Eos Energy Enterprises (EOSE) 15 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to EOS Energy's First Quarter 2024 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.

Good morning, everyone, and thank you for joining us for Eos' financial results and conference call for the first quarter 2024.

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

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

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

taking here the Thanks, Thanks this Liz. time morning. Welcome, for everyone.

tune successfully by the week, in Acro here acceptance debugging achievement completed Line on the got weeks. with right partner, way very into X a the we've biggest sight XX-second to the of the moving and time. really the integration news state-of-the-art through to Last We of got go see system is battery that's quality jump today. a are Automation the cycle really off line. test stations The Let's for Wisconsin, around think of final stations we that of in cycle able session the got X of the the a to automation majority to come completed what I It's come the we in XX-second our is FAT seconds. line We've at get couple total running it line X the of tremendous team to how get completed. And and through the have and the target. XX we combined that in. process stations far batteries that clear we impressive companies through factory a time see to The manufacturing need the watch

being next? then our First commissioning our take and the exciting on arriving schedule. then in manufacturing you state-of-the-art The Pretty have been we've in line. trained about on and equipment been during is that time Creek, when plan and installation here. look semi-automated our operators where next, the what's here Now, think XXX and on FAT, installed a line per here today now Building start at Turtle what's factory in

December. One, a to plan this is as to session I that we outlook of our strategic laid company the execute Now, continue a areas. us we couple for think out important in very in at

SAT conditional we as FAT Program our of execute the as critical the our Office is talked customers on large And milestone piece on with ability as is to we work we also, Department a Loan about step projects. continue second to see commitment. three, as a critical think wanting Energy is about, The through this getting to

power SAT work job here that start overall next improve which his We we cut that December, switch talked product great to ramp by the of about for really we the really we up are the laid new and ZX section truly of talk inline great in page the out where to the a versus business targets So we in and as the talk we've team cube, continuing operationally in job will go the out achieve forward. If performance the production in through improves about cost some about Nathan out done ZX we to density now of running module. positioning December. the field. that talked schedule, and Eos the in just the to we

also we to lower energy profitability, and product overall costs be as where in over XX% do this. us overriding target, which path of market. On about cost, We cost transitioned to to ZX direct will by density module. job the bring This able higher to are secured team product to goal reduce our to the our battery allow costs we've think to is phenomenal our you out material manufacturing XXXX, a

believe More this of U.S. that context achieving market, while you think out. about that cost the when we're importantly, above of I the content, in think we overall XX%

field. beginning customers the in operating shipped the the -- getting is Continuing investment a on to one our projects. States. Field our talk about the our We're cubes component. to evolves we like belief under product a I'll customers allow here the customers. and ZX over to core to next think subsequent them when We've running that of is to products X XXX you that commissioning about those cost that's different assets but their milestone for on of those credit do critical is where down going of still ZX X to driving next is the build our can page, tax competitive up field critical data maximize be United while benefits out the data of again, testament to once tenants So IRA. in

have operations quarter. Commercial that in of starting with to the close our big We very third other a momentum, Gate are X announcement recurring X the of the getting extending big early MSA customer. Pine start X with very Renewables, operating

largest ability installation in Pine to execute with Our a to so testament field. out is our the Gate,

We are orders. on working X.X gigawatt convert into late-stage of hours to to continue opportunities

is I going and XX as be and look the again, coming able that think, into at see really able page, conversion scale. momentum be to and Eos to see to at deliver say battery going the to can line to seconds line back to start come previous every a is people the off capable orders that

small team. that's path projects be prove People technical on a bigger that we able see to that as not critical be in think start deliver see but I concept, size. a a that's just as scaled we're the to getting can out the operating true And want bespoke you company. to

We continue in the improve rolled to field BMS. that We've the into the taken and of our digital X.X around capability. our product logic a overall out lot from the lessons Gen learned

overall is the optimizing out and that customers, If and purchases what state those you at of applying more in go the charge, installed. up for that just and around of are customers back it they the December and get data we performance state ZX in to making field look to ZX health, operating going valuable using make said as

page, XXX put bring those the the milestones pipeline million XX will cash above monetizing the Nathan achieve standing to hours to the we production billion, to in requirements our cubes capital our of -- the is are front, highlight keep able we liquidity the bringing and opportunities, with continue cash quarter, to in project commercial credits tax through and also and get $XX and business normal operating. our company allow which to orders about good being Pine delivering through next and business the to at Gate able really LPO aspects able booked walk work DOE for last where invoice to projects of to bring us gigawatt loan to $XXX MSA operational the on being that we've and already And feel loan field. If being extension. just on into closing, we capital out operating as the go to we to continue that page, to execute on On collect work those

