Enlight Renewable Energy Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 6, 2025
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Operator

Good day, and thank you for standing by. Welcome to the Enlight's First Quarter twenty twenty five Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jono Weiss, Director, IR. Please go ahead.

Yonah Weisz
Yonah Weisz
Director of Investor Relations at Enlight Renewable Energy

Thank you, operator. Good morning, everyone, and thank you for joining our first quarter twenty twenty five earnings conference call for Enlight Renewable Energy. Before beginning this call, I would like to draw participants' attention to the following. Certain statements made on the call today, but not limited to statements regarding business strategy and plans our project portfolio market opportunity utility demand and potential growth discussions with commercial counterparties and financing sources, pricing trends for materials, progress of company projects, including anticipated timing of related approvals and project completion, and anticipated production delays, expected impact from various regulatory developments, completion of development, the potential impact of the current conflicts in Israel on operations and financial conditions and company actions designed to mitigate such impact, and the company's future financial and operational results and guidance, including revenue and adjusted EBITDA, are forward looking statements within the meaning of U. S.

Yonah Weisz
Yonah Weisz
Director of Investor Relations at Enlight Renewable Energy

Federal security laws, which reflect management's best judgment based on currently available information. We reference certain project metrics in this earnings 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. Please refer to our twenty twenty four annual report filed with the SEC on 03/28/2025, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward looking statements. Although we believe these expectations to be reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call.

Yonah Weisz
Yonah Weisz
Director of Investor Relations at Enlight Renewable Energy

Additionally, non IFRS financial measures may be discussed on the call. These non IFRS measures should be considered in addition to and not as a substitute for or in isolation from our results prepared in accordance with IFRS. Reconciliations 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 webpage. With me this morning are Gilad Jawetz, CEO and Co Founder of nNIGHT Nir Yehuda, CFO of nNIGHT and Adam Pischel, CEO and Co Founder of Cloneira. Gilad will provide some opening remarks, and then we'll turn the call over to Adam for a review of our U.

Yonah Weisz
Yonah Weisz
Director of Investor Relations at Enlight Renewable Energy

S. Activity and then to Nir for a review of our first quarter results. Our executive team will then be available to answer your questions.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Thank you for joining us today for Inlight first quarter twenty twenty five earnings call. We are pleased to report strong financial results for the quarter. Revenue and income grew by 39% compared to the same quarter last year, reaching $130,000,000 Adjusted EBITDA also increased by 84% to 132,000,000 These results support our full year guidance ranges of $490,000,000 to $510,000,000 in revenues and $360,000,000 to $380,000,000 in adjusted EBITDA, which remain unchanged, reflecting the resilience of our combined developer and IPP business model. A significant contributor this quarter was the Sunlight transaction, which added $42,000,000 to adjusted EBITDA and $97,000,000 to pretax profit. Nir will provide more details on our financial performance later in the call.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

During the quarter, we made good progress with our expansion plans. In The U. S, our next wave of projects remain on schedule. Construction on Quail Ranch and Roadrunner is advancing, and they are expected to begin operations by the end of this year, followed by country Acres in the second half of twenty twenty six. Together, these projects will add eight twenty MW of generation capacity and two GWh of storage upon COD, with expected total revenues and income of approximately $250,000,000 and EBITDA of $219,000,000 during their first year of operations.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

We also reached an important milestone by securing the financial close for Country Acres and Quail Ranch during the quarter, joining the financial close for the Roadrunner at the end of last year. We have raised a total of $1,500,000,000 in financing at favorable terms for these three projects over the past couple of months, despite recent U. S. Trade policy changes that created market uncertainty. This demonstrates our strong ability to access the capital we need to support our growth.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Looking ahead to the second quarter, we plan to start construction on COBAR and Snowflake, 2 U. S. Mega projects with a combined capacity of 2.6 factored gigawatts and with expected combined total revenues and income of approximately $450,000,000 and EBITDA of $400,000,000 during their first year of operations. As part of its global strategy, Enlight has worked to build a diversified and resilient supply chain for the equipment used in its projects. As a result, the recent introduction of trade tariffs in The U.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

