Full Transcript: Enlight Renewable Energy Q2 2026 Earnings Call

Enlight Renewable Energy (NASDAQ: ENLT ) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Enlight Renewable Energy reported a 55% increase in revenues and a 67% rise in adjusted EBITDA for Q2 2026, with net profit reaching $31 million and operating cash flow increasing by 34% to $84 million.

6%, respectively, citing strong first-half results and elevated merchant prices in Europe. 6 billion COBAR complex in Arizona and signing a power purchase agreement with Google for the Solstice project in Oklahoma. Enlight expanded into new European markets, acquiring storage projects in Finland and Romania, with expected high returns due to energy storage demand. 2 billion in revenue by 2028.

Full Transcript OPERATOR (Operator) Good morning, everyone, and thank you for joining Enlight Renewable Energy's second quarter 2026 earnings conference call. S. federal securities 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 the 2025 Annual Report filed with the SEC on March 30, 2026, 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. 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 Adi Leviathan, Chief Executive Officer of Enlight Renewable Energy; Nir Yehuda, Chief Financial Officer of Enlight Renewable Energy; and Jared McKee, Chief Executive Officer of Clēnera.

Adi will begin with an overview of our performance and key milestones achieved during the quarter, followed by Nir, who will review our financial results for the second quarter. S. operations and business activities. Our prepared remarks will be accompanied by a presentation.

com, financial reports. Following the prepared remarks, we will open the call for a question-and-answer session. I will now turn the call over to Adi Leviathan, CEO of Enlight Renewable Energy. Adi.

Adi Leviathan, Chief Executive Officer Good morning and good afternoon, everyone, and thank you for joining us today to discuss Enlight Renewable Energy's second quarter 2026 results. The second quarter marked another period of strong execution for Enlight Renewable Energy, underscoring the resilience of our global platform, the quality of our portfolio, and our consistent ability to deliver our business plan. That execution translated into record financial performance. Revenues and income increased by 55%, adjusted EBITDA grew by 67%, net profit reached $31 million, and operating cash flow rose by 34% year over year to $84 million.

These results demonstrate our ability to convert our project development portfolio into operating assets, growing earnings and driving cash generation. The market environment around us continues to evolve rapidly. Electricity demand is accelerating, driven by the rise of artificial intelligence, unprecedented digital infrastructure buildout, alongside additional electrification in industry and transportation. We believe this is a long-term infrastructure growth story and that the need for reliable, scalable, and cost-effective clean power has never been greater.

Against this backdrop, Enlight Renewable Energy's diversified platform, disciplined execution, and capital allocation provide resilience and position us to meet the growing demand. Based on the strength of our results year to date and our updated outlook for the remainder of the year, we are raising our 2026 annual guidance. 6% at the midpoint to $805 million and $575 million, respectively. The increase in guidance reflects the strong first half results as well as elevated merchant prices in Europe and growth in our electricity trade activity in Israel.

Our CFO, Nir, will review the results, guidance, and our financial position in more detail shortly. On the execution side, Q2 was equally strong. Let me highlight the key milestones. 1 factored gigawatts.

6 billion. 2 gigawatts of solar generation and 4 gigawatt-hours of storage in Arizona, a flagship demonstration of our execution capability at scale. S. and our first PPA in the Southern Power Pool.

S. In addition, we are well positioned to capture the next wave of tax benefits in energy storage, which is in place until the end of 2033. We expanded our European storage footprint into two new and attractive markets, Finland and Romania, acquiring several mature projects with high expected returns. Some projects have already started construction during the quarter, with commercial operation dates starting from 2028.

Overall, our assets operated reliably, our projects advanced according to plan, and our financial results speak for themselves. Now I will hand over the floor to Nir, our CFO, to review our quarterly results and guidance in more detail. Nir Yehuda, Chief Financial Officer Thank you, Adi. 2Q26 was another strong quarter for Enlight Renewable Energy with impressive growth in all our major financial parameters.

The company's total revenues and income increased to 210 million, up 55% from 135 million last year. The growth is attributed to new projects, which contributed 21 million from electricity sales and 19 million from tax benefits. 25. In addition, a favorable exchange rate contributed 13 million, and electricity trading activity contributed 9 million.

The company's adjusted EBITDA grew by 67% to 160 million, compared to 96 million for the same period in 25. The increase of 75 million in revenues and income was offset by an additional 70 million in cost of sales, linked mainly to new projects and to the growth in electricity trading activity in Israel. 25. 26 adjusted EBITDA includes a contribution of 17 million from a follow-on sale of an additional 15% interest in the Sunlight cluster.

25. The 47 million increase in adjusted EBITDA, excluding the contribution from the follow-on sell-down, was partially offset by a 10 million increase in depreciation and amortization, mainly due to newly operational projects, a 4 million increase in share-based compensation expenses, and an 18 million increase in financial expenses, also largely related to newly operational projects. 25. Tax expenses increased by 9 million.

