Eos Expects Quarterly Revenue of $82 Million to $83 Million, Maintains Full-Year Range
Key Facts
Eos Energy said in a preliminary results statement on October 19, 2026, that it expects third-quarter revenue of between $82 million and $83 million, with gross margins remaining negative. The company said full-year revenue would likely fall in the "lower half of its $300 million to $350 million range." It thus maintained its existing annual range in the update, while indicating revenue would likely be closer to the lower end. It had narrowed that range when reporting second-quarter results, cutting the upper end of its previous guidance of $300 million to $400 million. The annual update comes alongside increased third-quarter shipments and a growing contribution to production from the new manufacturing line.
Expected quarterly revenue exceeds second-quarter revenue of $68.8 million, according to the company's disclosure of its previous results. Shipments rose 23% from the previous quarter, according to Eos's statement on third-quarter operating performance. The second manufacturing line contributed about 17% of total battery production during the period, with automation work continuing. Capital expenditure totaled about $35 million, primarily related to completing automation of that line, according to the preliminary results statement. The quarter thus combined growth in deliveries with continued capital spending to complete the second manufacturing line.
On profitability, Eos forecast a negative gross margin of between 53% and 55% for the third quarter. That compares with a negative gross margin of 71% in the second quarter, according to its previous results, reflecting a narrowing negative margin that remains below breakeven. The company linked future margin improvement to achieving "higher production volumes and greater capacity utilization." It also cited the consolidation of manufacturing operations at a single site as part of its plan to reorganize its manufacturing footprint. It included ongoing cost-cutting initiatives among the factors it is counting on to improve margins, according to its official disclosure.
Cash, including restricted cash, totaled about $344 million at the end of September 2026, according to the company's statement. Liquidity was supported by operating cash inflows of about $114 million during the third quarter, primarily from customer, project and tax-related payments. These receipts included customer payments and amounts due upon reaching project milestones, alongside tax credit collections. In manufacturing financing, Eos had announced in a statement dated September 14, 2026, that it received an $87 million advance under its U.S. Department of Energy loan. The advance was part of the second tranche of the loan allocated to finance the Thorn Hill facility, according to the financing statement.
The order backlog stood at about $765 million at the end of September, according to the preliminary results disclosure. It had stood at $807 million at the end of June, according to second-quarter results, declining as quarterly shipments increased. In data center-related demand, Eos announced a collaboration with MN8 and Google to provide clean energy resources to the PJM grid. The companies said the collaboration aims to provide round-the-clock dispatchable resources to the grid, according to the partnership statement. In the market, Investing reported that Eos shares rose 2.2% in morning trading on the day the preliminary results were announced.
The manufacturing consolidation plan centers on the 432,000-square-foot Thorn Hill facility in Warrendale, according to the company's consolidation statement. Eos expects the facility's annual nameplate production capacity to reach about 4 gigawatt-hours after consolidation is completed and full operations are achieved. It aims to begin relocating manufacturing in the fourth quarter of 2026 and finish in early 2027, subject to customary lender approvals. The company expects consolidation to reduce manufacturing conversion costs by between 10% and 15%, with benefits beginning in 2027. Before then, Eos will report its full quarterly results before the U.S. market opens on November 5, 2026, according to the schedule set out in its statement.