管理層發言
Good morning, and welcome to Eos Energy Enterprises' Second Quarter 2025 Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to such recording. With that, I would like to turn the call over to Liz Higley, Head of Investor Relations.
Good morning, everyone, and welcome to Eos' Second Quarter 2025 Conference Call. Today, I'm joined by Eos CEO, Joseph Mastrangelo; and CCO and Interim CFO, Nathan Kroeker. This call, including the Q&A portion, may include forward-looking statements, including, but not limited to, current expectations for future results and outlook for our company. Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our expectations or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update these statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.
Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to U.S. GAAP financial information, is provided in the press release. Non-GAAP information should be considered supplemental and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. This conference call will be available for replay via webcast through Eos' Investor Relations website at investors.eose.com. Joe and Nathan will walk you through our business outlook and financial results before we proceed to Q&A. With that, I'll now turn the call over to Eos CEO, Joseph Mastrangelo.
Thanks, Liz. Welcome, everyone, to the 2Q earnings call. I want to start off with our operating highlights page. Nathan will walk through the details of the numbers on the page. I want to talk about a couple of themes. Last month, I was able to attend the Pennsylvania Energy and Innovation Summit hosted by Senator McCormick and attended by the President. It was a great two days that we had here. What it proved to me is that energy is at the forefront of everything we want to do as a country to grow, and Eos plays a very important role in how we position the United States for its energy future. A modern grid is going to require bulk stationary storage. It eases congestion. The easiest way to think about congestion is when there are too many electrons trying to get onto the grid and not enough getting off the grid. So we can take those, park them in our system, and put them back on to better match supply and demand curves in the market.
One of the most important things I've learned through my 35-year career in the energy industry is that every electron counts; any efficiency you can bring to the system makes it more robust and allows you to avoid costly new investments. And that’s what curtailment is about. Curtailment is when you take existing generating assets and stop them from operating because you can't put them on the grid. Again, an Eos solution, stand-alone energy storage, allows you to keep running those assets, putting the electrons in a parking lot, if you will, and then putting them back on the grid. So think of the grid like a highway: when there's a lot of traffic and you can't get onto that on-ramp, park in your Eos energy storage system. When it frees up, and one of the exit ramps wants power, we'll put it back on that highway and get it delivered cost-effectively to the people that use it. The other piece that I would say on the Summit is really, you saw the strength of the company being in Pittsburgh.
This ecosystem of technology and the ability to manufacture the infrastructure around universities allows us to build a great company. What you saw in Q2, I'll get into some more details, is we had record revenue, 122% higher quarter-over-quarter shipments, a great performance by the operating team here. I'll go into some details in a couple of pages, but I’m really proud of our ability to scale the enterprise. When you think about that 122% increase in shipments, it was with the same processes and labor that we had in the first quarter. The team is finding ways to do things better, bringing efficiency into our operations every day and getting better output and throughput over the assets that we have. We're continuing to scale operations. I will talk about the ramp in bringing on subassemblies, unlocking the full capacity of our state-of-the-art manufacturing line. At the same time, we announced signing and ordering our second line as we start to position the company for the growth that we see flowing through the pipeline.
What I would say before we move to the next page is regarding the pipeline and orders backlog, things are moving. The operating dials and the steps we work through with customers to get to an order are progressing. There was a little bit of a pause here as the OBB was approved, and I think we’re seeing now an acceleration. That acceleration was no more evident than what we saw here in Pittsburgh back at Senator McCormick's Energy and Innovation Summit. I think Nathan will walk through the progress he’s making, but we see projects evolving. We see big hyperscalers and developers coming to Eos because of the things we've been working on for the last seven years: developing an American supply chain and coming up with a cost-effective, reliable, and safe solution. Our systems are designed for resilience. I've mentioned our leadership team and my own background in the oil and gas industry and traditional fossil generation.
My experience has taught me that the grid needs strong solutions that can withstand tough conditions and unexpected challenges. This testing begins at our Edison proving ground, where we evaluate our technology beyond real-world operating conditions. Recently, we've been testing the Z3 and have improved its energy output by 40% since its launch, with a clear plan to enhance its energy efficiency and related software further. When we analyze our financials, you'll notice our investment in R&D is focused on improving this product and integrating the necessary software to meet our customers' operational needs. Additionally, we conduct stress tests on this product. At our Edison facility, we experienced an overcharge during testing, leading to smoldering plastic. We took over 1,000 air quality measurements during this event to demonstrate to customers that, even in case of issues—which are inevitable—our product is safe and non-toxic for residential or job site use.
