Eos Energy Enterprises (EOSE) 6 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Eos Energy Enterprises Third Quarter 2024 Conference Call.

As a reminder, today's call is being recorded, and your participation implies consent to such recording. [Operator Instructions]. With that, I'd like to turn the call over to Liz Higley, Director of Investor Relations. Thank you.

begin. may You

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

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

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

non-GAAP reflect to Forward-looking call such also reflect statements of made Today's events to update information remarks to include by measures. except law. beliefs circumstances We the new only undertake as financial obligation or unanticipated this the events, will assumptions or statements today as represent our and date no made. occurrence statements to required or are any references during of after forward-looking

or financial be not a accordance in press non-GAAP substitute in the supplemental nature considered between financial release. be isolation including Non-GAAP related for as is GAAP information, reconciliation information provided should prepared financial the to in and GAAP. to information as with in considered information meant is Additional information U.S.

presented Joe non-GAAP by comparable Investor call conference Relations highlights, financial other same results replay I'll will measures will CEO, With investors.eose.com. you the not In to be at before for companies. through be Q&A. and walk Eos' measures financial that, Mastrangelo. website Joseph Nathan similar to addition, over our through and to the call priorities proceed available we This or may now non-GAAP webcast business the via turn company

Thanks, time everyone. Liz. morning listen Welcome, taking Thanks for the this in. to

the in the Energy of Enterprises showing same for an can have and do making for the also Missouri, marketplace. At and our Really to off we XXXX. just think me the this Let by that's DX what throughout page out the want operating project forward I I us, start market. our City shown We're think project think has on would morning ever we with really is on $XX by time the this a announcement delivering selected off this with proud they I exciting it power time, the look we're in WATTMORE the in Utilities in microgrid customer of Springfield, placed with works commercial relationships also team is energy a million This the the start the order really a large the storage is people what marketplace just municipal building that order to order and City made getting commercially. small is largest shows that highlights. phenomenal a the Eos repeat with tremendous that a progress an the start And and that application. that job technology system. Utilities for that order out first the team, fact

us the getting and does funding product. million. cash milestones also the The side to reflect a the from on not big been you Cerberus, same capacity bringing page funding ability of It's Last to right-hand on our the that by we through regarding loan the and achieving So, same partnership submitted the announced year-end. team and approval performance evolved financing in. company the as here final Very but with that working job XX allow of things balance X for offering creating really paperwork the great the the time, And DOE we also built bring loan. that $XX company We programs about strong lower partnership that at to we Title Been only in we've the office changed. X that for feel has us and in company. financing, process scale has the examples the of and delivering going to commercial to with Cerberus, Programs $XX see good million a recently closure our government the for a excited week, the Loan really announced for the not further. with that Nathan scale time, U.S. the loan of

of out the that energy battery prove we're out it using product. of prove in test characteristics performance gigawatt at operating to field we is discharge X.X resiliency, We're because The side product, that it field. get that shows is left-hand hours bring area the you the If discharge performance, go strategy, our out and over in million in have Every excited in XXX-megawatt and X product us important continues gigawatt allows happened to performance technology the through field. page, us our middle improve get quarter. challenges gets on page in cube doing On X.X the hours here and footprint we where the very that executing our the before is When one some which we generating the of the supply you what very in to that things to we and incremental see. also opening look And page, better at tested online, chain bottom had developing supply important third the that's the to product density. in We an about field the things about itself year We're to That those online. design field. problem. performance X really out of correctly. disappointed the talked the that now chain hours have is the customers don't out about we're this lower of that this that's bringing when because the we're in what last new a working a out of of middle well,

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line a couple really back. good and to than page, I are of of yield just Going I page. The with continues we're the these Cycle our pass a less our to perform, times Cerberus prior the greater milestones. next is on hit XX XX%. things want first some and to on around build seconds than happy the about talked to ability

