and get to really what is a good run rate. Give more details on that in a moment but also like everyone to remember that we go direct to customers. Thank you very much.

Speaker Change: The fits and starts when you have on permitting and sight readiness of things. There's no dealer network in the middle of what we do. It's direct to customer. So we managed through that complexity, but the team has done a great job of getting splicing up and running. Shift to the lower right hand side.

Speaker Change: Very strong cash position for the company here as we act at 1-2. I think there's some key things to the menita, like, talk about. That cash position is reflected in.

A, the Strategic Partnership and Investment from Cerberus.

Speaker Change: The Execution, and first draw on the DOE loan, but underneath those two factors you're starting to see operational cash generation. I think there's two things I'd like to talk about from the balance sheet that highlight this. [inaudible]

Speaker Change: First one is if you look at our contract liabilities, they're up 80%, that up 80% is reflecting of customers giving us deposits on projects and feeling secure with the strategic investment and the financing that we have in paying that cash up front and allowing us to start running the company from its operations.

Speaker Change: to see the seeds of an operating company that will perform.

Speaker Change: We go to the next page, you know, when you look at what we're building is a stronger scaled Eos. I think when you look externally, I still always come back and remind myself that the demand for power is going to double by 2050.

from Multiple Reasons and Across the Globe.

Speaker Change: So this is the critical industry. It's critical if anything else that we do today giving Steve secure power to the world is as important as fresh air and clean water.

Speaker Change: for the future. The second is in order to do that, we need longer duration energy storage. We're forecasting a very large caterer over the next 10 years for that long duration of storage and Eos as a product that fits in that.

Speaker Change: We're going through a period of global supply chain volatility in the world.

Speaker Change: Tariffs are giving upward cost pressure into the industry and creating a risk which we think we can manage with the way that we've positioned ourselves but also create some certain keys as far as project timing and how the market will evolve here in the near term. I don't think this is a long term, I think this is a near term challenge that we have to work our way through. How we thought about this, if you move to the middle of the page, 100% US manufacturer and I'll talk about what that means as I give you an update.

on the automation of our factory here in Turtle Creek.

Speaker Change: Hi-demethic content, takes out complexity in your supply chain with a path to get to 100% of US content and a supply chain that's portable that you can bring to other regions, geographies as we grow, and really a technology that brings...

Speaker Change: Energy ecosystem and power generation and electricity requirements. How do we position the company when you look at what's happening? Nathan will go through how we're seeing the pipeline advancing. We have announced 4.5.4 gigawatt hours of MOUs in new geographies.

Speaker Change: bringing forward the things that we have in Pittsburgh, and we continue to work on our celebrated expansion plan, and as we have meaningful updates, we'll provide those.

Speaker Change: to you as they occur. And lastly, is that differentiated performance that we talked about which Nathan will highlight as he gives you a case study on how we think we're a great partner to help.

Speaker Change: Data Center has achieved the goals that we need moving forward. If we go to the following page, we're reiterating our 20-25-year guidance.

Speaker Change: You know, when we look at this, we feel like we're solidly within the range of $150 to $190 million.

Speaker Change: of Revenue, that's 10X what we did last year. When you look at why we are reiterating that guidance on the manufacturing side.

We were 51%

Speaker Change: Higher on our Q1 deliveries versus Q4 of 2024 and in fact as we sit here today and talk to you this morning

What we've shaped to the field?

Speaker Change: in 2025. It sees what we've shipped in 2024. The team is really starting to get a strong foundation around how we execute and deliver to customers.

Speaker Change: Inside of all this, as we move forward, we will see…

Speaker Change: and some pricing variability as we start looking at the overall revenue numbers.

Speaker Change: Given the fact that I talked about this on the last call, there's some initial projects that were early on to build references, to build relationships to customers that are lower price points that we're seeing in the market today as we secure new revenue for the company.

Speaker Change: on the far right-hand side. What are the revenue triggers that allow us to get to that $150 to $190? You know, we are staging our self-assembly automation. I'll give you an update that update on that in a moment. The next piece of this is increasing the containerization capacity. Let me explain that for a second.

Speaker Change: We build our product from a raw material into a battery module, battery modules go into a container, containers are wired and softwares installed and that's installed out in the field.

Speaker Change: and into components, components into batteries and really getting that up and running, and that's why you're seeing the growth.

Speaker Change: and our output. But when you take those batteries, think about assembling.

Speaker Change: on an automated line. We are now finding ways that we think we can automate that and make that faster and deliver higher quality. Now that's going to mean a little bit higher capital costs as we start thinking about that as we're moving forward, but still is it for leading when you think about what it would cost?

Speaker Change: to break the pass you online in the future. And then left, you're going to start seeing us generate more.

Speaker Change: Project and Service Revenue, so things that happen beyond the factory doors. Again, going back to what I said early on, we are directly...

Speaker Change: to customer model, not a shift dealer model. So you'll start to generate revenue out in the field and revenue from service of the equipment that's out running. So we feel like with all the uncertainties, we'll continue to manage that and keep everyone updated on that. But as we sit here today, we feel really comfortable about the guys that we've given and what the team needs to work on. There's a lot of things and a lot of areas that we continue to manage. But I think with the team that we have inside the business, we feel confident that we're reiterating the guidance as we move forward.

To go to the next page.

Speaker Change: Just quickly on delivering profitable growth. You know, our goal is not to just be a high growth company, but it's to be a profitable high growth company.

You see the three main areas.

Speaker Change: of delivering profits are around getting your direct material or cost of the product where you need to be. I talked about that earlier and what we're seeing as far as working with suppliers. We have many suppliers coming to us wanting strategic relationships with us. [inaudible]

Speaker Change: The team will keep working this, but we will feel confident and comfortable where we are as far as the core components inside the product and the partners we have to deliver those.

Speaker Change: on the right-hand side of this page, and then we have to pause and talk about the scaling up operation that we're talking about. You don't scale a factory overnight. Like, when you think about what we're seeing with tariffs.

Right? And people talking about the bring...

Speaker Change: Manufacturing back to the US. You have to start building it and then over time you get there. We've been at this for multiple years when we know as you have to scale the facility, scale your capability, scale your labor, train them and then grow into this. We're seeing improvements

Speaker Change: from where we started with still room to grow as we continue to ramp into the second half. We go to the next page, one of the most important.

Parks

Speaker Change: of how we're doing this. And probably you'll hear in the background as I'm talking this rhythmic banging, that rhythmic banging that you're hearing is the left hand side of this page. That battery's parts being made. So this is all about automating the upfront raw materials come in.

Speaker Change: Sub-assam was getting manufactured. They go into a battery, a battery gets assembled, the battery goes into the container [inaudible]

Speaker Change: We can see her before and after shots about how the team is making this better. On-terminal, so think about the battery. A battery has two terminals and a battery has 19 bipolars. And we've sized all this to be able to get the delivery that we want off of the automated line that's been up and running with radio. We see not only this output go up but labor rate comes down and when that output goes up.

Speaker Change: on the square footage that you have, your manufacturing overhead comes down.

When that labor input goes down...

Speaker Change: on the output that you're putting out, that middle column on the prior page goes down.

So these are two critical components for us

Speaker Change: to grow into the space that we have and the capacity that we can achieve off of our automated line.

Speaker Change: It's another one of these mesmerizing experiences for me when I go and look at this product working. You know, the left-hand side is in the factory producing and making that banging noise that you hear. The right-hand side is at our supplier, being factory acceptance tested to be shipped here. You know, on the left-hand side, you install one of those on the right-hand side. We install eight of those lines to get up the full capacity, and that's going to be happening over the next 60 to 90 days.

Speaker Change: We feel really good about the performance that we see in our ability to scale the business and with that I'll turn over to Eric that'll walk through the financial results in the first quarter. Thanks for listening.

Eric Javiti: Thank you, Joe, and good morning, everyone. Turning to our financials, we had a great start of 2025, delivering Eos' highest quarterly revenues at date.

Eric Javiti: We reported $10.5 million in revenue, representing both a 58% year over year and 44% growth from prior quarter.

Eric Javiti: As Joe mentioned earlier, this performance was driven by increased customer deliveries, which you want achieving record output across all areas of our manufacturing processes.

Eric Javiti: That momentum has continued into the second quarter with April records being set over March.

Eric Javiti: The cost of goods sold came in at $35 million, resulting in a gross loss of $24.5 million. The increase in cogs was primarily driven by an increase in product shipment volumes and inefficiencies associated with our current manual sub-assembly process.

Eric Javiti: These impacts were partially offset by 42% lower per unit product costs year-over-year.

Eric Javiti: Looking ahead, we expect our transitions automated subassemblies to increase productivity as Joe discussed earlier, positively impacting our gross profit margins.

Eric Javiti: Notably, our underlying growth margin improved compared to both the prior year and previous quarter by 93 and 89 percentage points, respectively, reflecting meaningful continued improvements in labor and overhead costs as we continue to scale production.

Eric Javiti: We are driving down costs operationally and continuing to see improvements in margins across our customer contracts. As the year progresses, improved per unit economics are expected to increase the net realizable value of our inventory, thereby reducing the need for an inventory reserve on the balance sheet.

Eric Javiti: With our current trajectory, this trend should continue delivering overall favorability to the PNL, now turning to expenses.

We recorded $28.4 million in operating expenses.

Eric Javiti: While operating expenses increased year over year, the growth was primarily driven by two factors.