S. Has no material impact on our project economics. Our solar panels are either domestically sourced or are imported from countries other than China, and we use Tesla as our main battery supplier, which produces a large portion of their equipment domestically, and therefore has relatively lower tariff exposure. On a broader scale, we are also confident in our ability to negotiate with equipment suppliers, as well as adjust our PPAs to market conditions. Adam will give more detail on our U.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

S. Project progress and tariff impact in a moment. In Europe, we are seeing rising demand for energy storage, and our development strategy is leveraging this trend. We are also starting construction on 1.3 GWh of energy storage this year in Italy, Spain and Sweden. We also entered the stand alone energy storage market in Poland with 3.2 GWh now under development.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

In Israel, we advanced our position in two key growth areas: data centers and stand alone storage. We won a state land tender for Israel's First integrated data center and renewable energy complex at Ashalim. We plan to build a 100 MW IT data center at an expected investment of $1,000,000,000 This project is strategically important, as demand for computing power is rapidly growing in Israel. We also strengthened our leadership in Israel's deregulated electricity market by winning a 1.9 gigawatt hour bid in Israel's First standalone energy storage capacity tender, further solidifying our 50% market share in this sector. In summary, this quarter combines strong financial performance with continued progress delivering on our near term project and long term expansion plans.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Our robust supply chain continues to shield us from changes in The U. S. Tariff and trade policy. This resilience allows Enlight to continue executing on its strategy of tripling company growth every three years. Now I'd like to turn the call over to Adam.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Thank you, Gilad. I'm excited to report the great progress our U. S. Team continues to make on our extensive project portfolio and on our three large projects now under construction. Beginning with Quail Ranch located in Albuquerque, New Mexico, this 128 megawatt PV and 400 megawatt hour battery storage project is the second phase of our Atrisco complex, which achieves COV in 2024.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Construction at Quail Ranch is on schedule and progressing well. The PV site has all piles installed with racking and inverter installation underway. Nearly all the medium voltage trenching is complete on the energy storage portion of the project, and we are halfway through the foundation construction for the battery containers. Anticipate achieving commissioning of the site before the end of twenty twenty five. As Gilad mentioned, in mid April and in the midst of tariff related uncertainty, this project closed financing on a $243,000,000 construction loan package.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Now moving on to Roadrunner, a 290 megawatt solar and 940 megawatt hour battery project in Southeast Arizona. Similar to Quail Ranch, construction of this project is making excellent progress. We have completed nearly half of the pile installations, a third of the overall racking system, and inverters are starting to be delivered and installed. We've also begun construction on the battery storage portion of the project with foundation materials delivered and ready for installation. We are currently on track for commissioning by the end of this year.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Our final project under construction is Country Acres near Sacramento, California with four zero three megawatts of PV generation and six eighty eight megawatt hours of battery storage capacity. Construction is accelerating with ground clearing, internal road building, and the first row of PV solar now underway. We anticipate this project will be complete and commissioned during the second half of twenty twenty six. This quarter we also closed the $773,000,000 construction financing needed for this project. With successful financial closes this quarter, as well as excellent construction progress, we are in a great position to rapidly bring three major projects online to meet critical demand and set us up for success with Snowflake A and COBAR, our next wave of projects with twenty twenty seven COD's.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Recent changes to US trade policies have put a renewed emphasis on the renewable energy industry supply chain. Pranera has built a strong reputation and an attractive portfolio of projects within the sector, helping us establish a diversified and agile supply chain with the ability to navigate shifting trade and tariff policies. Our deep relationships with equipment manufacturers from around the world and our reputation for completing projects in challenging market conditions are especially important during times of volatility. We have the advantage of increased flexibility by sourcing material from locations least impacted by changes to trade policy, whether in The US or Asia. Due to our large purchasing volumes, our suppliers prioritize our orders and remain attuned to our needs.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Our utility partners continue to select us as a respected independent power producer able to deliver the projects needed to meet their increasing demand. These relationships, among other factors, help us mitigate the various impacts of changes in trade regulations, minimizing impact to our project economics. More specifically, as it relates to tariff risks, all PV panels for projects under construction are either domestically sourced or imported from countries other than China eliminating tariff exposure. Our exposure to battery storage is also mitigated due to a strong partnership with Tesla. Their batteries offer one of the highest domestic production levels available in The US and they represent a majority of the energy storage equipment at our projects currently under construction.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

