For American companies, there’s one clear way to dodge the tariff fallout: build everything at home. And EOS Energy Enterprises (EOSE) appears to be up to the task.
The New Jersey-based battery maker designs and manufactures its zinc-based energy storage systems entirely in the U.S, a fact it made sure to drive home during Tuesday’s Q1 earnings call.
“High domestic content takes out complexity in your supply chain,” said CEO Joe Mastrangelo.
“You don't scale a factory overnight. When you think about what we're seeing with tariffs and people talking about bringing manufacturing back to the U.S., you have to start building it. We’ve been at this for years.”
Chief Commercial Officer Nathan Kroeker was even more direct.
“Tariffs should be a strong tailwind for us. With costs rising for some of our competitors, we’re seeing growing interest from customers who want a U.S.-based solution.”
EOS stock surged 32.3% Wednesday following the earnings release. The company’s shares have now gained an eye-popping 909.1% over the past 12 months.
Record revenue, growing backlog
EOS reported a record $10.5 million in revenue for the first quarter, thanks to a ramp-up in production to fulfill its customer backlog.
The company posted a gross loss of $24.5 million, but that still marked a 93-point margin improvement year-over-year. Adjusted EBITDA loss came in at $43.2 million, a 145-point improvement from the same period last year.
The company reaffirmed its full-year revenue guidance of $150 million to $190 million.
EOS now has a backlog worth $680.9 million and a commercial pipeline of $15.6 billion, up 10% from last quarter and 17% from the end of Q1 2024.
Global ambitions, local focus
While EOS touts its U.S.-based operations, Mastrangelo said the company has plans to build out localized manufacturing outside the country as well, if demand justifies it.
“Where you build the factories is where you have a demand that’s gonna sustain a factory over time,” he said. “That’s the decision-making process we’ll go through.”
He flagged the UK and other European countries as potential growth markets. Last month, EOS signed a 5 GWh framework agreement with Frontier Energy in the UK, a deal that could pave the way for deeper expansion overseas.
“We’ll see how that plays out,” Mastrangelo said. “We don’t want to wind up with a stranded asset.”
Your email address will not be published. Required fields are markedmarked