Eric Javiti: First, approximately 48% for $4.3 million of the increase with non-cash items such as half-based compensation, P.P. and E. write-downs related to manual service and manual equipment and depreciation.

Eric Javiti: The remaining 52% of the increase was driven by strategic headcount growth across several key business areas as we continue to build the foundation for future scalable growth.

Eric Javiti: We reported net income of $15.1 million, possibly impacted by $74.6 million in non-cash games related to the fair value of the remeasurement of warrants and related derivatives, which were influenced by the end of quarter stock price.

Eric Javiti: Adjusted EBITDA loss for the quarter was 43.2 million dollars, but importantly, we had a margin improvement of 145 percentage points.

Eric Javiti: Moving to cash, we ended the quarter with 111 million dollars in total cash.

Eric Javiti: We continue to make meaningful gains in operational efficiency and working capital management. Further, we received the last $40.5 million from serverists, fully funding the term loan and had $7 million in cash inflows for more exercises.

Eric Javiti: As it relates to Cerberus, last week was our fourth and last measurement period under the turmoil. For the April milestones, we successfully achieved three of the four while extending the fourth and final milestone.

Eric Javiti: The milestones achieved for April related to material cost, Z3 technology performance, and progress on our automated line.

Eric Javiti: The final milestone that was extended is related to cash receipts.

Eric Javiti: We were granted an extension through July 31, 2025 due to its linkage with the reduction in 2024 sales which we announced last November .

Eric Javiti: In aggregate, over the past ten months, the team successfully delivered on 15 of 16 total milestones and we fully expect to deliver on the final milestone.

This is a huge accomplishment by the team [inaudible]

Eric Javiti: When you think about where we were a year ago and compare it to where we are now, it's truly outstanding execution across the board. Hitting these milestones allowed us to bring in the full $210.5 million while also reducing serverous maximum potential equity ownership in the company.

Eric Javiti: from 49% when the loan was first announced, to now being a maximum of 34% if we don't meet the final milestone on the extended deadline.

Eric Javiti: While our financial results reflect the ongoing costs of scaling, we've made significant progress in positioning the business for long-term success. We are well-capitalized and our cost-out road map is on track.

Eric Javiti: In all, we feel very confident in our ability to scale our operations and execute in a very important year for the company.

Speaker Change: Lastly, I'd just like to note that I'm now 60 days into the CFO role here at Eos. Over the past two months I've been able to spend considerable time meeting team members from across the company while also engaging with customers, suppliers and partners.

Speaker Change: With each day I've become more excited about the opportunities ahead and Eos ability to capture the growth for this market. I'm looking forward to continuing the mission and ascension while delivering values to our employees, customers and shareholders. With that, I'll pass it over to Nathan for our commercial performance.

Nathan Kroeker: Thanks, Eric. Good morning everyone. Before we get into our commercial results for the quarter, I would like to briefly address the topic of tariffs, which have been top in mind for many. As Joe highlighted earlier, tariffs should be a strong tailwind for our business, particularly on the commercial side.

Nathan Kroeker: with tariffs driving up costs for some of our competitors. We're seeing incremental interest from prospective customers seeking a US-based solution.

Nathan Kroeker: and we've had multiple new opportunities arise for projects originally scoped for incumbent technologies. Our American-made product, with 91% domestic content, is becoming a key competitive advantage and we expect this to be a significant growth driver moving forward.

Nathan Kroeker: We saw strong momentum in our commercial pipeline during the first quarter, closing the quarter with $15.6 billion in opportunities, reflecting a 17% year-over-year improvement with a 10% increase from the prior quarter.

Nathan Kroeker: This pipeline now represents 60 gigawatt hours of long duration energy storage [inaudible]

Nathan Kroeker: We experienced the net increase of 1.4 billion in Q1, primarily driven by large project opportunities in Puerto Rico, multiple eight-hour projects in California, a series of projects with a traditional oil and gas player in Ircon, and new projects tied to both direct and indirect data center activity.

Nathan Kroeker: While our pipeline includes a wide range of customer use cases, data centers remain a strong example of EOS's growth potential.

Nathan Kroeker: These opportunities come from both traditional developers, citing projects at existing interconnects along with virtual power purchase agreements with developers selling to data center operators to improve their reliability, sustainability and generation mix

Nathan Kroeker: In the first quarter, we signed a 750 megawatt hour MOU with a large developer to supply energy storage through a virtual power purchase agreement to top tiered data center operators. This agreement highlights the increasing role of long-duration storage for today's hyperscalers.

Nathan Kroeker: During the quarter, we also saw strong growth in lead generation. Quarter over quarter lead gen increased by 32% to $13.5 billion, representing 55 gigawatt hours of storage. Of that 5.4 billion was added in Q1, while 2.1 billion of prior quarter lead gen progressed into the opportunity

Nathan Kroeker: While most of our commercial focus remains on the US markets today, we are very excited about several other emerging opportunities. Specifically, last quarter, we discussed the UK's Cappin' Four Program.

Nathan Kroeker: Shortly after quarter end and not yet reflected in the numbers for Q1, we signed two important MOUs with strong developer partners.

Nathan Kroeker: The first was a five gigawatt hour MOU with Frontier Power, a leading UK developer, founded by former National Grade Executives.

Nathan Kroeker: Under the MOU, Frontier plans to submit multiple vids utilizing the EOS technology in the

Nathan Kroeker: This program guarantees a minimum level of revenue for long-duration energy storage operators reducing price volatility risk and incentivizing investment in alternative technologies.

Nathan Kroeker: This new program requires a minimum of eight hours in storage duration, making EOS technology a strong fit. We expect submissions to be submitted in June and anticipate projects to be selected and awarded before your end.

Nathan Kroeker: The second MOU is with trip ventures for a single 400 megawatt hour project in Puerto Rico. We expect this to become a firm order as soon as the governmental NEPA review is completed on the project.

Nathan Kroeker: With this first project moving forward, we believe Eos' technology will become a significant part of enhancing the grid resiliency in this harsh island environment.

Now, transitioning to our backlog

Nathan Kroeker: Our 331 backlog stood at $681 million, representing 2.6 gigawatt hours of storage, which is a 13% year-over-year increase.

Nathan Kroeker: You may recall that we announced the San Diego Navy project in March, fully funded by the California Energy Commission. This strategic order provides essential energy resiliency to the U.S. Navy's western fleet.

Nathan Kroeker: as bases and other military applications rely on storage to ensure operational reliability and security. We believe that our American-made technology will become the preferred solution.

Nathan Kroeker: After quarter-end, we also find in order with one of the largest regulated utilities in the southeast.

with the Strong Pipeline of Storage projects.

Nathan Kroeker: a name that many of you would recognize to deliver on a microgrid project for a school district in Florida. While net growth in our backlog was flat from last quarter, we're very encouraged by market dynamics and the near-term project demand that we see ahead.

Nathan Kroeker: With that, I want to take a deeper dive into data centers and how Eos Technology is uniquely positioned to serve this critical and fast-growing customer segment.

Nathan Kroeker: Data Centers represented compelling long-term growth opportunity in our pipeline.

Nathan Kroeker: The enormous and continuously increasing power demands of data centers make long-duration energy storage the most efficient and immediate solution for reducing operating costs.

Nathan Kroeker: and increasing uptime. The EOS-Z3 energy system was specifically designed to address the complex duty cycles and power challenges presented in data centers by enabling customers to address several critical operating requirements. First, the flexibility to support multiple and partial daily cycles to ensure consistent, reliable power without interruption.

Nathan Kroeker: This flexibility also allows for peak shaving to reduce the mancharges, solar shifting, energy arbitrage, or the sale of ancillary services, all of which help to reduce the overall cost of electricity supply.

Nathan Kroeker: The multi-cycling capability also allows for additional storage capabilities with the same CAPEX investment, reducing levelized cost of storage by 30% on representative projects.

Nathan Kroeker: Second, being specifically designed for long duration discharge cycles, the Z3 system better aligns with intermittent generation resources or time of use pricing to lower total electricity

Nathan Kroeker: While delivering this operating flexibility, the D3 system requires minimal auxiliary power to operate and experiences very low system degradation. Our systems draw auxiliary power of just one to two percent of installed energy capacity, whereas incumbent technologies can be significantly higher, especially in warm climates or multi-cycle use cases.

Nathan Kroeker: Much of this additional ox power is consumed by complex cooling systems that are required to maintain alternative technologies within a narrow operating temperature range.

Nathan Kroeker: Without this critical cooling, these systems would experience lower performance, increased degradation and incremental risk of thermal runaway, potentially leading to catastrophic fires and loss of the entire system.

Nathan Kroeker: Our lower-ox power requirements increase power available for annual computing by approximately 3.5% on a typical system.

Nathan Kroeker: This translates into approximately 50% lower operating costs over the life of the asset.

Nathan Kroeker: Finally, many of the data center customers in our pipeline have seen ability goals that require economical storage paired with local renewable generation.

Nathan Kroeker: and the Operating Flexibility Safety Profile in better lifetime economics of our technology are well suited to meet the diverse and evolving needs of today's data center, Energy Landscape. With that, I want to thank everyone for joining us today, and I will now hand over to the Operator for Q and A.

James West, Joseph Mastrangelo, Joseph Mastrangelo,

Speaker Change: Thank you, and we will now begin the question and answer session.

