Enlight Renewable Energy Q2 2025 Earnings Report

Enlight Renewable Energy EPS Results

• Actual EPS: $0.01
• Consensus EPS: $0.06
• Beat/Miss: Missed by -$0.05
• One Year Ago EPS: N/A

Enlight Renewable Energy Revenue Results

• Actual Revenue: $36.37 million
• Expected Revenue: $424.05 million
• Beat/Miss: Missed by -$387.68 million
• YoY Revenue Growth: N/A

Enlight Renewable Energy Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 6, 2025
• Conference Call Time: 6:00AM ET

Enlight Renewable Energy (NASDAQ:ENLT) Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

Enlight Renewable Energy Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 revenue reached $135 M (+53% YoY) and Adjusted EBITDA was $96 M (+57% YoY), prompting a raise in 2025 guidance to $528 M revenue and $393 M EBITDA.
• Positive Sentiment: Enlight reaffirmed its roadmap to hit an annual revenue run rate of roughly $2 B by 2028—about four times its projected 2025 level.
• Positive Sentiment: The U.S. pipeline advanced with four utility-scale solar + storage projects under construction, including the 600 MW/1.9 GWh Snowflake A site on track for a 2027 commercial operation date.
• Negative Sentiment: Net income fell to $6 M (–41% YoY), driven by a $12 M non-cash foreign currency revaluation charge despite a 110% rise in adjusted net income.
• Neutral Sentiment: Leadership changes include naming Adilie Vitan as CEO of Enlight and Jad McKee as CEO of Cleanera, with founder Gilad Yavets shifting to Executive Chairman.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the Enlight Second 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 Yonah Weiss, Director IR. Please go ahead.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Thank you, operator. Good morning, everyone, and thank you for joining the second 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, including, 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 our 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, Director of Investor Relations at Enlight Renewable Energy]

Federal securities laws, which reflect management's best judgment based on currently available information. We reference certain 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 2024 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 are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call.

[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 earnings presentation for today's call, which are posted on our Investor Relations webpage. With me this morning are Gilad Yavets, CEO and Co Founder of nNite Niri Huda, CFO of nNIGHT Adam Pischel, CEO and Co Founder of Cloneira and Jad McKee, incoming CEO of Cloneira. Gilad will provide some opening remarks and then turn the call over to Adam and Jad for a review of our U.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

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

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

Thank you for joining us today for Enlight's second quarter twenty twenty five earnings call. We are pleased to report another strong quarter of results. Revenue and income grew by 53% compared to the same quarter last year, reaching 135,000,000 Adjusted EBITDA also increased by 57% to $96,000,000 Net income amounted to $6,000,000 compared to $9,000,000 in the same quarter last year, but mainly due to the accounting classification of a foreign currency shareholder loan impacted by exchange rate values. Given this momentum, we are raising our full year 2025 guidance ranges. Using the midpoint of these new ranges, revenues rise to $528,000,000 from $500,000,000 previously and adjusted EBITDA rises to $393,000,000 from $370,000,000 previously.

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

This represents a 5% to 6% increase at the midpoint for both metrics respectively and underscores confidence in our business outlook. The company is advancing with the roadmap which we first presented in May, targeting an annual revenue run rate of roughly $2,000,000,000 by the 2028, roughly four times the 2025 revenues. Nir will provide a detailed financial review later in the call. We've also recently announced an expansion of Enlight executive leadership team. Adilie Vitan will take on the role of CEO of the company at the October, and I will transition to become the Executive Chairman of the Board in full time capacity.

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

Yair Sourousse, who has served as Chairman of the Board for the past seven years, will assume the role of Vice Chairman. Following two decades of leadership roles with global corporations such as three ms and McKinsey and Co. In Israel, China and The U. S, Adee brings a wealth of experience to Inlyte. Her addition to the executive team reinforces our core values of excellence and integrity and will contribute valuable management insight and best practices from a Fortune 100 company.

