Eos Expects Revenue of $82 Million to $83 Million as Growth Remains Strong and Margins Improve
Key Facts
Eos Energy announced preliminary results on October 19 for the third quarter ended September 30, 2026, estimating revenue of $82 million to $83 million. The company said this represents year-over-year growth of 169% to 172% and a sequential increase of 19% to 21%. The figures come amid rapid revenue expansion, while gross margin performance remains a key focus in the company's results. Eos estimated gross margin at negative 55% to negative 53%, a clear improvement from the second quarter. The company is scheduled to report its full financial results in November.
Shipments rose about 23% from the previous quarter, according to the company's statement, and the second production line contributed about 17% of total battery production during the quarter. These figures point to increased manufacturing activity alongside revenue growth. Eos said the expected improvement in gross margin was about 16 to 18 percentage points from the second quarter. The company attributed the improvement to higher production volumes and lower conversion costs per unit. But it expects gross margin to remain negative during the quarter, in a range of negative 55% to negative 53%.
The company said the third quarter marked the eighth consecutive quarter in which it achieved an improvement in gross margin. This sequence points to continued improvement from prior periods, although the expected margin level remains negative. This coincided with the second production line contributing to output and with an increase in shipments sequentially. Eos believes higher production and lower conversion costs per unit contributed to the margin improvement. Final results will be needed to show the quarter's complete accounting figures.
Eos received 6 purchase orders from 6 different customers during the quarter, according to its statement. They included a previously announced order valued at $100 million, under an existing agreement to reserve production capacity. The company said this order did not add to sequential growth in its backlog. In August, Eos lowered the upper end of its 2026 revenue forecast to $350 million from $400 million, while keeping the lower end at $300 million. The company attributed the August adjustment to its assessment of the timing of production-line consolidation at its Thorn Hill facility.
In its October update, Eos said it expects 2026 revenue in the lower half of its current range of $300 million to $350 million. The update therefore places the forecast within the existing range, without announcing a new annual range. The company said its forecast reflects the addition of the final shift to operate the Thorn Hill facility around the clock during the fourth quarter. The CEO said in the second-quarter results announcement that revenue in the first half of 2026 exceeded revenue for all of 2025. He then identified the company's priority as converting demand into profitable growth.
Eos expects Thorn Hill, its manufacturing facility, to have nameplate annual production capacity of about 4 gigawatt-hours across two lines after manufacturing consolidation and reaching full operation. The October statement links the revenue forecast to adding the final shift to the facility's operating schedule in the fourth quarter. Total cash, including restricted cash, was about $344 million at the end of September, compared with $364 million at the end of June. The company's stock closed at $1.73 on October 23, according to EL7 data. Full third-quarter results will be released before the U.S. market opens on November 5, 2026, and the company will hold an investor call the same day at 8:30 a.m. Eastern Time.