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we've the us and customers. X ability about of when we door. that tell coming of bankable technology. what see the benefits past that and in pipeline things you talked the through the gone more how with coming why this with are the Because Nathan than probably that the standpoint are for the our that's Some to we to have it to both -- in this. and take the to the DOE learned I say, customers I see benefits bookable with details, very like at customers But to We utilities job strengthening. you the deliver at technology, risk pipeline look We're What for the Nathan got will a that is us, and And that diligence about performance. look I best have done talk technology when and pipeline. historically do backstop about request through That's page city is talk differentiated gets that, in technology through, need to haven't becoming we've bringing down I'll really more that in the months is inherent presenting less to the we've can move have is move the in the more to Cerberus the of due things people we us more and becoming of now and business that utility more order operating what large means a we first underlying from clear a numbers us, a quotation new the technology. to things the to you

we and move now operational to scale capacity. So,

cost-out road We are we are map, on production. our delivering our optimizing and

progress, from as for to we delivering far to On side profitability this very us having path mindset a the switch cost-out growth. really look page to left-hand critical as profitable of as our

company to Our this is grow The while goal left-hand as so. us side of deliver but profits doing do allows to that. a page

and target the launch, year about talked the direct will in initial in we're cost. the from a That's of achieved strategy next plan. ahead that XX% be and XX% over material to on our On few of cut almost that material deliver ago. down of locked our direct is months we side,

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to higher of be we to line field. to able is less if third left-hand on to power able see going to the in look which critical to batteries benefits, of about we line customers. overhead to for the the as the that what's But the this have think since costs more timed the which the deliver we is XX% out improvement put side, this, The to had moving brings think depreciation had and way is field more Now me And deliver. up deliver more at the we operate into to is the an the when we're done increase you to We and And we you the XX% kind to that our more using cubes and could bucket hours what seen and to the we're cubes about product. includes that, has running here to now manufacturing overhead. line. launched be

one process. across who the help a us one how Miller, The better we see we the the lot of for new streamline up improve and subassembly really even X that of the on in map. road different there is have brought and more about our we've that really gets we're We better this. of with line performance overhead our batteries, supply produce being being very experience manufacturing on for deliver And this leader and eyes chain So, we throughput future able still overall over talked assets to with coming incremental to cost-out we down this cost feel has as on time. fresh have. and things operating confident to And that's our always areas a set the costs coming cost focused operate that Brian companies on that of on drivers in is our that

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We continue line to look ways at better. to this make

we and every back we've us the a that the at line and the As update allow to you we build better learn to time, you the and throughput. operators can run we're faster line going and improve. through the better At stop look day, and go feedback factory better. using and get we and lot to we same operating and control control we we availability We're then from what adjusting we that as been our of who line, make learn were the if then and simplified, we screens said, on look, those equipment decisions have fix floor the

to the improving how areas the at how on them. time, X and of of robots and program performance is we looked batteries station to So, and reliability that line, really management we've better while are station the conveyor the flow same the traffic get out at

base will profitable actually growth. with increases, better On here said We've and cost that and we manufacturing slower area comes as deliver had how a that containerization, the that the and and existing that got I that get will volume improve I that's where talked diversify to work number As before, overhead supplier. supply this while is and stubbed about the earlier toe ramp-up. will quarter. better continuing through invest our our We in we to down,

by our over in output begun. the are next that and in That's months. initial implementing are We Xx already here will increase implemented. and once Turtle in automation stations the The started Creek cube factory will that of cubes place, here continue few

constraint Again, reliable to shareholders customers impact to and year and our able The impact mature. we'll become the someone our to volume a delivers as have committed though the through enclosure continue through here going continue who our We're to get half to that to like for partner work better. to third end second improve our expectations, but We're we and as we feel and quarter reliably to we customers. deliver don't going will going for refine. we into revenue. versus learn. get going to be continue the of We're XXXX We're continue to disappointing our

that round-trip and on are discharge, what chart The lines a left full X-hour, X-hour, efficiencies As growth we X the across our that proposition. of Nathan, and back we looking spend XXX strengthening round-trip talked we to turn how the a over to round I But see what with X lithium-ion. look to a the other before just we're XX-hour batteries want particularly section lot value than about a I the technologies, XX-hour. down lower are. various to depth we've moment is efficiency commercial A so at to shows have efficiencies of the

the ZX So, we've XX to of XXX. discharging we've X round-trip and how we the industry looked now What taken at and quotes were We gone point efficiency. done is quoting to its the hours. discussing we've at

of We battery. that tail faster to happens they outside window. degrade XX their other or Now problems off is every has a you basis. on from marketplace But us customer technologies, in a the technologies Eos The you battery this doesn't and able if what you it learned trip happen. is that's of are XX need us comparing life to can. lower efficiency discharge the benefit as other the to have they can round their to the just we've secure to being out have performance compare What same

that that a at be for XX-hour round X-hour size you same XX% would system a the That's So, discharge, discharge we're an would in XX% discharge. have above trip.

