Q2 2026 Eos Energy Enterprises Inc Earnings Call Transcript

Aug 5, 2026 / 12:30 PM GMT

Release Date Price: €3.03 (-10.62%)

Transcript 10-Q8-K

Key Points

Positve

Eos Energy Enterprises Inc (EOSE) achieved record revenue of $68.8 million in Q2 2026, up 351% year-over-year and 21% sequentially, with cube deliveries increasing 207% year-over-year.
The company reported its seventh consecutive quarter of gross margin improvement, with adjusted gross margin improving 132 points year-over-year and 7 points sequentially.
Eos Energy Enterprises Inc (EOSE) ended the quarter with $364 million in total cash and achieved nearly 100% free cash flow conversion from operations, with working capital not consuming incremental cash despite 21% sequential revenue growth.
The company's fleet has cumulatively discharged 6.5 gigawatt hours of energy, with the Z3 fleet operating at an average round-trip efficiency of 78%, and the top of the performance range has crossed above 90%.
Eos Energy Enterprises Inc (EOSE) secured a strategic partnership agreement under the Golden Dome for America program with the US Department of War, signed a 750 MWh master supply agreement with KPAC covering Germany, Austria, and Switzerland, and received a $100 million purchase order for the Blanquila project in ERCOT.
The company's pipeline grew to $24.6 billion (nearly 112 GWh), up 31% year-over-year, with 51% of the pipeline being eight hours or longer and 32% data center related.
Manufacturing productivity improved significantly, with direct labor costs per cube declining 20% sequentially, material costs improving 10% sequentially, and scrap dollars down 63% on the same volume compared to last year.
The consolidation of manufacturing into the Thornhill facility is expected to deliver an additional 10-15% reduction in conversion costs with a payback period of approximately nine months.
Eos Energy Enterprises Inc (EOSE) has a clear path to over 72 points of adjusted gross margin improvement over the next 12 months, driven by material cost reductions, conversion cost improvements, project and field services optimization, and yield improvements.
Frontier Power USA is working as intended, with the first project accounting for roughly 80% of Q2 revenue and expected to deliver mid-teen returns, while the platform has 1.8 GWh under construction or approaching full notice to proceed.

Negative

Eos Energy Enterprises Inc (EOSE) narrowed its 2026 revenue guidance to $300 million to $350 million, trading near-term revenue for lower costs as it consolidates manufacturing operations, with Line 1 downtime during the move impacting the upper end of the range.
The company reported a gross loss of $48.8 million and an adjusted gross margin of negative 62% in Q2 2026, reflecting continued cost pressures from scaling operations.
Adjusted EBITDA loss was $71.4 million with a margin of negative 104%, and the company reported a net loss of $276 million, driven primarily by non-cash fair value adjustments related to warrants and derivative liabilities.
The company faces significant customer concentration risk, with roughly 50% of its backlog tied to Frontier Power USA, a related entity, which raises questions about diversification.
Thornhill Line 2 contributed only 1% of Q2 production, and the company is operating on one partial shift while validating line performance, indicating the full benefits of the new facility have yet to be realized.
Field costs increased due to higher deployment and commissioning activity and accelerated Dawn OS upgrades across the legacy fleet, which weighed on margins and are expected to diminish only by Q4 2026.
The company's operational cash use closely matched its adjusted EBITDA loss, and while the burn rate is improving, it has not yet turned positive.
Eos Energy Enterprises Inc (EOSE) faces ongoing project execution risks, as evidenced by the two-year timeline from order to operations for a recent project, with significant time spent on site readiness and third-party equipment delivery outside its scope.
The company's reported net loss continues to be volatile due to non-cash mark-to-market adjustments on warrants and derivative liabilities, which can obscure underlying operating performance.
The company acknowledged that material cost improvements in Q2 were partly due to tariff-free base paid in prior periods, and excluding that benefit, material costs only improved 1% sequentially, indicating underlying cost pressures remain.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EOSE.OQ - Eos Energy Enterprises, Inc.
Q2 2026 Eos Energy Enterprises Inc Earnings Call
Aug 05, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to EOS Energy Enterprises' second quarter 2026 conference call.

As a reminder, today's call is being recorded and your participation implies consent to such recording.

At this time, all participants are in a listen-only mode.

A brief question-and-answer session will follow the formal presentation.

With that, I would like to turn the call over to Liz Higley, Head of Investor Relations.

Thank you. You may begin.

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Unidentified_2 [2]
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Good morning and welcome to EO's

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