If you would like to ask a question,

Speaker Change: Please press star one on your telephone to raise your hand and join the pew. If you would like to withdraw your question, simply press star one again.

Speaker Change: If you are called upon to ask your question and are listening by a loudspeaker on your device?

Speaker Change: Please pick up your hands up and ensure that your phone is not on mute when asking your question.

Speaker Change: And your first question comes from the line of <expletive> More from Roth Capital. Please go ahead.

Good morning. Thanks for taking the question.

Chip Moore: I wanted to maybe ask about sub-assembly automation, I think you said your first terminal cell past flight acceptance. Just any more color on early integration there and then maybe help us think about that ramping Q3 and how to think about the revenue trajectory baked into guidance.

Yeah, Chip, good morning.

So, yes, you know, you can…

Chip Moore: You could hear it in the background here working and building parts.

Chip Moore: The production ramp. I mean it's already at partial run rate producing more than we were producing on our semi-automated line. So it's already having an impact on the production for the factory. I think when you think about where we are on subassemblies, you know, as I said, we've got-

Chip Moore: The first station for sub-assemblers, the first of eight going through

Chip Moore: State Acceptance Testing at ACRO. From there, you follow on with the seven coming online here as we get through the second quarter.

Chip Moore: and we'll ramp into that as we get into, you know, you'll start to see like a ramp as we install in May, June and then getting up in the capacity in July and August . So I think, you know, as you think about, as we've said before, you know, you should see quarter over quarter improvement in output. You know, if you look at what we've done in the month of April .

You know, we produced...

Chip Moore: as many cubes in April , 75% of the first quarter volume. And as we said, you know, we've already, as we sit here today, produced as many cubes.

Chip Moore: in 2025, as we did in 2024. So we're finding good old-fashioned efficiencies, and the guys the subassemblies come in, we'll be able to run the line, the automated line longer, and I think you'll see that revenue growth that dovetail into getting into the guidance range range for the year.

Chip Moore: Thanks, Joe, for that, and maybe a follow-up, if I could, uh... Sure.

You know just surround

Chip Moore: All that's going on in the world in tariffs, and some of that uncertainty and understanding that that's going to be a positive for you guys, but I think you called up some of that near-term uncertainty, you know, can shift project timing. Is that definitely your scene, or is that sort of baked into the, maybe the low end of the guidance range? Thanks.

Chip Moore: I did all the above chip and I think, I think, you know,

Chip Moore: Obviously, Marcus so like uncertainty. I think that the certain thing is…

We Need Energy Storage

Chip Moore: for our power grid, so I think you're seeing projects moving forward.

Chip Moore: I think people are going to wean see what happens with 45X with the investment tax credit.

Chip Moore: But we're still seeing other things move forward with regulated utilities in other areas where you're co-op developers and things like that. We just keep working forward to get things closed out and we'll keep everybody updated on where we are but I think the most important thing we always have to remember is...

Chip Moore: Energy demand is going to double, and you need long-duration energy storage in order to meet that demand, and that's what we're building towards.

Great, thanks very much. I'll help back in cute.

Great. Thanks, Jeff.

Speaker Change: And your next question comes from Thomas Boyes, from TD Cohen. Please go ahead.

Thomas Boyce: Thanks very much, John , for taking the questions. Maybe just to follow up on Chip's initial point.

Thomas Boyce: with the sub-assettling automation kind of well underway and then continuation, you know, for the second half of the year.

Thomas Boyce: Can you maybe frame for us just on the relative impact to labor between the two? I mean, my feeling obviously the sub-assembly is far more labor-intense but I just wanted to kind of understand how we get to the 1.3% scale on labor that you're targeting.

Thomas Boyce: Yeah, you know, when you look at, you know, what we've always talked about is that we've used the flexible labor, labor force as it relates to sub-assembly.

Manufacturing and that requirement.

For labor, we'll go down significantly as we bring... [inaudible]

Thomas Boyce: as we bring the sub-assembly manufacturing online. Not only that, but quality and yield to go up.

Thomas Boyce: on part inspection and make sure that you're passing good parts.

Thomas Boyce: in your manufacturing line. So, that all comes down and that's how you, and that's ultimately how we get to that labor number. On the containers, I look, you know, that's another area that we've got to work on. I think, as we've thought about and looked at containerization, it's an important thing that are thinking around this as evolved over time, where...

Thomas Boyce: It is relatively labor intensive right now as far as wiring battery modules in the trays, integrating trays in the containers and then testing and shipping.

Thomas Boyce: We think there's ways that we can speed production up, so what really what you're talking about is your labor rate per unit comes down but your total labor number will stay the same like from an employee standpoint but you're getting more throughput you're able to do things faster.

The same number of employees, and it's a huge-

Thomas Boyce: Productivity Game that we're in again on both sides of those and on the Containerization side.

Yeah, we're looking at...

Thomas Boyce: Incremental Investment that allows us to get incremental output on the same asset base, and we'll come back with more info on that as we work through the bids from suppliers to be able to be able to ramp up that automation.

Thank you.

Speaker Change: Perfect, now I appreciate that. And then there's just a follow-up, you know, I saw reports in the news that the Dewey had missed a $365 million funding deadline for energy storage projects in Puerto Rico.

Speaker Change: Is that something that your project specifically were being funded by? Is that related to the need for peace? I just want to see if there's any exposure there for that.

Speaker Change: Well, they can let in, but not that we're aware of, and I think just to be clear with NEPA's environmental review of the site, I think, like, you know, where we've gotten with...

Nathan Kroeker: that delivers returns for the customer, but that what you're talking about, I don't know Nathan if you've heard anything on that, but I haven't seen that. No, we have regular conversations with the customers recently as yesterday, everything's moving forward with the project. I'm not aware that this would have any effect on the project we announced.

Nathan Kroeker: Thanks a lot, Sharon, and then make a sneak one more before helping back in KQ. It was just on, I was interviewed, mentioned the second DOE loan reimbursement timing. Has that meaningfully shifted? How are you seeing that come down the pipe?

Nathan Kroeker: The word regular contact with DOE. We're working through the process with them. They're obviously when you have someone new coming into a job, they're doing a portfolio review and we're part of that portfolio review and we're on track to submit for the reimbursement as scheduled.

Great. Thanks again. Yeah.

Speaker Change: and your next question comes from Martin Malloy, from Johnson Rice. Please go ahead.

Speaker Change: Lead Times, whether it be a turtle creek or a greenfield facility, how we should be thinking about the timing of ramping capacity expansions.

Thank you.

Speaker Change: Yeah, Marty, good morning. Yeah, so we are in the process, like we talked about last earnings announcement, we're in the process of looking at a second site.

Speaker Change: The receptivity of locations hosting the Second Factory for Eos has been great. We're working through the couple of geographies and states to look out where we want to locate. [inaudible]

Speaker Change: What that means for us from the facility that we would have the logistics around that facility in the workforce, as we have updates on that specific topic, we'll give them, but we're in the process of negotiating.

We talked about on the last call about, you know...

Speaker Change: for the, you know, sub-assembly and battery module assembly lines, you know, so basically what we have here, internal creek right now, and we're in the final negotiations with suppliers on that to look at delivery times.

Speaker Change: You know, I think what we would say is like, get in where we are.

Speaker Change: Probably implementation line two into next year for the ramp up as far as timing for line two would be concerned and then on the second factory you know we'll come back on that like we you know like we're really happy about right now is with Turtle Creek every week we set a record for production you know every week the team increases from the week before and we just we also need to keep focused on optimizing what we have.

Speaker Change: while expanding, and we'll come back with updates on that, but I would think about meaningful step-up and volume happening late this year, beginning of next year.

Speaker Change: Thank you. For my second question, I just wanted to ask about repeat orders, particularly from larger utilities or developers, and kind of curious about the Florida order, if that

by a utility company that had pilot tested the Z3 battery previously.

Speaker Change: Yeah, what I would say is that is an order that came through an existing relationship, one that we've been working with for a long time. So yes, that's a repeat order, I would say.

Great, thank you. I'll turn it back.

Speaker Change: And your next question comes from Patrick Wollett from Stiefel. Please go ahead.

Speaker Change: Hey, it's Pat on for Stephen Gengaro. Thanks for taking the questions.

Speaker Change: You talked to some pricing variability in the backlog. Is it reasonable to assume that older orders are going to be fulfilled ahead of newer orders? And is there anything you're doing to smooth variability quarter to quarter and any insight on pricing variability going into 2026 deliveries?

Yes, yes, you know.

Speaker Change: All their orders lower price, so first of all, we schedule the orders, let's take a step back, we schedule orders to customer demand not to price, so we're not as focused on.

Speaker Change: Quarter by Quarter numbers as we are as getting the product up and running in the field per customer demand, so that's the first

Prioritization, what I would say is yes, and too, too

Speaker Change: There's as we talked about this the last time when we talked about it in the presentation.

You know, there are some projects coming through in 2Q.

that are in the lower end of our price range.

Nathan Kroeker: I think Nathan can talk a little bit about what he's seeing out in the market on price.

and in the last couple months here. Yeah, look, I think with the increased focus on safety.

Operating Cost Flexibility

Nathan Kroeker: and tariffs, like we said earlier, these are tailwinds, and all of that, I think, is combined to one, you know, continue to support the prices that we're seeing in our pipeline, right, so you can see what those are, but also to drive increased interest, to increase demand for the product.

