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Sep 30, 2022
ESS Tech Q3 2022 Earnings Report
Announced third quarter results, highlighting revenue recognition from an Energy Warehouse™ unit and progress in manufacturing automation.
Key Takeaways
ESS Tech, Inc. reported revenue of $189 thousand in the third quarter of 2022. The company is focused on increasing production capacity and operational efficiency, including automating their manufacturing line and reducing labor input. They also announced a significant deal with SMUD to supply up to 2 GWh of energy storage over the next five years.
Recognized revenue on one Energy Warehouse™ unit in less than three months.
Installing a fully-automated manufacturing line expected to be operational before the end of the year, increasing annual production capacity to more than 750 MWh.
Reduced labor input to Energy Warehouses by half compared to the start of the year.
Announced an agreement with the Sacramento Municipal Utility District (SMUD) to supply up to 2 GWh of long-duration energy storage over the next five years.
ESS Tech
ESS Tech
ESS Tech Revenue by Segment
Revenue by Segment
Revenue Related Parties Revenue
CapyFin.com Forward Guidance
The company is focused on scaling production capacity, improving operational efficiency, and fulfilling the SMUD agreement, while facing risks related to supply chain issues, manufacturing challenges, customer acceptance, and inflationary pressures.
Positive Outlook
- Expected to begin shipping to SMUD next year.
- ESS also intends to set up facilities for battery system assembly, operations and maintenance support and project delivery in Sacramento, creating local, high-paying jobs.
- ESS and SMUD plan to team up with local colleges and universities to establish a Center of Excellence to expand and train the workforce that will be needed to support long-duration energy storage technology.
- The fully-automated manufacturing line is expected to be operational before year end.
- Value proposition of our long-duration energy storage solutions has never been clearer and we are excited to capitalize on the opportunity it presents.
Challenges Ahead
- 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
- Issues related to the shipment and installation of the Company’s products
- The Company’s need to achieve significant business growth to achieve sustained, long-term profitability.