This article first appeared on GuruFocus.
Release Date: March 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
ESS Tech Inc (NYSE:GWH.WS) secured a $9.9 million contract with the US Air Force Research Laboratory, showcasing the readiness of their American-made iron flow storage for critical defense applications.
The company announced Project New Horizon, a significant partnership with Salt River Project and Google, indicating strong commercial momentum.
ESS Tech Inc (NYSE:GWH.WS) improved its financial performance, with a 38% improvement in adjusted EBITDA and a 33% reduction in operating expenses year-over-year.
The acquisition of Volt Storage enhances ESS Tech Inc (NYSE:GWH.WS)’s technological capabilities and patent coverage in the iron flow space.
The company has a strengthened balance sheet, having closed a $40 million financing transaction and a $15 million registered direct offering, improving its liquidity position.
Revenue for 2025 was $1.6 million, a significant decrease from $6.3 million in 2024, reflecting a transition away from legacy product lines.
Gross loss for the year was $27.7 million, although improved, it still indicates financial challenges.
The company anticipates that significant revenue from new projects will not be realized until 2027 and 2028, indicating a delay in revenue generation.
ESS Tech Inc (NYSE:GWH.WS) has ongoing capital needs to support its plans for 2027 and beyond, suggesting potential future financial constraints.
The departure of the Chief Operating Officer and the interim appointment of a new COO may indicate potential instability in leadership.
Q: The press release indicates that you’re anticipating delivery for key projects to start in 2027. How should we think about the revenue ramp-up associated with these projects? Could we see any revenue in 2026, or is it more likely in 2027? Also, should we anticipate any legacy unit sales in 2026? A: Drew Buckley, CEO: Our focus for 2026 will be on commercializing the new product, the energy base, for delivery in 2027 and 2028. These customers represent significant revenue potential, much higher than what we’ve achieved since 2021. We expect most revenues to come in 2027 and 2028, with a pragmatic approach in 2026 to ensure high-quality product delivery.
Q: Can you provide an update on the ownership structure for the Salt River Project? Are you intending to retain ownership, and when would recurring revenue start? A: Drew Buckley, CEO: We are still in the planning phase for the Salt River Project. The agreement is a 10-year PPA, and we would start recognizing revenues in 2028. We are exploring options to potentially make it more of an equipment sale, but no concrete updates are available yet.
