Q3 2025 Enlight Renewable Energy Ltd Earnings Call

Good day, and thank you for standing by. Welcome to the enlightened renewable energies. First quarter 2025 earnings call. Please be advised that today's conference is being recorded. I would now like to turn the conference over to ya Vice director of investor relations at Enlighten renewable energy. Please go ahead.

Thank you, operator. Good morning, everyone. And thank you for joining this third quarter 2025 earnings conference call for Enlight Renewable Energy.

before beginning this call, I would like to drop participants attention to the following

Are forward-looking statements within the meaning of US Federal Securities laws, which reflect Management's best judgment based on currently available information.

We reference certain project metrics in this earning call and additional information about such metrics can be found in our earnings release.

These statements involve risks and uncertainties that may cause actual results to differ from our expectations.

Additionally, none of us Financial measures may be discussed on the call.

We can to the most directly comparable IFRS Financial measures are available in the earnings release. And the earnings presentation, for today's call, which are posted on our investor relations web page.

with me this morning are G, executive, chairman, and co-founder of enlight CEO of enlight near Yehuda, CFO of night and Jared mcke CEO of Cana

Eddie, would you like to begin?

Good morning or good afternoon everyone. It's a privilege to join you today, for my first conference call as CEO.

I want to begin by sharing my, genuine excitement about leading in light during a period of a remarkable growth and strong momentum.

Following a global career in Consulting and a 3M Company. I'm excited to be part of an organization that not only drives Innovation and business discipline but is also fast growing and generates positive energy both figuratively and literally

In light stands at the forefront of the renewable energy sector, and I am deeply committed to steering our company successfully through its dramatic expansion and transformation into a leading global energy developer and IP.

Worldwide, Enlight is uniquely positioned for continuous growth as a global leader in this space.

Thanks to our broad Geographic, reach diverse, technological capabilities, deep expertise across the entire value chain, and robust pipeline of projects. We anticipate continued rapid growth in both revenue and profitability.

These strengths will enable Enlight to remain at the forefront of the global renewable energy sector and continue being one of the largest developers in the United States.

Revenue and income, grew by 46% from Q2, 202025 to 165 million, adjusted IBA Group by 23% to 112 million and net income, grew by 33% to 32 million.

That's a 23% adjusted EBITDA. Growth was partially impacted by compensation revenue from the Beyond Bagget project in Sweden. The corresponding quarter last year reflected a catch-up for three quarters.

Given the outstanding results we have delivered this quarter. I am pleased to announce that we are once again, raising our full year 2025 guidance.

As we approach your end, The increased visibility and confidence in our performance have enabled us to both narrow and refine our forecast ranges.

We now expect 2025 revenue, and income to be between 555 million and 565 million, and we anticipate adjusted ibida in the range of 405 million to 415 million.

These updated projections represent increases of 6% and 4.5% respectively, underscoring the strong momentum and robust growth trajectory in light as experiencing this year.

We continue to progress faster than expected in the execution of our work plan.

Energy storage is a major growth engine for Enlight across all our geographies.

In Europe, the growth of renewable energy, generation capacity has not been matched by our corresponding rise in storage capacity, resulting in a notable shortage of storage and presenting opportunities for the sector to achieve fast growth with substantial returns.

This quarter, we strengthened our energy storage segment in Europe by signing two transactions that mark a significant entry into two of the fastest-growing and most attractive energy markets in Europe.

We entered Germany with the acquisition of 50% of the 860 megawatt Hour, bgov project, a mature, Standalone energy, storage project that will begin Construction in 2026.

In addition, we significantly strengthened our presence in Poland by acquiring the Edison project also a mature, Standalone energy storage project with a capacity of 208 megawatt hours.

Both projects and entered, our mature portfolios pre-construction phase and our projected to deliver an average project level return of 22% highlanding and light's ability to achieve High returns. Also by partnering with leading developers and m&a transactions.

We also expanded the storage segment in Israel, adding over 800 megawatt hour.

This brings our Global mature storage portfolio to 11.8 gigawatt hour at the end of the third quarter, almost 6 times its size 3 years ago.

Reflecting an annual revenue and income of 650 to 700 million. Once operating making the storage segment, an important pillar for enlight representing over 40% of our mature, portfolio revenues.

