T1 Energy (NYSE: TE) jumped 15.66% to $12.04 on Tuesday after announcing a deal to acquire KORE Power and receiving a fresh analyst upgrade from Northland Capital.
The Austin-based solar company said it entered a definitive agreement to buy KORE Power for approximately $32 million in equity, cash, and assumed debt. The deal also includes a potential $9.6 million equity-based earn-out tied to 2026 and 2027 performance.
The acquisition is expected to close in Q2 2026, pending KORE Power shareholder approval. A majority of KORE shareholders have already signaled they will vote in favor.
The strategic focus of the deal is KORE’s NRI division — a unit that designs, installs, and operates utility-scale battery energy storage systems. NRI has deployed around 1,100 BESS projects globally and has worked with the U.S. Government, National Labs, and utilities for more than 50 years.
T1 plans to rebrand KORE Power as T1 NRI after closing.
T1 says the acquisition is expected to be EBITDA accretive in 2026 and contribute between $15 million and $20 million in EBITDA in 2027.
That matters because T1 currently runs at a negative EBITDA of $72.9 million over the last twelve months, despite posting $879 million in revenue. The company did beat estimates last quarter with Q4 EBITDA of approximately $9 million, versus analyst expectations of negative $11 million.
CEO Dan Barcelo called NRI’s customer relationships and track record “complementary” to T1’s domestic solar and battery supply chain mission.
KORE CEO Jay Bellows said the combination would offer customers “a one-stop solution for generation, storage, system design, and ongoing operations.”
The BESS market backdrop supports the move. Rystad Energy projects U.S. utility-scale BESS capacity will grow from 45 GWh today to 143 GWh by 2035.
Separately, Northland initiated coverage on TE with an Outperform rating and a $16 price target — about 33% above Tuesday’s price.
The firm highlighted T1’s domestic manufacturing credentials, including compliance with Foreign Entity of Concern regulations and plans to source polysilicon wafers from Hemlock’s Michigan facility.
T1 is building its first solar cell fabrication facility in Texas, with production expected to start by year-end and ramp-up planned for 2027. Northland noted yields will likely be low initially.
The stock’s gross profit margin currently sits at 7.6%, and the company is still reporting a loss of $1.59 per share over the last twelve months.
T1 has also faced scrutiny. Short seller Fuzzy Panda Research alleged the company is non-compliant with Foreign Entity of Concern rules, claiming a sale of intellectual property to Evervolt was used to obscure links to Trina Solar. T1 disputes this.
Earlier this year, T1 priced a $160 million convertible notes offering — upsized from $125 million — with net proceeds of roughly $151.6 million earmarked for its G2_Austin solar cell facility.
BTIG holds a Buy rating with an $8 price target, while Needham cut its target from $10 to $8.
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