Eos Energy Enterprises, Inc. Q3 FY2024 earnings call

• Commercial progress: Announced a $73 million order with City Utilities of Springfield, Missouri and a repeat order with Watmore; commercial pipeline stood at $14.2 billion as of September 30th, up $400 million from prior quarter. • Supply chain challenges: Delays in new inline enclosure supply chain affected Q3 revenue; working with key suppliers and diversifying supply chain; brought in new operational leadership. • Operational highlights: Sanders line continues to perform well with cycle times <10 seconds and first pass yields >97%; ahead of concept milestones; strategic partnership with Cerberus providing financial support and insights; progress with DOE loan commitment. • Bankability efforts: Extending warranty, launching insurance products, third-party validation, and proving ability to deliver large scale projects.

No specific breakdown of product segments by revenue contribution was provided in the transcript.

• Revised 2024 revenue guidance to approximately $15 million due to enclosure supply chain delays, with delayed revenue from Q3 and Q4 2024 expected to occur in Q1 and Q2 2025. • Anticipate positive contribution margin before year end. • Cerberus provided a waiver on the September 30th revenue covenant and is expected to do the same for the December 31st covenant. • Expect growth in 2025 driven by automation of subassemblies, multiple suppliers coming in, and scaling production to over 2-gigawatt hours annually.

• Supply chain delays in new inline enclosures, impacting Q3 revenue. • Challenges in ramping up production due to supply chain constraints. • Potential persistent supply chain issues if not resolved quickly.

Q: Is the fully automated line hitting full stride in second half of next year?

A: Anticipate the first quarter to be relatively higher, with growth ramping into the second quarter and second half of 2025 driven by automation and multiple suppliers.

Q: How important is insurance in getting revenue ramp?

A: Insurance products help accelerate pipeline conversion by providing bankability and comfort to customers for first buys.

Q: Thoughts on pipeline conversion with political environment?

A: The technology is needed regardless of political environment, and EOS's US manufacturing and features make it attractive, with demand for energy storage driving pipeline conversion.