Revenues for zinc battery firm Eos Energy Enterprises rebounded in the first three months of 2023, having fallen sharply in Q4 2022.
The Nasdaq-listed firm posted US$8.8 million in sales in Q1 2023, up 166% year-on-year and 225% quarter-on-quarter, from US$2.7 million in the last three months of 2022.
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The final quarter saw a dip of more than half compared to Q3 2022, as reported by Energy-Storage.news at the time. This was in large part due to customers delaying the execution of project orders into the new year to take advantage of the new investment tax credit (ITC) for standalone energy storage, effective from 1 January.
Eos sells a stackable energy storage system based on proprietary zinc hybrid cathode technology, to system integrators and engineering, procurement and construction (EPC) firms, mainly for the commercial and industrial (C&I) and grid-scale segments – it does not deploy projects itself.
The company is in the process of transitioning manufacturing to its latest product, the Z3, with a fully automated manufacturing line with 1.25GWh of annual capacity expected to be fully operational in Q4 2023 or Q1 2024, phasing out production of its Gen 2.3.
A difficult supply chain was also partially to blame for the downturn in Q4 2022, with a source close to the firm describing it as “the most difficult I’ve seen in 30 years”.
The figures would indicate that not all of the expected revenues from project executions were ‘caught up’ on during Q1 2023. In November, Eos reduced its 2022 full-year guidance from US$30-50 million to US$17-20 million, a reduction of between US$10 million and US$33 million. Revenue in Q2 and Q3 was around US$6 million in each quarter, with Q1’s figure up 46% compared to these.
Remaining financials for Eos in Q1 2023
Elsewhere in its results, the firm posted lower falls in gross profit and operating loss than a year prior but saw its net loss increase by 56% to US$71.6 million largely due to an increase in interest expense because of increased borrowings.
Other headline figures include its opportunity pipeline of US$8.5 billion or 32GWh, up 13% quarter-on-quarter, and an orders backlog of US$535 million or 2.2GWh, up 15% quarter-on-quarter (figures as of the end of the quarter).
