Eos Energy Enterprises (EOSE) 7 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the EOS Energy Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Liz Higley, Director of Investor Relations. Please go ahead.

thank Conference joining Quarter Call and Financial for XXXX. everyone, and Results for morning, you us for EOS' Good the Third

and On CEO, we today, CFO, Mastrangelo the Nathan have Kroeker. call Joe EOS'

This loans, materially forward-looking proceeds allow begin, current of of a from forward-looking by Q&A to those Before but differ call, filings. any may and not expectations these we the any subject of include our to me such including any call, expectations are including disclaimer risks materialize provide and risks regarding all statements. our statements, The the SEC actual to portion uncertainties these limited statements. of that described from results implied assumptions certain assumptions. well to future forward-looking to of of and loan approval as Should uncertainties secure statements regarding to respect our use are subject as outlook may DOE risks, with company or the ability statements our prove final should are to anticipated our or a or our forward-looking from which incorrect, for be in results our

financial Joe business now the via before at to as made. through events, and you as new to Q&A. to https://investors.eose.com.Joe during unanticipated turn Forward-looking to beliefs through company our and law.This walk statements assumptions will reflect by I'll information for to results reflect no EOS' priorities of update call call this or that, Investor occurrence expect after undertake the statements or EOS' date circumstances Nathan such conference only call are and website today any CEO, Relations forward-looking over represent proceed made available the highlights, We Mastrangelo. webcast we obligation With be of will required statements or events replay the

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able duration. to fit customers really the internally team base. this, technology. goes really, of doing happened we've also seeing And we that when the come a product into a first in -- more the in moment. the off to deliberate I'd what of the to it like spending which capital. that milestone what a we're and XX move you also X-hour curve this been culmination pipeline to then requirements so years will shipped the at strengthen, parts page, a we're founded customers cases are the this been which really have learning use timeline suppliers September, about storage, at cubes supply on which is this just strong speed this growth our much move Nathan we in through being When lot we're you path ago, to not more but our to moving the on. just about orders is What work, externally to and which here out when And we're with you're founded in that is it with doing ZX our the is through longer page the back today continues do to a building this at work our picture doing but page we've But and announced that and manufacturing qualified was get is being just of parts because qualified, with to achievement was operating next and you're Let's how very go to lines the credible in that that optimize per seen is use has that been going hand. capital first that of when and We me, There's the we've hard our company customer really cases our EOS, think talk tremendous determines look speed about the a at factory, and customers. to walk speed

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and Joe, good everyone. Thanks, morning,

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of as R&D expect out or is of R&D number costs system state-of-the-art and with and performance leading a assist continues implementation as the ZX to to even increased our in the production, in being company. expect fees. consulting management up well outside lower cost third of flat related made public relatively quarter now over time slightly the increase SG&A primarily which the of $X.X may of to million some $XX.X the we line external million the that in development was team is including automated including the R&D year, stay decline expenses a million, While product initiatives, quarter homegrown is $X.X costs battery prior personnel SG&A million $XX.X for by to is decreases driven noncash than items, systems. of and professional as

During loss outside $XX.X items resulting income $X.X million Net quarter, XX% depreciation million $X.X and for operating operations. noncash. and noncash of a the as of of SG&A was supporting was related positive to accounting $XX.X interest with $X.X and was and was costs, quarter, fees net was XX% expense was includes million million was company which personnel the cash million. which XX% comp The services, stock approximately such public

are full objectives. Lastly, update on year will with an company you give our we I where

initial that the be September, DOE commitment As receiving cubes mentioned in clarity timing has and with ZX affected proud on conditional XXXX at our in the quarter year. earlier, expectations a lot about were late overall financing in to around late of first customer shipping set August original both the the but timing third and beginning the

order expect announced target, we the to below outlook. For our previously in booked come

