Eos Energy Enterprises said third-quarter 2026 revenue is expected to come in at $82 million to $83 million, up 19% to 21% from the second quarter and 169% to 172% from a year earlier.
Shipments increased about 23% from the prior quarter, helped by scaling at the company’s second manufacturing line in Thorn Hill. Line 2 accounted for about 17% of total battery production in the quarter and exited the period with first-pass yield in line with Line 1.
Gross margin is expected to be negative 55% to negative 53%, an improvement of 16 to 18 percentage points from the second quarter. Eos said this marked its eighth straight quarter of gross margin improvement.
Cash and restricted cash totaled about $344 million at Sept. 30, down from $364 million at June 30. The quarter-end balance included about $114 million of operating cash inflows, mainly from customer deposits, project milestone receipts and tax credit collections, plus an additional $87 million advance under the DOE loan facility. Capital spending was about $35 million, largely for completion of Line 2 automation.
Backlog stood at about $765 million, or roughly 3.2 gigawatt hours, at quarter-end. During the quarter, the company said it received six purchase orders from six customers, including a previously announced $100 million order under an existing capacity reservation agreement.
Eos said it now expects full-year 2026 revenue in the lower half of its $300 million to $350 million target range. The company also said Thorn Hill is expected to move to 24-hour operation in the fourth quarter and ultimately support about 4 gigawatt hours of annual nameplate production capacity across its two production lines. Following these announcements, the company's shares moved -15.74%, and are now trading at a price of $1.82. For more information, read the company's full 8-K submission here.
