Eos Energy Enterprises Inc Q4 2024 Earnings Call Transcript

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

Question: Thomas Boyes - TD Cowan - Analyst : Thanks for taking the questions. Maybe the first one I'm just trying to maybe get a better understanding of what the potential revenue cadence could be for the year, previously, you kind of talked about positive contribution margin From Z3. Being kind of the linchpin to seeing, higher, higher volumes. Is that something that, you are currently and it's just a composition of the backlog that kind of keeps that from being, on the case, or is it really predicated on having subassembly up and then, we will really see more of a back half weighted, type of inflection.

Question: Thomas Boyes - TD Cowan - Analyst : Got it, that's very helpful. And then maybe I'm just wondering about you know your discussions with customers just given a lot of the very dynamic tariff environment you know I've seen kind of reports just for, lithium ion batteries, from China that, cost increase could be anywhere from like 7.5% to like over 20% and so you know how do you think that's induced more demand from potential customers just as they look to kind of move away from lithium ion is maybe an exposure there.

Question: Thomas Boyes - TD Cowan - Analyst : Excellent, really appreciate the insight. I'll hop back into you.

Question: Steven Garro - Steel Company - Analyst : Thanks. Good morning, everybody. Two things for me. Good morning. So, the first, just to follow up on the response to the first question, when we think about the kind of the revenue push out on the third quarter conference call, I thought the enclosures were sort of the biggest problem, and I was just curious if you could comment on kind of where that supply chain stands. I know I think you've diversified the supply chain. And maybe a little more detail on why that doesn't lead to a more rapid kind of first quarter or even second quarter of rampant revenue. I'm a little, I'm sort of disconnected on those two factors.

Question: Steven Garro - Steel Company - Analyst : Okay, great, that helps and the second question. Is just around the backlog growth and. I'm not sure how as the backlog gets larger, I feel like maybe there's a little more is it possible to give kind of more color on sort of the components of the backlog even if it's by kind of addressable market if not by kind of customer concentration.

Question: Steven Garro - Steel Company - Analyst : Okay, thank you.

Question: Chip Moore - Ross Capital partners - Analyst : Morning. Hey, I guess first, Nathan, congrats on the new role and nice job on all the heavy lifting. I guess Joe I wanted to ask, yeah, great work and Joe, I wanted to ask, your comments around the demand you see and proactively looking to build capacity maybe expand on that is this, a function of customers becoming maybe more strategic and longer term or what are you seeing there and then are there ways to ensure those commitments maybe as you get closer to potentially deploying capital.

Question: Chip Moore - Ross Capital partners - Analyst : Very helpful, Joe, and maybe just a follow up, any lessons or things you've learned, applicable to future sites, in terms of op optimization and things like that.

Question: Chip Moore - Ross Capital partners - Analyst : Great, appreciate it. Thanks. I'll go, I'll take the rest off.

Question: Thomas Curran - Seaport Global Securities LLC - Analyst : Good morning, Nathan, kudos on everything you accomplished, kudos on everything you accomplished during your tenure and best of luck as CCO.

Question: Thomas Curran - Seaport Global Securities LLC - Analyst : A Curious, as we look at these three, next goals for upgrading Mont Valley Works, the stage subassembly automation, the increased containerization capacity, and the higher project service revenue for each of those, the three of those, assuming you're remaining on track for the revenue guidance range, could you just give us an idea of what each of them, when achieved could contribute to gross profit margin improvement.

Question: Thomas Curran - Seaport Global Securities LLC - Analyst : That's helpful, and then for the actual revenue guidance band of 150 to 190, are there any swing variables, that are likely to determine where you fall within that band that are entirely within your control or at least in house, variables and if so, could you expound on those?

Question: Thomas Curran - Seaport Global Securities LLC - Analyst : Got it. So maybe I should have asked another way, Joe, because all that that is clear you guys have done a great job with that, but more, are there any specific, projects in the backlog, maybe bigger ones, where it's still just not entirely clear when it'll ship and therefore, it'll be the customer's call as to whether you come in at 160 or 175 or 180. Or just really mainly a reflection of like.

Question: Thomas Curran - Seaport Global Securities LLC - Analyst : Understood. Okay, thanks for taking my questions guys. Alright.

Question: Martin Malloy - Johnson Rice & Company - Analyst : Thank you for taking my question, and Nathan, best of luck in your new role there.

Question: Martin Malloy - Johnson Rice & Company - Analyst : First, I want to ask about customer feedback on the early Z3 installations and how that's going and maybe with the performance that you're seeing now at the manufacturing facility, could you maybe talk about level of engagement you're seeing with utility customers and larger orders from them? Yeah, I'd say just in general, very positive sentiment out there. As Joe mentioned earlier, we're seeing significant increase in overall project size, both in the pipeline and opportunities we're pursuing, as well as some of the more recent transactions that we've announced. That's coming both from utilities as well as from some of the larger. Developers, I think that the world in general, as we talked about, understands there's a growing need for long duration storage. We're seeing that come through in the proposals that we're bidding on and the projects that we're winning. So, I think the fundamentals are moving in our favor both in terms of duration as well as overall project size.

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