pushed as to opportunities expect that of forward. that we progress grants have the the and As there. that our continuing things and We but we the field to three, due timing DOE are commitment, diligence see as bonus be around have of cycling seen DOE is an to other from domestic of long-duration storage to simply an a of receiving formal on including interest committing there financing; reasons, customer two, the move to customers are from three should and before guidance right content XX% out credit. and ZX we waiting One, project various data are booked for orders bit a these conversations the or and and IRAs order. conditional in increase being believe customers, timing stated, a we understand are financing, certainty final sources booked engagement securing of level increased Since matter these some from the demand we

we our mentioned continue projects the quarter, see billion, durations in discussions and coming we're Our of for I that pipeline Compared and discharge healthy, pipeline items to oftentimes earlier, and opportunity the the confident last by longer customers. $X.X remains pipeline from X move continued repeat to will these to against larger progress our getting end we increased continue are forward.

delivering We are order field. projects on producing begin discharge very and the data process, critical several in focused to streamlining manufacturing customer from accumulating batteries the

with initial data lines. cycle the installation lastly, domestic bonus the project total overall will expanded shipping but content understanding cost timing IRA many threshold now be the qualify, believe for validation longer In exceed a translate savings commissioning third into and of benefits domestic a far matter it our content we the content is corresponding of credit, impact projects. will and are it's should orders, for the And domestic customer could we to the ZX the matter no dependent through we customer review customers, process ZX customers on time the on economics. and party, While financial EOS if which working for of these

guidance. moving on Now to revenue

right due previously We've delivery in there that last revenue revenue for in recall QX. of expected revenue the and XXX, occurring may to well XXXX year. earnings weighted shared most You of that be our we call guidance risks at to as shifting from next the to be of as into ASC back-end time specific recognition could our

certain obligations cadence recognition to performance revenue varies on Our depending contract. unique each

modifications delivering product visibility and costs. in rather revenue a more focus made plan result year, stabilizing QX, which in we As customer XXXX out decision fourth some result in the strategic commitment on anticipation of last unit a This have early the in line, will production quarter the than should lower gained the reducing number the key cut-in in cost QX of into the then we of decision partially being the manufacturing to recognized quarter. of

As manufacturing delivering semi-automated while process line critical of customer was on the Joe purpose to primary optimize the the discussed commitments. earlier,

of delays as production to below guidance. on they million lines million such highlight result critical our construction priorities, components schedule permitting, As negatively through $XX inverters. a chain these as to and $XX work balancing I come revenue not transformers in impact like to non commitments supply time continue this that our we and our change would should XXXX EOS customer any previous in expect to

as the progressing out for We out one running state-of-the-art to to profitability. diligent semi-automated be the the continues decisions our of to build ensure be taking the the initiatives are in and we path will order the on we making top line most continue of line capital-efficient product new cost in business.Lastly, to

several target These expect result savings will out We are than year to locked reduction of are over on launch. projects derived from we that scheduled cost February in and end enhancements, track, the to from cut XX% have ZX improvements design procurement more in XXXX. of cost density above projects which as we initiatives, in and include

Before I spend to call needs. solution wrap up financing our options how we and discussing turn over questions, are I our want comprehensive thinking for few a the minutes to a various about and funding

in approval the we state-of-the-art fund the very With to While first will from DOE build-out and continue customer to reimbursements to need occur operations, business order costs our the Department then have for deliveries ongoing now including expect are to of received of to raise that, encouraged we eligible manufacturing in the and of line. conditional we critical Energy XXXX. capital meet between first loan,

And away. We to previously continue on, been of to very done the is but market the it sources have work in us experiencing the we've right on available which we we at know, something quarter call very we as and using cash and that the several end position. is be capital believe utilizing capital expected as source strong ATM, a had responsibly. September, primary challenging wasn't third moment, been with a to quarter, you in needed we're to recently third that while the addition, financing Jane stated we In that something the

to contained While the detailed to us. longer-term DOE we the needs commitment, details options DOE's much the it without having was more the discussions not have to explore sheet, term practical have we within been substantive discussions address now have knowing detailed conditional our various available capital that to

of the in are solutions, with We pleased conversations. different with capital on these far the and to as detailed thus counterparties we're updating several discussions We forward appropriate. nature potential market look

will we debt on believe combination be based met equity. of that needs with and these a However, feedback our discussions, from capital

manufacturing While everybody broader and to questions. solution, for line. output, the we managing turn I'll will move customer that, the state-of-the-art our thank questions. over today, for for balancing on line listening cash the want open and building position Operator, we for time and please their focus I towards to call our the capital operator out With