Nathan Kroeker: If you look at what's in our backlog and what's in our pipeline, I think that's a pretty good indication of where we see.

You know, pricing, shaking out for the next several years.

Nathan Kroeker: A lot of what's on the pipeline, like we said, has been added recently and it's at prices that we're seeing in the market. And the other thing we've always talked about is like...

Nathan Kroeker: I know we want to simplify things and get to a to a levelized price point.

Nathan Kroeker: Willie, but it truly is apples and oranges when you look at us versus others and what we spent a lot of time with the customers and I was explaining to them that with the EOS technology and run multiple cycles a day.

Nathan Kroeker: The K study that Nathan laid out on data centers. There's a couple important things that we really want to talk about this.

Nathan Kroeker: Multiple cycles drive down the levelized cost of storage because they can get more energy out of the same asset.

Nathan Kroeker: You can't do that with other technologies because you can't cool it down. So yeah, maybe you can run an eight hour cycle on Lithium but it's probably a it's oversized or lower power and you're going to have to cool that with ours you can run a two and a six, a four and a four or a six and a two. That gives you the flexibility you need given.

Speaker Change: The ups and downs that you have in demand for power. The other big thing to talk about is this Maximizing where Nathan talked about low auxiliary power, that not having the Rona cooling system and a fire suppression system, you get 3.5%.

Nathan Kroeker: More computing on the data center because you're not sucking power out of your power generation to maintain your system.

Speaker Change: Those are two big things when you start talking about price versus competition.

Speaker Change: We really don't talk price, we talk value, and there's a lot of value in an EOS system out in the market.

All right, I appreciate the perspective. Thank you

Speaker Change: You had mentioned the potential for local manufacturing or broader demand presents itself. Here is what sort of levels of demand you'd need to see to pursue a sort of localized manufacturing strategy. And if you think you could roll out the abroad localized manufacturing before completing the eight gigawatt hours of capacity under project automation, that you ask.

Depends, so yes, that's what you need to.

Speaker Change: What we need to always think about, and this is in my experiences, is...

Speaker Change: You don't want to build a factory for a project because then afterwards you have a problem where you build the factories where you have...

Speaker Change: A demand that's going to sustain a factory over time, and that decision-making process that will go through.

We are...

Speaker Change: You know, very excited about what's happening in the UK and the potential for that to be a market for us and other other countries in the EU. So we'll see how that plays out but like we have to have something that's going to sustain itself over a period of time. Otherwise you wind up with a stranded asset and we don't really want to do that for the long term.

Great, thanks so much.

Speaker Change: And your next question comes from Joseph Osha from Guggenheim. Please go ahead.

Hey, they're good morning guys.

Speaker Change: If I look at the slide that shows your cost reductions across different categories and the targets for when you are at quote unquote scale, I'm just trying to understand what scale means. Is that a gigawatts, once amazed, is fully up and running, just trying to use this as a way to get at the gross margin question?

Speaker Change: Yeah, so it obviously shows you look at the chart itself.

Speaker Change: It rams down over time. What we're talking about when we're fully at scale is getting above that gigawatt hour of production number to be able to do that on the line. So like, remember, each line is two gigawatt hours, like we've expanded the capacity we can get off the line. So that's what we're working towards.

All right, I guess I'm confused, are you saying?

Speaker Change: If you've got one two gigawatt hour line running and that's at better than a gigawatt hour, that's scale, I guess it'll end up quite follow.

Good job.

Okay, I'm sorry.

Yes.

Speaker Change: That's what we're saying. As it relates to this chart and obviously scales a relative term, so the greater the scale, right, gets a greater production capacity you're going to get greater benefit as it relates to each of these categories. Let's go ahead and see what we're going to do.

Speaker Change: So with that in mind, are there any comments you'd be prepared to make today about what that chart tells us about how we should think about gross margins at the end of 2026, what it sounds like we could reasonably expect to have.

Speaker Change: to gigawatt our lines running by that point. How assuming everything goes, well, how might that inform our thinking about what what margin looks like, say, coming out of the end next year?

Speaker Change: I know, we're not going to give that guy a show, you know that [inaudible]

Speaker Change: I better got to ask. Okay, I know. All right. The second question, I was going to ask a little bit about the LPO and then a question came up earlier. Joe, I believe I heard you say portfolio review.

Speaker Change: What does that mean? Are they coming and asking you questions that they haven't asked you before or tell me a bit about what the portfolio view process looks like for you guys?

Speaker Change: Yeah, and this is Eric Joe, it's just their standard process. We're engaged with them on a daily basis as we go through the process of getting of each draw and then just

Speaker Change: You know, maintaining our compliance with the loan as it's documented. That's what Joe means. Just consistent communication. It's business as usual. No different questions just continuing to work with them and business as usual.

Yeah, we've been trading our rhythm and change Joe at all.

Speaker Change: I think what you're new and anybody that's new and a job wants to look at what are you going to do and they're just going through the normal

Speaker Change: Looking at it and asking us questions, maybe in a lot of instances questions that we've probably already answered, but it's a new person in the job and you're just bringing them up the speed and where we are.

Speaker Change: Okay, so you're not, as you think, obviously that's important. They're not sending any signals to you at this point that would cause you concern.

None at all as we would have never said that.

Speaker Change: Thank you very much. We've been very active in the engagement. Yeah, that's what I was going to add is it's not even business as usual. They've been very collaborative, you know, working together. They're being, you know, incredibly good constructive partners as Joe mentioned.

Speaker Change: You know, anytime you get any new boss, sometimes they may change things as it relates to just their process, but you know, we're getting everybody up to speed there and it's actually been a really good relationship with the time been here.

Okay, thanks very much.

and John Kroeker. Thank you.

Speaker Change: There are no further questions on the queue. I would now like to turn call over back to Liz Higley. Please go ahead.

Speaker Change: Thanks, operator. We now want to get into some of our state technology questions. A few of them most commonly asked or already addressed on the call that will go through a few more.

Speaker Change: So the first question, what is currently the biggest headwind of converting late-stage pipeline opportunities into sign contract orders? Are macro factors such as global tariff or tax credit uncertainty causing developers to delay finalizing orders?

Speaker Change: Thanks, Liz. So I guess we should just start off and talk about some of the macro factors. I mean the world obviously needs energy storage.

Speaker Change: Energy Consumption, Energy Demand is expected to double, right? We're getting more intermittent generation resources on our grids and we've got aging infrastructure on the grids. I mean, there's some big fundamentals that say we're going to continue to need.

Speaker Change: Any time you have folks watching the headlines to see what's going to happen with the ITC, what's going to happen with some of the other incentives.

and customers that we're seeing are rerunning their return models.

Speaker Change: and other things that they can extract value from these batteries in order to work with those return models. So I think it's slowed things down. I don't think it changes our long-term view of what that pipeline opportunity is and how that converts to backlog over time.

Speaker Change: Great. Thanks everyone. I'll just wrap up here. I think keeping in front of us the long-term you know, macro factors of...

Speaker Change: Energy demand doubling by 2050, the need for long-duration energy storage, increasing to be able to meet that demand, Eos, sitting with a product that we feel meets.

Speaker Change: A very significant segment inside of Energy Storage. And as I've said all along in this journey you need multiple technologies to get the job done and we're one of those technologies that I think that are key.

Two up, two up, safe

Secure and Flexible Energy Ecosystem.

Speaker Change: Prior to what we need to do that day, it does start off every day with we did more than we did the day before and we're on track to do more than we did the week before and we just need to keep building off of this. This is clearly coming up with

Speaker Change: A way that Eos will execute going forward. The Eos way will be finding ways to become more productive, finding ways to become more efficient and finding a better way every day to be a little bit better than you were the day before but not as good as we'll be tomorrow. And I really like the team that we have in place. Now I'd like to talk about that...

Speaker Change: One second here to close out because you can have great technology, you can have all these great machinery, you can have everything but you're nothing without great people. And when you look at...

Speaker Change: and the growth of the company. And really starting to look at when you're in a small startup mode, it's always about how many hats you're wearing during a day to get things done. And now it's about having people wear one or two hats, not five hats so we can continue to grow and expand the company. And that's one of the key things.

Speaker Change: that we're focused on. We feel really good about where we are both on the commercial side and understanding our value proposition to the market, being able to scale the company and bring the company up to a leader in long duration energy storage and we'll keep working on that and keep everyone informed on that and thanks everyone for the time today.

Speaker Change: James West, Joseph Mastrangelo, Joseph Mastrangelo, Joseph Mastrangelo, Joseph Mastrangelo, Joseph

[music]

Speaker Change: Good morning, and welcome to the EOS Energy First Quarter 2025 earnings conference call.

Speaker Change: I am friends and I'll be the operator assisting you today. All lines have been placed on you to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question,

Simply press star 1 on your telephone keypad.

Speaker Change: If you would like to withdraw your question, press star one again. Thank you.

Speaker Change: I would now like to turn the call over to Liz Higley, Vice President of Investors Relations.

Please go ahead.

Speaker Change: Good morning everyone and welcome to Eos' first quarter 2025 conference call. Today I'm joined by Eos CEO Joe Mastrangelo, CCO Nathan Kroeker, and CSO Eric Javiti.

Speaker Change: This call, including the Q&A portion of the call, may include forward-looking statements, including but not limited to current expectations with respect to future results in Outlook for our company.