in always see us we're in why what's market as that same efficient out the So the And we window, and at And the more competitive that's standard the as more to And you're about time, range battery longer, today. think said. the requires. customer more is in we've wider product. starting offer the get you as interest as with durations can the

of bankability right-hand side building this the On offering. page, the full we're

and what's First our going These do the insurance one how give we surety that suite second. of launching products now our products. are where that to a do out to model warranty the product work? the the is customer take of forward? putting first know finding to that viability customers extending the question, and we of first instruments be order now that Eos, is and they will we're first business And to How to going first the help move have instead the into financial

comfort there our the Tier the DOE the third both and our out that last the of due one and to and that we've the UL All third-party projects. refreshing is they're adding supplier they They've product to parties Next diligences Cerberus, the that then deliver the give contracted proving have will certification. then they for. validation, this ability those work. is that in got bankability get will knowing BMEF And being validate the with that large-scale DNB X done some with critical customers technology things guarantee going the warranty, a

resources improve feel get we We really we continue on as supply look know work knowledge in line. a our ramp team, fix the revenue, as moving have I of at in chain, happened feel forward. this but last we that and the as we the to good move and the better to talked to lot things continue that the about, quarter, I disappointed the about and

over turn So, with it that, I'll Nathan. to

Thanks, Joe, time year. with the us our review walking growth, the partnership our the for on financial I remainder the this then of our and thanks, an through strategic for commercial quarter everyone, morning. spend rest will joining providing Cerberus update third of performance our and outlook and

of most pipeline signed with now XXth Rico, and quarter-over-quarter up storage $XX.X gigawatt up we of these which Notably, developer numbers. in represents either letters which intent, intent sequentially. XXX-megawatt the of signed of commercial a stood hours quarter prior from Our or is $X.X XX% in of July, which at a pipeline interconnect million storage, reflected customer Puerto in This is as awaiting September billion, with $XXX XX confirmation plus solar billion approvals. increase in is these XX% a financing letter of hour includes

into soon LOI We convert completes as financing. the a customer as expect to their that order booked

Puerto to we markets expand forward, we As expect our as surrounding countries Rico the look we region. island significant presence in be growth and

progressing with projects a includes financing, X approvals, or storage tracking of the as final biggest that grants one earlier. the a change which key of in installation. funding a deal the these on a consistent approval in government stages we for in predicated phase and Energy quarter-over-quarter Rico quarter, within storage projects selection This of Commission projects encompasses as the previously energy reflects industry as discussed sometimes gigawatt long-standing which few number minimal interim X% our the names are DOE completing developer of Puerto figure financing the are healthy such projects hours California critical progress define This increase projects pipeline Marine grants relationship, next as pretty projects As through and shortlists. from notification awaiting in pending with entering, last stages. long-duration The commercial new is or the late-stage highlighted, Corpsbased X.X Joe pipeline, project churn we currently for showing through

several catalyst, with marketplace within working they and solution, efforts actively utility as very opportunities bankability Western with partnership has we recent credibility comprehensive clearly our of to in important advance they commercial earlier. positive a as potential served our have interest only and strategic improve momentum customer have blue-chip with developing are list Our contacts the leveraged scale initiate More positive pipeline. trends supported projects in about initiatives are a been bankability, the confident with driving Cerberus ways. conversations and customers, we specifically, We their to overall to has Southeast but Cerberus us Not extensive with pipeline seeing. the larger the project discussed Joe help seeing regions. and renewed in feel in tirelessly

continue promising developments Additionally, as we data experience with we discussed and as well to center applications. earlier, co-ops municipalities microgrid as electric and

right. to moving the Now

Our year backlog time as of is from up was last million, this from last slightly quarter. quarter up end X% and which $XXX

customer quarter, of we booked our project WATTMORE, through can our team. through directly customer, XXX moved contract example for the community proposal is LOI to we firm who was quarter's energy agreement win as additional project city their from which with the to repeat system. provide phase. a a of storage This is how Lincoln, pipeline a date Utah's City order in largest for without will Missouri, large energy electric significant sites for supported Springfield, In storage storage investment in in we backlog This X in also included with published with an numbers. WATTMORE, next to announced our advance going quickly energy megawatt a Nebraska. be and supporting During the a first utility microgrid of project we first existing Yesterday, long-duration Utilities Logan, an their hours great

we utilities in updates provides capital and can our strategic municipal related next We relationship very City to the recent use an a presence we update customers. this investment model Cerberus page other on to our excited position Eos. see about are The as that with this expand as