orders stands above now backlog million. Our $XXX backlog. That's gigawatt hours of X.X

as business presentation. this above talk we the on initial up gigawatt in the the about X how state-of-the-art the field. allow Nathan about other that discharge gets then of are of the with get started but that's accelerating. Discharge about, out talked X.X biggest to introduction grow coming we've customer X really the that pipeline increase things line, sites state-of-the-art about at have that the We're see continue where some us you line, of do capacity will is to think X.XX thinking of he the hours to the in in and energy gigawatt hours we've in that that gigawatt we already when running energy, of think our you probably of about it milestones state-of-the-art line. take we X If of years there, hours When we

from revenue that of XXX% ZX is coming million, the $X.X production. Our

It I we on commercial our that team dark what of the in in really to performance, XXXX, of product as When the off page it hours go when into energy think And scale done, megawatt X first at we've we've discharged energy quarter. the and is for being discharged goods that we've starting If the and sold. the see to move think side cost sheet. Shifting shows this cost to the you're the the X, field. cash green coming what think being months balance orders million opportunity hold quarter-over-quarter of of down a field. gigawatt the doesn't on we the look at valuable our doing I last Left-hand just around storage start really our pipeline the page able manufacture the hand the with and through value lastly, the systems, is commercial, look the in to we energy we've really basis I weeks. you you about restricted creating of that Atlas energy that at first have include come to cash want aspect of the when hours you what discharged see, end debt of and XXX our X look from been backlog. at Page and on Eos and we that we line, around of able off X.X work $XX at discharged the see was

associated with up the gigawatt can product X.X you assets That's we're Line to out around in be and the want lab durability the the that on state-of-the-art improving able and top, mostly to ZX. X.X on day, on totals work gigawatt being says the to to being on Acceptance FAT, clear really that performance of being not that prior you generated when every day, field, Factory just about Acceptance from So coming X it but from done to Testing I we're energy to when the clear able X.X every the think containers see Testing just factory, Then the look there's been hours off field, on cubes technology the gigawatt that the up the flexibility the the operate, being learning X.X. Factory of field. customers I as you for be want Gen shipped X hours, use hours. has the of that's

demand of Now proof and when the showing point, see Eos's right-hand the points in we grow the on ability on the the page, that proof market into to field. important about another side think you

Testing manufacture the in First X. be milestone about Line deliver today able proof able Big on we to point Factory talked the Acceptance being at to scale. is state-of-the-art ability to

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pipeline quarter. of Lead a grow. in been to generation during the lot there's continues flow see, You'll the

There's bucket, outs You have opportunity really core to numbers. LOI add net but pipeline, lead firm like and ins strong which commitments. non-binding and will continue proposals, this realize, which technical commercial we into is we're generation, always showing to in then every quotes, go

firm quarter. order. lot with customers. our of binding or to materialize as signing You A LOI commitments sizing has an There's Pine even down commitment of far see do and and had from a Gate projects also changes we as LOI the we some in that from projects didn't a have though that prior being of firm projects the that

of where and again, at X.X profit gigawatt looked the smaller as booked land is, The Pine moving to that, the order side, of project about inside then power. in the X into we available, for the number project project their quarter. late-stage of financing the and got a Gate at generate need the Now, the opportunities customer over stands the that available, hours. ability balancing change last sizing That talked off and

X.X takes that So to gigawatt hours. that

that continue backlog last of to with able that at where from to gigawatt work portfolio be page, is were grow X.X side right-hand today XX% we which stands to million $XXX continue to across We up hours, which the quarter. the

for operationally X line lead Thanks. make to to eventually putting you running, booked that translates the proof here who'll progress to turn cost-out I points the made that the this to with since that has that shareholders I'll spoke Continue company the for product the which continue works on board, last out the work working get think in points is the the walk about to through and here. to the to into pipeline the over earnings. ultimately equation field, then that, So, taking page through proof have and we to through profitability. And having team revenue, orders, Nathan, progress showing year-end important up

everybody, performance, the cost-out quarter Thanks, this with for and the first through of Joe. rest will on time XXXX. us the are roadmap, Thanks, walking for an of where along spend joining our we rest morning. I our outlook