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

I will continue to work closely with Adi, the Board and the leadership as well as all the employees of Enlight remaining fully committed to steering Enlight's future growth. The current market environment for the renewable energy sector across geographies is positive now. Fundamentals remain very strong as the electrification trend and especially AI are driving demand significantly beyond supply, leading to continued increases in power prices. In parallel, the cost of solar panels and energy storage equipment continues to decline, reaching historic lows. As a result, renewables are the most cost effective method for generating electricity and are continuously increasing the gap versus conventional energy.

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

With lower CapEx and higher power prices, we believe project returns will remain attractive in the regions we operate in. Specifically in The U. S, regulatory clarity and a supportive business environment create the runway for accelerated growth. We believe that the terms of the recently passed reconciliation bill are very favorable for the utility scale solar and storage segments, providing the larger companies such as a window of significant growth opportunities. It allows Enlight to continue with our major expansion plan through 2028.

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

Solar levelized cost of energy remains extremely price competitive compared to traditional power sources, especially in the Southwest US, one of our prime development markets. Given the cost effectiveness of our projects, we believe we are well positioned to continue growing also beyond 2,030 in a subsidy free environment. Adam will give more detail on our U. S. Project progress shortly.

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

In Europe, we are seizing the energy storage opportunity. Given the high percentage of renewables within Europe's energy supply, we see very strong demand for storage. Cost of energy storage equipment are at historic lows, Coupled with high priced arbitrage and ancillary services revenues, we expect to generate very attractive returns in the region. As a global front runner in energy storage, Enlight was early to identify the opportunity in this segment and 7.8 gigawatt hour of our total portfolio comprises of energy storage projects in five countries in Europe, 3.6 gigawatt hour of which are expected to reach operations by 2028. Finally, we are breaking into new areas of growth also in Israel.

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

Given Israel's market dynamics and dependency on solar within the renewable sector, we see very strong need for energy storage in the country, where we are the leading player and are expanding rapidly with 6.9 gigawatt hours of planned storage projects in our advanced development and development portfolios. Following recent land reform, Agrosolar is taking large steps forward, and we are very early to secure dozens of land agreements for the segment. On the basis of our experience in Israel, we are positioned to pioneer the agro solar revolution, also in other geographies worldwide with similar needs. We see demand for data centers in the coming years and the important role that energy plays in developing and operating these assets. We are in the early stages of developing the land we recently acquired in the South Of Israel for our first data center, a location surrounded by adjacent renewable energy sites.

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

To summarize, this quarter, we demonstrated robust financial results and raised our guidance, strengthened our senior leadership and made tangible progress across our near and long term growth plans, positioning Enlight to continue outpacing the market in both growth and returns. Now I'd like to turn the call over to Adam.

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

Thank you, Gilad. Our U. S. Business continues to experience incredible growth with achievements in construction, financing and the development of our deep project pipeline. We are demonstrating our ability to build profitable projects and continue to deliver power to meet America's increasing energy demand.

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

I'm happy to report our Snowflake A project near Sedona, Arizona has mobilized and entered into full construction. Through early construction activity this summer, we have safe harbored the project for optimal tax credits. Snowflake A includes 600 megawatts of solar power and 1.9 gigawatt hours of battery storage and is the first of two linked projects that will fill one gigawatt interconnection on the site. Snowflake A is currently scheduled to COD in 2027. We continue to make progress at our three other projects under construction this year.

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

Let's move on to a project located East of Tucson, Arizona. Roadrunner Solar and Storage includes two ninety megawatts of PV and nine forty megawatt hours of battery storage. Just last month, we successfully completed the initial energization of the substation, a major milestone. The racking and tracking systems are complete, and we are more than halfway through installation of the solar modules. We are using Tesla Megapacks as our battery storage solution.

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

Those are installed, and we are making good progress on the wiring and power management system. The project remains on schedule for a COD towards the 2025. Moving on to our second project outside Albuquerque, New Mexico. Quail Ranch solar and storage includes 128 megawatts of PV and 400 megawatt hours of battery storage. Piles, racking, and tracking equipment are complete, and we are over halfway complete with the module installation.