In light's competitive advantage in global and diverse access to Capital is reflected in the scale of our Capital, raising achievements in the past 12 months, totaling about 4.8 billion dollars.

Sources included project finance of about $3.3 billion, U.S. tax equity partnerships of $500 million, $300 million of an equity offering sell-downs, bond issuances, and mezzanine loans.

These resources are expected to cover all the corporate Capital needs for our mature portfolio and support Capital needs for additional projects in advanced development phase.

earlier this week, we reported the 1.44 billion dollars Financial close for 1 of our Flagship projects snowflake a in Arizona,

Expected capacity of 600 megawatts and storage capacity of 1,900 megawatt-hours.

Expected to generate approximately 130 million dollars in revenue and over a hundred million dollars in ibida. In its first full year of operation.

This is the largest project that Enlightened history has reached financial close with commercial operation expected during the second half of 2027.

the revenue model is based on a 20-year bus bar, PPA with Arizona, Public Service Company, the largest utility in Arizona, and on a low-risk availability model for the batteries. This allows us to benefit from attractive financing costs with an interest rate in the range of 5.4% to 5.8%, as well as a low Equity contribution. Thereby maximizing the return on equity and achieving pre-, leveraged return of approximately 12%.

The project highlights the strength of our platform in the US and the ability to execute large-scale projects from the planning stage through financing to operation.

Snowflake a marks, the initial phase of the broader snowflake complex in Arizona. The upcoming second and larger phase currently. And in lights, Advanced development portfolio will leverage the Strategic 1 gigawatt grid interconnection enabling us to maximize operational and development efficiencies and reach total.

Complex capacity of approximately 2.4 Factor gigawatts.

This project exemplifies and lights connect and expand strategy, the potential of robust grid connections to facilitate greater scale and enhance project returns at a lower risk.

This quarter, we also continued the expansion of our portfolio, which will serve as the source of our rapid growth. In the coming years, with a 6% growth, in Q3 in the total portfolio. Reaching 37, factored gigawatts and a 5% growth in the mature component of the portfolio, reaching, 9.6, Factory gigawatts.

We continue to progress projects to advance stages.

Projects totaling 250 factored megawatts in Europe and the U.S. moved from development to advanced development.

Projects, totaling about 240. Megawatts in Israel. Moved from Advanced development to the pre-construction phase.

In lights. Excellent execution capabilities are also reflected in our us portfolio.

100% of the pre-construction projects 91% of our Advanced development projects and 52% of our development projects, have completed the system impact, study the most critical stage for secure and grid connection.

We were also proactive this year and have made rapid progress in recent months to secure eligibility for tax Equity. Since May 2025 we Safe Harbor at approximately 6, factored, gigawatts of projects, and we estimate that by July 2026, we will secure a safe harbor for approximately 5 to 8, additional factored, gigawatts,

Thanks to these advancements.

We project that annual revenue and income. From our mature portfolio will reach 1.6 billion dollars upon commencement of operations. In the 2027 to 2028 time frame, a realization of our strategy of tripling, the size of our business, every 3 years,

In light benefits from strong tailwind and favorable business environment in our operating markets.

The race for AI Investments is expected to lead to unprecedented growth in demand for processing capacity and electricity approximately 400 billion dollars is expected to be invested in 2025 by the large tech companies in AI infrastructure and data centers. This accelerated growth is expected to result in data centers, share of us energy consumption rising from about 4% in 2025 to approximately 12% in 2030.

Renewable energy is the best answer to the emerging electricity demand and is therefore the fastest growing segment in the energy world due to both the relatively fast construction pace compared to other technologies and the attractive cost of energy, or LCOE, produced from solar combined with energy storage.

The regulatory environment is also improving.

We monitor the terrorists, litigation in the US, Supreme Court, and continue to find ways to mitigate the effects of tariffs on our us business.

Altogether. Thanks to positive Market, fundamentals, Visionary strategy, and excellent execution. In life's generation capacity is expected to reach 11 to 13. Factored gigawatts and the annual revenue run rate by the end of 2028 is expected to reach about 2 billion dollars.

