Enlight Renewable Energy Ltd Q3 FY2025 earnings call

Opening Remarks

• Adi Leviatan highlighted Enlight's position in the renewable energy sector, strong growth momentum, and excitement about leading the company through expansion. He reported strong Q3 growth with revenue and income up 46% from Q2 2025 to $165 million, adjusted EBITDA up 23% to $112 million, and net income up 33% to $32 million.
• Raised full-year 2025 guidance: revenue and income between $555 million and $565 million, adjusted EBITDA between $405 million and $415 million.

U.S. Activity (Jared McKee)

• Progress in construction of projects like Quail Ranch, Roadrunner, Country Acres, Snowflake A, and CO-Bar complex. Safe harbored over 9 factored gigawatts of projects, with plans to safe harbor 14-17 factored gigawatts by mid-2026. Achieved financial close for Snowflake A and tax equity partnerships for Roadrunner and Quail Ranch, raising nearly $2 billion in financing.

Third Quarter Results (Nir Yehuda)

• Total revenues and income increased to $165 million, driven by newly operational projects. Net income was $32 million, up 33% year-over-year. Adjusted EBITDA grew to $112 million, boosted by factors from revenue growth but offset by increased costs. Secured significant new capital, including $1.5 billion financial close for Snowflake A and $470 million in tax equity partnerships.

In the third quarter of 2025, the company's total revenues and income increased to $165 million, up from $113 million the previous year, a year-over-year growth rate of approximately 46.07%. Revenues from the sale of electricity rose 27% to $139 million compared to $109 million in the same period of 2024, and there was recognition of $27 million in income from tax benefit compared to $4 million in the second quarter of 2024. Revenues were distributed with 47% from Israel, 27% from Europe, and 26% from the U.S. Adjusted EBITDA grew by 23% to $112 million compared to $91 million for the same period in 2024.

• Raised full-year 2025 guidance: expects revenue and income between $555 million and $565 million, and adjusted EBITDA between $405 million and $415 million.
• Projected annual revenue and income from mature portfolio to reach $1.6 billion by 2027-2028. Safe harbored over 9 factored gigawatts of projects, with plans to safe harbor 14-17 factored gigawatts by mid-2026.

• Regulatory developments that could impact results.
• Impact of the current conflict in Israel on operations and financial conditions.
• Trade tariffs and supply chain volatility affecting costs and procurement.
• Interconnection risks and potential delays from federal government actions.

Q: How did solar and wind resource availability compare to typical seasonal assumptions in Q3?

A: Adi Leviatan mentioned additional wind in some Israeli assets, solar was in line with expectations, and battery storage projects contributed extra. Also, dollar to shekel exchange rate considerations boosted revenues.

Q: What enabled the acceleration in safe harboring and confidence in achieving 14-17 factored gigawatts?

A: Jared McKee explained that safe harbor strategy involved significant physical work, both off-site and on-site, for project-specific equipment and site preparation. Projects have unique plans, and the broad spectrum of projects allows prioritization and mitigation of risks.

Q: Talk about EBITDA guidance and long-term target of 70%-80% EBITDA margin.

A: Adi Leviatan referred to Nir Yehuda, who stated project-level EBITDA is north of 70%, with corporate adjustments. Project-level EBITDA is around 75%-80%, with corporate expenses including one-off items related to development pipeline strength.

Q: Strategy behind acquiring mature late-stage projects in Europe and changes at Enlight under Adi Leviatan.

A: Adi Leviatan said Enlight's diversification across geographies and technologies allows growth in different spaces. In Europe, entry into stand-alone storage is due to Europe's need for storage to reduce price volatility and enable interconnection. Regarding changes, he is committed to the existing strategy of diversification, diligent execution, and continued growth at a 40% pace, tripling revenues every 3 years.