Stifel. the your line comes first from of it Vincent For question, [Operator Anderson Instructions] from

speaking, couple immediate still a locking may get by a those and capacity. are coming to much years' committing little near-term a commitments seem capacity too you optimistic a flows medium-sized of So how customer maybe worth happy this like orders, a that capacity? bit could more your keeping if relative that there's not to deposit your And large-scale initial almost of customers spin, I'm I'm of too but worried up curious managing then your of convert customers little and broadly just these provide in if utility a cash I'm about much small just and relationships too more project to particularly, between orders and plans to scale demand or

mean wind say when you going on over it's And to don't conversations only want I that's happen, you is if projects people we're so like, put to that be think mix, I one do do or lumpy. on scaling. the puzzle. customer the big really are And we big the small go to company of we're can't act a the try projects says live. with as have because to realistic. -- together run doesn't the to you on capacity run to planning they're that balancing of optimistic, look, want the doing company having start Vincent, I wouldn't pieces projects projects the given We going time, just we you is

can can average and So implementation That's a our Line technology, delivering project is what months, to able the operate through overall as on in with that best a where the X, well, we go of they line to the process and deliver. between The really between are last of XX think to be in and we've to designed we're that's on far designing modular of do of are sure the demand. And are site we've what and production be path commitments lot to accelerate ability as curve demand through and through required, our so now you this us two, and have but be and the first where as go is gone we longest when to cases like the road deliver. do down the we're happens. we on is to really get getting managing able part to profitability. what as always in up the putting do the customers thing as what's to we've we Line this if going which balancing able XX managing they the mix going highlight way comes need to X, the to controls, to the to make for and a deliver. are a not on where bring do make once selling that companies best been then that we always we running, in use want price in debugging we're depending then that this dynamic And really to What the execution trying because you're is Line X, and past fashion we capacity on product capacity you

the this most That's the to bit meaningfully new change, orders new then of over on you're that listed changed right. maybe thanks. those following helpful, on just willing of that, more year? if impacted a the on course quarter guidance order the All which Okay. you third your And factors which of specifically discuss expectations for

opportunities So the things big actually the mentioned in earlier pages is what that and I the into on pipeline, pipeline Nathan would think through lot discussion the getting the or this, the one is, coming say that we're opportunity I amount with the pipeline. Like a process. of of we're new are customers in seeing of

operator duration to through getting do that seeing with everything be user, to the safety able this financing and layering on really permitting as working we back, but then from municipalities this not timing really thoughtful delivery than really Vincent permitting these to you really got be the favors mean this. we technology five customer not factors different I that cited deliver five-hour going EOS factor it's look longer being trend to where by a the to do here's a to of the this. on question, everything at to and a I this and our side. direct overall do get this lined side, also a work date, of then able But you've and through end work think back timing, it's which top to But have, that you in system through right? the we storage and decision storage, too, technology, bunch So when has people, is to us things and from with people telling earlier just capacity and their and by," just the local here's "Look, need having if then wanting we're work is through up working really approved. hours, your to through referencing the want then

from And Risen comes of your from Martin Johnson the Malloy it next question, to line Company.

recently. would we advance? what you question about that to how the all Would that CapEx, about My think once you've covered advance. training, if be thinking reimbursement DOE it on should about Congratulations had first maybe worker and not just in accomplishments first be we past loan how get but be could the that? And you under was R&D, getting first program should just talk

hear Good Nathan. Sure, from you. to Marty, it's

it's essentially, we reimbursement line think the and of CapEx with it into project-related So it's could website. costs. OpEx. defined and a cost eligible mechanism But built structure, combination And a as out the you DOE's go term, is about the associated that's on eligible find the loan reimbursement lines or of this

Acro it who's line, I the on related directly eligible it's if a manager program. if but manage considered because the somebody, the floor hire that's would OpEx, managing give to to eligible out somebody that's the to so an example, The today, cost. be simple not hire an relationship, semi-automated And expansion just cost I

expenses are operating directly program expansion So it's related to the considered eligible costs.

the easy costs. one quite that's probably The other understand ramp-up the and to not shakedown is as

we costs So borrow costs and scrap the scrap get against rates operating line than well, operating, running we but and it's as eligible incremental to those when are and it's get that that. higher in considered are up normal,

full capacity. eligible be up ongoing costs even going to is we ramped the line to there's built So get after reimbursement that as able submit to we're for

follow-up, ask talk maybe Slide point content the the with any those? XX credits tax and maybe about you XX Could some and wanted but more PTC. you domestic to customers might you tax -- I credit that out the do and talk sharing mentioned, on about you For my Section about that

really -- to. two tax you into alluded I So mean, credits buckets, fall as

You I kilowatt are hour any where at is that for it's to recording comfortable looking monetize this look $XX which that quarter actually that. enough feel think got those and to -- and projects that after built plus recording $XX clarity the to there's enough guidance the because of $XX, shipped production around been January We've first one now pretty XXXX. we straightforward, X, per credit, tax That since starting have opportunities we and year.

XX% the can materials electrode on is trying working how still it of and can piece how and through calculate quantify we second that. get that formal to that piece, exactly The guidance we active

And based is for the in bonus credit on customers then credit bonus over for is -- plus ongoing. get or is located involved zones. to to the in XX% which this pointing the flipping dates. is is This being So area content placed the XX% production on that's what on not to then But we're correct this and in-service will the the that credit, I domestic side, dates. customer you're think XX% ITC, based

a service customers we're now in tax quantifying those And credit. so are and get right credits on a actually being third through that placed in through that excess in required as And far are working we working the projects look the Gen guidance. bonus of XXXX. to together And understanding through even with with for customers we few on party X.X, for domestic going

into just play it. get much do IRRs I their And see project on so working economics overall customers and their together improvement like with this how how they to individual said, on specific does

significant in confident think So if of a customers. Gen source better. with far I X.X And we're is threshold, of the excess even value it's needs

share Now there a that today. entire be revenue the on another on the that on components and conversation detail, customer, clarity in happy are to storage do content be economic but to ongoing shifts, project this, not the in for able a once other of above the are to we high in might how and share about discussion we as have the you And this share conversations we'll suggested, more unlock unlocks right? push there's how that benefit. that do of project or to, provider the those talk more about percentage it helps in that economic domestic we hey, our threshold, If value it benefit

team And chain Marty, what that he I top lot the just work by supply add what the thing been on done said, would a Nathan of described only of on is has just development.

there's I product. the get where going going not you're no line about from everybody FFELP no a Having trained doing, to the like talked the manufacturing. as product is think into supply and XXX% employees, to But Nathan to as our to not... line of to a our the the we're can you So about we the for during the talks credit. what credits, the move going are key the content, line with U.S. we chain. making And line, having that couple such supply there diversifying we're Acro? developing continue company get that supply line, in the ramp there's not we line, about is as we're COVID want What the a a on -- plays this clarify, tax because a how when fact close material, we base. also deliver able product we're that to high the to do The to development that get like A product. saved things and we're today qualify supply It's chain and U.S. had derisks where was

how those and suppliers you I suppliers links able into deliver really how getting have or the upscaling, credits, everything in those in talked higher-volume to it presentation, the scale be earlier in flowing and how company and if the get higher-volume be about So United to States. you having you material you with will,

look manufacturing, been if have a comes was as to as you We happening. country you it will, at dormant what when

into that also walk journey, focused start So it's we into gain just say, as a There's we're line "Let's bring and production. not of a you like things supplier this." working new that's the and on to... doing through journey journey one and the

from And of Christopher from B. for Riley. the line comes your next question, it Souther

a and month. low makes we as XQ, million $XX side. of a So we to test sense. semi-automated any it line I'm which there's out pretty of per conserve lot from to assume and kind that start similar XQ, the keep pretty build -- rate minimal increases should sounds curious revenue But we to of cash, run expect going XQ And production burn the in we're just like of if out lines basically

when were it's doing September. what Chris, of the the is what than you in month production say higher X.Xx we I So October, at would in look

our important you get So win out and and to and want going the shipped the be of in helps installed is has to in orders a project orders winning up. very just production, that's goal the scaled project What scaled ERCOT. to use back case line our project That's clear, market, to operating market. show we having in the an around installed

here about going So that's what what over work talked out to be on that's we're the going next is two cutting into focused Nathan months, we're like get three over been in if lot will, a the you we cost as months on. of

made taking off Marty developing are chain product. a developing of also I supply base, of we're and to diversifying we cost Not the building domestic the and significant So only our supply comment that out earlier.

can about to coming From XX together the this, then all large you we're December going go timing do. what to And we start focus less. do, the kind So there, the have in as capital profitability as here map up puts to material our that's the to United a you when ramping cutting... about the and to like cost you line. of States, and you be Manufacturing, what megawatt-hour know delivering about bill shift of That's as looks utility project anything you're you good cadence going you to we'll thinking is road management the as to going able in and that's as that be for company. through how where think talk the that what that's

Yes.

the Thanks potentially Okay. I only pushing then clarifying. were thought sense. more you projects into fully those And for but that makes environment, just...

you suppliers Just parts quality one your get a flowing on we that flow. other thing that control start in controlled is question, so material over fashion, lets from

thing you have under you get run to to We and want the here an them that start you to more them up let And team your running a speed. operations you operation efficiently. we've those put their start and place, schedule project a importantly, train workforce leadership us as when here controlled scale of our at XX/X, in the on the and for We're allow in fashion. to shipment that. and to schedule look But into capital ramping learning and all manage you we're important is, tailored production ERCOT, to this also the

X. Okay, remaining Line And amount timing on and just the then thanks. CapEx

assumptions? previous of Line just to is that. was But $XX it's I then coming X? $XX think talked like cost CapEx prior And in some for just additional million. for previously in you to that subassembly Slide million, of $XX X the million automation? we $XX that including under that $XX about where million Is Or CapEx are

it. of things. I'll couple -- I on I'll So you're just just a think clarify

previously of build to nameplate have That capacity $XX X hours fully fully line. higher. a automated We line automated has to million a $XX said million gigawatt or

the of the absolutely subassemblies of have also automated don't it hours. first that correct X.XX we day automation We're What... that an in line, assuming on Was you're we're gigawatt assuming full those has one. So output numbers.

the as gigawatt around so hours look And to million. get with associated X.XX we of at production, CapEx that's $XX

So that sub-automated lines. be amount subsequent on what will part associated the of less same cost of have we is And with it subassemblies. don't than the

could but the So it's lower X in process. as the At cost, some lower above that we output. can also get do in date, as that we later add of go up separate a hours automation capacity and of but line a that and well, gigawatt stage

Okay. spend? $XX are in million we And that where

systems your are of large on. of associated the primary new question and all it's line. is two of nation Acro where part First that's second and of we million, with is the $XX the the working all, at? that new The of in second parts cost design that And is tooling bucket there

for are the through paying the We way XX% of line. approximately

And Perfect. one maybe Okay. then last just a here.

smaller towards the a that just can look the mix ICP are we more seems where sense from does utilities, customers, the give a of but gigawatt It sense blue-chip shift, just size I like the hours the overall pipeline, current mix us get like? in of utility of between like wanted overall those of given customers? percentage customers, you a type On of it's shifting potential some to kind what

diversified want talked utilities backed about of No, portfolio, independent a the we both these portfolio lot utility some we a in Yes. today blue versus independent projects, chip in versus the names the terms of of developer.

small the want meter. a behind the of We very with we continue a in would have, meter going to portfolio and run projects of we're terms portfolio. of as projects say projects also the I portfolio to that comfortable large and manage it we're

next Guggenheim. from And line it question, of for your Joseph Osha from the comes

of questions. couple A

precedent, there's about what complicated, on these for process? think know be can as you but should we me are a conditions meeting that challenges the LPO think what you and lot characterize that's focused I we you as First, move real through

effort Listen, we're amounts amounts take different moving They all accomplish. there anything there's of that but Joe, don't think I time, can't on and forward of we different fronts.

first real some to estate, capital to advance. have have do with of to do to requirements Some with get them

like permitting. of are things Some them

we're the insurmountable We're as seeing there nothing challenge. And just an process. working so through that

first the big And line. think I gating the Joe, item is

one release way CPs? you Okay. press that progress I'm than be to towards sort just investors, there other trying of have think in to we how the understand about with this as some day might those able drops. should Is you meeting us communicate

like The line. first Joe said, the #X is thing,

the continue we'll line. so where And updates to first give on are at we with

that's the watching. I think be critical most thing to

factor product Okay. the that's you off And then by of in now still next time case question, product the what and you then it costs shipping between your $XX it semi-automated line. counterbalancing that of to the make in you more positive Is expensive that that the Does -- the margin got product? mix, But proposition this that not? then time or a it. put by is sort all you've gross the

point Sorry, time? specific first your What question? were of part in about the was a asking you

particular, there, this more generating minimis, my money the comes XXx then, Well, when and revenue you're expect out? But back, there between now whether by but in it's been time which revenue to line and coming up the right? -- we that between question. in understand this and That's de now automated trying you is going credits the is add the door I'm

us of to scale that No, key to fully margin. automated you component. positive saying I is that get last for think talk... couple for line added automation we we've critical a been gross and full quarters to The pretty is consistent the getting When

to XXx trying I'm trying case you I'm add still What -- revenue to what understand is, I'm say the that if back. the is sorry,

yes. Yes,

buyback... And last question then Okay.

color More Joe. that, on

the cost-out Some on credit. working of that initiatives the we're dwarf XXx

around So automation about as product. scale, it's to the path cost out really we of the and think driving profitability,

And to some guide? do obviously, out go plans have then credits Do are they plans the you available on transferable now. you monetize those have Okay. those some -- XXx as and become

Yes. counterparties We're in of be in able XXXX. we to monetize discussions different them as with those earn to a couple

follow-up a Vincent Stifel. have from we And Anderson question from

chain a on made the you to of comments wanted I touch couple just Joe. that supply earlier,

think and songs are those in-house, are both this molding electrolyte mixing includes bringing budget for the I future the property be activities the mentioned those cited of assume with loan But going lines? you of So that well. injection is Westinghouse as for either DOE like I stuff contemplated and some to maybe or permitted

multiple that's the have permitting at, additional is that There ability The there's pieces already we're we it that's contemplated. do permitting and our looking been facility, to no require, mean, the current we Vincent. on that So plan. I here you need

but through that that's of in come site from standpoint, also in working one that through logistics trucking we this. out more from standpoint, not we're the area, to a a the could permitting So things on as go be the best and what from What the facility. and is of

we're things over to that the for sense most with multiple looking term. the company landlord our current the us there's scale So long at makes

All Okay. right. makes sense. That

mixing have that's being I'm to cost rare here? able it the benefit, more the it about a Sorry, individual maybe appreciating is more just to raw capital maybe seems by But maybe permitting there not stock materials are savings out? cost Or still on side issues. flexibility than electrolyte working assume big mixing than I and

I Look, simplified the being electrolyte is over the think biggest No. time. the formula thing of

One you of is some without using things need had in have the details that as titanium. conductive that in plastics zinc you're electrolyte plating that really and over bipolar are the get switched into we've that you when you -- we the don't getting when the learned better there not we things to

lot From scale at -- multiple with there's from the you versus that security titanium from we scale and be. out. just to us company like you're through more going mixing right former in, chain to mixing allow that standpoint mix electrolyte the cost a the company a a can going mixing -- you there's as right from orders there's of -- you're to say, using supply to the a standpoint. going things one simplify needs look stability the than what We're when standpoint, of get So be want let's plastic multiple manufacturing and what when the come to on the need conductive going using

Sure. Yes.

manufacturing last And molding, say the a it's bit the to workforce. of Injection it's quick Okay. expertise fair little outside of maybe then one. current

So I'm about... just wondering

This over one they an with you people companies we We the be stay of the of period But time, us. the we're to do more the We're molders worked time is company, with about you're diversifying than than in-sourcing relationships. we've do need this. long-term you more a to want going We're that or one able and scale believe capacity molding. at in supplier R&D same to lot not supplier a as any and when trying injection using. company stuck that were us to is, with injection of

our the that put thing molded contemplated we're the in. anywhere So injection our in not not plan doing not in-sourcing-that's molded comp injection on the what and core and parts is

last line Partners. your of it Research from Thomas for And the Curran question, comes from Seaport

Thanks Joe's questions. of you October. hours? what here my you to month? and September us for time as long given maximum could from as ship in in you given for megawatt in remain Nathan, on ZX a tell the how the semi-automated comment line, And just going step-up much then would Just know September just to over about ship would did you be the taking

Just is us trying when between set and ERCOT fine-tune up to line the parameters and and running. help expectations modeling now the fully and automated here commissioned

Yes, Tom.

One on out So Joe purposes. from do job, this or when exceeds the state-of-the-art of our It good multiple details the one. to help line. serves balancing manufacturability so that We're walking ramping meets up we day we're pretty I line. product of the in did priorities get expectations work is the think, a that of the through it some line, the

line. continuing to make learn the improvements so off And semi-automated and

critical one so can collect deliver there's we customer over is get The in ERCOT data. so product time. might the on we be can Obviously, field in in shipments, second to cycling particular,

several delivered have we're we so get get into trying to summer. And projects ERCOT that you before

it's capacity And production with capital. just so schedules and necessary our really, with delivery working customers, the balancing their

continue so to the towards automated those line. balance we'll as we And get fully

Got it.

the it renegotiate with among continue then have TETRA? or strategic to partnerships you working the you're agreement expect on, supply bromide And do you maybe Okay. zinc

we've negotiations the that forward. to relationship. like It's continuing pretty great going obviously, work active looks been partnership supply throughout and a chain. vocal in what TETRA, TETRA, with that we're Look, through about we're relationship

Thanks, in just a as Nathan is really everyone in. want when the feel duration to listening will underneath said, those To together in of me, of a little to us when storage. numbers are, where into what if, lot pipeline. a this have orders not get over with of question orders. that We the come this the on happen, work we everybody, to of things that on know the of in for lot Tom my and though to We we here, not understand stitching on view, the to A work bit numbers going is underneath there. longer of but convert opportunities lot on, going but is sticking There's time. going orders shifting market those the a are on as confident goes timing that

going decisions to the to while people customers operating, putting look how future have is about get that complex on point some have work do able there to the we a a then here but building We're it's and always And continuing product we actually good our purchasing we of, pipeline for to feel it's piece field will, here. have one is up really build what to the a couple to we projects. they're proof if relates So elements out scaling as timing in that we're puzzle through is -- it deliver in complex together in you be to the backlog that out that. be line capacity, simultaneously of and making legs as big the for which how

in we'll our December keep the color the looks working company accelerate more about to factors profitable that the energy what or So doing the industry one in into back long capture is we over like little and around that in company, are building be the really building keep slow and could the biggest and on a term and company heads time good that, that with turn seen we're we've secular what work to the a But the the down we'll around how road where that. company going in of the down career. is company a is team operationally shifts feel my growth map for and

So time for today. the thanks, everyone,

conference participating. Thank you for This today's concludes call.

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