GICS Sector : Industrials
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide.It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution.The company was founded in 2011 and is headquartered in Wilsonville, Oregon. Show Full description
ESS Tech’s fourth‑quarter and full‑year 2025 results reflected a sharp decline in gross losses and a notable improvement in operating efficiency. Revenue fell to $1.6 million from $6.3 million in 2024, yet gross loss shrank 39% to $27.7 million, while operating expenses dropped 33% to $29.7 million, largely due to a $3.5 million reduction in R&D spend. Adjusted EBITDA rose 38% to $44.3 million, a turnaround that helped push the diluted EPS to a loss of $1.97 versus the consensus estimate of $0.76 (Buckley, 2025 Q4). The company’s valuation reflects these metrics: a negative P/E of –0.36 and a low EV/EBITDA of –0.07, indicating that investors price in continued losses as the firm scales its manufacturing and commercializes the Energy Base in 2026.
Publication Date: Apr -17
ESS has executed a comprehensive restructuring plan that has trimmed operating expenses by a third, enabling a leaner cost structure. The company’s CFO highlighted a $9.9 million contract with Concurrent Technologies and a 5‑MW/50‑MWh system for Salt River Project’s Copper Crossing Energy and Research Center, illustrating tangible revenue streams that will offset the current loss profile once the Energy Base reaches commercial scale.
The firm now boasts a Tier‑1 pipeline featuring Salt River Project, Google, and the U.S. Air Force. A ten‑year PPA with Salt River Project, slated to generate revenue in 2028, and a $9.9 million contract with Concurrent Technologies underscore the growing traction of ESS’s long‑duration iron flow technology across utility, data‑center, and defense markets.
ESS’s balance sheet has strengthened, with $14.5 million in unrestricted cash and $7.5 million in other liquid assets, and a net debt/EBITDA of 0.21. The company’s low leverage and cash reserves position it to fund ongoing R&D and the 2026 commercialization push without immediate debt financing, while the negative free‑cash‑flow yield of –502.62% reflects current investment in future capacity.
Looking ahead, ESS plans to commence Energy Base deliveries in 2027, with full commercial operations anticipated in 2026. The company’s valuation metrics, including a P/S of 9.07 and a P/B of 2.64, suggest that the market is pricing in the high growth potential of the next decade, despite the current operating losses and negative ROIC of –201.34%. As the firm scales manufacturing and secures additional Tier‑1 customers, the path to profitability appears increasingly attainable, contingent on the successful rollout of its flagship product and the realization of the long‑term PPA agreements.
ESS to Host First Quarter 2026 Financial Results Conference Call on Thursday, May 7, 2026 at 5:00 p.m. Eastern Time
Apr -23
ESS Engages MZ Group to Lead Strategic Investor Relations and Shareholder Communications Program
Apr -09
ESS Tech (GWH) to Release Earnings on Monday
Mar -23
ESS to Attend the 38th Annual ROTH Conference
Mar -10
ESS Tech Q4 Earnings Call Highlights
Mar -06
ESS Tech, Inc. (GWH) Q4 2025 Earnings Call Transcript
Mar -05
ESS Announces Fourth Quarter and Full Year 2025 Financial Results
Mar -05
ESS Announces Agreement to Join Salt River Project and Google Long Duration Energy Storage Collaboration
Mar -03
ESS Tech, Inc.'s 14.07% growth in Energy Storage Systems is driven by increasing adoption of renewable energy sources, declining battery costs, and growing demand for grid resilience and backup power solutions. Additionally, government incentives and policies supporting clean energy transition, and rising concerns over climate change and energy security, contribute to the segment's rapid expansion.
ESS Tech, Inc.'s 10.47% growth is driven by increasing adoption of its lithium-ion batteries in renewable energy systems, rising demand for energy storage solutions, and strategic partnerships with key industry players. Additionally, the company's focus on research and development has led to improved product efficiency, further boosting sales.
ESS Tech, Inc.'s 9.9% growth in Engineering Services is driven by increasing demand for electric vehicle (EV) and renewable energy solutions, leveraging its expertise in battery management systems and energy storage. Additionally, the company's expansion into new markets, strategic partnerships, and investments in research and development are contributing to its growth momentum.
ESS Tech's BMS is a comprehensive solution for managing and monitoring battery performance, ensuring safe and efficient operation of energy storage systems.
ESS Tech's PCS is a high-efficiency power conversion solution for energy storage systems, providing reliable and efficient power conversion.
ESS Tech's ESS is a modular, scalable energy storage solution for grid-scale, commercial, and residential applications.
ESS Tech's Grid Services provide advanced grid management capabilities, enabling utilities and grid operators to optimize grid performance and stability.
ESS Tech's Microgrid Solutions provide reliable, resilient, and efficient energy systems for remote communities, military bases, and critical infrastructure.
ESS Tech, Inc. faces moderate threat from substitutes due to the presence of alternative energy storage solutions.
ESS Tech, Inc. has a high bargaining power of customers due to the concentration of large customers in the industry.
ESS Tech, Inc. has a low bargaining power of suppliers due to the availability of multiple suppliers in the market.
ESS Tech, Inc. faces moderate threat from new entrants due to the presence of barriers to entry and high capital requirements.
ESS Tech, Inc. operates in a highly competitive industry with intense rivalry among existing players.
| Value | |
|---|---|
| Debt Weight | 2.40% |
| Debt Cost | 3.95% |
| Equity Weight | 97.60% |
| Equity Cost | 11.50% |
| WACC | 11.31% |
| Leverage | 2.46% |
Value: 5.7
Growth: 5.6
Quality: 3.3
Yield: 0.0
Momentum: 10.0
Volatility: 0.7
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Value: 6.0
Growth: 3.2
Quality: 3.6
Yield: 0.0
Momentum: 10.0
Volatility: 0.7
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Value: 8.4
Growth: 7.3
Quality: 3.6
Yield: 0.0
Momentum: 0.5
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Value: 7.9
Growth: 1.2
Quality: 3.4
Yield: 0.0
Momentum: 4.5
Volatility: 0.3
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Value: 9.8
Growth: 3.3
Quality: 4.0
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Value: 6.9
Growth: 4.1
Quality: 3.4
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
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