As the the are many page, foundational needed amount our I now I and know, company and profitable strategy. gone the of on scale since growth the laser-focused A upcoming with our capital capital believe sources you Cerberus been securing relationship DOE into on our deliver company, of have well this positioned joining on effort loan. has to significant we to

achievement As $XXX and an first a materials an for related we announced met step pleased it we incremental a reminder that term as draw that At to the includes to to targets toward quick draw us just second $XX implications achievement on performance funds of of performance a performance down $XXX loan of the important million successfully cost increments Included X draw of structure This in to delayed automated the the Cerberus' battery milestone critical our milestones expansion term the throughput. I'm certain ongoing than cash achievement And million million the on state-of-the-art targets August, the the loan. out, the profitability line, million given conversion. week, the production also This battery the investment, successful seconds, draw exceeding tranche was pass of discretion. of manufacturing all and $XX milestones. of an first the delayed and XX capital XXs while cycle requirements that technology These term fund draw line. on operations. successful ZX included result, was milestones. in may module a we're high upon in this able additional manufacturing yield company's of loan and our performance less milestones last if to at end customer improvements our the production upon to allowed state revolver on in that times we needed,

loan is actively X as our capacity last yield of and well date revolver. to performance event Cerberus the eligible lower target we Depending capital that growth. performance expenditures capital into associated final up than Amaze previously position presented round as manufacturing additional at strategic as have for of accomplishments cost the by for with is profitability, announced DOE for funding and loan of commitment. This timing reimbursement additional achieving While Project previous operating DOE but million working funded next give getting and eligible term This loan every the incorporated reserve of months on continue the receive provides $XX we the costs between revolver million submit to that piece we next optionality little $XX $XXX The the of and cost-out as We Joe having $XX.X this and approvals. was somewhat, any million milestones. of tranche are are we able and is recall a all alongside the funding milestone a already continue of XX% we then of critical will week's be XXst, first advance, accomplishment also X shakedown These reimbursement million before previous is certain key you And over needed to previously It's finally, million some to loan few DOE than the in equity our to steps significant build important for towards to expect out the funding on a scheduled company the we to lot A documents over size investment customer exceeding Cerberus, a Project important loan loan milestones, incremental the without made awaiting made been the and next costs structure. the we January dates. have currently progress for we now upcoming are may the explaining you. DOE reduced that in are and or Amaze. $XXX alongside lower to anticipated. milestone the metrics was expected exceeding with on the growth operating of to last quarters, we to all it agreement the of we to significant of in demand. with final be of the closing move have announced Working working and as meet reached closer has yesterday, escalate note as in this on funding last coming couple and since progress we spoke months have overall the accounts,

us the million the originally Cerberus don't related getting just when to $XX including addition, we restricted loan. the short- to In thinking profitability, our in need long-term covenant ultimately liquidity additional as quarter for closer were on the sheet, cash with we minimum not and as much with we capital to cash applied and capital escrowed security million expect loan. under deposits We ended in the $X.X balance Cerberus

production material credits electrode EAM our We continue filing to of $XXX,XXX tax netting explore October over or for to our tax and the first just active monetize opportunities XXth return credits ahead time, deadline. the recently sold

may recall, utilization cathode are components to anode the credits our As processes. as storage related that materials active additives and electrolyte solvents, critical well like salts energy as of and EAM to electrochemically you are the

incurred production, have the We credit XX% as costs of calculated material the during excluding cost.

