Eos Energy Enterprises (NASDAQ:EOSE) executives highlighted accelerating demand for reliable, long-duration energy storage while acknowledging operational setbacks that caused the company to miss its 2025 guidance, according to comments on the company’s fourth-quarter and full-year 2025 earnings call.
CEO Joe Mastrangelo said the power market is shifting “away from managing volatility to providing reliability,” driven not only by data centers but also electrification of transportation and heating and increased domestic production. He said Eos’ technology is designed to meet those needs through flexible discharge durations and fast response times, but emphasized that “execution is what counts,” adding that missing guidance “falls on me as the CEO.”
Operational progress, but missed targets
However, Mahaz said three issues—none related to demand—prevented the company from meeting operational commitments:
- An isolated supplier non-conformance that cost one week of production; Mahaz said it has been addressed through corrective actions and improved controls.
- Automated bipolar production quality took longer than expected to hit targets, driving rework and lost revenue; the company improved tooling, reduced variation, tightened material specifications, and added laser detection.
- Equipment downtime ran “well above” expectations and industry norms. Mahaz said best-in-class operations target roughly 10% downtime, but Eos was closer to the “mid 30% range” as utilization increased. He said fixes were made across robotics, hardware, controls, maintenance schedules, and spare parts, and downtime has “improved significantly” in early Q1.
Mahaz said the biggest structural risk is limited redundancy because production stops if the primary line goes down. He said that changes with Line 2, which is progressing and preparing for factory acceptance testing in Wisconsin, with redundancy built into critical stations. Eos expects equipment to begin arriving in Q2, with fully automated production targeted in Q4.
Technology updates: DawnOS and Indensity
CTO Francis Richey said Eos’ product evolution has moved from selling DC battery systems to providing integrated projects that include batteries, software, controls, AC integration, and site design. He said field operations in extreme environments and testing at Eos’ Edison, New Jersey facility contributed to resilience improvements and the launch of DawnOS, which enables “individual battery monitoring and control.”
Richey also detailed the company’s Indensity product configuration, describing it as the same chemistry, battery, software, and controls as existing systems but with different packaging and “better performance.” He said Indensity is designed around three differentiators: serviceability, cost, and site energy density. The Indensity Core is intended to be quickly disconnected and serviced with a forklift rather than a crane, and the modular design allows vertical stacking “as many as 12 units high” to improve energy density for space-constrained sites.
Backlog and pipeline expand as longer-duration demand rises
Chief Commercial Officer and Interim CFO Nathan Kroeker said Eos ended the quarter with just over $701 million in backlog, after booking nearly 1.1 GWh across eight customers and nine projects, a 9% sequential increase. He said the company secured more than $240 million in new orders across commercial and industrial, distributed generation, and utility-scale applications.
Among orders discussed were a 50 MWh master supply agreement tied to Commonwealth Edison’s distributed generation rebate program, two initial hotel projects in Florida with a developer that has additional projects expected over the next 12–18 months, and a Z3 system order for installation at a national lab for integration testing with a “global power company.”
Eos’ commercial pipeline reached $23.6 billion, representing approximately 99 GWh of opportunity, up 4% sequentially and 64% year-over-year. Kroeker said hyperscaler and AI-related projects remain a key growth driver, with data-center-specific leads up 50% quarter-over-quarter and the active data center pipeline up more than 40%. He added that 63% of the pipeline now consists of 8-hour or longer systems as more opportunities shift toward co-location with generation assets.
Kroeker also referenced submissions under NYSERDA’s Bulk Storage Procurement Program, including a 300 MW, 8-hour project in the Brooklyn Navy Yard and another in Con Ed Zone K. He cited PJM capacity market reforms and elevated clearing prices as supportive for long-duration storage economics, and noted that Bimergen announced a technical selection of the Z3 system for the 400 MWh Redbird project in ERCOT, with an additional 2 GW development pipeline spanning ERCOT, PJM, and MISO that Eos is working on.
Financial results and liquidity actions
Kroeker said Eos generated $58 million in fourth-quarter revenue, nearly double Q3, and reported $114.2 million in full-year 2025 revenue, representing “more than 7x year-over-year growth.” He said the company delivered another quarter of gross margin improvement as production volumes ramped and sub-assembly automation entered production late in Q3.
For 2025, Kroeker reported a gross loss of $143.8 million and introduced a non-GAAP metric, adjusted gross profit, which excludes stock-based compensation and depreciation and amortization. On that basis, adjusted gross loss was $128.5 million. Operating expenses were $115.4 million, up 26% year-over-year, with $25 million described as non-cash items.
Net loss for the year was $969.6 million, compared with $685.9 million the prior year. Kroeker said results included $746.8 million of non-cash impacts related to fair value accounting adjustments, refinancing, and other non-operating items, citing mark-to-market revaluations tied to a 135% year-over-year increase in the company’s stock price.
Eos ended 2025 with just under $625 million in cash. Kroeker said the company’s November refinancing retired 80% of its existing 2030 converts, reduced its interest rate by 500 basis points, and added $474 million in cash, while also freeing $11.5 million in restricted cash. The exercise of public warrants generated about $80 million in gross proceeds. Kroeker said the company removed “going concern” language from its filings as a result of the strengthened cash position and outlook.
2026 guidance and manufacturing capacity targets
Mastrangelo initiated 2026 revenue guidance of $300 million to $400 million. He said the lower end is expected to come from backlog, while the upper end is tied to larger projects moving through grid operator approvals and the company’s expectation to begin shipping Indensity in the second half of the year.
On profitability, Mastrangelo said the company previously discussed becoming gross margin positive in Q1, but lower-than-planned 2025 volumes pushed material costs into Q1, delaying that trajectory. He said Eos expects to be gross margin positive in the second half of 2026.
In Q&A, management said it is targeting 4 GWh of annualized manufacturing nameplate capacity by the end of 2026, aligned with customer requirements and backlog. Mahaz said Eos is working with multiple automation partners to shrink lead times, a national building partner to align construction with automation commitments, and suppliers to coordinate capacity inflection points.
On the competitive environment, Mastrangelo said rising long-duration announcements validate the market’s evolution and that Eos’ solution is positioned for the 4- to 16-hour range. On pricing, he said Eos sells on a levelized cost of storage basis, describing it as higher on CapEx but lower on operating cost. He also said international interest is being driven more by performance than politics.
Closing the call, Mastrangelo reiterated that 2026 is about “disciplined execution” and improving predictability, calling Eos an infrastructure business that must be built on “discipline, consistency, and operational trust.”
About Eos Energy Enterprises (NASDAQ:EOSE)
Eos Energy Enterprises specializes in the development and deployment of scalable, long-duration energy storage systems designed to support the integration of renewable power and enhance grid reliability. The company’s core technology centers on its proprietary zinc hybrid cathode (Znyth™) battery platform, which aims to deliver safe, low-cost, and durable performance for utility, commercial and industrial, and microgrid applications.
The company’s flagship product, the Aurora™ energy storage system, combines its Znyth™ cells with modular power conversion and controls to offer flexible capacity ranging from one to three hours of discharge duration.