All measurements were clear of hazardous readings, and our operations in Edison, New Jersey, remained open. We collaborated with the local fire department to extinguish the smoldering, and later tested the used water, finding it just as clean as when it was applied to the cube. This event affirmed our testing methods’ validity and the importance of our proving ground. You may have also heard about a cube that ended up on the highway during a delivery, but thankfully, nothing significant occurred. It was an accident, and within an hour, we retrieved the cube and were able to bring the battery modules back to Edison, where they functioned as if they were new. This incident showcased our durable and safe solution—also recyclable. Everything within the cube was extracted and properly recycled, demonstrating our product's sustainability. Currently, we have Z3 installations operating in the field, consistently achieving between 87% to 89% round-trip efficiency on sub-4-hour discharge cycles.
While Eos has been known for longer-duration technology, we are learning from the Z3 and its software that we can attain better performance. The shorter cycles we are running for a customer show that our round-trip efficiency matches that of other market technologies. When comparing efficiencies, remember to account for the HVAC running costs of other technologies, which we don’t have. We’ve achieved a peak of 89.5% round-trip efficiency on a 4-hour discharge cycle, aligning with competitor technologies. Thus, we present a unique value proposition: if you want a battery made in the U.S. with a domestic supply chain that has undergone thorough testing and is in the field demonstrating safety, we can offer that. In case of an accident, the situation can be managed without complications. Operating our technology provides flexibility and better performance than other options available. This compelling offer is what we actively promote to customers, which is driving our robust pipeline growth.
Now if we move to the next page, I want to discuss our quarterly results. I want to take a step back to really think of a company you're building for the long term. Over these 13-week increments, sometimes you lose sight of the actual trends that are happening in the business. This page compares the second half of last year to the first half of this year. You can see 3x revenue growth and 4x factory shipments. Nathan will cover why there's a disconnect between revenue and shipments. We did ship what I call a very important strategic project at a lower price point. If you factor in the average price from our backlog on those shipments, our sales would top $20 million for the quarter. However, the project we are installing is vital for us to validate the technology and demonstrate that the capabilities I discussed earlier work out in the field with a blue-chip operator. Looking at gross margins, we've talked about getting more volume over the asset base, and the margins will come.
It's clear that as the team achieves more throughput through the factory, gross margins improve. We're transitioning to cash flow positive cubes as we reach the fourth quarter. This is exciting for us. We built a facility capable of 2 gigawatt hours of production, and as we bring our subassembly automation online, we’ll be approaching that capacity by year-end. You’ll see the company delivering positive gross margins on the product that goes into the field. When analyzing adjusted EBITDA, the improvement aligns with gross margin, but it's actually better because we’re gaining leverage over the base costs. We’ve implemented scaling in various areas to manage our business; this scaling will prove sustainable when considering functions like finance and legal, which are necessary for running a public company. As we introduce operating systems to better run company processes, we’ll have a team that's experienced in navigating through the growing pains of scaling the company, and that will increase our efficiency as we expand.
Most importantly, we’re investing in core functions that improve the business operation, including the sales team to grow the backlog and engineering resources to enhance efficiency on the factory floor, thus reducing product costs. These investments are reflected in the operating costs in our model. We’re generating 2x operating leverage concerning adjusted EBITDA versus gross margins. We’ll continue ramping the business, and I want to point out how we’re progressing. You see pictures of the new subassembly stations that have been installed. We will have two of those stations operational with a target of having all stations running by the fourth quarter. That speeds up production of this product; not only does it boost throughput, but we’re also achieving better quality output. Building on the semi-automated line introduces human variation; we’re eliminating that variation, and we’re seeing parts coming off that line with a higher process capability than before, along with a 64% improvement in overall part flatness.
Part flatness is important for consistent performance from the battery. We're observing more than a 3% boost in energy efficiency just from having part consistency produced on the line. We've been thoughtful about this as we’ve implemented the equipment because we didn’t want to introduce parts that didn't meet quality goals and resulted in excessive scrap and rework. We're thrilled with the equipment's performance, and we’re ramping up production as we progress throughout the summer to capacity, delivering on our revenue range for 2025. With that, I'll turn it over to Nathan to walk through a couple of pages and then come back for Q&A. Thanks for listening.