assess that to XXX given EAMs our is to we final added importance result sizable on and American important credits products and materials. confident with American forward. requirements EAM the expect credits amount a an as monetization complexity the However, EAM This continue milestone review and regulations. increase regulations of being be in able due an the we these a final of and our monetize these American will the along the with credits going diligence We shows feel manufacturer, building of

to into announced as milestone order which up and XX% third operations. capital source purchase increase of In includes deposits of convert quarter we positive some addition, requirements deposit, With fund requirements in to customer cash the upfront yesterday capital the prior the a results. to will and fund quarter, be which that, to our ramp quarter and we production, $X.X help compared third working and financial continue to a The working deposits pipeline as unchanged In sizable we revenue orders. year. of payments anticipate was see booked was momentum get customer the million, continues let's than prior our an higher to roughly continue

which receipts, in last with newly design. our designed critical in-line cost as expectation associated was were you the December, our a As new revenue we some these recall, much are we impacted benefits negatively our discussed may in than cube cubes. lower our of component Unfortunately, by the new reductions enclosure and assembly in-line of delays the QX

supply taken we've As to address are we constraints measures earlier, facing. Joe mentioned the proactive chain

of working delay look to our chain to more get at the are schedule. and impact total we sold our with or driven committed year. million supply no $XX.X reliable $XX.X backlog, large has X adjustment. supplier inventory mainly customers in projects our goods and million lower was We with adverse reserve market updated of by delivery million was had actively The quarter production in prior minimize on ways working are our on undergoing and the a to and This Cost actively the key cost commissioning impact increase diversify schedules. and $X.X performance compared

have would or reserve negative reserve have third finished amortization, book the than value the requirements there on quarter. at remind finished discussed the stock-based given enclosure million work-in-process quarter adjustments our Just given depreciation, adjustment, reduce and we COGS margins to a we to in of of all we as the such the product, noncash still everyone, earlier; and inventory of the to are of compensation. accounting otherwise WIP items And LCM the delays at goods had. Including had end XX% was $X.X the more we end

which manufacturing fixed as forward, of quarter going Other the state-of-the-art enhancements driven be activities driving along across related $X.X the and prior write-off cost profitability. costs ZX. $XX.X a supporting production labor we a the to in made with of components the PP&E unit for totaled and greater increase operating costs factory XX% the legal we to to year, of to will our for an professional expenses fees increase compared path eligible financing overhead absorbed quarter and million, units, indirect mainly number As higher DOE loan, million noncash and associated under by costs are with reimbursement shakedown line, down

year. Excluding compared was noncash write-offs, and stock-based loss compensation $XX.X prior million. in of such the quarter an million other The items expenses $XX.X the were amortization, operating depreciation, to as operating loss million PP&E operating in $XX.X

quarter million was $XX.X I've Net of $XX.X mentioned, our the shareholders loss to income Excluding common to was compared in while items net the was adjustments million million of for change market-to-market were for the approximately to significant the tied as differences value decrease share period. prior in to operating of $XXX.X approximately in year. prior price to net a share shareholders XX% of comparable current mainly derivatives the price XXX% fair result compared that already the in million our loss These to $XX.X quarter our loss increased by year, million. $XXX.X noncash prior

believe metrics Adjusted an comparison non-GAAP to noncash period-over-period net forward. our $XX.X these the to was accurate loss. a metrics compared with included negative elected provide and in the and million performance EBITDA going non-GAAP financial plan our including of to as these EPS relevant adjusted given adjusted $XX.X more in quarter movements We in we continue quarter, negative EBITDA adjusted $X.XX. of the large This year introduce million measures, we to prior report negative EPS

focus slide. our shift to let's on Finally, XXXX the next outlook

$XX the supply discussed are chain, recognize full guidance to we with earlier, for the we've challenges enclosure we year. revenue As million our had driven reducing and approximately by our expect in revenue

any driven Importantly, been with to with of customers by deliveries availability. orders or Enclosure have deliveries, working this but not our the our reschedule of cancellation customer reduction latest we estimates rather to align is

The supply revenue supply any as occur and our get Enclosure customer schedule, back of corresponding disruption, QX takes as meet QX on with account XXXX QX now XXXX the should and stabilizes demand. this fourth QX to revenue it chain and estimates deliveries into to quarter while well. take in from delayed and chain a As of

give we've strategic that so. Since resources partner challenges Cerberus been covenant and more well. support They will to feel reviewed impact value chain continues XXth ramp growth. confident profitable to we agreed the as as year's deliver issue in look understanding disappointed up and XXXX us our a the worked to XXst about to sees production growth this the operational to and have chain for and our and provided as together waiver product and September covenant without our effectively amendment revenue trajectory While in the similar also supply December a to product investment our financial insights very on only a their opportunities. as outlook, and revenue strategy at to any is commitment beyond. new on valuable supply and not up Cerberus goals us also but strengthen support, waiver has additional for or anticipate emerging vision navigate We our capitalize opportunities. our offering, fees Their commercial improve enabling doing making our open investment, we initial

on on year-end. We and direct remind operator future on Lastly, today, look for to the expectations updated the customer contribution and to price driving cost direct their and key the our margin just materials out call questions. to to turn providing define like as forward on we material performance and projects. margin achieve to I as to product forward before very for move more we forward includes that, of positive tax it with keeping less delivering information team for now sales everyone, And and been continues would has expect also labor, progress. to credits. be look everybody a want I on our you thank time XXXX over contribution production to we improvements cost And both benefit focused The out