the cost-out cutover Slide month X want in to back and to to spend December. part and Moving that some discussed we we I on that critical program XX, time our last programs of just are manufacturing undertook as

for uniquely left, you what new here as cost, If cost-out, lower density the in as our see module you being line. the look energy on is anticipation higher further that designed automated of was well designed

electrodes stud If in manufacturability you conductive felt automated potting XX% more differences and of you surface more see energy the to tab X increasing Joe with the as titanium with felt the terminal have compound cost that in ability module. Further, remember energy, the about the from and the is which area our retain place evolved bipolars area in the last the these has talked with can Having replaced surface lids replacing in on resulted design to we you means design plastic. The has call, in improve a reduce sealed line. the images. the per on old more

cost-out All of enhancements cost our in which take product of were the of of December. laid components improve these we key out that out both roadmap performance, and the

we projects and of that cube, created the of facility months. both value between inline as departments, in brought and to spaces are the each customers inline the very team Now, benefits the suggested X was the each taken reality This talented terms energy importantly, on by switching in as ZX inline the the they and intent been just instrumental with in is of of a of our cube more has capitalizing speed design for our density our testament concept The to of of in propositions in with and have site into that working in our loading batteries has has to seen new proud enhancements be cube. The new get our larger and Creek. Turtle directly research to it value the it other it cube the scale. customers program. their team, than and battery benefits work dedication enhancements technology design perhaps site to our in placed But they a our as can hard development rather next also and programs setup leaving cost-out these incorporating cubes particularly simplifies

laid projects December. density the energy increase QX energy now to up kilowatt in scheduled we duration XXX further in to has hours cube and Francis that with an density Our out for of have longer applications, back

product Now, continue side, the couple our at about way for launched we acceleration cost-out quarters. last Joe of design we're on when progress left-hand line, see represent to ramping have as as started transition our continue at you and the to product, to been at launch to discussed negotiate the now look manufacturing supply we we to to page, up flipping strategic continue which but suppliers, lower on the our this and down would we U.S. cost off we that see we to with agreements of from earlier. roadmap A XX%, XX% lot scale. you with do XX%, larger the next When material direct cost also the talking to has and of XXX% first reductions

flow in year. March direct half material to As locked target, the in have these second XX, expect see our of we of through financials benefits the of cost-out we and XX% our

the QX You we page absorption overhead call. see quarter, we lower which can on that the from on had the discussed also prior

as of designed we the enhancements QX end our part will QX cut implementation of at into some our newly and of manufacturing product semi-automated earlier. line expected the design You we as about talked recall, as in into was this

of we in we we're quarter anticipation will to and to our the production overhead scaled new direct expect continue We half ramp in labor continue at, really the efficiencies. both transition improving we We to scaled lower up have to the to back we year, of feel in absorption the benefits and line. believe overhead as back as second through about volumes begin see where good have the state-of-the-art production,

to moving XX. Now, Slide

securing to Before cash financial including cash, in the million cash ended results, we I million continue getting our our senior update $XX.X position quarter start will on to on quarter the into first sheet, related restricted with primarily long-term as an with progress balance financing. the make on We of $XX.X our which loan. is secured not

We cash burn ongoing our minimizing support to are capital operations very focused objectives. optimizing and strategic and on working

a we from As conserve production automated prioritize proactive to quarter decision capital, back our scale strategic new shipping measure the the and in to product line. second made volumes

and While to to overhead up the few a better of the we new be term, unit positive unit economics do a path have the are absorption, as months. over as labor contribution at margins next line we margins in the still we better negative of result short ramp clear expect but

measures resulted Software. was the executed cash line infusion increase milestone and our credit The collect expectations tax We with finalized cash credits, face was which tax $X.X in been with an and million. have in XX, in our to a of payments. XX% flow at also April to a we customer taking transaction on agreement of production liquidity and monetize to our enhance our first On monetize credits we discount the sale our value as Banyan

benefits in the sheet. operations to revenue shipment the a was and effort to ZX flat roughly delivered our regular prior XX% transitioned year credits our forward, outside to XXXX by strengthen slightly an into million, of we gross was usage to fund product that, X% average accelerated QX in $XX.X completed monetizing final cash when from large volumes million, these key quarter, our American XX% slight in compared price. from increase in North we product. customers quarter, get just take to were margins revenue year, a the Gen balance manufacturing cube combined and unit of X.X versus the saw owned timing more quarter, $X.X systems on specific beginning let's The lower sold In Houston. Cost last with expect driven with having though Even With infrastructure ZX as the financial lower offset first to despite ZX, decrease see volumes we this manufacturing. a higher we XX% X customer COGS, results. In we down by manufacturing to to goods Orchard, producing as our approach volumes. on to had we of switch basis combined was increase we the and recognition quarter tax are to a Going a selling of ZX a prior Texas, a the project higher

