Eos Energy Enterprises, a Nasdaq-listed firm that sells stackable energy storage systems based on proprietary zinc hybrid cathode technology, has rebounded from a sharp dip in sales during Q4 2022. The company posted $8.8 million in sales in Q1 2023, which is up 166% year-on-year and 225% quarter-on-quarter from $2.7 million in Q4 2022. As previously reported, Q4 2022 saw a dip of more than half compared to Q3 2022, primarily because customers delayed project orders to take advantage of the new investment tax credit for standalone energy storage that became effective on January 1st, 2023.
Eos Energy Enterprises does not deploy projects itself but sells to system integrators and engineering, procurement, and construction firms for commercial and industrial and grid-scale segments. The company is in the process of transitioning to its latest product, the Z3, and is phasing out production of its Gen 2.3. A difficult supply chain was also partially responsible for the downturn in Q4 2022, with a source close to the company describing it as the most challenging in 30 years.
Although the Q1 2023 figures indicate that not all expected revenues from project executions were “caught up” on, Eos Energy Enterprises posted an opportunity pipeline of $8.5 billion or 32GWh, up 13% quarter-on-quarter, and an orders backlog of $535 million or 2.2GWh, up 15% quarter-on-quarter (figures as of the end of the quarter).
While the company posted lower falls in gross profit and operating loss than a year prior, it saw its net loss increase by 56% to $71.6 million, mainly due to an increase in interest expense because of increased borrowings. Eos Energy Enterprises reduced its 2022 full-year guidance from $30-50 million to $17-20 million in November 2022, a reduction of between $10 million and $33 million.
Revenue in Q2 and Q3 was approximately $6 million each quarter, with Q1's figure up 46% compared to these. The company expects its fully automated manufacturing line with 1.25GWh of annual capacity to be fully operational in Q4 2023 or Q1 2024.