Thanks, Joe, and good morning, everyone. Echoing what Joe said, we're gaining momentum in the second quarter with much to look forward to in the back half of the year. First, I wanted to touch on the One Big Beautiful Bill Act and its impact on Eos and the broader long-duration energy storage market as we see it. At a high level, the bill was extremely positive for us. It completely preserves the Section 45X production tax credits with full stackability and transferability through 2029. Just to remind you, we can generate over $90 million on each one of our manufacturing lines annually when we run them at capacity. This is a direct result of all the hard work we’ve done over the last seven years to localize our supply chain and build an American manufacturing company. Continued stackability means we qualify for the full $45 per kilowatt hour for our batteries and the 10% credit for the electrode active materials.
Ongoing transferability means we can continue to monetize these credits as they are generated. The good news is we're seeing higher bids on larger volumes of credits, indicating we should get smaller discounts than the 10% we've done on initial transactions. We have generated $14.3 million in credits since they took effect, collecting $6.3 million in cash so far, and we expect to sell first-half 2025 credits later this year. Now shifting our focus to our customers on the ITC side. While customers with wind and solar projects saw eligibility dates pulled forward compared to previous legislation, energy storage was explicitly excluded from these changes. We'll detail the pipeline later, but I want to highlight that most of our renewable coupled projects are scheduled to come online in the next 30 months and we haven't seen a meaningful impact from this change yet. Additionally, the FIAC language in the bill is a tailwind that creates new demand for our American-made products as we source, manufacture, and procure more than 90% of our materials domestically.
Overall, we view the bill's passage as a significant reference on American-made energy storage systems to meet the country's growing demand for energy. Moving to our commercial pipeline. Since our last update, we've made important advancements across our commercial business. An emerging theme is the increasing scale and sophistication of opportunities, particularly with large counterparties. Q2 marked a strong growth period. We ended the quarter with opportunities valued at $18.8 billion, representing 77 gigawatt hours, a 37% year-over-year increase and a 21% improvement quarter-over-quarter as we added $3.2 billion. Notably, we saw a 15% quarter-over-quarter increase in 8-plus hour projects, affirming our claims over the past few quarters: market fundamentals are shifting, and demand is rising for longer duration solutions. While many of our initial projects were co-located with generation, 50% of our pipeline now features stand-alone storage projects, reinforcing the requirement for storage on existing electricity grid infrastructure.
One of the more exciting developments is the rapid emergence of data centers. They are one of the fastest-growing opportunities for us, composing over 20% of our pipeline today. How you need to think about this is in two main ways. The first is direct demand from developers constructing fully integrated data center campuses. These projects combine multiple generation sources with our storage solutions to deliver reliable power. This reduces the time to power and can serve as a bridge to interconnection, accelerating revenue generation, reducing peak demand charges, and mitigating long-term reliance on traditional grid infrastructure. The second is indirect demand, where developers are building generation plus storage projects in utility areas that serve data centers. In this context, data center operators are supporting additional capacity in the grid to offset their energy consumption, thereby optimizing their total energy costs and maximizing renewable credit capture.
Last quarter, we announced a 750-megawatt-hour MOU with a developer, which serves as a very good example of an indirect project. We've advanced this initiative and are finalizing contract terms for our first 10-hour project supporting a well-known hyperscaler in the PJM service territory. We’ve also made significant progress with several other MOUs discussed last quarter. In April, we signed a 5-gigawatt-hour MOU with Frontier Power to deliver projects across the U.K. through entries in Ofgem's cap and floor program. Frontier has submitted over 10 gigawatt hours of storage projects using Eos technology, more than double the original MOU, reflecting their confidence in our technology. Importantly, the cap and floor requires eligible technologies to deliver a minimum of 8-hour discharge, aligning closely with our capabilities. Furthermore, we’re co-developing a larger pipeline with Frontier, targeting data center growth in Europe and long-duration storage needs in the Asia Pacific region.
We continue to expand our presence in Puerto Rico and have identified further storage projects we’re pursuing on the island with a local developer. This list of projects should significantly increase the current 400-megawatt hours under MOU. Transitioning to our backlog, we ended Q2 with a backlog of $672 million, representing 2.6 gigawatt hours of storage. During the quarter, we delivered over $15 million in revenue and booked two strategically important orders. The first was with a large regulated utility in the Southeast for a microgrid project supporting two schools in Florida. The second was a repeat order with an existing customer for a renewable energy microgrid on California tribal land. As many of you know, the industry has focused on the final outcome of the big beautiful bill over the first half of this year. We encountered several months of customer uncertainty while they awaited the final language.
