Eos Energy Expects 2026 Revenue in Lower Half of $300M–$350M Range

Eos Energy Enterprises, Inc. (NASDAQ: EOSE) announced preliminary financial results for the third quarter ended September 30, 2026. The company currently expects revenue of $82 to $83 million, up approximately 19% to 21% sequentially and approximately 169% to 172% year over year. Shipments rose approximately 23% quarter over quarter, supported by continued production scaling on the second manufacturing line at its Thorn Hill facility.

Line 2 accounted for approximately 17% of total battery production during the quarter and ended the period with first-pass yield in line with Line 1 performance. It continued operating on a partial-shift schedule as Eos hired, onboarded and trained additional employees to support higher production and full-shift operations. Eos expects GAAP gross margin of (55)% to (53)%, an improvement of approximately 16 to 18 percentage Gross margin improved by points from the second quarter of 2026, supported by higher production volumes and lower conversion costs per unit. Eos recorded its eighth consecutive quarter of gross margin improvement.

As the company continues hiring and training staff for additional shifts on Line 2 at Thorn Hill, it expects margins to expand further, citing higher production volumes, better capacity utilization, consolidation into one footprint and ongoing material cost-reduction initiatives. Total cash, including restricted cash, was approximately 344 million as of September 30, 2026, versus 364 million as of June 30, 2026. Quarter-end cash was supported by approximately 114 million in operating cash inflows, driven primarily by customer deposits, project milestone receipts and tax credit collections, alongside an additional 87 million advance under the DOE loan facility.

Capital expenditures were approximately 35 million, primarily for completing Line 2 automation. Backlog was approximately 765 million as of September 30, 2026, representing approximately 3.2 GWh, after revenue recognized during the quarter and new orders booked. During the quarter, six purchase orders Orders were received from six different customers. These included a previously announced $100 million order under an existing capacity reservation agreement, which did not add to quarter-over-quarter backlog growth.

Commercial momentum continued in the defense, commercial and industrial (C&I), and data center markets. During the quarter, Eos announced key projects supporting the Golden Dome initiative for mission-critical defense applications. Together with MN8, it also announced a project with Google, underscoring demand for long-duration energy storage systems in data center applications. Eos expects full-year 2026 revenue to come in within the lower half of its $300 million to $350 million range.

The forecast includes adding the final shift to bring Thorn Hill to 24-hour operation during the fourth quarter. The company enters the fourth quarter with strong revenue visibility, backed by customer commitments and projects in backlog. After manufacturing consolidation and reaching full-scale operations, Thorn Hill will serve as the company’s manufacturing facility. It is expected to have approximately 4 GWh of annual nameplate production capacity across its two Production lines.