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

Currently, the batteries are being delivered and installed. Our final project under construction is Country Acres, a four zero three megawatt PV and 688 megawatt hour battery storage project located outside Sacramento, California. Construction on the PV site is well underway, and we have completed the golden row, achieving the important real world testing of the design and clearing the way for successful construction of the rest of the site. We continue to work on piles and racking. The batteries are scheduled to be delivered this winter.

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

The project remains on schedule for COD by the 2026. As we announced last month, Gerard McKee, our Chief Commercial Officer, will take my place as CEO beginning October 1. Announced Jared Jared has been a leader at Clean Air for nearly a decade. He has played a key role in building our robust development pipeline of projects and creating the structures and processes needed for us to execute the funding and construction of those projects. His growth into the CEO role brings the leadership, strength and continuity needed to expand our U.

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

S. Business. It has been an honor to see the company I cofounded twelve years ago emerge as a market leader. As Jared takes over the day to day leadership, I will remain a part of the Cleanera and Enlight family, serving as Vice Chair of the Cleanera Board and an executive adviser. Let me close by emphasizing that the demand for energy continues to soar, and our unique ability to build and deliver large power and battery storage facilities at a fast pace makes us a prime choice for utilities seeking new sources of power across the country.

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

Our outlook remains very positive as we deliver the next generation of reliable, affordable, clean energy projects to the market. Jared, would you like to say a few words?

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

I would. Thank you, Adam. It has been an honor to learn from you and the nLIGHT leaders as we build a world class renewable energy company. My time leading the development team involved a focus on implementing process and operational improvements to expedite the conversion of projects from ideas to reality and to continually grow our early greenfield development efforts. I look forward to advancing our company to the greatest period of growth yet.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

I'm excited to step into this leadership role with a special focus on execution and delivery of projects that will take us through not just the near term, but for many years to come. I will be sharing more of our growth story during future earning calls. Thank you, and let me turn the call over to Nir.

[Nir Yehuda, CFO at Enlight Renewable Energy]

Thank you, Jarrod. In the '25, the company's total revenues and income increased to $135,000,000 up from $88,000,000 last year, a growth rate of 53% year over year. This was composed of revenues from the sale of electricity, which rose 37% to 160,000,000 compared to $85,000,000 in the same period of 2024, as well as recognition of $19,000,000 in income from tax benefit compared to $3,000,000 in 2024. Revenue from the sale of electricity grew due to the contribution of newly operational projects. Since the 2024, three of the solar and storage cluster units in Israel, Atrisko in The U.

[Nir Yehuda, CFO at Enlight Renewable Energy]

S, Pupin in Serbia and Tapulsa in Hungary all began selling electricity. The most important increases originated at Atrisco, which added $13,000,000 followed by the Israel solar and storage cluster, which added 12,000,000 In total, new projects contributed $30,000,000 to revenues from the sale of electricity. Revenues and income were distributed between MENA, Europe and The U. S, with 40% of revenues in the second quarter of 25% from Israel, 35% from Europe and 25% from The U. S.

[Nir Yehuda, CFO at Enlight Renewable Energy]

Second quarter net income amounted to $6,000,000 compared to $9,000,000 last year, a decrease of 41% year over year. The change was driven mainly by new projects, which contributed $15,000,000 of net income, offset by $12,000,000 non cash charge linked to the revaluation of shareholder loan to a subsidiary and an $8,000,000 increase in other financial expenses, all after tax. Adjusting from the effects of foreign currency revaluation, net income amounted to $16,000,000 compared to $7,000,000 last year, an increase of 110% year over year. The company adjusted EBITDA grew by 57% to $96,000,000 compared to $61,000,000 for the same period in 2024. The increase in adjusted EBITDA was boosted by $47,000,000 stemming from the same factors that drove the revenue and income increase mentioned above, along with recognition of $3,000,000 in compensation linked to blood failures to the Bjorn project in Sweden.

