SES AI (NYSE:SES) Issues Quarterly Earnings Results

Key Points

• SES AI’s quarterly loss per share was $0.03, beating analysts’ $0.04 loss estimate, while revenue of $6.64 million fell slightly short of the $6.70 million consensus.
• The company reiterated its 2026 revenue guidance of $30 million to $35 million and said its Korea plant is producing NDAA-compliant drone cells, with annual capacity targeted to rise from 1 million to 3 million by Q2 2027.
• Gross margin dropped to 4.9% from 22.6% in the prior quarter as SES discounted older energy-storage inventory. It ended the quarter with about $137 million in liquidity and no debt.

SES AI (NYSE:SES - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.01, FiscalAI reports. The firm had revenue of $6.64 million for the quarter, compared to analyst estimates of $6.70 million. SES AI had a negative return on equity of 26.21% and a negative net margin of 289.64%.

Here are the key takeaways from SES AI's conference call:

• SES completed the ramp to 1 million NDAA-compliant drone cells of annual capacity at its Korea plant, which is now producing and delivering cells. The company says it has orders from several Drone Dominance Program participants and plans to expand capacity to 3 million cells by Q2 2027.
• Management reiterated 2026 revenue guidance of $30 million to $35 million, citing seasonal strength in energy storage and expected drone deliveries. It said drone orders began arriving in October and November, though the outlook implies a substantial Q4 revenue step-up.
• Q3 gross margin fell to 4.9% from 22.6% in Q2, primarily because SES discounted older energy-storage inventory during a product transition. Management said it expects to continue clearing that inventory at lower prices, which could weigh on margins.
• SES reported Q3 revenue of $6.6 million, up 31% sequentially, and a narrower net loss of $13.4 million versus $17.9 million in Q2. It ended the quarter with approximately $137 million in liquidity and no debt, although it used $16.5 million in net cash excluding its share repurchase.
• Molecular Universe 4.0 is being evaluated by two major battery manufacturers, with SES hoping to sell its integrated M-Lab systems in coming quarters. Commercial sales remain prospective; the platform combines modeling with autonomous lab data and runs on customers’ premises.

SES AI Trading Down 34.9%

SES AI stock traded down $0.31 during midday trading on Thursday, reaching $0.59. The stock had a trading volume of 40,275,195 shares, compared to its average volume of 23,792,348. The company has a fifty day moving average price of $0.70 and a two-hundred day moving average price of $0.98. SES AI has a 12 month low of $0.49 and a 12 month high of $2.62. The company has a market capitalization of $217.58 million, a P/E ratio of -2.93 and a beta of 0.98.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Deutsche Bank set a $1.10 price objective on shares of SES AI in a research note on Wednesday, August 12th. Weiss Ratings raised shares of SES AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, October 21st. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, SES AI currently has an average rating of "Hold" and an average target price of $1.10.

About SES AI

SES AI Corporation develops rechargeable lithium-metal batteries and artificial intelligence tools for battery development and management. Its work includes designing battery cells and materials intended to support applications that require high energy density, including electric vehicles and aviation. The company also develops its Molecular Universe platform, which uses AI and computational methods to identify and evaluate battery materials. SES AI applies its technology to battery discovery, cell development, safety monitoring and performance analysis.

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