benefits decrease at quarter transition $X.X we compensation, from R&D we Looking cost we expenses expenses outs, offset a million, X% margins over payroll in in improvements once Total expenses lower including and see Operating items included for to were year, improvement line. stock-based X% noncash slightly to the expect by XX%, resulting operating slightly amortization. from results, million, depreciation, higher quarter prior recent we or gross continued spend. continue a saw as of and the to quarter our see manufacturability, new improved $XX.X

for the in primarily in revenue that prior the was million we earlier. quarter by the $XX.X Our $XX.X operating loss year, compared million discussed to decrease driven

such the depreciation, million, quarter the year. improvement and million. was Excluding $XX.X for was prior XX% compensation, loss PP&E amortization, loss noncash stock-based and a Net items as operating write-offs, $XX.X versus

to turn capacity. at to how we planning grow business let's Now, as look the and scale Page we're XX

gigawatt X be million continue $XX which this of believe million than as to to is CapEx $XX approximately very forecasting less for gigawatt per a in capacity, capital-efficient hours hour. production we We business over are

investment the molding it in and tooling. approximately annualized discussed original gigawatt get of hours our CapEx million previously, to requires injection $XX related X.XX Automation with to we've Acro CapEx to related As line capacity. the This for and expectations, line in includes

terms roughly carefully $XX by to to for we go operations our are have X XXXX. milestones. over investment million These progress spent next and be and dollars expected spent have a has a XX, expenditures Further, priorities dollar evaluating with of driven the quarters impact that March remainder on ensure every over improving on little million capital to spent $X the productivity. payment direct we are of As streamlining

the bottom our line the million side left-hand at over additional line throughput annualized increase further X of capacity page, are reach capacity. first and to in an is we Looking forecasting $XX which of original estimates, with our to in expand spend, the gigawatt hours of

expect in part as investment of processes end of back This the well We the operational majority include of process approximately labor bipolar subassembly expected year tooling increase direct the into semi-automated more aimed the operated labor cutting process this our as significantly the manually process, one a plastic this the to the into our the XXXX. and front of of capacity is is of minimize the half felt heat production spend is be and of to bipolar manually subassembly this portion on have up labor of the Today, Automating first would and to in increasing injection and teams areas as with enhance costs. reduce battery the automated molding labor-intensive to the volumes. Automating efficiency, subassembly the keep back increase line, automating our press. reducing XX%, manufacturing efficiency scrap. people with we costs, by pressing

let's and outlook finally, investment certain our securing next slide. capacity funding. And as shift tied processes, automate the on focus increase to be to timing will we long-term While adjust our it we XXXX may to look

will realize semi-automated manufacturing manufacturing which our then a for plan estimates line. million and revenue our quarter, new through line between $XX the Regarding we we continue of delivery current to battery assumes production and on anticipated $XX expect production based customer and XXXX, modules running to on schedules, second to state-of-the-art that be the million transitioning

rather previously initial cost expect revenue lower-cost expectations scale the capital. Aligning one roadmap volumes optimize to As second key overall we and our continues our commitments priority. way battery and with from better another quarter automated our period but better is to back unit cost volumes production lower to to as a critical performance, a to shift precious do transition This as we decline new in than and our customer mentioned, of transition module a out line. roadmap conserve production to indicative economics decrease strategic to not be realize we a be as

continue to in is as revenue, production executing leverage, production and to tax expect materials, direct on a well of and of cost fourth direct through positive benefit team we and the energy increased year, detailed quarter improving of in density. laser-focused is also including entire program December defined this achieve out the combination margin contribution less the We that improve performance labor, credits. The which cost as operating simultaneously the as battery that material outs direct