With that uncertainty behind us, we feel optimistic about the increased activity we’re witnessing on a number of large projects because customers are contacting us as they navigate these new requirements. This shift toward larger project opportunities means we collaborate with more stakeholders, including developers, offtakers, project finance investors, lenders, and technical experts, which can slightly extend the time to order. While we saw a modest decrease in backlog from the prior quarter due to the factors we've discussed, strong demand signals are in front of us. As we bring customers to the factory for an up-close view of our manufacturing expansion, along with our latest Z3 field data, we’ve enhanced our ability to demonstrate our delivery capacity. With the recent positive momentum, I’m confident we’ll announce larger orders soon. Strategically, we’re working to make Eos the preferred solution for grid resiliency and sustainability globally.
Along these lines, we’ve significantly enhanced our competitive positioning by teaming up with a major developer and engineering firm to design an indoor racking solution that capitalizes on our safety and nonflammability, enabling us to reduce spacing requirements of indoor systems. As a result, this configuration can achieve over 1 gigawatt hour per acre in site density, three to four times greater than traditional industry layouts, which improves our competitiveness in space-constrained environments. This represents a significant advancement in providing high-density storage. Turning to our financials for the quarter. Before addressing the numbers, I want to highlight a few key themes from last quarter. Number one, revenue is up on greater volume. Number two, delivered volumes outpaced revenue, driven by lower pricing on a single project. Number three, margins improved as we scaled more volume through the factory, covering our fixed costs.
In Q2, we generated record quarterly revenue of $15.2 million, a 46% increase from Q1, alongside a 122% increase in shipments. This amount matches our total revenue for the full year of 2024, illustrating the scalability of our operations. As forecasted on our last call, Q2 revenue was impacted by lower selling prices since 50% of production volume was directed to a single strategic customer. While this project affected near-term revenue and margins, we see it as a significant growth catalyst. To clarify, we’ve been collaborating closely with this customer to design a cube featuring simplified field installation and commissioning. Our first installation of this improved design achieved truck-to-pad times of 25 minutes and cube-to-cube connection times of 30 minutes. Each follow-up project has shown improvement in these metrics. From the customer's perspective, this translates to reduced time and costs involved in bringing projects online in the field.
Our gross loss recorded was $31 million, reflecting a 32-point improvement in margins from the prior quarter, mainly supported by increased production volumes through the factory. Operating expenses totaled $32.9 million. Excluding $5.4 million in isolated one-time items, operating expenses declined quarter-over-quarter. While OpEx increased year-over-year, approximately 28% of this increase stems from non-cash items like stock-based compensation. The remaining increase relates to strategic headcount additions to build the necessary resources to scale this business. We’re also investing in software capabilities to position ourselves as a leading software enterprise and expanding our sales force to support our significant growth forecast. Net loss for the quarter was $222.9 million, which includes non-cash fair value adjustments related to mark-to-market because of the 35% increase in our stock price as of June 30.
These mark-to-market adjustments will continue to generate volatility below the line and are driven by changes in our stock price. The adjusted EBITDA loss was $51.6 million, reflecting a 75-point margin increase driven by the improvements I’ve discussed regarding volumes, partially offset by lower selling prices. Even though pricing for a single project weighed on Q2 results, we have a clear glimpse towards healthier unit economics as we deliver projects that are more aligned with our average backlog pricing, while additionally leveraging labor and overhead efficiencies through enhanced manufacturing throughput. With these two improvements, we anticipate achieving a positive contribution margin in the fourth quarter and exiting the first quarter of 2026 with positive gross margins. With $26 million in revenue booked for the first half of 2025, we see a clear pathway to our full-year revenue target of $150 million to $190 million.
We acknowledge this demands a substantial increase in the second half, but a significant uptick in production capacity is expected as subassembly automation fully comes online, as discussed by Joe. Now moving on to our capital structure. Since joining the company in 2023, I have been tirelessly securing the capital needed to expand our manufacturing operations and guide the business to profitability. This culminated in two highly successful transactions in the second quarter that decreased our cost of capital, simplified our balance sheet, and enhanced our cash position. In June, we raised $336 million with robust institutional participation on two offerings that were both oversubscribed. Collaborating with our existing lenders, we executed a highly effective transaction, utilizing the proceeds to refinance a significant out-of-the-money convertible note due next June. We've additionally received a $5 million rebate post-closing in line with our agreement terms.
