Eos Energy Enterprises, Inc.

Good morning and welcome to EOS Energy Enterprises full year 2025 conference call. As a reminder, today's call is being recorded and your participation implies consent to such recording. At this time, all participants are in listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. With that, I would like to turn the call over to Liz Higley, Head of Investor Relations. Thank you, you may begin.

Good morning, everyone, and welcome to EOS's fourth quarter and full year 2025 conference call. Today, I'm joined by EOS CEO, Joe Mastrangelo, COO, John Mayhaz, CTO, Francis Ritchie, and CCO and Interim CFO, Nathan Craker. This call may include forward-looking statements, including but not limited to current expectations with respect to future results and our outlook for our company. Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our expectation or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings. Forward-looking statements represent our beliefs and assumptions only as the date such statements are made. We undertake no obligation to update these statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to U.S. GAAP financial information, is provided in the press release. Non-GAAP information should be considered as supplemental and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same or as comparable to similar non-GAAP measures presented by other companies. This conference call will be available for replay via webcast through EOS's investor relations website at investors.eosb.com. Joe, John, Francis, and Nathan will walk you through our business outlook and financial results before we proceed to Q&A. With that, I'll now turn the call over to EOS CEO, Joe Mastrangelo.

Thanks, Liz. Good morning, everyone, and thanks for joining us. This quarter, we continue to operate in an energy environment defined by one clear trend, the acceleration of demand for power, combined with constrained grid flexibility and reliability. That creates opportunity for a company like EOS. What we've been talking about over the five years that we've been a public company is being able to bring a product that was flexible, reliable, and can do multiple discharges in a day or long or short discharges with quick response times. That's exactly what the market's looking for. And although data centers are in the headlines and data centers are changing the way that we think about our and data centers are requiring us to make decisions on faster time horizons than we've ever done before in the energy sector. There are other demand drivers in the industry, things like electrification and transport, and also electrification of heating, and then the increased domestic production in the United States are creating higher load groups for a grid. That fits in perfectly with our technology. What we're moving to in energy storage is moving away from managing volatility to providing reliability. What you need is this buffer resource that allows you to keep the grid balanced, but also allows you to adapt to quick changes in load growth. But a vision of a product and a vision of a company only goes so far. Execution is what counts. And when you look at our quarter and our year, yes, we set records. Our volume was up. Our margins improved sequentially quarter over quarter and year over year. We had a great quarter as far as orders being booked. And Nathan will talk about how those orders fit into different use cases that are going to provide growth for the company in the future. But the bottom line is we missed our guidance, and that falls on me as the CEO of the company. What John, Francis, Nathan, and I will talk about today is building out the capabilities of our team, of our product, and of how we bring that product to market and manufacture and install it to be able to provide reliable performance. And it's reliable performance not just to achieve guidance, which is important, but to achieve the operating requirements of our customer as the grid evolves and demand emerges. We think we have the product that meets those future needs. We've got to continue to build the company and continue to smooth out and deliver predictable performance for our shareholders and our customers. I think we have the team that is able to do that, and we'll show the initial results that are beginning to lay out how we can deliver reliably in the future. When you think about on the bottom, yes, seven times year-over-year growth on revenue combined with our highest cash position that we've had in the company's history, along with closing the gap and moving towards profitability. We've removed the going concern language inside of our 10K filing, which Nathan will talk about in a moment, which really allows us, really says we're operating the company strategically, which is important for the future. At the same time, we launched Indensity, which Francis will give some more details on. But Indensity is really taking the product that we have, and finding a way to package it that's easy to operate, easy to service, easy to manufacture, and easy for customers to utilize multiple times in the day. It's not starting over. It's improving upon what we already have. At the same time, we're responsible to get our assets in the field up and running reliably, and Nathan and the projects team are doing just that. As we look at the overall results, I'm proud of what we did and disappointed