Enlight Renewable Energy Q3 Earnings Call Highlights

Key Points

• Record third-quarter performance: Revenue and income rose 40% year over year to $231 million, adjusted EBITDA increased 38% to $154 million, and operating cash flow grew 26% to approximately $104 million. Newly operational projects, Israeli electricity trading and favorable currency movements supported results.
• 2026 outlook raised: Enlight increased its full-year revenue guidance to $810 million–$830 million and adjusted EBITDA guidance to $575 million–$590 million, citing stronger operating performance, improved Israeli trading prospects and higher electricity prices.
• Portfolio expansion continues: The company is constructing more than 4 gigawatts of generation and storage across eight U.S. projects, expanded its European storage portfolio by 6.6 gigawatt-hours, and reiterated its goal of exceeding a $2.2 billion annual revenue run rate by 2028.

Enlight Renewable Energy NASDAQ: ENLT reported higher third-quarter revenue, adjusted EBITDA and operating cash flow as newly operational projects, electricity trading activity in Israel and favorable currency movements supported results. The company also raised and narrowed its full-year 2026 financial outlook while advancing a portfolio of renewable generation and energy-storage projects in the U.S. and Europe.

Total revenue and income rose 40% year over year to $231 million in the third quarter, while adjusted EBITDA increased 38% to $154 million. Operating cash flow climbed 26% to approximately $104 million, Chief Executive Officer Adi Leviatan said during the company’s earnings call.

“We delivered record third quarter results across all key financial metrics,” Leviatan said, adding that the company’s operating cash flow was running at an annualized rate of about $400 million in 2026.

Financial Results and Raised Outlook

Chief Financial Officer Nir Yehuda said newly operational projects contributed $21 million in electricity sales and $17 million in tax benefits during the quarter. Favorable exchange-rate movements added $9 million, while electricity-trading revenue in Israel reached $34 million, an increase of $17 million from the year-earlier period excluding currency effects.

The company’s $42 million increase in adjusted EBITDA was partly offset by a $22 million rise in cost of sales, mainly tied to expanded Israeli electricity trading and newly operational projects. Net income was $34 million, compared with $32 million in the third quarter of 2025.

Yehuda said increased depreciation and amortization, share-based compensation, other expenses and net financial expenses largely offset the EBITDA improvement. Net financial expenses rose $20 million, reflecting financing associated with newly operational projects and the absence of financial income recorded from the Gecama refinancing in the prior-year quarter.

For the first nine months of 2026, revenue and income increased 49%, while adjusted EBITDA rose 38% to $469 million. Operating cash flow increased 39% to $289 million.

Based on the year-to-date performance, Enlight lifted its 2026 guidance:

• Revenue and income guidance was increased to $810 million to $830 million, from $790 million to $820 million.
• Adjusted EBITDA guidance was raised to $575 million to $590 million, from $565 million to $585 million.

Yehuda attributed the outlook increase to operating performance, a better revenue outlook for the Israeli electricity-trading operation, and higher electricity prices in Europe and Israel. Management said fourth-quarter trading revenue in Israel is expected to be below the third-quarter level because of seasonal declines in solar generation and electricity demand.

Liquidity, Debt Structure and Investment Spending

Enlight reported $5.6 billion of outstanding long-term debt at the end of the quarter. Yehuda said 80% was non-recourse project financing and nearly 90% was effectively fixed rate. The company held $420 million in cash and cash equivalents at the parent-company level and another $360 million at subsidiaries.

During the quarter, Enlight repaid approximately $185 million of Series F bonds. Capital expenditures totaled roughly $760 million in the third quarter and $2.1 billion over the first nine months of 2026. The company also had approximately $470 million available under credit facilities and $1.2 billion available under letter-of-credit and surety-bond facilities.

U.S. Project Development and Construction

Clēnera Chief Executive Officer Jared McKee said the company added more than 2 factored gigawatts to its advanced-development and development portfolios during the quarter. Forty percent of projects in those portfolios are now located in PJM, MISO and SPP after the company added about 1 factored gigawatt in PJM and MISO during the period.

The Blackwater project in Virginia received local permitting approval during the quarter. Its initial phase includes a 600-megawatt solar build-out, with potential for additional storage under its interconnection agreement. McKee said the project is currently expected to reach commercial operation in 2030, begin construction in 2027 and require 24 to 28 months of heavy construction work. The project is safe-harbored, he said.

Enlight terminated previous power-purchase agreements for the Gemstone and Rustic Hills projects in PJM and MISO, respectively, and plans to seek new contracts amid changed input-cost and energy-pricing conditions. The decision resulted in $20 million in termination fees. McKee said the company believes it can recover more than that amount through new agreements, and that it is in advanced discussions with potential customers.

The company is constructing more than 4 factored gigawatts of generation and storage across eight projects. Construction updates included:

• The 1,211-megawatt CO Bar complex in northern Arizona, which includes 4,000 megawatt-hours of storage. The company broke ground on the CO Bar 4 and CO Bar 5 storage phases and expects CO Bar 1 to begin operating in the fourth quarter of 2027.
• The Snowflake A project in Arizona, comprising 594 megawatts of solar and 1,900 megawatt-hours of storage, remains scheduled for commercial operation in the second half of 2027.
• The 403-megawatt Country Acres solar project and 688-megawatt-hour storage project in California has entered final commissioning and remains on track for year-end commercial operation.
• The 120-megawatt Crimson Orchard solar project and 400-megawatt-hour storage facility in Idaho remains on schedule for commercial operation in the second quarter of 2027.

McKee said projects scheduled to reach commercial operation in 2027 and 2028 have not seen cost increases from Section 232 tariffs because equipment had already been contracted and, in certain cases, was already in the U.S. For projects beyond 2028, he said the company expects higher costs but believes increased power-purchase agreement pricing and relationships with domestic suppliers can mitigate the impact.

European Storage Expansion and Long-Term Targets

In Europe, Enlight acquired two pre-construction Finnish energy-storage projects totaling 858 megawatt-hours. Leviatan said the company has expanded its mature European portfolio into Germany, Poland, Romania and Finland over the past year, adding 6.6 gigawatt-hours of storage capacity and approximately $300 million in forecast annual revenue run rate.

Enlight’s mature portfolio totaled approximately 12.7 factored gigawatts at quarter-end, representing an expected annual revenue run rate of about $2.4 billion. Its total global portfolio grew to 46.2 factored gigawatts.

Approximately 1.2 factored gigawatts entered construction during the quarter, including 907 factored megawatts from CO Bar phases four and five and roughly 3.2 gigawatt-hours of storage. Management expects another 1.3 factored gigawatts to begin construction in the coming months.

By year-end, Enlight expects roughly 80% of its mature portfolio to be operating or under construction. The company said it has 8.7 factored gigawatts under construction or expected to begin construction through 2027, with about 70% of required project financing secured and 60% of required equity invested.

Leviatan reiterated the company’s goal to exceed $2.2 billion in annual revenue run rate by the end of 2028, supported by 12 gigawatts of capacity. Projects under construction and in pre-construction are expected to generate unlevered returns of about 13%, rising to more than 18% after leverage, he said.

About Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy Ltd. NASDAQ: ENLT is a renewable energy company that develops, finances, constructs, owns and operates clean energy projects. Its activities include utility-scale solar photovoltaic, wind power and energy storage projects.

The company manages projects across multiple stages of the renewable energy lifecycle, from development and permitting through construction and long-term operation. Its portfolio and development activities span Israel, the United States and selected European markets.

Founded in 1988, Enlight is headquartered in Israel and is also listed on the Tel Aviv Stock Exchange.

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