We continue to work with all of our suppliers as well as our world leading financial partners and utilities to mitigate the impact of tariffs. We have modeled potential scenarios for the impacts of tariffs on our three projects currently under construction in The US. These appear in our quarterly results presentation published today. Within the context of a $1,700,000,000 construction budget for these projects, the impacts are minimal. The U.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

S. Government has suggested that tariffs on China could fall to lower levels over time, and should this occur, the impacts on our projects would be even less. In terms of estimated project returns calculated as expected project EBITDA divided by net CapEx, our analysis shows a reduction of between 0.2 to 1%. As we work through these new and uncertain future macroeconomic factors, I stress that these challenges are not new to us. The Clean Air team has been developing solar projects for decades, weathering many changes to trade policy and government incentives.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Our focus remains on the market fundamentals. Our customers, utilities across America need new sources of power to meet the growing energy demand, and we have proven we can deliver high quality, affordable projects in short timelines. I believe this season will be an opportunity for our company to outpace competitors and enhance our strong position in many markets, ensuring we execute our impressive development pipeline over the coming years. I will now turn the call over to Nir.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

Thank you, Adam. In the first quarter of twenty twenty five, the company's total revenues and income increased to $130,000,000 up from $94,000,000 last year, a growth rate of 39% year over year. This was composed of revenues from the sale of electricity, which rose 21% to $110,000,000 compared to $90,000,000 in the same period of 2024, as well as recognition of $20,000,000 in income from tax benefit compared to $3,000,000 in the first quarter of twenty twenty four. Revenues from the sale of electricity grew due to the contribution of newly operational project. Since the first quarter of twenty twenty four, seven of the solar and storage cluster units in Israel, Atrisko in The U.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

S, Popin in Serbia and Taphosa in Hungary, began selling electricity. The most important increases originated at Atrisko, which added 13,000,000 followed by the Israel solar and storage cluster, which added $11,000,000 In total, new projects contributed $30,000,000 to revenues from the sale of electricity. Offsetting this growth, electricity volumes generated at our wind project operating in Europe were lower compared to the same period last year, mainly due to weaker wind. In addition, generation volumes at Project Bjornbergt in Sweden fell compared to last year due to a blade failure experienced in January 2025. The company recognized compensation of $4,000,000 from Bjornberg Operating Contractor in lieu of the lower output, which is recorded in other income.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

Revenues and income were distributed between MENA, Europe and The U. S. Thirty Four Percent of revenue denominated in Israeli shekel, 30 9 percent in Europe and 27% denominated in U. S. Dollar.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

During the quarter, Enlight reported the sale of 44% stake in the sunlight cluster of renewable energy project in Israel to institutional investor for a cash consideration of $52,000,000 at the valuation of $119,000,000 and deconsolidated these assets from our balance sheet following loss of control. This generated a pre tax profit of 97,000,000 reflected the higher valuation of the entire cluster, of which $42,000,000 reflecting the actual consideration received for the stack sold less related book value was added to adjusted EBITDA. Accordingly, first quarter net income rose to $102,000,000 compared to $24,000,000 last year, an increase of 316% year over year. Aside from the $80,000,000 post tax profit from the Sunlight transaction, growth was driven by newer projects in the amount of $28,000,000 and offset by higher operating expenses of $70,000,000 and net financial expenses of 10,000,000 all after tax. The company adjusted EBITDA grew by 84% to $132,000,000 compared to $72,000,000 for the same period in 2024.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

The increase in adjusted EBITDA was boosted by $42,000,000 from the Sunlight transaction along with $36,000,000 from the same factors that drove the revenues and income increase mentioned above. It was offset by an additional $11,000,000 in cost of sale linked to new project, while other operating expenses rose by $4,000,000 Looking to our balance sheet, Enlight completed a broad range of financing transaction during the quarter. We reached financial close on Project Country Aircraft and Quell Range, combined $1,000,000,000 in construction financing at competitive rates, adding in $245,000,000 of new bond issued in Israel during this quarter and $550,000,000 financial clause for Roadrunner in December 2024. In total, Enlight has raised $1,800,000,000 in financing during the post months to support the expansion plans with particular focus on The U. S.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

