Solid Power (NASDAQ:SLDP) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Solid Power beat earnings expectations, reporting a quarterly loss of $0.11 per share versus the consensus estimate of a $0.12 loss. However, revenue was negative $0.27 million, well below the $1.55 million estimate, following a noncash reversal related to SK On milestone payments.
• The company said its electrolyte manufacturing pilot line remains on schedule, with commissioning expected in the fourth quarter and initial production targeted for the first quarter of 2027. Solid Power also reported ongoing progress with Samsung SDI, BMW, SK On, and a potential South Korean joint venture.
• Solid Power ended the quarter with $419.3 million in liquidity and no debt, supporting commercialization and manufacturing scale-up. The stock rose 8% to $2.30, while analysts maintained a consensus “Hold” rating with a $6.92 target price.

Solid Power (NASDAQ:SLDP - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.11) earnings per share for the quarter, topping analysts' consensus estimates of ($0.12) by $0.01, FiscalAI reports. The company had revenue of ($0.27) million for the quarter, compared to analyst estimates of $1.55 million. Solid Power had a negative return on equity of 21.57% and a negative net margin of 485.47%.

Here are the key takeaways from Solid Power's conference call:

• Manufacturing pilot line remains on schedule: Solid Power said its continuous electrolyte production line has all major equipment installed, with commissioning planned for the fourth quarter and initial output expected in the first quarter of 2027 at a fully commissioned capacity of 45 metric tons.
• The company reported progress with Samsung SDI and BMW, including improved electrolyte performance and quality, and expects collaboration with both companies to continue after the current phase-one agreements expire in September.
• Solid Power remains confident it will announce a South Korean electrolyte-production joint venture by year-end, citing three active discussions and one prospective partner with a draft term sheet under review. It also completed a line-installation agreement milestone with SK On and is negotiating a new collaboration.
• Second-quarter revenue was negative $300,000 after a noncash $1.2 million reversal tied to changed assumptions for SK On milestone payments; operating expenses were $30 million, producing a $23.8 million net loss, or $0.11 per share.
• The company ended the quarter with $419.3 million in liquidity, no debt, and $3.2 million in contract assets and receivables, providing substantial funding to pursue commercialization, customer programs, and manufacturing scale-up.

Solid Power Stock Up 8.0%

SLDP traded up $0.17 during trading on Tuesday, reaching $2.30. The stock had a trading volume of 5,539,100 shares, compared to its average volume of 3,901,749. The business has a 50-day moving average of $2.64 and a 200-day moving average of $3.25. Solid Power has a one year low of $1.98 and a one year high of $8.86.

Insiders Place Their Bets

In other Solid Power news, Director Lesa B. Roe sold 39,207 shares of Solid Power stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $2.66, for a total transaction of $104,290.62. Following the transaction, the director directly owned 243,975 shares of the company's stock, valued at approximately $648,973.50. This trade represents a 13.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 5.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SLDP. Creative Planning bought a new position in Solid Power in the 2nd quarter worth $26,000. American Century Companies Inc. purchased a new position in shares of Solid Power during the second quarter valued at about $27,000. Corient Private Wealth LLC bought a new position in Solid Power in the second quarter worth about $31,000. Brown Advisory Inc. bought a new position in Solid Power in the second quarter worth about $33,000. Finally, Prudential Financial Inc. lifted its holdings in Solid Power by 69.7% in the second quarter. Prudential Financial Inc. now owns 17,480 shares of the company's stock worth $38,000 after buying an additional 7,180 shares during the period. Hedge funds and other institutional investors own 33.66% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Alliance Global Partners initiated coverage on Solid Power in a research report on Wednesday, June 10th. They issued a "buy" rating and a $6.75 price objective on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Solid Power in a report on Friday, July 17th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $7.00 target price on shares of Solid Power in a research note on Wednesday, May 6th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $6.92.

About Solid Power

Solid Power, Inc NASDAQ: SLDP is a Colorado-based company specializing in the development and manufacturing of all-solid-state rechargeable battery cells for the electric vehicle (EV) and aerospace industries. Founded in 2012 as a spin-out from the University of Colorado Boulder, Solid Power has focused on advancing solid electrolytes and high-energy battery architectures to deliver improved safety, higher energy density and longer cycle life compared with traditional lithium-ion batteries.

The company's core offerings include multilayer solid-state battery cells that utilize sulfide-based solid electrolytes and high-capacity cathode materials.

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