As we continue to expand our operations and grow our portfolio, our commitment to profitability remains. We maintain a disciplined focus on ensuring that all our projects deliver strong returns on investments.

We expect 11 to 12% return on investments for our mature projects that are not already operating which positions are returned on Equity, above 15%.

This approach guarantees that our growth is not only rapid, but also disciplined sustainable and value generating for our stakeholders.

With our expertise in the development construction financing and operation of renewable energy. Projects in light is positioned very well for the future. And I am personally committed to ensuring we continue to capitalize on our strengths and the positive Trends in the market to become 1 of the leading Global renewable energy, developers and IPP.

I would now like to turn the call over to Jared, the CEO of Cleanera in Lights, U.S. subsidiary.

Thank you, Adam. I'd like to begin by sharing the progress we've made over the last quarter in advancing the construction of our projects, safe harboring our project pipeline, and securing significant financial resources, all of which position us as a leading solar and storage company in the U.S.

Starting with project execution, our construction teams have made substantial progress across multiple sites.

2 projects are expected to reach commercial operation in the near future. Quell Ranch are 128 megawatt solar and 400 megawatt Hour. Energy storage project in New Mexico and Roadrunner a 298 megawatt solar and 940 megawatt Hour Energy storage facility in Arizona.

Both projects are working through the final steps of construction and commissioning to achieve commercial operations.

Together. These projects will provide enough power to supply over 90,000 homes and are expected to generate combined, annual revenues and income of 142 million and the IBA of 127 million in their first full year of operation.

Moving on to Country Acres our 403 megawatt solar and 688 megawatt Hour. Energy storage project in central, California.

Much of the groundwork is complete with crews. Installing piles, digging cable trenches, and installing solar panels. We are on track to achieve commercial operation in the fourth quarter of 2026.

Another project in construction in Arizona is Snowflake, a mega project with 600 megawatts of solar and 1,900 megawatt hours of energy storage capacity.

The concrete pads for the substation and Battery are complete and solar sight. Work is well underway today. We've installed over 5,000 piles and have completed, procurement contracts for the Project's major equipment.

The project anticipates commercial operation in the second half of 2027.

80 miles northwest of Snowflake is our Cobar Complex. Early construction activity is ongoing, including grading, ground clearing, and road building. We continue to manage interconnection risks influenced by a federally required approval and any potential delay from the federal government shutdown. Despite this challenge, we have finalized the negotiated LGIA and are making progress on the necessary approvals of the LGIA.

We made significant progress in ensuring that numerous projects obtain eligibility for federal tax credits to date. We have saved Harvard over 9 factored, gigawatts of projects including all of enlight, 5.6 Factor gigawatt, mature portfolio, an additional 2 to 4 Factor. Gigawatts are expected to be safe, harbored by the end of the year with an additional 3 to 4 Factor, giveaways of projects, slated to be safe harbor before mid 2026.

This continues to be an important focus for our team as we prepare to Safe Harbor a total of between 14 to 17 factored gigawatts of projects by the mid-2026 deadline for project eligibility.

The procurement of equipment for most of our mature projects nearly 2. Gigawatts of panels have been contracted for the mature portfolio with a significant amount of this equipment already passed through US Customs.

Additionally, we have onshore over 2.8 gigawatt hours of battery storage. Our close partnership was suppliers and off takers has proven resilient during the initial introduction of tariffs earlier this year.

These Partnerships continue to help us navigate changing trade regulations, mitigating the effects of price and Supply volatility.

I am proud to share that we have successfully achieved Financial close with 6 leading banks for the snowflake pay project. Totaling approximately 1.5 billion dollars supporting the construction of our project.

This closing is a significant step forward for the snowflake a project and a key component of Claire's growth strategy into 2027.

In addition since our last earnings report, we achieved a 340 million tax Equity, partnership for the Roadrunner project, and a 131 million tax Equity, partnership for the quell, Ranch project, both significant milestones.

Altogether, we have raised just under $2 billion in financing and tax equity since our last earnings report. I am very proud of this achievement, as it demonstrates our ability to execute on our deep portfolio of projects, guiding them from advanced development into construction and operations. Our financing partners are clearly confirming that our projects are a strong long-term investment.