Speaker Change: Should any of these risk materialized or should our assumptions prove to be incorrect, our actual results may differ materially from our expectation or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings.

Speaker Change: For relooking statements, represent our beliefs and assumptions only as the date such statements are made. We undertake no obligation to update these statements made during this call to reflect events or circumstances after today, or to reflect new information or the occurrence of unanticipated events accepted as required by law.

Speaker Change: Today's remarks will also include references to non-gape financial measures. Additional information including reconciliation between non-gape financial information to US GAAP financial information is provided in the press release.

Speaker Change: non-GAAP information should be considered as supplemental and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with Gap. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Speaker Change: This conference call will be available for replay via webcast through EOS's investor relations website at investors.eosc.com Joe Erick and Nathan will walk you through our business outlook and financial results before we proceed to Q&A. With that, I'll now turn the call over to EOS CEO , Joe Mastrangelo.

Joe Mastrangelo: Thanks, Liz, and welcome everyone to the one-two earnings call. Thanks for the time this morning. Starting off on our classic operating highlights page I'm not going to really spend a lot of time on the top half of the page as I'll let Nathan talk about that in his new role as Chief Commercial Officer for the company, but I do want to spend some time talking around the activity inside of the pipeline and the water's booking.

Joe Mastrangelo: Critical in our one two orders booking projects in California, California, a large market for energy storage, one of those projects being it being in a military base, critical to have safety and an NBA compliant product which Eos brings.

Joe Mastrangelo: Second, you saw two large MOUs showing that not only does our product

Bring Benefits in the United States.

Joe Mastrangelo: But also brings to allied countries when you look at what we're doing in both the UK and also the ability in announcing the MOU for Puerto Rico where we believe we can help the island with its grid instability and start delivering product as quickly as possible as they get their approvals.

Joe Mastrangelo: Next, I would say, after the quarter, we signed a microgrid project in Florida.

Joe Mastrangelo: One, it's out of school. You want the Stages product next to our children and Eos brings that safety. Second, it's with a large operator of energy storage and gives us another proof point with that operator of the benefits.

Eos and Bring to the Market

Joe Mastrangelo: Schiff down to the bottom of the page where I really like to spend the majority of my time talking about is what I believe is one of our strongest quarters operation to date as a company. We deliver a ten and a half million dollars of revenue. We really saw the team step up and start to ramp in and overcome some of the supply chain challenges that we've had previously and get to really what is a good run rate. Give more details on that in a moment, but also like everyone to remember that we go direct to customers.

Joe Mastrangelo: So we're exposed a little bit to the fits and starts when you have on permitting and side readiness and things. There's no dealer network in the middle of what we do. It's direct to customer. So we managed through that complexity, but the team has done a great job of getting supply chain up and running. Shift to the lower right-hand side.

Joe Mastrangelo: The Execution, and first draw on the DOE loan, but underneath those two factors you're starting to see operational cash generation. I think there's two things I'd like to talk about from the balance sheet that I like this.

Joe Mastrangelo: Historically, you probably would have seen inventory up with payables being flat because a lot of times as we were receiving goods in the past, we're being asked to either prepay or pay a very quick terms.

Joe Mastrangelo: What the team has been able to do is extend those terms as we show financial stability and growth while at the same time get price to drive down cost and really attribute and drive the improvement that we're seeing in our roast margin profit. So that catfowl is very important, very strong but underneath that you're starting to see the seeds of an operating company that will perform. So you're starting to see that you're starting to see the seeds of an operating company that will perform.

Joe Mastrangelo: We go to the next page, you know, when you look at what we're building is a stronger scaled Eos. I think when you look externally, I still always come back and remind myself that the demand for power is going to double by 2050.

from Multiple Reasons and Across the Globe.

Joe Mastrangelo: So this is the critical industry, it's critical if anything else that we do today.

Joe Mastrangelo: Giving safe, secure power to the world is as important as fresh air and clean water for the future. The second is in order to do that, we need longer duration energy storage. We're forecasting a very large caterer over the next 10 years for that long duration of storage and Eos as a product that fits in that.

Joe Mastrangelo: We're going through a period of global supply chain volatility

Joe Mastrangelo: Tariffs are giving upward cost pressure into the industry and creating a risk which we think we can manage with the way that we've positioned ourselves, but also create some certain keys as far as project timing and how the market will evolve here in the near term. I don't think this is a long term, I think this is a near term challenge that we have to work our way through. How we thought about this, if you move to the middle of the page, 100% US manufacturer and I'll talk about what that means as I give you an update.

Joe Mastrangelo: on the automation of our factory here in Turtle Creek. High domestic content takes out complexity in your supply chain with a path to get to 100% of US content and a supply chain that's portable that you can bring to other regions' geographies as we grow and really a technology that brings...

Joe Mastrangelo: Energy Ecosystem, and Power Generation Energy and Electricity Requirements. How do we position the company when you look at what's happening? Nathan will go through where we're seeing the pipeline advancing. We have announced 4.5.4 gigawatt hours of MOUs in new geographies.

Joe Mastrangelo: Skelling manufacturing, we'll go through and talk about where we are as far as...

Joe Mastrangelo: bringing forward the things that we have in Pittsburgh, and we continue to work on our celebrated expansion plan, and as we have meaningful updates, we'll provide

Joe Mastrangelo: to you as they occur. And lastly, is that differentiated performance that we talked about, which Nathan will highlight as he gives you a case study on how we think we're a great partner to help.

Data Centers achieve the goals that we need moving forward.

Joe Mastrangelo: If we go to the following page, we're reiterating our 20s-25-year guidance.

Joe Mastrangelo: You know, when we look at this, we feel like we're solidly within the range of $150 to $190 million.

Joe Mastrangelo: of Revenue that's 10X what we did last year. When you look at why we are reiterating that guidance on the manufacturing side.

You know, we were 51 percent.

Joe Mastrangelo: Higher on our Q1 deliveries versus Q4 of 2024 and in fact as we sit here today and talk to you this morning

What we've shaped to the field?

Joe Mastrangelo: in 2024. The team is really starting to get a strong foundation around how we execute and deliver the customers.

Joe Mastrangelo: Inside of all this as we move forward we will see

Joe Mastrangelo: and some pricing variability as we start looking at the overall revenue numbers.

Joe Mastrangelo: to build relationships to customers that are lower price points that we're seeing in the market today as we secure new revenue for the company.

Joe Mastrangelo: Containers are wired and software is installed, and that's installed out in the field.

Joe Mastrangelo: into components, components into batteries, and really getting that up and running, and that's why you're seeing the growth in our output. But when you take those batteries, think about

Joe Mastrangelo: on an automated line. We're now finding ways that we think we can automate that and make that faster and deliver higher quality. Now that's going to mean a little bit higher capital costs as we start thinking about that as we're moving forward but still just be leading when you think about what it would cost.

Joe Mastrangelo: to break the passion online in the future. And then left, you're going to start seeing us generate more.

Joe Mastrangelo: The project and service revenue, so things that happen beyond the factory doors. Again, going back to what I said early on, we are directing...

Joe Mastrangelo: to customer model, not a shift dealer model. So you'll start seeing us generate revenue out in the field and revenue from service of the equipment that's out running. So we feel like, with all the uncertain team, we'll continue to manage that and keep everyone updated on that. But as we sit here today, we feel really comfortable about the guys that we've given and what the team needs to work on. There's a lot of things and a lot of areas that we continue to manage. But I think with the team that we have inside the business, we feel confident in reiterating the guidance as we move forward.

to go to the next page.

Joe Mastrangelo: Just quickly on delivering profitable growth. You know, our goal is not to just be a high growth company, but it's to be a profitable high growth company.

You can see the three main areas.

Joe Mastrangelo: of delivering profits or around getting your direct material or cost of the product where you need to be. I talked about that earlier and what we're seeing as far as working with suppliers. We have many suppliers coming to us wanting strategic relationships with us. The team will keep working this but we will feel confident and comfortable where we are as far as the core components inside the product and the partners we have to deliver those.

Joe Mastrangelo: on the right-hand side of this page, and then we have to pause and talk about the scaling up operation that we're talking about. You don't scale a factory overnight. When you think about what we're seeing in the tariff, it was tariff.

right, and people talking about the bring

Joe Mastrangelo: Manufacturing back to the US. You have to start building it and then over time you get there. We've been at this for multiple years when we know as you have to scale the facility, scale your capability, scale your labor, train them and then grow into this.

Joe Mastrangelo: We're seeing improvements from where we started with still room to grow as we continue to ramp into the second half. We go to the next page, one of the most important.

Park

Joe Mastrangelo: of how we're doing this. And probably you'll hear in the background as I'm talking this rhythmic banging, that rhythmic banging that you're hearing is the left hand side of this page. That battery's parts being made. So this is all about automating the upfront raw materials come in.

Joe Mastrangelo: Sub-assembly is getting manufactured. They go into a battery, a battery gets assembled, the battery goes into the container. We can see her before and after shots about how the team is making this better. On-terminal, so think about the battery. A battery has two terminals and a battery has 19 bipolars, and we've sized all this to be able to get the delivery that we want off of the automated line that's been up and running with rail yields. Not only does the output go up, but labor rate comes down, and when that output goes up, [inaudible]

Joe Mastrangelo: on the square footage that you have, your manufacturing overhead comes down.

When that labor input goes down

Joe Mastrangelo: on the output that you're putting out, that middle column on the prior page goes down.

