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Eos Energy | Surging prior to Q2

Eos Energy Enterprises Inc (NSQ: EOSE) manufacturers and sells zinc-based batteries which are designed to overcome the limitations of conventional lithium-ion technology. Safe, scalable, efficient, sustainable - the batteries provide utility, industrial, and commercial customers with a proven, reliable energy storage alternative.

(Source: Eos Energy Enterprises Inc)

On 06 July 2022, Eos Energy announced the signing of two significant orders with Bridgelink Commodities and a leading Northeast solar developer - more than doubling their backlog to over $460m. The company's shares surged following the news, rising a total of 162% to $3.17 during July trading - but are still significantly below their peak of over $28 in January 2021. Their market cap closed the last week of July at $185.5m.

(Chart property of EcoShares)

Eos Energy are keeping debt well controlled, with their recent Q1 showing a liquidity ratio (how much of their total assets are debt) of 19.7%. Despite this, their total assets have slightly slipped for the first three months of the year to $127m, which were previously $190m at the end of 2021. Cash levels also nearly halved for the first three months of the year to $55m, which were previously $144m at the end of 2021.

(Chart property of EcoShares)

Eos Energy's revenue for Q1 was a small record of $3.30m (up from $0.16m in last year's quarter) - while their net loss more than doubled over the same time frame to a deep net loss of ($46m). Their net loss over the full year of 2021 had been ($124m), with total revenue of $4.60m.

(Chart property of EcoShares)

Investors will want to see Eos Energy reeling in their net losses following their increased backlog of zinc battery sales - as well as maintaining a strong balance sheet and limiting the reliance on debt during a more turbulent economic environment. Eos Energy release their Q2 earnings for the year on 02 August (during pre-market).


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