We are well positioned to continue this growth trajectory with a healthy project pipeline in our mature and advanced development portfolio.

This past quarter reflects the disciplined execution required to continue our construction progress through risk mitigation and financial strength.

Our Focus remains on building profitable, sustainable, renewable, energy, projects and delivering long-term value for our investors partners and the communities that we serve.

I will now turn the call over to near.

Thank you, Jared. In the third quarter of 2025, the company's total revenues and income increased to $165 million, up from $113 million last year. The growth rate is 46.7% year over year. This was composed of revenues from the sale of electricity, which was 27% to $139 million compared to $109 million in the same period of 2024, as well as the recognition of $27 million in income from a tax benefit.

Compared to 4 million in the second quarter of 2024.

Revenues from the sale of electricity grew due to the contribution of newly operational projects since the third quarter of 2024. This includes projects in the U.S., various projects in Israel, and new operations in Serbia and Hungary. All began selling electricity.

The most important increases originated at Risco, which added 11 million followed by the Israeli project which added 7 million and pooping which added 4 million in total. New project, contributed to 22 million to the revenues from the sale of electricity.

Revenue and income were distributed between men and Europe in the US with 47% from Israel. 27% from Europe and 26% from the US.

That brought a net income amount to 32 million compared to 24 million last year. And increase of 33% year-over-year, the change was driven mainly by new project with which contributed 12 million to net income, along with 10 million of financial income, right? From the refinancing of gamma wind farm in Spain. This was offered by an 5 million increase in operating expenses along with decrease of 7 million in other income compared to last year. All after tax.

The company is adjusted EB that Google by 23% to 112 million compared to 91 million for the same period in 24 and adjusted. Divida was boosted by 52 million stemming from the same factors that drove the revenues and income increased mentioned above.

it was offset by an additional 17 million in cost of sale, linked to new project while other operating expenses was by 7 million,

We recognized $3 million in compensation linked to blade failure at the Bing Well project in Sweden during the quarter, compared to $10 million in compensation work that was recognized in the same period last year.

By concluding a tax equity partnership totaling $470 million.

We also announced that 350 million Mason in debt facility with Israeli largest bank.

At the corporate level, we waste 300 million of equity to a private share placement to Israel, Institutional Investor altogether, a light as well. 4.8 billion in Project, Finance, corporate debt, and from asset sell in the past 12 months, providing the financial underpinning for our ambitious expansion plan, with particular, focus on the US.

In addition, to this fund, we have 525 million of credit facility at several Israel and International Bank of which 415 million was available for use at the balance sheet date. In addition, we have approximately 1.4 billion of LC and surety bond facility support in our Global expansion of which 800 was available for a use at the end of the quarter.

This further increases our financial flexibility, as we continue to deliver on our growth strategy.

Given the strong financial performance during the first 9 months of 25. We are raising our 25 guidelines range with revenues and income. Now, expected between 500 and 555 million and 565 million. And adjusted debit are expected between 400 and 5 million and 415 million representing a 6% and 4.5% increase for both metrics respectively. Compared to our

Previous guidance range.

Our revenues and income guidance, for 25 includes recognition of an estimated 80 to 90 in income from us tax benefits.

And 90% of 25 generation output is expected to be sold at fixed price. Either through Hedges or ppas. I will now turn the call over to the operator for questions.

Thank you to ask a question. You will need to press star 1 and 1 on your telephone and wait for your name to be announced.

Questions will be answered in the order. They are received to withdraw your question. Please press star 1 and 1 again.

Please stand by while we compile the Q&A roster.

Thank you. We will now go to our first question.

and the first question today,

Comes from the line of just Sinclair whilst Capital Partners. Please go ahead.

Hey, thanks for the time. Uh, so wanted to uh first start out uh with the the quarter, so Revenue in Q3 was uh you know, meaningfully ahead of our, our expectation. And so just wanted to see, you know, how did solar and wind resource availability compared to typical seasonal assumptions. Were there any 1 time items uh that that may have benefited the quarter.

Thanks. Thank you for the question. Um, indeed, we did see, um, additional wind, um, in uh, some of our Israeli assets. Um,

Solar was very much, um, in line with our expectations. We also have had, um, the ability to extract, uh, additional um, from our battery storage projects. And in addition to that, there are prices.