Furthermore, we’ve prepaid $50 million on the Cerberus term loan, leading to a reduction in interest rates from 15% to 7%, deferred financial covenants to March 2027, and extended the lock-up period by an additional year, further aligning long-term shareholder and strategic partner interests. Finally, we've bolstered our balance sheet, concluding the quarter with $183 million in total cash. This overall transaction is projected to yield about $400 million in total interest savings throughout the term of the company’s debt. In addition to these transactions, we've made progress in other areas of the capital stack. Post-quarter end, we announced we received our second loan advance of $22.7 million from the Department of Energy. This advance has allowed us to draw the maximum amount from the first tranche related to our initial manufacturing line, and we expect to request another draw on the second tranche before year-end as we continue expanding our manufacturing capacity and developing Line 2.
Yesterday, we also announced an amendment to our 26.5% convertible notes, with maturities extended to September 30, 2034, and interest rates reduced to 7% effective June 2026. The amended notes include redemption terms permitting optional pro-rata conversions, excluding associated holders, and we expect to redeem about 85% of these notes in Q3. The combination of strategic equity and debt refinancing, along with ongoing DOE support, has significantly strengthened our balance sheet to sustain the burgeoning scale of domestic battery manufacturing. For me personally, I see this as mission accomplished. Before moving into Q&A, let’s revisit our final cash performance milestone under the Cerberus term loan. Due to Cerberus' confidence in the opportunities before us, combined with the efficiencies we’re seeing in project execution, they’ve granted us an additional no-penalty extension through October 31, 2025, allowing time to realize this growth. With that, I want to thank everybody for joining us today, and I’ll turn the call over for questions.
Thanks, Nathan. Before we transition to our sell-side analysts for questions, I’d like to — Nathan and I will answer the top four questions that came in through Say Technologies from our retail base. I will start with two questions, then Nathan will wrap up with the last two before moving on to sell-side questions. First question: When is Line 2 expected to be fully operational? Will this include the subassembly line? Yes, we're forecasting Line 2 to come online in the first half of next year. It will share some subassembly capacity that we have for Line 1, and we'll eventually expand the subassembly capacity as we ramp up capacity on Line 2. Regarding lessons learned from Line 1: Are those improvements resulting in meaningful changes to line design, throughput, or cost? As we look at Line 2, it will be a straight line design where materials will enter from one side, and finished cubes will exit from the other.
This design enhances total throughput and efficiency. We’ve learned a great deal from operating Line 1 over the past year, and we’re incorporating design changes to ensure better quality, reliability, and availability of the line, while improving throughput. Second question: As mentioned in the Q4 2024 earnings call in March 2025, eight states were bidding for Factory 2.0. What is the current status of finalizing the site for Factory 2.0? We’re still negotiating with multiple states and won’t publicize those negotiations. We've had tremendous interest from people wanting to host a facility like Eos. We're working through obtaining the right facility with a long-term landlord for a solid partnership. As we navigate these discussions, we need to consider not just at the state level, but also county and city levels to get the best positioning for workforce cost, ensuring a long-term partnership aligned with Eos. We’re pleased with our progress and will update you when we have news.
For the next question: Last quarter, tax uncertainty delayed deals. Post-BBB law, how have customer timelines shifted? Are there major barriers still preventing deal commitments? We observed delays as customers navigated uncertainty before final language adoption. Now that that uncertainty is resolved, we’re seeing customers eager to move quickly to ensure their projects are placed in service. If we have co-located storage with those projects, it can accelerate timelines. As we discuss larger deals, we receive a lot of calls from customers looking for alternatives due to restrictions. However, this process takes time as there are multiple stakeholders to work through. Bringing customers in for factory tours and showcasing our scaling efforts builds confidence and helps drive deals forward. Our confidence is high. For my final question: As Eos scales, how is it building a partner ecosystem across integrators, developers, and channels for broader adoption?
We discussed this in the commercial section earlier, emphasizing the MOUs and expanding relationships we’re observing in the marketplace. However, I would like to highlight our focus on developing strategic relationships for project commissioning and effective execution in the field. Finding the right partners, whether integrators or equipment suppliers, is key, especially in complex project sites that feature numerous components. We aim to ensure we've established preferred technologies and partners and conduct simulations before agreeing to utilize any given technology, ensuring we can present customers with proven technologies for seamless executions.