Supplementing these funds, we have $350,000,000 of revolving credit facility at several Israeli banks, of which none have been drawn as of the balance sheet date. This further increases our financial flexibility as we continue to deliver on our growth strategy. We reiterate our 2025 guidance range, which expected revenues and income between $490,000,000 and $510,000,000 and adjusted EBITDA of between $360,000,000 and $380,000,000 Our revenues and income guidance for 2025 include recognition of the estimated $60,000,000 to $80,000,000 income from U. S. Tax benefit and 90% of 2025 generation output is expected to be sold at fixed price either through hedges or PPA.

Nir Yehuda
Nir Yehuda
Chief Financial Officer at Enlight Renewable Energy

I will now turn it over to the operator for questions.

Operator

Thank you. Our first question comes from the line of Justin Clare from ROTH Capital Partners. Please go ahead. Your line is open.

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

Hi, thanks for taking our questions. So, I wanted to start off here just on the potential for negotiations here. It looks like you did change the estimated first or first full year revenue, or you haven't changed the first full year revenue for some of your US projects with and '25 and '26. So just wondering what the potential is that we do see changes to the revenue expectations as a result of PPA adjustments and then how that might affect the project returns here.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. Hi, Justin. Thank you for your questions. So we are very optimistic about the results of the project and the relatively minor impact that we currently have from, I would say, the changing tariffs, say, declarations in The US, I think it's derived from a multilayer approach coming both from the cost side, from the tax equity protection, and also from, as you mentioned, the revenue side. But I would say the revenue side on PP adjustment is marginal.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

We have very good protection coming from our supply chain strategy from the fact that currently our solar panels are not affected at all on on what we call the second wave, so the project that will be constructed until '26. And relatively on the on the best side, relatively, we are in a good situation because 80% is sourced through Tesla and which has a relatively high domestic content. So on top of that, we have the tax equity protection as it's on the solar on the best side, it's primarily ITC. And on top of that, we have some protection coming also from participation of the PPA counterpart. So all in all, we do not foresee currently a change in our forecast or guidance for '25, and we are very encouraged from the results.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

I do hope that during the year, maybe we are even going maybe to review an uplifting the guidance, but currently, first quarter, so we are reaffirming the guidance and we believe that the impact, the current impact that we see from the tariff policies is minor.

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

Okay. Got you. That's good

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

to hear. Just to better understand it, it does look like there were some modest adjustments to CapEx, looks like for storage projects in 2025, '20 '20 '6. Wondering, are negotiations still ongoing with your suppliers or are things mostly agreed upon at this And then I just wonder if tariffs were to change, which we could see you know, a change soon here, how would your contracts potentially adjust for for that?

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. Yeah. It's a great question. So first, you know, the contract that we have because we have multiple contract project first, and each project has multiple supply contracts. So, you know, it varies.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

But in general, in some of the cases, we have automatic adjustment in the current contract, and in some of them, we adjust. But I would say the overall situation that we are at already is positive and provide a minor impact. And I believe that with the negotiations that are even currently undergoing, we can get even a better result. So in this regard, we feel safe. What we provided in our presentation relates to the 145% tariff on China and 10% broader, you know, global tariffs that US declared.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Of course, if tax tax policy will change, you know, results will change. But what we saw until now since already the policy has changed multiple times, When we took, you know, each one of the policies that, you know, were noticed and put that in our Excel files, we got in each one of them to a very minor impact, and this reaffirmed, you know, our supply chain strategy over the last two years because, you know, the current projects are already affected from decisions we took two years ago. And I think for us, it was very encouraging to see that the diversification, the fact that we relied we relied on out of China sources, we relied more on domestic, US domestic content suppliers and suppliers coming from China out of or even from the fourth four countries of the ADCVD. So we feel, after, you know, several occurrences that we are in a in a good place, but, of course, we'll have to see on future future policies.

