Gold prices bounce off 3-week lows; demand likely longer term
WILSONVILLE, Ore. - ESS Tech, Inc. (NYSE:GWH), a prominent manufacturer of long-duration energy storage systems, has announced the successful acquisition of capital to maintain its Wilsonville facility’s operations. The company, facing potential workforce reductions in the absence of funding, has managed to secure unexpected capital that allows it to continue its operations, albeit with cost management measures in place. According to InvestingPro data, while ESS Tech holds more cash than debt on its balance sheet, the company has been quickly burning through its resources, with an EBITDA of -$83.4 million in the last twelve months.
Interim CEO Kelly Goodman expressed satisfaction with this development, emphasizing the company’s focus on delivering its scalable Energy Base solution. This product is designed to meet the increasing demand for energy and the need for a reliable and resilient grid. While analysts anticipate sales growth for the current year, InvestingPro analysis reveals the company faces challenges with weak gross profit margins and is not expected to achieve profitability this year.
In line with its strategic plan, ESS has completed the sale of four Energy Warehouses, moving existing inventory and shifting towards the Energy Base product. The company also plans to sell Production Tax Credits (PTC) associated with these sales within the current quarter. Efforts to secure further financing are ongoing, with discussions with potential capital providers aimed at supporting the business plan and closing critical contracts for its proprietary Energy Base product.
Founded in 2011, ESS aims to facilitate the transition to renewable energy by providing long-duration storage solutions that are essential for grid reliability when renewable sources are intermittent. The company’s technology, which utilizes iron, salt, and water, is environmentally friendly and can deliver up to 12 hours of energy capacity for various applications.
While ESS has expressed optimism about its future operations and collaborations, the company’s forward-looking statements are subject to various risks and uncertainties. These include the potential inability to sell its Production Tax Credits, raise additional capital, and the risk that partnerships may not yield expected benefits. The company’s recent filings with the U.S. Securities and Exchange Commission, including its Quarterly Report on Form 10-Q filed on May 15, 2025, detail these risks and uncertainties.
This update is based on a press release statement from ESS Tech, Inc., which continues to explore all available options to strengthen its financial position and execute its strategic initiatives. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 15+ additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report, helping investors make more informed decisions about this evolving energy storage company.
In other recent news, ESS Tech, Inc. reported steady revenue for the first quarter of 2025, maintaining $600,000 in earnings, primarily from equipment sales. Despite stable revenue, the company is grappling with significant financial challenges, including a negative adjusted EBITDA of $15 million. The company is actively seeking financing to prevent a potential shutdown, as highlighted in a recent announcement regarding difficulties in securing necessary capital. ESS Tech is currently in contract negotiations with a major U.S. utility and remains hopeful about finalizing these agreements to ensure continued operations.
Additionally, ESS Tech is focusing on launching new energy-based products and has secured a 50 MWh pilot project in Arizona, which could lead to further opportunities. The company is also working to reduce its costs and improve its products’ performance and durability. In terms of strategic partnerships, ESS Tech continues to collaborate with Honeywell and others to drive its growth initiatives. Meanwhile, the company is exploring various financing options, including discussions with strategic partners and investors, to bolster its financial position and support its business plans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.