So these are two critical components for us [inaudible]

Joe Mastrangelo: to grow into the space that we have and the capacity that we can achieve off of our automated mind.

Joe Mastrangelo: It's another one of these mesmerizing experiences for me when I go and look at this product working. You know, the left hand side is in the factory producing and making that banging noise that you hear. The right hand side is at our supplier, being factory acceptance tested to be shipped here. You know, on the left hand side, you install one of those on the right hand side. We install eight of those lines to get up the full capacity, and that's going to be happening over the next 60 to 90 days.

Joe Mastrangelo: We feel really good about the performance that we see in our ability to scale the business and with that I'll turn over to Eric that will walk through the financial results in the first quarter. Thanks for listening.

Eric Javiti: Thank you, Joe, and good morning, everyone. Turning to our financials. We had a great start to 2025, delivering Eos' highest quarterly revenues a date.

Eric: We reported $10.5 million in revenue, representing both a 58% year-over-year and 44% growth from prior quarter. As Joe mentioned earlier, this performance was driven by increased customer deliveries which you want achieving record output across all areas of our manufacturing

Eric: That momentum has continued into the second quarter with April records being set over March.

Eric: The cost of goods sold came in at $35 million, resulting in a gross loss of $24.5 million. The increase in cogs was primarily driven by an increase in product shipment volumes and inefficiencies associated with our current manual subassembly process.

Eric: These impacts were partially offset by 42% lower per unit product costs year-over-year.

Joe Mastrangelo: Looking ahead, we expect our transition's automated sub-assemblies to increase productivity as Joe discussed earlier, positively impacting our gross profit margins.

Joe Mastrangelo: Notably, our underlying growth margin improved compared to both the prior year and previous quarter by 93 and 89 percentage points respectively reflecting meaningful continued improvements in labor and overhead costs as we continue to scale production.

Joe Mastrangelo: We are driving down costs operationally and continuing to see improvements in margins across our customer contracts. As the year progresses, improved per unit economics are expected to increase the net realizable value of our inventory, thereby reducing the need for an inventory reserve on the balance sheet.

Joe Mastrangelo: With our current trajectory, this trend should continue delivering overall favorability to the P&L, now turning to expenses.

We recorded $28.4 million in operating expenses.

Joe Mastrangelo: While operating expenses increased year-over-year, the growth was primarily driven by two factors.

Joe Mastrangelo: First, approximately 48% for $4.3 million of the increase with non-cash items such as top-based compensation, P.P. and E. write downs related to manual, sub-similar equipment and depreciation.

Joe Mastrangelo: The remaining 52% of the increase was driven by strategic headcount growth across several key business areas as we continue to build the foundation for future scalable growth.

Joe Mastrangelo: We reported net income of $15.1 million, possibly impacted by $74.6 million in non-cash gains related to the fair value of the re-measurement of warrants and related derivatives, which were influenced by the end of quarter stock price.

Joe Mastrangelo: Adjusted EBITDA loss for the quarter was $43.2 million. But importantly, we had a margin improvement of 145 percentage points.

Joe Mastrangelo: We continue to make meaningful gains in operational efficiency and working capital management. Further, we received the last $40.5 million from serverists, fully funding the term loan, and had $7 million in cash inflows for more exercises.

Joe Mastrangelo: For the April Milestones, we successfully achieved three of the four while expanding the fourth and final milestone.

Joe Mastrangelo: The final milestone that was extended is related to cash receipts.

Joe Mastrangelo: We were granted an extension through July 31, 2025 due to its linkage with the reduction in 2024 sales, which we announced last November .

Joe Mastrangelo: In aggregate, over the past 10 months, the team successfully delivered on 15 of 16 total milestones and we fully expect to deliver on the final milestones. This is a huge accomplishment by the team.

Joe Mastrangelo: When you think about where we were a year ago and compare it to where we are now, it's truly outstanding execution across the board. Hitting these milestones allowed us to bring in the full $210.5 million while also reducing serverless maximum potential equity ownership in the company.

Joe Mastrangelo: from 49% when the loan was first announced to now being a maximum of 34% if we don't meet the final milestone on the extended deadline.

Joe Mastrangelo: While our financial results reflect the ongoing costs of scaling, we've made significant progress in positioning the business for long-term success.

Joe Mastrangelo: We are well-capitalized and our cost-out roadmap is on track. In all, we feel very confident in our ability to scale our operations and execute in a very important year for the company.

Speaker Change: Lastly, I'd just like to note that I'm now 60 days into the CFO role here at Eos.

Speaker Change: Over the past two months, I've been able to spend considerable time meeting team members from across the company while also engaging with customers, suppliers and partners.

Nathan Kroeker: with each day I've become more excited about the opportunities ahead and Eos ability to capture the growth for this market. I'm looking forward to continuing the mission and attention while delivering values to our employees, customers and shareholders. With that, I'll pass it over to Nathan for our commercial performance.

Nathan Kroeker: Thanks, Eric. Good morning, everyone. Before we get into our commercial results for the quarter, I would like to briefly address the topic of tariffs, which have been top in mind for me.

Nathan Kroeker: As Joe highlighted earlier, tariffs should be a strong tailwind for our business, particularly on the commercial side.

Nathan Kroeker: with tariffs driving up costs for some of our competitors. We're seeing incremental interest from prospective customers seeking a US-based solution.

Nathan Kroeker: This pipeline now represents 60 gigawatt hours of long duration energy storage.

Nathan Kroeker: We experience the net increase of 1.4 billion in Q1, primarily driven by large project opportunities in Puerto Rico.

Nathan Kroeker: Multiple 8-hour projects in California, a series of projects with a traditional oil and gas player in Ircon, and new projects tied to both direct and indirect data center activity.

Nathan Kroeker: While our pipeline includes a wide range of customer use cases, data centers remain a strong example of EOS's growth potential.

Nathan Kroeker: These opportunities come from both traditional developers citing projects at existing interconnects along with virtual power purchase agreements with developers selling to data center operators to improve their reliability, sustainability and generation mix.

Nathan Kroeker: During the quarter, we also saw strong growth in lead generation.

Nathan Kroeker: Quarter over quarter lead gen increased by 32% to $13.5 billion, representing 55 gigawatt hours of storage. Of that, $5.4 billion was added in Q1, while $2.1 billion of prior quarter lead gen progressed into the opportunity pipeline.

Nathan Kroeker: While most of our commercial focus remains on the U.S. markets today, we are very excited about several other emerging opportunities. Specifically, last quarter, we discussed the UK's cap-and-for program.

Nathan Kroeker: Shortly after quarter end and not yet reflected in the numbers for Q1, we signed two important MOUs with strong developer partners.

Nathan Kroeker: The first was a five gigawatt hour MOU with Frontier Power, a leading UK developer, founded by former national grade executives.

Nathan Kroeker: Under the MOU, Frontier plans to submit multiple vids utilizing the EOS technology in the

Nathan Kroeker: This partnership also opens the door to developing local manufacturing in the UK should significant project volumes materialized.

Nathan Kroeker: As we have discussed previously, our supply chain strategy was designed to be transportable and we can co-locate manufacturing capacity near customer demand.

Nathan Kroeker: With this first project moving forward, we believe Eos' technology will become a significant part of enhancing the grid resiliency in this harsh island environment.

Now, transitioning to our backlog.

Nathan Kroeker: Our 331 backlog stood at $681 million, representing 2.6 gigawatt hours of storage, which is a 13% year-over-year increase.

Nathan Kroeker: You may recall that we announced the San Diego Navy project in March. Fully funded by the California Energy Commission, this strategic order provides essential energy resiliency to the U.S. Navy's Western Fleet.

Nathan Kroeker: After quarter-end, we also find in order with one of the largest regulated utilities in the southeast.

with the strong pipeline storage projects.

Nathan Kroeker: and a name that many of you would recognize to deliver on a microgrid project for a school district in Florida. While net growth in our backlog was flat from last quarter, we're very encouraged by market dynamics and the near-term project demand that we see ahead.

Nathan Kroeker: With that, I want to take a deeper dive into data centers and how EOS technology is uniquely positioned to serve this critical and fast growing customer segment.

Nathan Kroeker: Data Centers represented compelling long-term growth opportunity in our pipeline

Nathan Kroeker: The enormous and continuously increasing power demands of data centers make long duration energy storage the most efficient and immediate solution for reducing operating costs.

Nathan Kroeker: This flexibility also allows for peak shaving to reduce demand charges, solar shifting, energy arbitrage, or the sale of ancillary services, all of which help to reduce the overall cost of electricity supply.

Nathan Kroeker: The multi-cycling capability also allows for additional storage capabilities with the same CAPEX investment, reducing levelized cost of storage by 30% on representative projects.

Nathan Kroeker: Second, being specifically designed for long duration discharge cycles, the Z-Tree system better aligns with intermittent generation resources or time of use pricing to lower total electricity costs by as much as 50 percent.

Nathan Kroeker: while delivering this operating flexibility, the D3 system requires minimal auxiliary power to operate and experiences very low system degradation. Our systems draw auxiliary power of just one to two percent of installed energy capacity, whereas incumbent technologies can be significantly higher, especially in warm climates or multicycle use cases.

Nathan Kroeker: Much of this additional locks powers consumed by complex cooling systems that are required to maintain alternative technologies within a narrow operating temperature range.