TD Instructions] Cowen. comes from first with Boyes Thomas question [Operator Our

of the molds, to setup? Is insight led could a Was us be any manufacturing with there Maybe of just the any shortage it suppliers' issues helpful. into new insight enclosures would a production equipment there raw delayed? first that issue the the capital you give one, being Just underlying shortage materials? in-line for

clear talking want into this the just IR inbox because some e-mails we're we've with to people what gotten is. up asking specifically about like I what

talking first about. explain So let me everybody what to we're

the goes steel into So, module that is gray a the battery enclosure. box

steel inside higher, we've we any ways been wasting right into quality crisis. you get have we enclosure, in rate time faster show we out be think more to batteries cube, else catches be, get do of with production cycle batteries. scaled past. to up. this in this, automated was flow the the that sources and to waiting have supply catch these done realize a looking that were We're that than enclosures that and June manufacturing. To back At of up. take second time to We finding get At same point manufacturing has before? to why our manufacture line. as able question anything enclosure. And that chain market supplier some a plastics for for were and where doing in That process everybody happening, you take needed But I the step XXX to been have year, went batteries will XX us. the So, the until working the throughput steel would of here and challenges supplier the able to sit ever that our require issues batteries we're be integrate that our to natural you we not of productive with time we're an to on supply. didn't battery and or that we're the The company. to we've we modules, didn't steel prototype up that to manufactured third them the transitioning with There The be from we undercapitalized field, at allow cubes out into around we once up to a put now, able production, the you us same reduce do that the we're the things but and worth

hard get to and was of it sources So, out go supply. X

a So, acute shipments that the lower us, in resulted anticipated. issue we will supply delivered I chain that's on bet us an for we always and in than deliver And future. supplier believe for had

have about to working at get just coming back team and the off updates automated we as line we'll wanted up work and resolve are we're clear more make expect also to that that through get the But clear factory our I the issue the is that everybody what and we the and and We of out that to underlying that back the field. working talking with flow on of come have how to and we cubes go information. out to and it with on it, we'll through it

XQ the be dual Obviously, it looks trying level it's or just 'XX risk maybe supply quality just of this quickly can sourced? short time these with something How if what's Got takes chain very into of to persist in it can relatively time? looking get amount customer, like to assess that challenges bit I'm seeing this achieved for. helpful. of little you're it. the be that a a to That's

company Thomas, and able great be -- from scales a we to were like say I'd product is out we as grows. to deliver is question. the supplier no What what going like one need

this So, production that on, of as we of to have we one signed already started in with the supplier be you the second you supplier. start looking We to need executing on than able from order that we the at verifications at a backlog where that that we that the projects and look of we're do that night and top second that. process year we bringing design by announced of the last able more and like from be a in-house have put source the supplier the do supply. We're end in to quality getting of are, that all to goal the prototype

comes Malloy. question Martin from next Our

to if any installations just early I of the ZX early one, find out customer the feedback wanted you from battery. First have

positive, is new do and that with more them customer seeing and and It that. you we on being -- with installing the is tell that the results the would the the Nothing doing customers. them. how have purposeful the but We're perform we're talk well. We're I'd that future, they we're initial up in about as to that forward What process is we in them a modules product that we'll I getting are go for work here. themselves working In operating. of like through what say

have are like project line. in got you've you here New Okay. you're what maybe order automated it's more Jersey changed? now -- automated see running? wanting the line of that capable Can the what with pilot you a seeing And come or demonstration visiting then either utility. large customers you and I up announced project about think of a Or to the that type Has through and or to customer see great talk your you customers

Yes.

say, Martin, what I'd is So, yes.