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

Right. Okay. That's that's helpful. And then just one more. Wondering if you could just provide an update on how much of your US pipeline you think could qualify for the IRA credits under the safe harbor and just talk through your strategy in terms of potentially extending the qualifying projects into the future here.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. So I would like to let Adam answer. You know, he will be more accurate than me. Adam, please go ahead.

Adam Pishl
Adam Pishl
Co-Founder & COO - Clēnera at Enlight Renewable Energy

Yeah, I think in terms of IRE, mean, this is a difficult question to answer when we have multiple projects at different stages and timing. But we're continuing to accelerate our schedules and ensure that we're able to take full advantage of the IRA as it stands today.

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

Okay. Got it. Thanks, guys.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. Just just to compliment Adam on a specific project basis. So on the three project under construction, meaning, you know, all projects that will reach COD until the end of twenty sixth, we are already full fully covered on on safe harboring. And we are now working on getting to the safe harbor of Silver and Snowflake that will be operated by the end of twenty seven to early twenty eight. So also in this regard, the acceleration, as I mentioned, is already to the to the next phase of of project, while a project that affects our results for the next two years is already fully covered by Safe Harbor.

Justin Clare
MD & Research Analyst at Roth Capital Partners, LLC

Okay. Got it. Thank you.

Operator

Thank you. We'll now move on to our next question. Our next question comes from the line of Corinne Blanchard from Deutsche Bank. Please go ahead. Your line is open.

Mike McNulty
Mike McNulty
Associate - Equity Research at Deutsche Bank

Hey. This is actually Mike Milti on for Quinn. Thanks for taking the question, and congrats on the strong quarter. My first question revolves to financing. Have you seen any recent or can you speak about the current financing environment, how that's changed over recent months and what you expect going forward?

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. Hi, Arin. So first, I think we we we got it. We showed a very good sign by closing three major projects finance transaction in the last four months in a total debt of $1,500,000,000 for projects, with a total cost of 1,700,000,000.0 and with very good and favorable terms that, we also disclosed to the market. So I think this was a good sign because the last financial close was done in the midst of, you know, the the the tariff turmoil in The US and the 145% declaration.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

I I think this is a good sign showing showing the resilience of our project and the trust that we have from the banking industry in our ability to execute and, to meet our forecast. So in this regard, I think we are in a very good situation. The next wave of projects that will come to financial close would be towards the end of the year with Snowflake. So, we are, you know, I think, encouraged, and we believe that we have very good tools, to get to very good financing also on this project.

Mike McNulty
Mike McNulty
Associate - Equity Research at Deutsche Bank

Great. Thank you. Appreciate that. And the second question I have is related to the tariff impact on that 20% of storage that's not sourced from Tesla. Can you talk about where you source that and then any risk you see there?

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. So, the 20% comes from Chinese supplier and on top tier. And on this regard, we are protected, you know, from, I would say, multiplayer. Some of it comes from the fact that the equipment was already delivered to The US, and some of it comes from adjustment mechanism that we have within our contract and good relationships. So, also, on the 20%, the picture that we've shown in our presentation, I think, provide the the bottom line that includes the 20%, and we you know, you can see that the overall is good.

Mike McNulty
Mike McNulty
Associate - Equity Research at Deutsche Bank

Great. Thank you so much. I appreciate it.

Operator

Thank you. We'll now move on to our next question. Our next question comes from the line of Jack Hurley from Mizuho Group. Please go ahead.

Operator

Your line is open.

John Hurley
John Hurley
Equity Research Associate at Mizuho Financial Group

Hey, guys. How are you? I'm on the line from Maheep here. Just on tariffs, I appreciate the color on the China sensitivity in the slide deck. But how should we think about sensitivities to tariffs to other countries for either under construction projects or preconstruction projects?