Dollar to shekel exchange rate considerations that have brought additional revenues in dollar terms beyond what we had initially forecasted.

Okay, got it. That's that's helpful. And then um just on the The Safe Harbor, you know you've already Safe Harbor. Um meaningfully uh larger amount than what had initially been planned uh wondering what enabled that acceleration. And um if you could walk us through the the strategy for additional safe harboring, um, you know, and and in your confidence in achieving the updated Target of the 14th, the 17th Factory gigawatts.

Thank you for the question. Uh, Jared, can you take this one?

Absolutely.

so,

Every project has its own challenges, and in regards to Safe Harbor.

Every project has to have a unique rule plan for it to move forward.

Generally our our safe, our Safe Harbor, strategy has included physical work of a significant nature. So the physical work can be either done off site with manufacturing of Project Specific equipment or on-site building out of Roads or other physical work at the site.

really both off-site and on-site work and whether or not we use 1 of those is very much Project Specific

Got it. Okay. And then just 1 more. Um, so if we if we assume that you do achieve the updated Safe Harbor, uh, targets, it's a meaningful amount of capacity. So wondering if you could just talk about, um, you know how you're you're thinking about the growth rates of your operating capacity, As you move from, 28, to 29, and to 2030, what kind of growth rate might be achieved and then if you could speak to any potential constraints, given the the large volume of capacity, you know, where your positioned in terms of the interconnection or permitting, or, or financing,

Absolutely. So we expect to see a continued growth rate, similar to what we've seen in the past, um, we we continue to grow and we will continue to grow over 27/28 29 and 2030, um, with a

Build out of projects that have been Safe Harbor of, you know, between 14 to 7, 17 Factory, gigawatts, we will be able to pick from the projects that we really want to prioritize and move forward. Um, as with development, there will always be constraints that will always be hurdles. And so we will be really ready to counterbalance. And to mitigate any sort of risks that come from the interconnection and other risk aspects of the project.

with this, with, with the the large pool of projects, we will be able to not only continue our growth, but we will be able to

really pull. If there are certain projects that drop out, I mean, you'll see that the mix of the Safe Harbor project is

Really throughout our entire portfolio, whether it's Advanced development or development or our mature under construction or mature reconstruction the as projects Advanced into that advanced and mature portfolio, their throughput ratio increases dramatically uh Safe Water projects in the development side there there there is a lower throughput than the mature portfolio. But that's why we really focused on having a very large broad spectrum of projects that we can save Harbor to be able to pull from by 2030.

Okay. Got it, I appreciate it. Thank you.

Thank you, Justin. I think that date 1 Moment, Justin. I think I do want you to add to the Java's question.

Uh, yes. Thanks for the question, Justin. I also wanted to add that um this is exactly. Our advantage is a big developer. Um and I think I mean recently we have been named as a top 5 developer in renewable energy in the United States this ability of us to um both

Um, execute on the Safe Harbor across the board, many projects at the same time, and then the ability to prioritize and take them to completion within the 4 to 5 year time frame. In addition to that, uh, you probably, uh, know that we have, um, been able to raise 1 billion dollars in the capital markets, uh, just in the last few months, this again, is testimony to our ability to execute on many large projects at the same time. And of course, uh, in light is a global company outside of the United States. Um, also in Europe, and in Israel, and outside of Israel in the Middle East, which we can bring some of that capacity to Bear also on projects in the United States.

Okay, thank you.

Thank you.

As a reminder, if you would like to ask a question, please press star 1 and 1 on your telephone, that is star 1 and 1. If you would like to ask a question,

we will now go to our next question.

And the next question.

Comes from the line of Mike Andy from Deutsche Bank. Please go ahead.

Hey, thanks everyone. I'm on for current Blanchard. Um, my first question pertains to your EBITDA guidance. Um, so first of all, congratulations on the raise on the EBITDA guidance. It implies a 73% EBITDA margin. Can you talk about the puts and takes to your long-term target of 72-78% and how you achieve that to reach the high end?

