Eos Energy Enterprises Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chip Moore - Roth Capital - Analyst : Good morning. Thanks for taking the question. I want to maybe ask about, subassembly automation. I think you said your first terminal cell pass site acceptance. It just any more color on early integration there and then maybe help us think about. That ramp in Q3 and how to think about the revenue trajectory baked into guidance.

Question: Chip Moore - Roth Capital - Analyst : Thanks Joe for that and maybe a follow up if. You, just around, all that's going on in the world and tear ups and some of that uncertainty and understanding that that's going to be a positive for you guys, but I think you called out, some of that near term uncertainty, can shift project timing. Is that something you're seeing or is that sort of baked into the, maybe the low end of the of the guidance range? Thanks.

Question: Chip Moore - Roth Capital - Analyst : Great, thanks very much. I'll hop back in you.

Question: Thomas Boyes - TD Cowen - Analyst : Thanks very much for taking the questions. Maybe just to follow up on Chip's initial point. With the subassembly automation kind of well underway and then containerization, slated for the second half of the year, can you maybe frame for us just on the relative impact to labor between the two? I mean, my feeling obviously is that subassembly is far more labor intense, but I just wanted to kind of understand how we get to the kind of the 1.3% scale on labor that that you're targeting.

Question: Thomas Boyes - TD Cowen - Analyst : Perfect. No, I appreciate that and then this is a follow up, I saw reports in the news that the DA had missed a, $365 million dollar funding deadline for energy storage, projects in, Puerto Rico. Is that something that your project specifically were being funded by? Is that related to the Nepa piece? I just wanted to see, if there's any exposure there from that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, EOSE.OQ - Q1 2025 Eos Energy Enterprises Inc Earnings Call

Question: Thomas Boyes - TD Cowen - Analyst : Got it. Hey, thanks so much. And then I could just sneak one more in, before hopping back in was just on I wasn't sure if you had mentioned the second DOE loan re reimbursement timing, has that meaningfully shifted, how are you seeing that, come down the pipe?

Question: Chip Moore - Roth Capital - Analyst : Great thanks again.

Question: Martin Malloy - Johnson Rice & Company - Analyst : Good morning. Thank you for taking my questions. First question, I just want to ask about potential expansion of capacity beyond the 2-gigawatt hours of annual capacity and lead times, whether it be at Turtle Creek or a greenfield facility, how we should be thinking about the timing of ramping capacity expansions.

Question: Martin Malloy - Johnson Rice & Company - Analyst : Thank you. And for my second question, just wanted to ask about repeat orders and particularly from larger utilities or developers and kind of curious about the Florida order if that was from a utility company that had pilot tested the Z3 battery previously.

Question: Martin Malloy - Johnson Rice & Company - Analyst : Great thank you I'll turn it back.

Question: Patrick Willett - Stifel - Analyst : Hey, it's bad enough for Stephen Gengaro . Thanks for taking the questions. You talked to some pricing variability in the backlog. Is it reasonable to assume the older orders are going to be fulfilled ahead of newer orders? And is there anything you're doing to smooth variability quarter to quarter and any insight on pricing variability going into 2026 deliveries?

Question: Patrick Willett - Stifel - Analyst : All right, appreciate the perspective. Thank you. You had mentioned the potential for local manufacturing abroad if demand presents itself. Curious what sort of levels of demand you'd need to see to pursue a sort of localized manufacturing strategy and if you think you could roll out the abroad localized manufacturing before completing the 8-gigawatt hours of capacity under Project Amaze in the US.

Question: Joseph Osha - Guggenheim Securities - Analyst : Hey there, good morning, guys. Just, if I look at the slide that shows your cost reductions across different categories and you know the targets for you when you are at quote unquote scale, I'm just trying to understand what scale means is that 8 gigawatts once a maze is fully up and running, just trying to use this as a way to get at the gross margin question.

Question: Joseph Osha - Guggenheim Securities - Analyst : Alright, so I guess I'm confused. Are you saying? If you've got 12-gigawatt hour line running and that's better than a gigawatt hour, that's scale, I guess I don't quite follow. Yeah So, I'm sorry?

Question: Joseph Osha - Guggenheim Securities - Analyst : Okay, so with that in mind, is, are there any comments you'd be prepared to make today about what that chart tells us about how we should think about gross margins say at the end of 2026, what it sounds like we could reasonably expect to have 22 gigawatt hour lines running by that point. How assuming everything goes well, how might that inform our thinking about what margin looks like say coming out at the end of next year.

Question: Joseph Osha - Guggenheim Securities - Analyst : I got a ask. Okay, alright, the second question, I was going to ask a little bit about the LPO and then a question came up earlier, Joe, I believe I heard you say portfolio review. What does that mean? are they coming and asking you questions that they haven't asked you before or tell me a bit about what the portfolio review process looks like for you guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, EOSE.OQ - Q1 2025 Eos Energy Enterprises Inc Earnings Call

Question: Joseph Osha - Guggenheim Securities - Analyst : Okay, so you're not as you think obviously that's important, they're not sending any signals to you at this point that would cause you concern?

Question: Joseph Osha - Guggenheim Securities - Analyst : Thank you very much.

Question: Joseph Osha - Guggenheim Securities - Analyst : Okay, thank, thanks very much.