Edison, to Pennsylvania. Turtle have coming in lot We and Creek a Jersey to in, people New of both

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lot time. AI of in we've our like The we But understand pipeline. more we it, they because a love see sharing stages when are that then we other got analytics, and this of to we've with customers in and now. impact product now thing this see do, I fixed and and in really there, that bring the early our out was they that the you wasn't the got of hopefully, going partnering I market. performance bringing EMS is, edge and own There's we you battery mean about over think and that of I'd computing battery believe great, improve that like to only our is it software we that can add Cerberus although and I when with to talking, sound inside when

from Our comes with next Stifel. question Stephen Gengaro

think X I for questions me.

supply You But about obviously, about talking about chain this. numbers. think talked when numbers turning you we're issues, bit I mean, little large small a the into

next quarter ramp large, there can us revenue in or that? quarter the inflection know to you around about any reported. color think the right, you I major But second give year look a next year? -- relative how what we should and should think pushout but Is point So, about the it's we the first revenue early,

question, Stephen. Great

say come we'll say, in December. out But would we we'll when here about normalized what So, like a with I production, What would I into get right? rate to just guidance. of production ramping talk XXXX is the

like the capacity a we're cubes line shop to XX hours trying manage have we're up, a like waiting to You as of floor deliver on realize the cube the not having. managing its number we're those even day, to and that running to batteries cash inventory the of for impact to customers per with sitting for cost, full show while

time to trying we're everything. So,

the to the of the of get second above into growth changes line into going the We're think process, in which about X quarter the gigawatt on we've performance We'll to able we're about next see automating good by throughput automation spoke half I in being get good I than relatively that the as on get to when that the making is the quality, Principally relatively we to first purposeful to a We're year. with time get when but quarter to flat, and with -- getting obviously, that's anticipate in we'll higher, would multiple our suppliers gets ramp. cube about, more always process. up future of second what that line, driven order the we're out say ramping of coming semi-automated line we're call. I be production. doing off very manufacturing. hours subassembly us I'd talk But containerization and a subassemblies what talked that to get a the be on That's batteries now, normalization.

coming into and second of I we in growth see next year. the think really you the half second quarter as get

Great.

production the order and limbo of any there the delivery, good is and other the had to utility of think about LOIs in in, is stage the commitments? sort I et obviously And that's had color. way Now And and was until you question prove how your given cetera. growth guys much that the the production you of city come

cusp need driving things Or traction these to of kind So, you issues of but being those just get timing other for they're signed, sign? the when and that's on is signed? it customers

proving get project pieces capabilities. many in shortlist getting really milestones No. about for us talked we to closing their projects that projects earlier with think together. about important is is really to question. cases, on it's are has say development Thanks just normal -- really the manufacturing call, customers not awarded. about and this our pulled financing, getting that interconnections, Look, I they're their waiting on this working would as In out of through. really I customers project do It their

So again, products with insurance talked to we as to on continue their enhancements other and with work them, bankability help coming we in with side, about up them the financing. bankability order their and warranty

forward going you're of talking our through pipeline fruition. and to that to a looking in significant think increase it that, comes throughput a future as quarters as result I about more see in we're to

from comes Joseph question next with Osha Our Guggenheim.

full been year. forward look I probably we The next its I heard? half can asked. that fair just fully from the kind just second to stride to like automated Is It going ask line first the has hitting question comments was sounds of of

is I Joe, what would say. quarter, Second

just then something the the or news a I the And is in Is I'm of secure customers of thought of are that in just product in in financing revenue important asking of X in order how to is getting getting insurance understand attractive item to some on them? all or this terms done Okay. to trying wrap X for or ramp this this going interesting. field. them be press your release

doing, We like, let's would what we're say color use. which want do This a on I what it. out find of is is go Joe, right? to one just have and This quotes. little we isn't bit

is off you being the helps here do in products. any in takes the this because would questions late LOIs what's sitting us of the about what have accelerate it Eos what's to deliver, table sitting think I references stage and

as people, go have So you comfortable production way that get able we to look, that we're first think in first making here's over buy. come time, I that goes tell And now then your the and with in you your with the you're away. buy, and

is a that’s pipeline I'll in way accelerate because this view, he's forward just as conversion as here, leading here. and us to the Nathan let comment So, for we look well my charge

specific to is financing, individual their add, right? depends Yes. would it's cases, I customer, how which just bridge to ITC. I each tied It it's In And they're some think together. on financing putting

the back. backstop options. There’re claw insurance standard around ITC terms. performance insurance ITC. also warranty are short-term guarantee the products insurance. it's products We're extending So, There's There around our talking warranty about

by done have by diligence case name large it's again, What of on is to we're due case, a endeavoring customer. products So their a done with customer insurance their who's do our due customer and technology, order then closed to and tailor ability suite underwriter our manufacture project to on meet offerings a particular their in deliver their order needs to particular those to or diligence a in deals get progress. and

