Eos Energy (EOSE) 3Q Preannouncement: Largely Tracking Expectations

EOSE preannounced 3Q results with revenue modestly above expectations, while gross margin was modestly below expectations largely due to Thorn Hill Line 2 ramp costs. Preliminary 3Q revenue was $82-83mm (JPMe: $83mm / Street: $81mm), driven by a ~23% q/q increase in shipments as Line 2 continued to scale at Thorn Hill; Line 2 contributed ~17% of total battery production and exited with first-pass yield aligned to Line 1. Gross margin of (55)-(53)% missed expectations slightly (JPMe: (50.0)% / Street: (49.2)%) though improved sequentially. FY26 revenue guidance was narrowed to the lower half of the prior $300-350mm range, with the final shift added at Thorn Hill in 4Q to bring the facility to 24-hour operations. Backlog moderated to ~$765mm (~3.2 GWh) from $807mm at 2Q, with six purchase orders from six customers during the quarter. Total cash including restricted was ~$344mm. We are adjusting our 3Q and FY26 estimates to align with the preannouncement;