Shares of Eos Energy Enterprises (NASDAQ:EOSE) surged more than 23% in premarket trading on Wednesday after the company announced a strategic partnership with Cerberus Capital Management and reported first-quarter results that topped analyst expectations.
Eos and Cerberus launch energy storage joint venture
Eos and Cerberus revealed plans to create Frontier Power USA, a joint venture aimed at developing long-duration battery energy storage projects using Eos’ zinc-based battery technology.
As part of the agreement, Frontier Power USA entered into a 2 gigawatt-hour capacity reservation arrangement with Eos, further expanding the company’s existing project backlog.
Cerberus committed $100 million in equity funding to the venture and also agreed to extend its current Eos share lockup through the end of 2026.
Rights offering planned to support funding
Eos said it intends to finance its portion of the equity commitment through a rights offering expected to raise approximately $150 million.
The company stated that the offering is designed to allow existing shareholders to maintain their proportional ownership stakes.
The transaction remains subject to shareholder approval for an increase in authorized shares, as well as certain debt agreement consents and additional closing conditions.
Under the agreement, Cerberus will receive warrants along with controlling equity ownership in Frontier Power USA in exchange for its investment commitment.
Quarterly earnings exceed expectations
Separately, Eos reported first-quarter earnings per share of $0.12, outperforming analyst expectations for a loss of $0.22 per share.
Quarterly revenue totaled $57 million, slightly ahead of analyst forecasts of $56.4 million.
Company issues full-year revenue outlook
For full-year 2026, Eos forecast revenue in a range of $300 million to $400 million.
The midpoint of the guidance range was broadly in line with analyst expectations of $303.7 million.