Oct. 19, 2025 at 9:45 AM ET5 min read

ESS Tech Stock Surges with Major Energy Storage Deals

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

ESS Tech Inc.’s stocks have been trading up by 13.63% as positive sentiment drives market confidence.

Key Highlights

  • Shares soared nearly 158% after unveiling a decade-long supply agreement with Salt River Project, aiming to introduce iron flow battery systems in Arizona.

Industrials industry expert:

Analyst sentiment – neutral

ESS Tech, Inc. (GWH) is in a precarious financial situation, evident from its deeply negative margins across all key profitability metrics. The EBIT margin stands at an alarming -1255.6%, and with a gross margin at -629.6%, the company faces significant operational challenges. Despite modest revenues of $6.295 million and a concerning price-to-book ratio of 22.68, GWH’s financial health is further strained by high leverage, indicated by a leverageratio of 12. Moreover, the firm’s total debt-to-equity ratio of 0.26, combined with a working capital deficit of -$12.79 million, underscores its liquidity struggles. These figures suggest a company grappling with inefficiencies and unsustainable financial practices.

Analyzing the recent weekly price pattern for GWH, the dominant trend is a pronounced downtrend. From an opening of $9.10 on 10/13, the stock has declined progressively each day, closing at $5.17 by 10/17. The consistent lowering of highs and the accumulation of heavier trading volumes on down days indicate a bearish sentiment. For traders, an actionable strategy would be to short GWH at the current price level of $5.17, targeting potential support at the psychological level of $4.00. Stop-loss orders could be placed just above the high of the recent rally attempt at $5.50, accounting for possible price volatility.

The recent announcements about ESS Tech’s strategic partnership and financing activities, such as the $40 million financing and the Salt River Project collaboration, have sparked significant stock movement. The market reacted positively, driving the stock price up by a substantial percentage. This strategic pivot and the optimism around the 10-year iron flow battery pilot project with Salt River signify potential turnaround momentum. However, the Industrials benchmark continues to highlight more stable counterparts, leaving ESS Tech relatively volatile in comparison. With a new price target of $3.50 set by Roth Capital, GWH shows early signs of recovery potential, supported by a notable upgrade. Its position fundamentally hinges on successful project execution, hinting at promising yet cautious prospects.

  • Roth Capital upgraded the stock to Buy with a new price target of $3.50, driven by strategic energy projects, supported by Google’s funding.

  • The closing of a $40M financing transaction marks a pivotal shift toward U.S.-based manufacturing, reinforcing ESS Tech’s growth trajectory.

Candlestick Chart

More Breaking News

Weekly Update Oct 13 – Oct 17, 2025: On Sunday, October 19, 2025 ESS Tech Inc. stock [NYSE: GWH] is trending up by 13.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In recent trading sessions, ESS Tech’s stock demonstrated significant volatility with escalating activity. The shares started October at $9.89 but experienced a decline to $4.42, highlighting underlying market fluctuations. This was followed by surging trading figures and heightened investor activity due to strategic announcements. The company’s pricing strategy intersects with operational shifts, revealing stark contrasts in short-term and long-term price patterns which are particularly reactive to news events like project commencements or fiscal upshots.

The profitability ratios further portray a challenging narrative with considerable negative percentages, such as an EBIT margin of -1255.6%. These alarming figures indicate ESS Tech’s ongoing struggle to achieve profitability amidst heavy investment phases. Meanwhile, financial strength is underscored by a balanced debt-to-equity ratio of 0.26, suggesting disciplined fiscal management despite liquidity pressures. Key revenue numbers depict progressive growth with a revenue per share of $0.44, indicating an enhancing sales performance albeit at substantial cost burdens as seen with a gross margin of -629.6%.

Key financial reports showed ESS Tech’s endeavors to reallocate resources effectively. A noteworthy drop in Cash Flow from Operations by $12,359,000 signals expansive investments directed toward comprehensive manufacturing advancements and technology adaptations, fundamentally impacting cash reserves. Still, strategic partnerships and resolved financing issues have infused optimism, potentially reversing negative financial trends.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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