[Nir Yehuda, CFO at Enlight Renewable Energy]

It was offset by an additional $13,000,000 in cost of sales linked to new projects, while other operating expenses rose by 3,000,000 Looking to our balance sheet, Enlight completed the financial growth for the hybridization of the Hekama project in Spain, securing $310,000,000 in financing for the addition of two twenty five MW of solar and two twenty megawatt hour storage capacity to the existing three twenty nine megawatt wind project. Since the 2024, Enlight has raised $1,800,000,000 in project finance and $300,000,000 from corporate debt and asset sales to support its expansion plans with particular focus on The U. S. In addition to these funds, we have $525,000,000 of credit facilities at several Israeli and international banks, of which only $9,000,000 has been drawn as at the balance sheet date. In addition, we have approximately $1,000,000,000 of LC and surety bond facility supporting our global extension, of which half was available for use at the end of the quarter.

[Nir Yehuda, CFO at Enlight Renewable Energy]

This further increases our financial flexibility as we continue to deliver on our growth strategy. Given the strong financial performance during the 2025, we are raising our 2025 guidance ranges, with revenues and income now expected between $520,000,000 and $535,000,000 and adjusted EBITDA expected between $385,000,000 and 400,000,000 representing a five point five percent and six percent increase for both metrics, respectively, compared to our previous guidance ranges. Our revenues and income guidance for 2025 includes recognition of an estimated $70,000,000 to $80,000,000 in income from U. S. Tax benefit and 90% of 2025 generation output is expected to be sold at fixed price either through hedges or PPAs.

[Nir Yehuda, CFO at Enlight Renewable Energy]

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

[Operator]

Thank you. Questions. Will now take the first question from the line of Mark Strouse from JPMorgan. Please go ahead.

[Mark Strouse, Executive Director at JP Morgan]

Yes. Hello there. Thank you very much for taking our questions. So my first question, kind of thinking about safe harbor and the July 7 executive order from President Trump, kind of the industry just waiting to see what the new guidelines potentially might be. With regards to InLight, I'm curious, you've got some projects that are scheduled to be complete by the '7 or potentially '8.

[Mark Strouse, Executive Director at JP Morgan]

CEO bar and Snowflake, kind of curious, to the extent you've safe harbored those already, but if the safe harbor rules change, can you talk about your ability to accelerate those projects to ensure that they are complete by the '7, and therefore, we don't have to worry about potential safe harbor guidelines?

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

Hey. Hi, Mark. It's Gilad. How are you? So I will start with, with the answer.

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

Then, Jared, if you want, you can compliment me. So to start, I would say that, currently, we already have six gigawatts that are fully safe harbored, and they account for the majority of our plan towards the '27, which is for 6.5 to eight gigawatts to be connected to the network. In addition, we believe that with the, I would say, the fact that we are a large developer with good access to capital and cost of capital and a lot of, I would say, very good liquidity. Relatively, we are in a very good position if we need to accelerate cash investment in order to meet potential different criteria. So we believe that we are positioned in a very good situation.

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

First, we are reaffirming our road map that we announced on the May 27 to reach $1,400,000,000 of total revenues and income ARR by the 2027 and 2,000,000,000 of ARR by the '28. So we are reaffirming that after the reconciliation bill, but we believe we are also positioned very well in order to, I'd say, adjust to any different criteria if such is introduced. Jared, would you like to complement? Sure.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Thank you, Gil. In respect to CLR and Snowflake, we we are starting construction. We have ability to to meet the needs of both already starting construction in respect to safe harboring. And as Gilatas mentioned, we have the ability to to meet the demands if if there are some in the future to accelerate construction. COBAR and Snowflake are already expected to be online before the 2027, And so they already fit within the schedule of the executive order.

[Mark Strouse, Executive Director at JP Morgan]

Perfect. Okay. Thank you very much. And then just a follow-up. With India being in the news in one of your major panel suppliers located in India, curious to the extent that India tariff rates coming into The U.

[Mark Strouse, Executive Director at JP Morgan]

S. Increase or the new ADCVD case that's out there, including India. Can you talk about your supply, if you're locked into that supply and your ability to pass that on in your PPAs if you are in fact locked into that supply? Thank you.