Higher than what you see in the, in the, uh, earning in the financial. It's around 75 to 80% depends in the, uh, uh, in the, uh, region. Uh, and in the, uh, project itself. But the corporate, uh, naturally involved, also, headquarter expenses that some of them, for example, in this quarter, uh, 1 of item, uh, that, uh, uh, relates to our building our strengths and capabilities towards the uh, uh, utilizing the uh, development part development.

Great, thank you. And then from my follow-up, can you talk about your current India's tariff exposure and then mitigation strategies that you're currently exploring their

Jared.

Yeah, would you be able to take the India question?

So clean air is utilizing PV cells for our next projects. All of these, all of these uh next projects, we are focused and we will have uh sales coming in from countries that are not subject to any of the ongoing investigations. So really with our with our India Focus, we are able to pull in cells from all over the all over the world and we are also able to assemble in the US. And so when we have any specific, uh, country risk, we are able to have flexibility with our modules where we

Assemble modules, where we Source our cells from. And so, that way, we are really mitigating, any specific country risk. And I, I, I apologize, my, my, my phone, I had a technical difficulty, so I didn't quite hear the first questions on that, but I believe, I, I captured what you were looking for.

You did. Yes. Thank you so much.

Thank you. Once again as a reminder. If you would like to ask a question, please press star 1 and 1 on your telephone keypad, that is star 1 and 1 to ask a question.

We will now go to the next question.

And your next question comes from the line of my Heap, mandoli from mizo, please go ahead.

Hey, thanks for the question. Um so to Project screen acquired in Europe, uh the majority of these projects there. So just curious uh is that and you said, did you hear I think it helps offset and it's not running because in the picture here and separately, are they just being enormous? I think quarters since you joined. So any thoughts on, you know, the changes you're trying to bring here or any differences between compared to what we have been used with and like

Thank you so much for the question, uh, mahip. Um, so the projects, uh, in Europe are actually, um, I mean, they're unrelated directly to, to the US. Uh, the, the relationship is that, I mean, in light is a very Diversified company that has projects in, in the United States. In the Middle East, North Africa and in Europe, and also Diversified across Technologies, which enables us to, um, grow a consistently. And when there's lulls, um, in 1 place to indeed, make up with growth, uh, in in another space. But in this case, um, the United States is, of course, growing tremendously with the new projects that we have both brought online. Um, and the ones that we have announced, Financial closing and tax equity, and in Europe. In parallel, we're making great strides with entry into the, uh, Standalone storage space. Um, as you know, Europe is a, um, a head, uh, in many ways, uh, globally in renewable.

Energy as a source, um, of energy in the electricity mix. Um, they've, uh, some countries. I mean, you're a specifically we're talking about Germany and Poland with the Acquisitions of these new projects. Um, they have uh, they will have by 2030 renewable energy as a, uh, Source. Um, in their mix of electricity might will be up to 5 50, to 70%. They have advanced very much on generation from renewable sources.

Management system, it's a natural. Uh, step for us now, to capitalize on this um, uh, great demand for energy storage in Europe. And so we have come in, it's these were also hybridizing our wind farms in Spain and in Sweden and we have other projects, these 2 projects that we chose to highlight are because of the significant entry into Germany, uh, which is the biggest renewable energy Market in Europe. Um, and a significant, uh, step. Additionally in Poland and there are other projects that are forthcoming.

Can you Heap also repeat the second part of your question, please?

Sure no, no. Just cut us on, you know, you you you've been more than almost a quarter since we joined. So any thoughts on changes you want to bring in or uh any updates here or anything different. You should expect from an example over there.

Um, very much committed to the strategy that, um, is in place for in light, which I think, is a very, um, strong strategy of the diversification on geographies Technologies. And at the same time, very diligent execution by a committed team that shares our values in the US uh here in Israel and in Europe. Um you should expect to see us continuing to grow at the pace of uh 40% uh tripling, our revenues every 3 years as we have done so far. We

Project the same into 2028 and continuing to advance projects to get favorable financing terms and a very good access to Capital Inn in the various Capital markets. Um and to continue to expect um the same level of performance from enlight also going forward

Thank you, this concludes the Q&A for today. I will now hand the call back to yonah.

Thank you very much for joining, and we'll speak to you next quarter.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect