Eos Energy Enterprises is a Pittsburgh based maker of zinc based long duration energy storage systems, and the company just converted from a dilution funded growth story into a partner funded one. The defining move of the quarter is the closing of Frontier Power USA, a joint venture with Cerberus Capital Management affiliates and Hudson Bay Capital Management that brings outside equity into the project development pipeline the company had been carrying alone.
The second quarter print carries that transition, with total revenue up more than three and a half times year over year while a single Cerberus financed project supplied roughly eight tenths of the top line. The gross loss stayed deep on the quarter and adjusted EBITDA remained a substantial negative. The company also cut its full year revenue guide to a $300 million to $350 million range from a wider prior range, citing the timing of consolidating production lines into the Thorn Hill facility.
The question the next two quarters resolve is whether the Frontier capital structure can turn a record $807 million backlog into booked, third party, profitable shipments before the cash pile of $305.5 million runs down. The company says it has funded enough runway, but the guide cut and the negative gross margin argue that the answer is not yet in.