TLDR
EOSE stock slides 3.02% to $1.7650 despite revenue growth of up to 172% in Q3.
Eos projects up to $83 million in quarterly revenue as battery shipments rise 23%.
Eos narrows gross losses for an eighth straight quarter as output ramps up.
A $765 million backlog supports Eos as it ramps zinc battery production in the US.
Eos targets around-the-clock Thorn Hill output as EOSE stock drops 3.02% Monday.
Eos Energy Enterprises posted rapid sales growth, yet its stock declined during Monday’s trading session. EOSE shares fell 3.02% to $1.7650, losing $0.0550 despite preliminary third-quarter revenue growth of up to 172%. The drop contrasted with rising battery shipments and improving production efficiency at Thorn Hill.
Eos Energy Enterprises, Inc., EOSE
EOSE stock drops despite higher third-quarter sales
Eos expects third-quarter revenue between $82 million and $83 million for the period ended September 30. That represents year-over-year growth of 169% to 172%, according to preliminary results. Revenue also climbed 19% to 21% from the previous quarter.
Battery shipments rose about 23% quarter over quarter as the company increased output. Thorn Hill’s second production line supplied 17% of total battery production during the quarter. Eos brought that line’s first-pass yield in line with its original line.
Eos makes American-produced zinc batteries for long-duration energy storage, including commercial and industrial applications. Its technology serves customers needing electricity storage for extended periods, including data centers and defense sites. However, the company still recorded substantial manufacturing losses despite faster sales growth.
Thorn Hill production lifts Eos gross margins
Eos expects third-quarter GAAP gross margins between negative 55% and negative 53%. That represents an improvement of 16 to 18 percentage points from the second quarter. The company recorded its eighth consecutive quarter of gross margin improvement.
Greater output and lower conversion costs per unit helped reduce production losses. However, Line 2 continued operating with partial shifts during the quarter. Eos continued hiring and training workers to support higher volumes and longer operating hours.
The company plans to add its final shift during the fourth quarter after further employee training. Eos expects that change to enable 24-hour operations at Thorn Hill as it consolidates manufacturing. The facility should eventually provide 4 GWh of annual nameplate production capacity across two lines.
Backlog and cash support Eos 2026 outlook
Eos held approximately $344 million in cash, including restricted funds, at September’s end. Cash fell from $364 million in June despite $114 million in operating cash inflows. Customer deposits, project payments and tax credit collections contributed to those inflows during the reporting period.
Eos also received an $87 million advance under its Department of Energy loan facility. Capital spending reached about $35 million, mainly for Line 2 automation. Its order backlog stood near $765 million, equivalent to roughly 3.2 GWh.
Eos received six customer orders, including a previously announced $100 million order under an existing capacity reservation agreement. The company expects 2026 revenue in the lower half of its $300 million to $350 million guidance. Defense projects and work involving MN8 and Google support demand ahead of expanded fourth-quarter production.
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