Eos Energy Enterprises, Inc ARS, filed Mar 28, 2025
Eos Energy Enterprises, Inc. (EOSE)
ARS
2025-03-28
For: 2024-12-31
View Original
Added on
October 19, 2026
EOS ENERGY ENTERPRISES, INC 2024 ANNUAL REPORT
2024 Annual Shareholder Letter A Message from Joe Mastrangelo, Chief Executive Officer Dear Fellow Shareholders, In 2024, Eos achieved significant operational milestones positioning the company for future success. Eos customers discharged over 5 GWh of energy using Eos ZnythTM technology. Last year, we launched our first automated battery module production line producing a battery every 9.9 seconds with first-pass quality yield over 98%. Continued product improvements have increased Eos Z3TM Energy Cube performance by nearly 20% while simultaneously reducing material costs by over 45%. These accomplishments, combined with our Battery Energy Storage System (BESS) containing over 90% U.S. content, have solidified Eos as the world’s leading innovator in designing, manufacturing, and providing static non-flow zinc-based BESS sourced and manufactured in the United States. Eos was founded on the premise that the world needs safe, secure, and reliable long duration energy storage to power its future. Today, that vision has become a reality. Strong electricity demand growth is shaping a new age of electricity. Global electricity consumption is forecasted to grow at its fastest pace in years driven by higher industrial production, rising heating and air conditioning requirements, and worldwide data center expansion. Meeting this global demand requires a mix of technologies to not only produce more energy but also make what is installed more efficient. These current industry trends validate the need for Eos’ differentiated technology and emphasize the vital role of American-made energy storage in strengthening the world’s energy infrastructure. Eos is an American energy company that is comprised of many experienced energy professionals with diverse backgrounds, and we are focused on three strategic pillars: (1) differentiated battery technology, (2) a simplified energy storage system, and (3) an innovative software platform that continuously optimizes performance and maximizes customer returns. While our strategy has remained unchanged, we are witnessing significant consolidation in energy storage offerings with many of our competitors shifting their core competencies and moving away from battery manufacturing into system integration. To position the company to meet the rapidly growing demand for long duration energy storage, we plan to accelerate our manufacturing capacity expansion. Our commercial momentum continues to accelerate with a year-end $14.4 billion pipeline and a $682 million order backlog. In 2024, the average project size increased by 28% in our opportunity pipeline, with a 122% increase in the number of projects with greater than 5 hours of discharged duration, coupled with 36% of the total opportunities being standalone energy storage. While our pipeline consists of many applications, a strong example of Eos’ potential growth lies with data centers. Data centers require an enormous amount of energy, making long duration energy storage the most efficient and immediate solution. The Eos Z3 Energy Cube was specifically designed to address the complex duty cycles and power challenges presented in data centers by enabling customers to address two critical operating requirements: (1) the ability to support multiple and partial cycles per day to ensure stable, reliable power, and (2) the capacity to deliver long-duration cycles to manage time-to-power and maintain operational continuity. The Eos Z3 system excels in both, requiring minimal power to operate and low system life degradation. Other technologies rely on complex cooling systems that consume large amounts of power and, if not properly cooled, risk thermal runaway, potentially causing catastrophic fires and loss of the entire system. The Eos Z3 system operates without such risks and avoids industry-accepted degradation during multiple or long-duration cycles, whereas other technologies often require early-life augmentation at an incremental cost. With its inherent operating flexibility and ability to deliver measurable returns, the Eos solution meets the diverse and evolving needs of today’s energy landscape. Customers can achieve a 30% or more levelized cost of storage advantage, making Eos the preferred long duration energy storage solution. Scaling Eos into a High Growth Company Last year, we proudly announced two critical industry firsts. In a tight capital environment, we secured up to $620 million in financing, becoming the first energy storage investment of Cerberus Capital Management, and the first non-lithium-ion battery manufacturer to secure funding under the U.S Department of Energy’s (DOE) Title 17 Loan Guarantee Program, with the first advance received in December. This combined financing unlocked funding
needed for critical investment in manufacturing capacity expansion and continued system and software development. These significant milestones strongly validate our long-term strategy and growth potential. Our partnerships extend beyond financing as Cerberus brings invaluable operational expertise and strategic relationships and the DOE’s support demonstrates critical technology validation to further accelerate our commercial growth and strategic initiatives. These partnerships position Eos to become a leading force in the energy industry. In 2025 and beyond, the team is laser focused on execution and scaling the company to meet the unprecedented demand growth for long-duration energy storage solutions. We are focused on 3 main priorities: (1) hyper scaling manufacturing, (2) providing customers with integrated solutions, and (3) making Eos a profitable operating company. Hyper scaling Our Manufacturing Our projects are getting bigger with durations becoming longer which requires Eos to build capacity faster. Our strategy has been to build capacity as we secure backlog. Today, we are now hyper scaling capacity to meet the existing opportunities in our commercial pipeline. We plan to order 6 GWh of new manufacturing capacity. Project AMAZE in the Mon Valley continues to progress as scheduled while we recently launched a search to simultaneously add a second factory location in the United States as part of this capacity expansion. This operational strategy is designed to allow us to co-locate capacity near customers to reduce overall costs. Additionally, we continue to see strong growth opportunities globally and our vision extends beyond the United States with plans to expand our global footprint. Providing Integrated Solutions The world’s energy grid is a complex and dynamic ecosystem in which energy storage will play a vital role in the intricate daily dance of balancing higher variable power generation sources with evolving use cases on an aging energy infrastructure. Eos does not sell battery technology or energy cubes but rather supplies energy storage solutions designed to efficiently store energy when demand is low and provide energy when demand increases. This means our job does not stop at the factory door when we ship but rather starts when a customer “powers on” an Eos system. We will continue to invest in making Eos systems smarter through improved software and enhanced analytics, while providing localized customer service capabilities. Building a Profitable Operating Company We remain focused on delivering a profitable operating company. The average selling price of our backlog today, combined with the current product cost, makes Eos a company with an underlying product that on a per unit basis delivers positive contribution margin. Achieving total company operating profitability requires more output over our current level of fixed costs. In this high growth environment, the company is focused both on delivering today and investing for tomorrow. Looking ahead, we will continue to invest in our technology, build our capabilities, and look for strategic opportunities both organically and inorganically to position Eos to hyper scale, become profitable, and solidify our position as the leading global provider of U.S. manufactured energy storage. Thank you again to our shareholders, partners, and employees. Your continued confidence and optimism have enabled us to achieve significant milestones in 2024 and sets the stage for another transformative year in our journey toward a stronger and more resilient energy future. Sincerely, Joe Mastrangelo Chief Executive Officer