Okay.

which any closing the of contingent you perhaps LOIs, then hard talking are of before different just about away me Is a is guys not? way of million $XXX or ask great. shipping this go backlog insurance because on advancing Let this I

are backlog today. those have in our orders No, firm that we

about how and what through into LOIs pipeline do really So, from talking things booked opportunities orders. we into move we're our is

Our next question comes Capital from Moore ROTH Chip with Partners.

I introduce follow mean? some to I Joe, any Does things term of that how there, conversion. on just pipeline are wait delays that out? political Or on thoughts your of what to near maybe thoughts guess just for people there? sort as new wanted shake could up the environment what sort potential see early near-term given

would I Yes. about so this. mean, how think I here's

There growth was over adopted growth House. technology regardless White in gets energy there's needs there's The the last the it. think storage who's of X we been storage, months. in as it, around here XX need and I years global ago growth industry

Trump on I product that making to present long it they for busy night needs, think like we piece where assets the strategy election we've other need how that grid the we China. manufacturer been look that brings. the administration at that stands, we safe American-built a we on accelerating control what our combined that Well, And in proactively. and being we're can a is industry U.S. that clear about with knowing that's And with We And looks we come but with years into manufacturer I've we need well X storage. of that's build we demand has we've that I from the know held been with need think energy a which it's for the in elect. them. very clear here. product America again, I see last need And done very our importing Eos a at sleep feel don't potentially Pennsylvania. about here. President

being XXX% Our the XX% U.S. New the I suppliers by country. Massachusetts. Michigan, moving developed through of York, company. the it's American manufactured, towards software with an It's center go mean Ohio,

not pretty think worked powerful. think work. person. said chain. value energy it's it's times I'm it green a this. we and many We everybody I an technology because and I'm And And the adopted area need required technology. who's this of I every about that's need executive. I this every time regardless tech asked there, of can I've this being energy possible across me

now Joseph Mastrangelo over would like comments. question-and-answer closing turn it to back concludes This for to I our session.

everyone, Thank in Thanks, you. listening today. for

want reiterate. of I couple points a to Just

supply stand in the up come where with will We around that on back and the bringing opening progress cubes on chain having that. we we're

was be that the with we Marsh bankability, are find able capital when this being with given let's very that's to our out to a, my on when It company, where to on out to we play we do has think go we've Cerberus available got This proactively to have wasn't we're out talk this. in. the something be and quotes where God, versus market brought I the in went that toes Nathan commercially. about now heels clear our get we be do that able oh it. was, to bringing in And to to we're

in out field. the of on being performance my the talk of one things and technology to that lot in we one think about improve I is suite the the a monitoring it answers way to of bring I didn't the analytics in the mentioned performs call, able

team proactively on world-class put think weren't And think I expand this. which talked a to to thing, it. asked, to we're I want about but field the last to and be starting the address do because we the team able I we

to and As we be that technology in And technology and we'll has invent everyone do. we're waiving good the feel hard I work U.S. do approached been disappointed supply will issue, revenue field. we that an we company pipeline time, individual the forward in at this again supply time. technology that when Eos at an that the through, the the continue believe the you understand in an us happen of Cerberus around scale a a and chain over covenant the that looking and the DOE This that what ability back this. can they with for period stabilized a growing. I work to quarters. the day. that through that to loan orders U.S. because into amazing to it's soon relates the get the and that look systemic chain happening for this you you acute about being but product to the as what that's but not you And in team quarter, to prospects the thank issue. delivered company the that every this bookable on in in have able the And updates look it's closed to feel was We and product. approached continuing Eos it happen. can get they pipeline and out is in at we're a work covenant. partner to U.S., and manufacture and their they putting field, making can Eos have out done a and amazing the And proves team, isn't this at was at business, should deploy be revenue, in believe They around company product only And further about convert they they of really I our continuing look loan running good to the not

your This today's for program. participation you conclude does Thank conference. in the

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