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

Yeah. Jared, you can start with our supply chain strategy, and I will complement afterwards.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Yep. So project currently in delivery will not be impacted by the new ABCBD case against Laos, Indonesia, and India. Our our our next wave of projects will be connect contracted such that ABCBD will not apply.

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

Yes. And I will just add that I think we are now benefiting from a very diversified supply chain strategy. So we have many sources of production for the panels also coming from many countries. So it seems that since the tariff regulation was introduced, we see that we have very good resilience against different orders in this regard. So we are very confident that we will meet that.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Mark, if

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

I just may add one more thing. In terms of the interaction with where we were not locked into anything. It's an option to purchase, and we have no liability. We have no requirement to buy from them.

[Mark Strouse, Executive Director at JP Morgan]

Great. Thank you very much.

[Operator]

Thank you. We will now take the next question from the line of Justin Clare from ROTH Capital Partners. Please go ahead.

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

Everyone, thanks for the time here.

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

I first just wanted to follow-up on Mark's question. So you had mentioned the six gigawatts you've fully safe harbored at this point in time. I was just wondering because you had previously spoken about a 6.5 to eight gigawatt potential. So I know there's some uncertainty related to the executive order, but maybe you could speak to your plans and how you're executing at this point in terms of adding additional safe harbor projects. And then it does seem like the projects that were safe harbored in 2024 may be not subject to the executive order.

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

So any way to quantify how much of the six gigawatts was safe harbored prior to 2025?

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

Yes. So first, important to mention that according to the reconciliation bill, we have until 07/04/2026 in order to make project eligible for the safe harbor. So at this point of time, having six gigawatts out of the 6.5 to eight gigawatts plan, it's a very, very good position. And I would say that since the May 27, where we first introduced our plan, we had back then 4.9 gigawatts, and then we qualified additional 1.5 gigawatt 1.1 gigawatts coming from the Snowflake project. So we are now already have six gigawatts.

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

So the pace is very high, and I believe that by the June '26, we'll have eligible much more than what we anticipated.

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

Got it. Okay. That's helpful. And then wondering if you could just speak to also the trend in PPAs you're seeing for U. S.

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

Projects, maybe specifically for COD dates out in the 2028 or 2029 time frame. It might be a little bit early at this point, but would you anticipate a decrease in the supply of projects in those later years, given the potential reduction in in the tax credits, available there? And would you expect upward pressure on, on PPAs?

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

Yeah. Jared, why won't you start? And, again, I will compliment afterwards.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Yep. Not a problem.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

As we look to 2027, '28, '29, 2030, it will largely depend on what are the components of the executive order and also the adjustments, if any, on the start of construction requirements. It it is too early to know where and how the supply will adjust without the guidance coming in. As you can be sure that we are tracking and monitoring the guidance, and as it comes out, we will adjust. One of the things that we are doing is we are advancing our start up construction strategy to ensure that we have the most projects possible that are ready to deliver in '28, '29, and 2030.

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

Yeah. Thanks, Jared. I I will add just that we think that the decisive here factor is the demand for electricity. There is a very strong demand for electricity, as you know, in The US coming mainly from the data center industry and AI and so forth. Now if you refer to, you know, the standard economy of solar energy and storage in Europe and in all the developed worlds, so our LCOE is already economical and does not require the tax equity.

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

The fact that the reconciliation deal allowed a gradual time for The U. S. Market to adapt to that is very favorable, and we believe it's the right policy. But we believe that by the end of 2030 or 02/2008, 02/2009, 02/1930, The U. S.

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

Market will be already, I would say, will adapt already the world economy where the cost of one megawatt is 600,000 rather than $1,200,000 And therefore, we are very optimistic about continuing the growth in The U. S. Based on a non tax equity economy starting from 02/1930. And also, refer to the fact that energy storage has even more a gradual timeline. So we believe that The U.

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

S. Economy or I would say the administration did the right thing by allowing The US market to adapt to that with demand for electricity being, I would say, the most important factor here.