that we didn't meet the guidance, but we are going to work to make sure that that doesn't happen again in the future. Moving to the next page, let's talk about how our install base is expanding. Today we cover 20% of the United States. We have 20 projects installed. The company continues to expand its footprint and continues to operate out in the field. Today, our Z3 product has discharged nearly 300 megawatt hours of power. Every cycle is a learning opportunity and every cycle is an opportunity for us to get better and to understand our customer requirements and that's how we use it. At the same time, we do talk about Concentration of revenue with a few large customers, but if you look at the lower right hand side of this page we had deliveries to 11 different customers and we had revenue that came in from 18 different customers. The difference in that seven is either commissioning and installation revenue or revenue from services on install equipment that we did earlier. When you look at this map, you know as we come in in future quarters we're going to add more states we're going to target to get 25% here over the next few months. And then at the same time, we're going to add in a map of Europe as we ship into Germany and wait for the cap and floor program to close in the UK. We're excited about what the team is doing here. We want to give a picture of how we operate. We've talked about the operating hours out in the field in the past, and that's really where we learn. And that's where Indensity came from. These customers on this map giving us feedback to enable us to deliver a product that's going to meet the future needs of the industry. while working with Nathan, John, and the teams to make what we have out in the field more rugged, to be able to operate flawlessly, and to give customers the performance that they require. Let's move to the next page and talk about some operational metrics. I want to start off in the upper left-hand side where we're looking at our quarterly revenue profile. If you go back to Q4 2024 and forward to Q2 of last year, you're looking at quarters that are basically growing 30%. That's basically taking our line, installing it, improving upon it, and getting 30% throughput on the same asset base. Then you come into Q3 of 2025, where we started to bring bipolar manufacturing in, and you see a two X step function from Q2 of 25 into Q3 of 25. Then we double it again, which is again, bringing more of the bipolar manufacturing online. And by year end, John will talk through that we achieved our two gigawatt hour capacity coming out of the facility in Turtle Creek. On an annualized basis, we're up seven times and our capacity will support the demand that we see. What's important here as we think about capacity management and as John walks through this and I think about this and you take what John's going to talk about and combine that with what Nathan is going to talk about commercially, is you're not running the factory at full capacity at any one point in time. You're creating capacity to be able to create the opportunity for the company to grow and deliver And building in a buffer to be able to manage weather through the blips that you're going to see in any factories. Anybody that's worked in an industrial process knows that nothing goes perfect and you got to plan for that. And that's what we're building here to get to the stable production that I talked about earlier. We go to the bottom of the page. You're seeing a narrowing of the gap and improvement in margin. We're not at profitability yet, but we're on track. The company is structurally profitable. What we need to do now and what John will talk about is improve the efficiencies and the processes of how we operate the company. Thornhill and bringing our second line up and running is going to show us the full entitlement of how efficient we can be as a company. At the same time, you bring a lean mindset to what you do every day. That lean mindset tells you, I've got to get better in everything I do. There's waste in these numbers today. We know that. We know we have to get better. And when you take all that in, and start thinking about driving cost out of our product, taking and becoming more efficient in how we build it, getting out in the field because productivity and profitability go beyond the factory doors, becoming more efficient in how we operate in the field and proving out and getting installations up and running faster than what we plan. That's how we deliver our profitability. And we have a clear line of sight on how to do that. This is a profitable business. when we execute to our capabilities. And that's what we're building right now. Indensity is a step function change in that, but Z3Tube is a profitable product and we will make that profitable. What Indensity does is it allows us to compete in a new way in the marketplace. It delivers better footprint density to customers. It allows us to build out capability faster. It makes it simpler to manufacture the product. And Indensity gives us the ability to not only on price, but the ability to drive further costs out to deliver the profitability that we expect. I'm excited about the work that John's doing and Francis is doing, and I'm really excited about what Nathan's seeing out in the marketplace, and I'll turn it over to John now to start that off and then hand it off to Francis and Nathan.