Enlight Renewable Energy Ltd Q2 FY2025 earnings call

Key Points

• Gilad Yavetz highlighted strong Q2 results, with revenue and income growing 53% and raising full-year 2025 guidance. Adi Leviatan to become CEO in October, Gilad transitioning to Executive Chairman.

U.S. Business

• Snowflake A project near Arizona in full construction; Roadrunner solar and storage near Tucson completed substation energization; Quail Ranch solar and storage in New Mexico making progress; Country Acres in California on schedule for COD by end of 2026.

Europe

• Seizing energy storage opportunity with 7.8 gigawatt hour of energy storage projects in 5 European countries, 3.6 gigawatt hour expected to be operational by 2028.

Israel

• Expanding energy storage, with 6.9 gigawatt hours of planned storage projects; early stages of data center development in southern Israel, adjacent to renewable energy sites; progress in AgroSolar land agreements.

In the second quarter of 2025, Enlight's total revenues increased to $135 million, up from $88 million in the same period of 2024, representing a 53% year-over-year growth. Revenue from the sale of electricity rose 37% to $116 million, driven by newly operational projects. Income from tax benefit was $19 million compared to $3 million in the second quarter of 2024. Revenue distribution in Q2 2025 was 40% from Israel, 35% from Europe, and 25% from the U.S. Adjusted EBITDA grew 57% to $96 million from $61 million in the same period of 2024.

• Raised full-year 2025 guidance: Revenues expected between $520 million and $535 million (previously $500 million), adjusted EBITDA expected between $385 million and $400 million (previously $370 million).
• Guidance includes an estimated $70 million to $80 million in income from U.S. tax benefit and 90% of 2025 generation output expected to be sold at fixed price.

• Potential impact of regulatory changes, including those related to tariffs and safe harbor rules.
• Supply chain risks, such as tariffs on solar panel components from certain countries.
• Foreign currency exchange rate impacts on financial results.

Q: Mark Strouse asked about safe harbor and projects scheduled for completion by end of 2027 or first half of 2028.

A: Gilad Yavetz and Jared McKee responded that currently 6 gigawatts are fully safe harbored, and the company is positioned well to accelerate projects if needed.

Q: Justin Clare asked about safe harbored projects and execution.

A: Gilad Yavetz and Jared McKee discussed that the company has 6 gigawatts safe harbored, with plans to continue executing on projects and meeting safe harbor requirements.

Q: Michael Mcnulty asked about FX contribution to guidance and component costs.

A: Gilad Yavetz responded on FX impact and noted component cost differences between the U.S. and other regions due to tariffs and tax equity environments.

Q: Maheep Mandloi asked about safe harbor rule changes and ITC sales revenue.

A: Gilad Yavetz and Yonah Weisz discussed that there is consensus on no retroactive legislation affecting safe harbor, and ITC revenue guidance is $70-$80 million.

Q: David Paz asked about CO Bar construction and PJM assets.

A: Gilad Yavetz and Jared McKee provided updates on CO Bar construction progress and ongoing development of PJM portfolio projects.