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

Okay. I appreciate it. I'll pass it on.

[Operator]

Thank you. We will now take the next question from the line of Corinne Blanchard from Deutsche Bank. Please go ahead.

[Mike McNulty, Equity Research Associate at Deutsche Bank]

Hey, thanks for taking the question. This is actually Mike Szalte on for Corinne. Congrats on the guidance raise. So my first question concerning that FX has been a pretty meaningful tailwind for you guys year to date. Can you parse out the contribution of FX to the increased guidance?

[Mike McNulty, Equity Research Associate at Deutsche Bank]

And then talk about what assumptions you have baked into the guidance for FX?

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

Yes. Thanks for the question. So first, yes, we also benefited from the FX, but I think that we raised the guidance also due to very strong performance that we had with our plans and the fact that we execute on time and we focus to continue to execute on time. So we believe that the combination of this period positive FX, but with very strong fundamentals on the operation and execution allows us to be confident on the future, and we believe that this trend will continue.

[Mike McNulty, Equity Research Associate at Deutsche Bank]

Okay. Thank you. That's really helpful. The second question I have is around component costs. Given so during your prepared remarks, you mentioned that falling component cost is a key driver.

[Mike McNulty, Equity Research Associate at Deutsche Bank]

Can you talk about just the differences between The U. S. And the rest of the world and how you see U. S. Component costs for batteries and modules playing out?

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

Yes. So naturally, first, as most of the components are generic, such as solar panels and inverters and, of course, battery cells and so forth. So first, it can be comparable. But, of course, under regulation, I would say, environment such as tariffs, domestic content and so forth. So clearly, in The U.

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

S, the same modules or the same equipment cost more mainly due to tariffs. But also, we believe that the tax equity environment is also contributing, which and this is a factor that increases a little bit, let's say, the overall, let's say, pool of the cost of the project, part of it goes to the lenders or to the tax equity providers, part of it to the contractors. So we see also higher BOP cost in The U. S. Per kilowatt than, let's say, in the other developed countries.

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

So we believe that this will adapt itself, I'd say, gradually, but with tariffs, of course, according to the administration policy, and we believe that the electricity prices in the market will reflect the change. So to the extent that there will be tariff, they will be reflected in electricity prices and PPAs because of the demand for electric demand for electricity, of course.

[Mike McNulty, Equity Research Associate at Deutsche Bank]

Great. Thanks so much.

[Operator]

Thank you. We will now take the next question from the line of Maheep Mandloy from Mizuho. Please go ahead.

[Maheep Mandloi, Director at Mizuho Financial Group]

Hey, thanks for taking the questions here. And congratulations on the nice quarter here. One question just on the safe harbor expectations here on August 18. Just wanted to understand one thing based on your checks with lawyers. Is it possible that they might change the rules for projects that are safe harbor before July 4?

[Maheep Mandloi, Director at Mizuho Financial Group]

Or that's something which, to breaking laws is not possible again?

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

Yeah. So hi, Maheep. So first, I guess that we are following, you know, the analysis of the law firms like yourself, And it looks like the broad, I would say, consensus is that there will be no or cannot be retroactive legislation, and therefore, it will not be affected. But of course, we will follow it like everyone else. And we are also following opinions of other large developers, and we see quite a broad, I would say, projection that there will be a positive situation with regard to start of construction.

[Maheep Mandloi, Director at Mizuho Financial Group]

Yes. We did. No, that's why we're hearing something similar from others as well. But then secondly, just on one housekeeping on the ITC sales. Looks like 70,000,000 to $80,000,000 for this year.

[Maheep Mandloi, Director at Mizuho Financial Group]

Was there a reduction from a previous estimate? Or how to think about that ITC sales revenue contribution next year?

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Maheep. It's Yona. Previously looking for, if I understand it correctly, your question correctly, we were previously looking for tax benefit contribution of between 60,000,000 to $80,000,000 and this has now turned to 70,000,000 to $80,000,000. So the the range has slimmed down just a bit.