conserve out continue to fixed XX% entire we We allow in approach from positive helping on work with these and margins in production long-term to achieve XXXX. Once confident we of incremental margin unit continue as to contribution positive the securing lead of we team conclude, outlined, and that incredibly funding then committed the are roadmap in is to we've this QX year. To meeting would like and for Operator? contribution cost our our our when we unit time to we community. With to be customers intend we significantly produce, I capital the to manufacturing to turn listening to expect everybody benchmarks our over as approximately this the deliver and us the with operator to initial by beginning today. achieved commercial for launch costs. to increase believe reduce that, now our every disciplined questions. further total production that will We in we their broader costs QX, to cover capacity XXXX increase in it want I thank for both stakeholder

first B. to going Our is Souther of with Chris the Riley. Instructions] question from line come [Operator

we a to times? areas with what get close walk Congrats financial still through working then Acceptance XX-second that through here Testing. today, testing we in just line in wanted we're the to needed progress on the slow areas could and/or order little of on steps a to cycle it as hit need maybe are with DOE facility and the those of sense, the Factory operational I see today. the some you site acceptance walk the bit are from If kind

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path has on the I team that. think a

this better mean, find So XX making again, production to we'll as then starting through I any end. year-over-year upon we line XX just improving and stop continue we're go like the and the this. forward. productivity not to this never going pushing thing this is is with line,

onto the watch So amazing first in how line are things Rockwell end to line. get the from and we this look, running going running natural I'm and truck then of really I we're And disassembly at done how here you as successful floor X the around are a where and What of Acro put we of out a It's companies, of every rebuilding proud together. the sitting the off it's factory here Building and schedule. floor XXX they're standpoint, to unloading front XX by Eos, equipment seconds and the amount a first evolution. planning stand pretty this that going to build on given into and impressive. From on there just on an through piece we're just is SAT it, here shop line mean, confident the we're pulling And logistics the we station. speak. an when which a is Automation and that's SAT be being lot test, the particularly is of been line arriving really work

through the get prepared On just has to be team installed ready, the the floor the the to past wiring so getting floor, able on for be month tanks to throughput. spent electrolyte or and

to we're but have through and with we getting we're the closing end the again, like per successful about excited to that the that CPs pretty here with those we're other by confident QX. On talked the LPO get that after things, in haven't close we dialing working of SAT. So, a about loan, the around other plan

lines And automation would think CapEx by the gigawatt to back-end to the be or the year hours, gigawatt that to potentially like that And be or capacity contribution about would you've on need we've $XX X million hours? hit subassembly seen on like great. future I'm curious, for talked then DOE, funded first expand we later this That's the do X I incremental margins not? upfront Line X.X that positive

to LPO, to the our loan. the of margins, Chris, purpose clarify, the company. a of bridge you funding that's think when it's for just year X It's goal not I a the not positive as tied contribution about to of the mean, bankability.

loan mechanism not but that have, cost. that's we every a in the So X LPO it's has conditions the of of same reimbursement that

So you be then would that would invest that cost reimbursed. cost and

at If XX%. about you amount closing, of the the reimbursement when we talked remember, loan maximum got we

reimbursed be be then able that do spend of XX% to that capital and the to capital would spent you work. So

one Chip we of the question. to question move to from with our moment is come Moore our And line And next going ROTH. next on as

I well. guess, congrats on acceptance as factory

did you you I of on of you what the last that learned things site guess some can think, of Joe, sort in acceptance talked those for installation and derisked expand you just given during fairly job that Maybe about planning here? here, I would terms was process, you there. question say a on good

Yes.

worth dialing mean, on like stations we When as started and cycle lines, quality, we've the Really next really learned we feed this XX watching basically, learned executing think individual to like that through learned when through run it the trucks in after-action said, the Like the Chip. from phase of through these and we this I we really think right? continuously individual to just come and it moved Creek trucks team successfully, consistency plan the how through through get how had FAT lot off site. above about component produce how you going you said line about lot we've There's Look, run, when and, I get. And taking earlier, we marathon, part this this just you arriving. more you're report this start thanks, that a again, improved here, is installation. get stations worked, this, from in So, You can't the a So want, how how time more training we of trucks a enough afternoon, the portions -- you back the Acro individual running way as automated you I Acro I we this of what run the out, the together individual started, of as a your you equipment get times and line, we'll about on where pulled right? exciting but apart the process, arriving, just material down. literally come sit run an that fast you're the on and a do and and and mean, worked. X like just first, it's of Turtle morning, was see ones down, and start gone that first is have off I I in not X seconds we as running better think are get team were the pretty get next this. to say an

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where work we are. we And to So, you've of never like but I I just line. everyone have through feel mean, we'll through feel where got about good feel confident know finish how work and let the this, you SAT are. cross daily get again, through we've detailed I we continue fairly a and like when to plan this we won the until game

that's across we're think the on, focused I line. finish getting what

if And about about helpful PTC great. monetization. think I you liquidity, color. ask talked could I That's That's

on milestone being efforts else give there, accelerate on cash and then line to maybe anything can think payments liquidity. of or us able anything I sight on you

Yes.

of So on get a was the amount the PTC, to work it significant first deal done.

still already but you get documentation legal through that all one has more we've have the an credits. new, tax to know, As is we And fairly the a counterparty done. worked appetite do for marketplace

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line kind long-term in security. in funding the implemented short as term balancing getting on that of the So, we focus

process. X that on last bipolar Maybe to get and $XX just incremental gigawatts automated subassembly X to X million

Does contingent longer-term sort I think DOE that's funding. that that loan upon of not tied is -- securing that that? imply timing you on not to mentioned

earlier. an again. a mechanics through just for touched loan on contingent into and mechanism can be X a of apply reimbursed. reimbursement of submit first where then round kind the recycles next not That use is the event, the that. to bit would that inside future the would Line the account you for loan Line money I reimbursement, once that money, little DOE get and get that we and the spend to Joe goes or pay for on costs we X reimbursement like of mean, and

you get if you the within that recirculates cap of kind money and closing first the stack, So through funding, will. once

And on of question. is question And one next next Evercore. line the come to going we from with moment to West our move as our James

getting on congratulations running. So line the up and

As to this, not capacity, X Any ramp then, the of you you'll Line for if the more the did further Line guys, take to X, that get the X capacity and further? have what backlog hear of X, years? X And all, changes and most here. should correctly next X experience for up I expanding you strategy in

Yes. pat If we yes, on Line James. just stay X,

X all duration X of domestic I those I your those things energy meets continues think, the of at marketplace, demand to technology look projects of bigger -- U.S. and All produced longer you if energy with the question, or to in think, what's criteria. happening storage market accelerate somewhat underlying for a Eos security.

as expansion as to expansion, to So we expanding for at is look the strategy the you continue strategy backlog. be going get for

is, we're orders don't as to continue what will orders and get to on front Acro our I we the deliver, wanting have be convert capacity these want to we that pipeline that going we've learned to think be us avoid, really going we and is, versus of a strategy. when produce. What chasing firming lines the X the and in only and want orders capacity line capital in to backlog see to with relatively to Line have like up be investing able through the the capacity to firming we can quickly up add able to

inside the in same also through storm, what do seeing the think is that starting trying what seeing and and and see Australia Now, to India will, of you go a we're I in U.S. Europe and to if acceleration we're building other the we're country places

we to demand buildings. capacity from you then other expand think signals it. that our if demand would have was of as into spend incrementals, philosophy I places, And strategy you up manufacturing come it will strengthen. So need the capacity in build other signals lines entire continue with lines, you The how came make

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moment we Joseph our from question. our next the one to of as And And with move next line question comes Osha on Guggenheim.

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next we as on moment One our question. move to

line the comes next Malloy from with of Martin Our question Johnson Company. & Rice

needs power anything months? as and and them customers quickly with about maybe that last maybe Can conversations has for changed to power with possible new reliability. that, the you're talk customer respect or wanting you couple changed. data I initiatives. their out months you've more if all last the companies just over and about the to the My on cost they've the progress press customer hearing Congratulations made, about We're conversations increasing in wanted expectations question, couple ask a including utility lot in center increasing and as demand seeing first

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for next of Anderson question. the our moment with next one Stifel. our line question from And And comes Vincent

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I conference back Joe closing And to like the you. hand Mastrangelo remarks. for now Thank would to

that batteries and done. very for commissioned taking just now challenge and continue the Hey. off value today. a the turn get out and a has in the line they've the and continue got factory floor running that line and show what brings into team on and the work up the Really that being the working plan world. And every I ZX and of seconds, detailed we're proud is There's that's on Thanks, appreciate been just future to logistical to going day. work we've at continuing really Again, that dedication do, XX to both the product be call for what group need lot energy that of everyone, pushing energy the executing, the and fulfills time. enthusiasm in And the makes same field and because they to market to there's successful of and every prouder into and fun on a the the that's keep the building challenging it here to left colleagues people couldn't the a and my the I put time. job that a demands company. of that the calling of

you concludes Thank This participating, may today's call. now and disconnect. conference you for