The ongoing improvement in cash flow from operations continued during the second quarter, reinforcing the quality of earnings and indicating that the improvement in results is supported by strong cash generation from core operations. Excluding working capital fluctuation, our operating cash flow generation reached a run rate of approximately 100 million per quarter. This strong and recurring cash generation provides an important source of internally funded capital, reinforcing our ability to execute on our growth strategy. The strong financial performance continued in the second quarter, resulting in 55% revenue growth in the first half of the year.

Excluding the contribution from the sales of interest in the Sunlight Brastail, adjusted EBITDA increased by about 99 million, or 53%, to 314 million, and net income increased by 42 million to 68 million in the first half. Our operating cash flow for the first half of the year increased by 48% to 185 million. As a result of the strong financial performance in the first half of the year, we are raising our full-year revenue guidance to a range of 790 million to 820 million from 755 million to 785 million, and our adjusted EBITDA guidance to 565 million to 585 million from 545 million to 565 million.

In addition to the contribution of the first half financial performance, the increase in guidance is attributed to an increased revenue outlook for Enlight Renewable Energy's electricity trading operation in Israel, as well as higher electricity prices in Europe and in Israel. 2026 is expected to continue Enlight Renewable Energy's consistent, high-rate, profitable growth as we have demonstrated since our inception. 8% above the comparable risk-free bond. This was in addition to a 422 million equity raise through a private placement in the first quarter.

As of the end of the second quarter, our cash and cash equivalents at the top corporate level amounted to 877 million. Additionally, we had 287 million held by subsidiaries. 1 billion available, further enhancing our financial flexibility. 2 billion and beyond.

S. operations and business activities. Thank you, Adi. Adi Leviathan, Chief Executive Officer Thank you, Jared.

Moving to Europe, where we continue to build our position as one of the leading utility-scale renewable and storage developers on the continent. During Q2, we entered a new market, Romania, and significantly expanded our position in Finland. 4 gigawatt-hours to meet the high demand for storage. Two of the projects, with a total capacity of 902 megawatt-hours, started construction and the third is expected to start construction later this year.

5% in the first full year of operation. Returns for such projects in Europe are elevated due to the extreme shortage in energy storage, a trend we see as an opportunity for Enlight's storage position. Production of wind and solar in the Finnish market is expected to more than double by 2030, leading to a more than tenfold growth in demand for storage. The acquisition of these ready-to-build projects will strengthen our footprint in the Nordics and establish Enlight as an early mover in Finland's energy storage market, providing a strong foundation to become a leading player as the market develops.

In Romania, we acquired the Karpen Cluster, adding 848 megawatt-hours of storage capacity at an expected unlevered return of approximately 17%. This cluster is included in our pre-construction portfolio, with commercial operations expected to begin in phases from the second half of 2028 through the first half of 2029. Romania remains an earlier-stage renewables market, with wind and solar generation expected to double by 2040 and storage demand projected to more than triple between 2026 and 2030. More broadly, Europe continues to offer attractive opportunities for scaled IPPs and developers.

The regulatory environment increasingly favors companies with strong balance sheets, established regional infrastructure, and the execution capabilities to finance, build, and operate projects at scale. The breadth of milestones achieved this quarter underscores the strength of our execution. 3 factored gigawatts, further expanding the portion of our portfolio closest to revenue generation. We made meaningful progress across every stage of the portfolio.

Growth in the mature component was supported by targeted acquisitions in Finland and Romania, while construction commenced on the 880 megawatt-hour Bertigo battery storage project in Germany, which remains on track for commercial operation in the first half of 2028. S. development portfolio, primarily across CAISO, PJM, and SPP markets that represent important new growth platforms for Enlight. This progress is translating directly into our 2028 roadmap.

3 billion. The construction momentum that began in 2025 has accelerated meaningfully through 2026. These are defining build-out years for Enlight, during which we are deploying substantial capital and converting our mature portfolio into operating assets. 7 factored gigawatts expected to begin construction, we expect to have more than 7 factored gigawatts under construction by the end of 2026, positioning the company for a significant wave of commercial operations in 2027 and 2028 and putting us firmly on track to tripling our operating capacity by end of year 2026.

We expect more than 90% of our mature portfolio to be either operating or under construction. This provides a high degree of visibility into the next phase of growth as projects built progressively reach COD and begin contributing revenues and cash flow through 2027 and 2028. The scale of this build-out is evident in our capital deployment. 3 billion compared to the same period last year.

2 billion of liquidity on hand to support roughly $700 million of remaining equity investments required, and approximately 69% of the required project financing has already been secured. I want to spend a moment on our data center strategy, which we view as a pivotal new growth engine for Enlight, one that builds directly on the capabilities, assets, and market presence of our existing renewable energy platform. Our pipeline consists of around 2 GW IT of data center capacity across the United States, Israel, and Europe.