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

Yeah. And, Maheep, just to complement the other my previous answer, it's important, Nir, just referring me to the fact that four or five major projects that are supposed to become operational on our portfolio will do so or plan to do so before the '27, meaning that even if start of construction criteria is moving or something, we still have the protection of the '27. So we are in a very good situation.

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

That's good. Thank Thank

[Operator]

you. We will now take the next question from the line of David Pass from Wolfe. Please go ahead.

[David Paz, SVP at Wolfe Research]

Yeah. Thank you. Just, CEO or wanna make sure I heard you correctly. That is started construction, and I believe that implies or maybe you said that you received all the necessary studies and interconnection queue and all the other required approvals. Is that correct?

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

Jared, would you like to take it?

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Yeah. Is this relation to a specific project or in general?

[David Paz, SVP at Wolfe Research]

COBAR. Sorry. In Arizona.

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Ah, thank you. On COBAR, we we are working through still the, what I would call, pre and during constructions, we have officially safe harbored the project through various mechanisms through start of construction, roads, and also transformers. We are in the final stages of the interconnection process, and we expect to start full mobilization of construction later this year and quarter.

[David Paz, SVP at Wolfe Research]

Okay. Any sense of when you get that final interconnection

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Yeah. Permit or whatever? That is yep. That that's expected for this year.

[David Paz, SVP at Wolfe Research]

This year. Okay. Alright. And then secondly, just switching subjects. What what is your plan for your I believe you still have the PJM assets, particularly the Blackwater project, which I think is about 720 megawatts and 1.2 gigawatt hours, and it's pretty advanced.

[David Paz, SVP at Wolfe Research]

Are you do you have any plans for that project or the overall portfolio in PJM?

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

Yes. So I will start. And of course, Jared, if you want, please complement me. So of course, we are still developing the portfolio in PJM. Of course, until project is fully permitted, so we are still under the development phase.

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

We believe that we have a good portfolio there, and we are quite optimistic that it will create value for us. Jared?

[Jared Mckee, VP Business Development - Clēnera at Enlight Renewable Energy]

Same. We have a a world class team in PJM. They are a part of the community, and we're we're working through the permitting processes there in Blackwater as well as the rest of the portfolio in PJM. So we are going to continue their development there, work towards, work towards a permit, and, you know, continue to have the the expansion of what we see across the rest of the country in PGM as well.

[David Paz, SVP at Wolfe Research]

Great. If I could sneak one more in and just you give us the run rates, revenue, and income. Very helpful. Appreciate that. Any other costs or expenses that we should be mindful of as we project outwards, I don't know, on an annual basis, development costs or other things that you could give us a run rate Thank you.

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

Yes. So we believe that the road map and the details we provide are very comprehensive. So the idea is that it will allow you to construct your models and analysis. Of course, if some assistance is required, we can be in touch with the team. But there is no any material data that is different from what you see.

[David Paz, SVP at Wolfe Research]

Great. Thank you.

[Nir Yehuda, CFO at Enlight Renewable Energy]

If you refer to any other components in the P and L, so we expect that to be increased in a lower increase proportion to the revenues and the other and the EBITDA.

[David Paz, SVP at Wolfe Research]

Great. Thank you so much.

[Operator]

Thank you. There are no further questions at this time. I would like to turn the conference back to Jonah Weiss for closing remarks.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Thank you very much, everyone, for joining, and we'll speak with you next quarter. Take care.

[Operator]

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

Participants

Executives

• Yonah Weisz, Director of Investor Relations
• Gilad Yavetz, Co-Founder, CEO & Director
• Adam Pishl, Co-Founder & COO - ClÄ“nera
• Jared Mckee, VP Business Development - ClÄ“nera
• Nir Yehuda, CFO

Analysts

• Mark Strouse, Executive Director at JP Morgan
• Justin Clare, MD & Senior Research Analyst at Roth Capital Partners, LLC
• Mike McNulty, Equity Research Associate at Deutsche Bank
• Maheep Mandloi, Director at Mizuho Financial Group
• David Paz, SVP at Wolfe Research