Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) business as it appears the company may be on the cusp of a considerable accomplishment. Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The US$679m market-cap company’s loss lessened since it announced a US$230m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$125m, as it approaches breakeven. As path to profitability is the topic on Eos Energy Enterprises' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Eos Energy Enterprises

Consensus from 6 of the American Electrical analysts is that Eos Energy Enterprises is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$48m in 2026. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 64% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Eos Energy Enterprises' growth isn’t the focus of this broad overview, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Eos Energy Enterprises currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Eos Energy Enterprises, so if you are interested in understanding the company at a deeper level, take a look at Eos Energy Enterprises' company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Historical Track Record: What has Eos Energy Enterprises' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Eos Energy Enterprises' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.