分析師問答
As a reminder, we now welcome questions from sell-side analysts.
Two things for me. The first is regarding the bridge to second-half revenue. You did a good job discussing production growth versus revenue growth in the second quarter. Can you offer insight into the transition for revenue? Additionally, any insight on expectations for Q3 would be helpful, too.
When you analyze the quarters, from Q4 to Q1, Q1 to Q2, we've been doubling production quarter-over-quarter for the last nine months. If we double production again, we will be in the middle of our guidance range. That gives us confidence. It’s important to note that we achieved this production doubling without any change in our production processes, supply chain, or headcount. As production increases, margin rates will improve. We aim to maintain this trend as the year progresses.
The other question regards incremental production lines. How do you balance order flow and visibility on order flow with expansion?
The customers Nathan discussed are expressing interest and seeking more. Thus, Line 2 has been engineered with anticipated demand in mind. Initially, I was conservative with investments, seeking backlogs. As we analyze the size of these projects, we must be prepared and ensure that capacity is ready when orders come in; hence, why we proceeded to order Line 2. We’re checking the timing based on orders.
Congratulations on your accomplishments. I want to ask about the significant improvement in round-trip efficiency. Can you quantify the improvements in terms of LCOE or IRR for customers?
Yes, we're in the process of working with customers on an individual project basis for those efficiencies. These improvements between reduced commissioning costs and performance enhancements should translate into a few percentage points on IRR for a typical project. Each project is unique, but these enhancements significantly influence upfront CapEx.
I'd like to inquire about Line 2 and ramp-up time. You shared that it will share some assembly automation with Line 1. Can you talk about the time needed to reach the full 2 gigawatt hours annual capacity with the second line?
We intend to gain knowledge from bringing in subassemblies. We will initially share subassemblies and then expand. This is also influenced by the necessary capital allocated based on customer demand. As orders come in, that may accelerate or slow the process. I don't have a specific date but we are aiming for a ramp-up in the first half of next year.
What should we be aware of concerning items on the customer side or other factors that are somewhat out of your control that may impact second-half sales?
I think we’ve covered many aspects of that on the call. The uncertainty from the bill has reduced, and many customers are eager to move forward. We’re witnessing an increase in communication from our customers regarding project timelines. We’re working on numerous large opportunities – it's a project-by-project process, where we need to coordinate closely with customers to navigate their financing and timelines. Additionally, service revenue rose to over $1 million in Q2. How should we consider this part of the business, both in the near term and long term as installations scale? Service revenue currently aligns with our commissioning efforts and balance of plant equipment. As our asset portfolio in the field expands, we anticipate increased long-term service revenue stemming from legacy projects. This will evolve to be a larger percentage of the total revenue mix over time as we build a larger installed base.
A couple of questions: Was the majority of the revenue from the strategic customer project attributed to Q2, or does it extend into Q3?
No, the majority was in Q2. We’ve mentioned this on previous calls. A substantial portion of revenue is recognized at delivery time, with a portion related to final commissioning. Most revenue was recognized when the project was shipped, and it’s now operational.
Given the increased capacity in Pittsburgh, how should we perceive the typical lag time from order to delivery? What's your quoting timeline like, and how does this connect to backlog estimation?
We align with the customer and their delivery windows. In some cases, customers exhibit flexibility, and we can deliver to a storage yard while they prepare their sites. We work on matching capacity to delivery windows and have agreed-upon delivery timings when we sign orders. From a quoting perspective, it mirrors booking seats on an airplane. We collaborate to match customer delivery needs, and we've engineered our systems to allow for that flexibility, accommodating our single SKU model.
I'm showing no further questions in the queue at this time. I'd like to turn the call back over to Joe for closing remarks.
Thanks, everyone. Thank you for your attention and the questions from both retail and sell-side analysts. Reflecting on the past nine months, our operational team has successfully doubled output in the factory over the previous three quarters and continues to double. We're solidly aligned with our revenue guidance and focused on that path forward. Nathan has been clear about the advancement of our pipeline and working closely with customers to finalize orders that will convert to revenue. We’ll keep everyone updated as we proceed with capacity expansion. Overall, I’m excited to see product rolling off the automated subassemblies that are of higher quality and deliver better performance. We will continue iterating not just the physical product but also the software to provide customers with the performance they need for powering America's energy future. Thanks for joining us.
Thank you. This concludes today's conference call. Thank you for attending. You may all disconnect.