ESS Tech Q2 2024 Earnings Report
Key Takeaways
ESS Tech announced financial results for the second quarter ended June 30, 2024. The company is finalizing a funding agreement for up to $50 million with the Export-Import Bank of the United States and began production of its second Energy Center for Portland General Electric. An Energy Warehouse also became the first operational long-duration energy storage at an airport. They exited Q2 with cash and short-term investments over $74 Million.
ESS made significant headway in the business in the second quarter and continue to be encouraged by the growing imperative for Long Duration Energy Storage to be coupled to renewables.
Close to finalizing an agreement for up to $50 million in funding from the Export-Import Bank of the United States to expand manufacturing capacity.
Long duration storage project with SMUD has been granted $10 million by the California Energy Commission to further collaboration.
Plan to transition to volume manufacturing and shipments remains solidly on track and continue to expect to achieve goal of growing revenue by three to four times in 2024.
ESS Tech
ESS Tech
Forward Guidance
The company expects to ramp Energy Center shipments in the back half of the year and achieve their goal of growing revenue by three to four times in 2024.
Positive Outlook
- Expect to add about $10 million to the balance sheet in the second half alone for previously installed capacity.
- Remain on schedule with Portland General Electric and continue to expect to ramp EC shipments in the back half of the year.
- Have positioned operations to begin building the first ECs for commercial deliveries to Tampa Electric and SMUD later this month.
- Expect to be in compliance with the listing requirements and will continue operations as a publicly-listed company.
- Expect EW to be placed into commercial operation over the coming months.
Challenges Ahead
- Revenue in the second quarter was lower than expected due to the timing of EW shipments due to delays at a key partner.
- Continuing supply chain issues.
- Delays, disruptions, or quality control problems in the Company’s manufacturing operations.
- The Company’s ability to hire, train and retain an adequate number of manufacturing employees.
- Risk of loss of government funding for customer projects.