Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) future prospects. 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. On 31 December 2023, the US$187m market-cap company posted a loss of US$230m for its most recent financial year. Many investors are wondering about the rate at which Eos Energy Enterprises will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Eos Energy Enterprises

Consensus from 7 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$62m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 83% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Eos Energy Enterprises' upcoming projects, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Eos Energy Enterprises is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

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 compiled a list of important aspects you should look at:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.