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yes.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Thank you for the question, Jack. So I think what we tried to base on the last two years is the supply chain strategy that is very diversified. It is trying to first rely on mostly out of China say, sourcing, then domestic content from The US, then, out of the four ABCBD countries, and then to countries that we believe that are less exposed like India and other similar countries. So we believe that with this diversification, we have, I think, a relatively a very good, I would say, solution to an uncertain tariff policy. According you know, until now, since there were several announcements, part of them imposed tariffs in other countries in in higher levels than the 10%.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

So it was already tested and, again, you know, showing slightly different results, but still minor on the project. So, of course, we don't know what will be the final outcome, but we are quite confident on the resilience of of of the supply chain strategy that is based on these priorities and criteria.

John Hurley
John Hurley
Equity Research Associate at Mizuho Financial Group

Got it. Thanks a lot for that. And also, regarding Europe, given Europe's focus on infrastructure spending, are you seeing any signs of growth in advanced projects on that geography?

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Yeah. Yeah. We do see strong demand today coming from Europe and, by the way, MENA. In Europe, what we see, I think, a broad trend of, you know, strong demand for BEST, so energy storage projects. We do have in our pipeline currently on an advanced pipeline of 1.6 gigawatt hour of best projects in Europe, either as a stand alone project or complementation to our generation projects.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

And we believe that this will be one of the drivers of our growth in Europe in the next few years. While in Israel, what we see is, I would say, threefold trend coming from agrosolar requirements. So the utility scale business in Israel will grow on the PV side a lot in the area of agrosolar, and we are now developing and already provided the first agrosolar project with very good results. We see very strong requirements in Israel also for energy storage coming from the fact that Israel is not connected to other electricity networks and needs to rely on its own sources. And we also see in Israel future requirements for data centers.

Gilad Yavetz
Gilad Yavetz
Co-Founder, CEO & Director at Enlight Renewable Energy

Some of them are combined with solar generation. So this is also an area that we, say, entered into development for the first time this quarter by winning a tender of the Israeli Land Authority on a combined solar generation and a data center, and we will develop that in in in in the coming years. But we will see we believe that we will see some, growth also coming from this area in the coming years.

John Hurley
John Hurley
Equity Research Associate at Mizuho Financial Group

Got it. Thanks.

Operator

Thank you. Once again, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by. There are no further questions at this time.

Operator

So I'll hand the call back to Johanna for any closing remarks.

Yonah Weisz
Yonah Weisz
Director of Investor Relations at Enlight Renewable Energy

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

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

Executives
    • Yonah Weisz
      Yonah Weisz
      Director of Investor Relations
    • Gilad Yavetz
      Gilad Yavetz
      Co-Founder, CEO & Director
    • Adam Pishl
      Adam Pishl
      Co-Founder & COO - Clēnera
    • Nir Yehuda
      Nir Yehuda
      Chief Financial Officer
Analysts
    • Justin Clare
      MD & Research Analyst at Roth Capital Partners, LLC
    • Mike McNulty
      Associate - Equity Research at Deutsche Bank
    • John Hurley
      Equity Research Associate at Mizuho Financial Group
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Key Takeaways

  • Q1 2025 Financial Performance: Revenue rose 39% year-over-year to $130 million and adjusted EBITDA jumped 84% to $132 million, driven by a $42 million EBITDA boost and $97 million pre-tax profit from the Sunlight transaction, with full-year guidance reaffirmed.
  • U.S. Project Development: Quail Ranch, Roadrunner and Country Acres remain on schedule for commercial operations in late 2025/26, delivering 820 MW of generation and 2 GWh of storage capacity, supported by $1.5 billion in secured financing.
  • Next-Wave Mega Projects: Construction of the 2.6 GW COBAR and Snowflake projects begins in Q2 2025, targeting approximately $450 million in first-year revenues and $400 million in EBITDA.
  • Tariff-Resilient Supply Chain: By sourcing solar panels domestically or outside China and partnering with Tesla for batteries, the company has insulated its project economics from recent U.S. trade tariffs.
  • Global Expansion: Advancing 1.3 GWh of energy storage in Italy, Spain and Sweden, 3.2 GWh of standalone storage in Poland, and in Israel securing a $1 billion integrated data-center complex plus 1.9 GWh of standalone storage capacity.
AI Generated. May Contain Errors.
Earnings Conference Call
Enlight Renewable Energy Q1 2025
00:00 / 00:00

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