Nathan Kroeker: Our lower-ox power requirements increase power available for annual computing by approximately 3.5% on a typical system.

Nathan Kroeker: Finally, the low system degradation of the Z3 system means lower long term operating costs and more consistent performance over the life of the asset than other technologies that may require system augmentation every 5 to 10 years.

Nathan Kroeker: This translates into approximately 50% lower operating costs over the life of the asset.

Nathan Kroeker: Finally, many of the data center customers in our pipeline have seen ability goals that require economical storage paired with local renewable generation and the operating flexibility, safety profile and better lifetime economics of our technology are well suited to meet the diverse and evolving needs of today's data center energy landscape.

Nathan Kroeker: With that, I want to thank everyone for joining us today, and I will now hand over to the operator for Q and A.

Nathan Kroeker: Thank you, and we will now begin the question and answer session.

If you would like to ask a question,

Nathan Kroeker: Please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again.

Nathan Kroeker: If you are called upon to ask your question and are listening by a loudspeaker on your device?

Nathan Kroeker: Please pick up your hands up and ensure that your phone is not on mute when asking your question.

Speaker Change: And your first question comes from the line of <expletive> Moore from Roth Capital. Please go ahead.

Chit Moore: Good morning. Thanks for taking the question. I want you to maybe ask about sub-assembly automation. I think you said your first terminal cell past slight acceptance.

Chit Moore: It's just any more color, really integration there, and then maybe help us think about that ramp in Q3, and how to think about the revenue trajectory baked into guidance.

Yeah, Chip, good morning.

So, yes, you know, you can...

Chit Moore: You could hear it in the background here working and building parts.

So it's up and running and we're scaling into...

Chit Moore: The production ramp. I mean, it's already at partial run rate producing more than we were producing on our semi-automated line, so it's already having an impact.

Chit Moore: on the production for the factory. I think when you think about where we are on sub-assemblies as they said, we've got...

Chit Moore: The first station for sub-assemblies, the first of eight going through.

Chit Moore: at Accro. From there, you follow on with the seven coming online here as we get through the second quarter.

Chit Moore: and we'll wrap into that as we get into, you know, you'll start to see like a rampant [inaudible]

Chit Moore: as we install in May, June , and then getting up in the capacity in July and August , so...

Chit Moore: I think, you know, as you think about as we've said before, you know, you should see quarter over quarter improvement in the output. You know, if you look at what we've done in the month of April .

You know, we've produced...

Chit Moore: as many cubes in April , 75% of the first quarter volume. And as we said, you know, we've already, as we sit here today, produced as many cubes.

Chit Moore: in 2025, as we did in 2024. So we're finding good old-fashioned efficiencies and the guys the subassemblies come in, we'll be able to run the line, the automated line longer. And I think you'll see that revenue growth that dovetail into getting into the guidance range for the

Speaker Change: Thanks, Joe, for that, and maybe a follow-up, if I could, uh...

You know just surround

Speaker Change: All that's going on in the world in tariffs and some of that uncertainty and understanding that that's going to be a positive for you guys, but I think he called out.

Speaker Change: You know, some of that near term uncertainty, you know, can shift project time. It is that.

Speaker Change: You know, is that something you're seeing, or is that sort of baked into the, maybe the low end of the guidance range? Thanks.

Chip Moore: Yes, I did all the above chip, and I think I think, you know,

Chip Moore: Obviously markets don't like uncertainty, I think that the certain thing is...

We Need Energy Storage

Chip Moore: for our power grid, so I think you're seeing projects moving forward.

Chip Moore: I think people are going to win and see what happens with 45X with the investment tax credit.

Chip Moore: But we're still seeing other things move forward with regulated utilities in other areas where you're you know like co-op developers and things like that We just keep working forward to get things to get things closed out and we'll keep everybody updated on where we are but I think the most important thing we always have to remember is and we'll keep you updated on where you're you're you're you're you're you're you're you're

Chip Moore: Energy demand is going to double and you need long-duration energy storage in order to meet that demand and that's what we're building towards.

Great, thanks very much. I'll help back in cute.

Great. Thanks, Jim.

Speaker Change: And your next question comes from Thomas Boyes, from TD Cohen. Please go ahead.

Thomas Boyce: Thanks very much, John , for taking the questions. Maybe just to follow up on Chip's initial point, with the subsequently automation kind of well underway, and then containerization, you know, for the second half of the year.

Thomas Boyce: Can you maybe frame for us just on the relative impact to labor between the two? I mean, my feeling, obviously, the sub-assembly is far more labor-intense, but I just wanted to kind of understand how we get to the 1.3% scale on labor that you're targeting.

Thomas Boyce: When you look at, we've always talked about is that we've used a flexible labor force as it relates to sub-assembly.

for labor will go down significantly as we bring

Thomas Boyce: I'm part inspection and make sure that you're passing good parts

are thinking around this as evolved over time, where... [inaudible]

Thomas Boyce: We think there's ways that we can speed production up so what really what you're talking about is your labor rate per unit comes down but your total labor number will stay the same like from an employee's endpoint but you're getting more throughput you're able to do things faster.

The same number of employees, and it's a huge...

Thomas Boyce: Productivity Game that we're in again on both sides of those. And on the containerization side...

Thomas Boyce: We're looking at incremental investment that allows us to get incremental output on the same asset base and we'll come back with more info on that as we work through the bids from suppliers to be able to ramp up that automation.

Bye!

Speaker Change: Perfect, now appreciate that. And then there's just a follow-up, you know, ISO reports in the news that the Dewey had missed a $365 million funding deadline for energy storage projects in Puerto Rico.

Speaker Change: Is that something that you're probably specifically were being funded by? Is that related to the neocopies? I just wanted to see if there's any exposure there from that.

Speaker Change: Well, Nathan let in, but not that we're aware of, and I think just to be clear with NEPA's environmental review of the site, I think, where we've gotten with...

Speaker Change: The customer is, you know, we've laid out a really strong project that helps the island.

Speaker Change: that delivers returns for the customer, but that what you're talking about, like I don't know Nathan if you've heard anything on that, but I haven't seen that. No, we have regular conversations with the customer as recently as yesterday, everything's moving forward with the project. I'm not aware that this would have any effect on the project we announced.

Speaker Change: Thanks a lot Sharon, and then we have to sneak one more in before hopping back into QQ. It was just on, I was interviewed, mentioned the second DOE loan reimbursement timing.

Speaker Change: You know, has that meaningfully shifted? How are you seeing that come down quite?

Speaker Change: I've got the word regular contact with DOE. We're working through the process with them. They're obviously, you know, when you have someone new coming into a job, they're doing a portfolio review, and we're part of that portfolio review, and we're on track to submit for the reimbursement as scheduled.

Great. Thanks again.

Yeah.

Speaker Change: And your next question comes from Martin Malloy, from Johnson Rice. Please go ahead.

Martin Malloy: Good morning. Thank you for taking my questions. First question I just wanted to ask about potential of expansion of capacity beyond the two gigawatt hours of annual capacity and...

Martin Malloy: Lead Times, whether it be a turtle creaked or a greenfield facility, how we should be thinking about the timing of ramping capacity expansions.

West.

Martin Malloy: Yeah, Marty, good morning. Yeah, so we are in the pro, like we talked about last earnings announcement, we're in the process of looking at a second site.

Martin Malloy: The receptivity of locations hosting the second factory for Eos has been great. We're working through with a couple of geographies and states to look at where we want to locate and

Martin Malloy: What that means for us from the facility that we would have the logistics around that facility in the workforce as we have updates on that specific topic we'll give them but we're in the process of negotiating.

We talked about on the last call about, you know...

Martin Malloy: for the, you know, sub-assembly and battery module assembly lines, you know, so basically what we have here in Turtle Creek right now and we're in the final negotiations with suppliers on that to look at delivery times.

Martin Malloy: You know, I think what we would say is like getting where we are.

Martin Malloy: Probably implementation, line two into next year for the ramp up as far as timing from line two would be concerned and then on the second factory you know we'll come back on that like we you know like we're really happy about right now is with Turtle Creek every week we set a record.

Martin Malloy: for Production. You know, every week the team increases from the week before and we just, we also need to keep focused on optimizing what we have while expanding and we'll come back with updates on that. But I would think about meaningful step up and volume happening late this year, beginning of next year.

Speaker Change: Thank you and for my second question, just wanted to ask about repeat orders and particularly from larger utilities or developers and kind of curious about the Florida order if that was from a utility company that had pilot tested the Z3 battery previously.

Speaker Change: What I would say is that is an order that came through an existing relationship. One that we've been working with for a long time, so yes, that's a repeat order, I would say.

Great, thank you. I'll turn it back

Thanks, Marty.

Speaker Change: And your next question comes from Patrick Wollett from Stiefel. Please go ahead.

Speaker Change: Hey, it's Pat on for Stephen Gengaro. Thanks for taking the questions. You talked to some pricing variability in the backlog. Is it reasonable to assume the older orders are going to be fulfilled ahead of newer orders and is there anything you're doing to smooth variability quarter to quarter and any insight on pricing variability going into 2026 deliveries?

Yes, yes, you know.

Speaker Change: Older orders, lower price, so first of all, we schedule the orders, let's take a step back, we schedule orders to customer demand not to price, so we're not as focused on

Speaker Change: Quarter by quarter numbers as we are as getting the product up and running the field per customer demand, so that's the first

Speaker Change: There's, as we talked about this the last time and we talked about it in the presentation.

