Eos Energy Enterprises shares surge on Cerberus partnership and Q1 beat

Investing.com -- Eos Energy Enterprises shares climbed more than 23% in pre-market trading Wednesday after announcing a joint venture with Cerberus Capital Management to deploy long-duration energy storage systems and reporting first-quarter results that exceeded expectations.

The company and Cerberus Capital Management unveiled plans to establish Frontier Power USA, a joint venture focused on developing long-duration battery energy storage projects using Eos' zinc-based technology.

The partnership includes a 2 gigawatt-hour capacity reservation agreement between Eos and Frontier Power USA, expanding Eos' existing project backlog. Cerberus committed $100 million in equity to the venture and extended its existing Eos lockup through year-end 2026.

Eos plans to fund its equity contribution through a rights offering targeting around $150 million, allowing existing shareholders to maintain proportional ownership. The rights offering requires shareholder approval for an increase in authorized shares and other debt agreement consents.

Cerberus will receive warrants and controlling equity in Frontier Power USA in exchange for its commitment. The funding remains subject to certain closing conditions, according to the companies' joint announcement.

Additionally, Eos Energy Enterprises reported first-quarter earnings per share of $0.12, beating the analyst estimate of a loss of $0.22. Revenue for the quarter came in at $57 million versus the estimate of $56.4 million.

The company issued full-year 2026 revenue guidance of $300 million to $400 million, compared with the estimate of $303.7 million.

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