You know, there are some projects coming through in 2Q. [inaudible]

that are in the lower end of our price range.

Speaker Change: I think Nathan can talk a little bit about what he's seeing out in the market on price.

Speaker Change: and in the last couple months here. Yeah, look, I think with with the increased focus on safety.

Speaker Change: Operating Cost, Flexibility, and tariffs like we said earlier, these are tailwinds and all of that I think is combined to one, you know, continue to support the prices that we're seeing in our pipeline, right, so you can see what those are, but also to drive increased interest to increase demand for the product.

Speaker Change: If you look at what's in our backlog and what's in our pipeline, I think that's a pretty good indication of where we see.

You know, pricing, shaking out for the next several years.

Speaker Change: A lot of what's on the pipeline, like we said, has been added recently, and it's at prices that we're seeing in the market. And the other thing we've always talked about is like...

Speaker Change: I know we want to simplify things and get to a to a levelized price point.

Speaker Change: But it truly is apples and oranges when you look at us first as others and what we spent a lot of time with the customers on is explaining to them that with the EOS technology you can run multiple cycles a day.

So the price to revenue [inaudible]

is astronomically better and that's where L-Cost [inaudible]

Speaker Change: The Kate Study that Nathan laid out on data centers. There's a couple important things that we really want to talk about this.

Speaker Change: You can't do that with other technologies because you can't cool it down. So yeah, maybe you can run an eight-hour cycle on Lithium, but it's probably its oversized or lower power.

Speaker Change: and you're going to have to cool that. With ours, you can run a two and a six, a four and a four or a six and a two. That gives you the flexibility you need given.

Speaker Change: The ups and downs that you have in demand for power. The other big thing to talk about is this Maximizing where Nathan talked about low auxiliary power, that not having the Rhona cooling system and a fire suppression system, you get 3.5%.

Speaker Change: More computing on a data center, because you're not sucking power out of your power generation to maintain your system.

Speaker Change: Those are two big things when you start talking about price versus competition.

Speaker Change: We really don't talk price, we talk value and there's a lot of value

and an Eos system out in the market.

All right. Appreciate the perspective. Thank you.

Speaker Change: Here is what sort of levels of demand you'd need to see to pursue a sort of localized manufacturing strategy, and if you think you could roll out the abroad localized manufacturing before completing the eight gigawatt hours of capacity under Project Amazing in the US.

from Depends. So, yes, that's what you need to.

Speaker Change: What we need to always think about, and this is in my experiences, is...

Speaker Change: You don't want to build a factory for a project because then afterwards you have a problem where you build the factories where you have...

Speaker Change: A demand that's going to sustain a factory over time, and that decision-making process that will go through.

We are-

Speaker Change: We're very excited about what's happening in the UK and the potential for that to be a market for us and other countries in the EU. So we'll see how that plays out but we have to have something that's going to sustain itself over a period of time, otherwise you wind up with a stranded asset and we don't really want to do that for the long term.

Great, thanks so much.

Speaker Change: And your next question comes from Joseph Osha from Guggenheim. Please go ahead.

Hey there, good morning guys.

Hey, Joe.

Um...

Speaker Change: If I look at the slide that shows your cost reductions across different categories and the targets for when you are at, quote unquote, scale, I'm just trying to understand what what scale means. Is that a gigawatts once amazed is fully fully up and running, just trying to use this as a way to get at the gross margin question? [inaudible]

Speaker Change: Yeah, so obviously, Joe, as you look at the chart itself, it ran down over time, but we're talking about when we're fully at scale, is getting above that gigawatt hour production number to be able to do that on the line. So like, and remember, each line is two gigawatt hours, like we've expanded the capacity we can get off the line, so that's what we're working towards.

All right, I guess I'm confused, are you saying?

Speaker Change: If you've got one, two gigawatt hour line running and that's at better than a gigawatt hour, that's scale, I guess it'll end up quite follow.

Good job.

Sir, I'm sorry.

yet.

Speaker Change: That's what we're saying. As it relates to this chart, and obviously scales are relative terms. So the greater the scale, get to the greater production capacity, you're going to get greater benefit as it relates to each of these categories. Let's get started.

Speaker Change: Okay, so with that in mind, are there any comments you'd be prepared to make today about what that chart tells us about how we should think about gross margins at the end of 2026, what it sounds like we could reasonably expect to have.

Speaker Change: to gigawatt our lines running by by that point. How assuming everything goes well, how might that inform our thinking about what what margin looks like, say coming out of the end of the next year?

Speaker Change: I know. We're not going to give that guy a shot. You know that.

Speaker Change: I, but I got to add. Okay, I know. All right. The second question, I was going to ask a little bit about the LPO and then a question came up earlier. Joe, I believe I heard you say portfolio review.

Speaker Change: What does that mean? Are they coming and asking you questions that they haven't asked you before or tell me a bit about what the portfolio view process looks like for you guys?

Speaker Change: Yeah, and this is Eric Joe. It's just their standard process. We're engaged with them on a daily basis as we go through the process of getting of each draw and then just

Yes, we continue our rhythm and change Joe at all.

Speaker Change: I think what you're new and anybody that's new and a job wants to look at what are you going to do and they're just going through the normal

Speaker Change: Looking at it and asking us questions, maybe in a lot of instances questions that we've probably already answered but it's a new person in the job and you're just bringing them up the speed on where we are.

Speaker Change: Okay, so you're not, as you think, obviously, that's important. They're not sending any signals to you at this point that would cause you concern.

None at all, as we would have never said that.

Speaker Change: Thank you very much. We've been very happy on the engagement. Yeah, that's what I was going to add is it's not even business as usual. They've been very collaborative, you know, working together. They're being, you know, incredibly good constructive partners as Joe mentioned.

Speaker Change: You know, anytime you get any new boss, sometimes they may change things as it relates to just their process but you know, we're getting everybody up to speed there and it's actually been a really good relationship. It's a time been here.

Okay, thanks very much.

Thank you. Thank you. Thank you.

Thank you.

Speaker Change: There are no further questions on the queue. I would now like to turn call over back to Liz Higley. Please go ahead.

Liz Higley: Thanks, operator. We now want to get into some of our state technology questions. A few of them most commonly asked or already addressed on the call, but we'll go through a few more. So the first question, what is currently the biggest headwind in converting late-stage pipeline opportunities into sign contract orders? Are macro factors such as global tariff or tax credit uncertainty causing developers to delay finalizing orders?

Speaker Change: Thanks, Liz. So, I guess we should just start off and talk about some of the macro factors. I mean, the world obviously needs energy storage. Energy consumption, energy demand is expected to double, right? We're getting more intermittent generation resources on our grids and we've got aging infrastructure on the grids. I mean, there's some big fundamentals that say we're going to continue to need.

Any time you have folks watching...

Speaker Change: The headlines to see what's going to happen with the ITC, what's going to happen with some of the other incentives.

Speaker Change: and customers we're seeing are rerunning their return models. Can they get to appropriate returns as Joe talked about earlier? We're going back, having conversations with customers about multi-cycle, double-cycle, other things that they can extract value from these batteries in order to work with those return models. So I think it's slowed things down. I don't think it changes our long-term view of what that pipeline opportunity is and how that converts to backlog over time.

Speaker Change: and their family. This is a production of the U.S. Department of State. This is a production of the U.S. Department of State.

Speaker Change: Great. Thanks everyone. I'll just wrap up here. I think keep in front of us the long-term you know, macro factors of...

Speaker Change: Energy Demand, Doubling by 2050, the need for long-duration energy storage, increasing to be able to meet that demand, Eos, sitting with a product that we feel meets.

Speaker Change: A very significant segment inside of Energy Storage, and as I've said all along in this journey you need multiple technologies to get the job done and we're one of those technologies that I think that are key [inaudible]

Two up, two up, safe

Speaker Change: or eight o'clock in the morning call that we have where we go through production for the day prior than what we need to do that day. It does start off every day, which we did more than we did the day before and we're on track to do more than we did the week before. And we just need to keep building off of this. This is clearly coming up with...

Speaker Change: Finding ways to become more productive, finding ways to become more efficient and finding a better way every day to be a little bit better than you were the day before, but not as good as we'll be tomorrow. I really like the team that we have in place. I'd like to talk about that.

Speaker Change: One second here to close out because you can have a great technology, you can have all these great machinery, you can have everything but you're nothing without great people. And when you look at...

Speaker Change: My extended leadership team in the company, you know, more than half of them have joined the company in the last 12 months.

given where the company is. [inaudible]

Speaker Change: and also a reason why you're seeing the performance that you're seeing and it's less about

Speaker Change: It's more about being additive. What I've always talked about is we've had a strong leadership team and now we're just adding into the middle of the organization to be able to manage the growth of the company and really starting to look at when you're in a small startup mode. It's always about how many hats are you wearing during a day to get things done and now it's about having people wear one or two hats, not five hats. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.

Speaker Change: so we can continue to grow and expand the company, and that's one of the key things.

Speaker Change: that we're focused on. We feel really good about where we are both on the commercial side and understanding our value of proposition to the market, being able to scale the company and bring the company up to a leader in long duration energy storage and we'll keep working on that and keep everyone informed on that and thanks everyone for the time today.

Q1 2025 Eos Energy Enterprises Inc Earnings Call

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