Enlight Renewable Energy Ltd. Q1 FY2025 earnings call

• U.S. projects: Quail Ranch, Roadrunner on schedule, Country Acres accelerating. Secured $1.5B financing. Next wave projects Snowflake and CO Bar to start construction in Q2. Supply chain diversified, tariffs have minimal impact. - Europe: Rising demand for energy storage, starting construction on 1.3 GWh in Italy, Spain, Sweden; entering standalone storage in Poland. - Israel: Advanced data centers and standalone storage; won land tender for integrated data center and renewable complex, and a 1.9 GWh energy storage bid.

In the first quarter of 2025, Enlight's total revenues and income increased to $130 million, up from $94 million in the same period last year, a 39% growth. Revenue from the sale of electricity was $110 million, up 21% y-o-y, with new projects contributing $30 million. Tax benefit income was $20 million compared to $3 million in Q1 2024. Adjusted EBITDA grew 84% to $132 million. Revenues were distributed as 34% Israeli shekel, 39% euros, and 27% US dollars. The sale of a 44% stake in the Sunlight cluster added $97 million pretax profit, with $42 million contributing to adjusted EBITDA.

Enlight reaffirms its 2025 guidance range of $490 million to $510 million in revenues and $360 million to $380 million in adjusted EBITDA, unchanged. The guidance includes recognition of estimated $60M to $80M income from U.S. tax benefit and 90% of 2025 generation output expected to be sold at fixed price.

• U.S. trade policies and tariffs: Recent changes pose uncertainty, but diversified supply chain mitigates material impact. - Volatility in macroeconomic factors: Could affect project economics, but company has strategies to navigate.

Q: Potential for PPA negotiations affecting revenue expectations and project returns?

A: Gilad stated revenue side on PPA adjustment is marginal, with supply chain strategy and tax equity protection providing good protection, no immediate change to forecast.

Q: Current financing environment and expectations?

A: Gilad mentioned closing $1.5B in debt for projects in last 4 months, showing resilience and trust from banking industry, encouraged for future financing.

Q: Tariff sensitivities to other countries for projects?

A: Gilad explained diversified supply chain strategy relying on out of China, domestic U.S., and other less exposed countries to mitigate tariff risks.

Q: Europe infrastructure spending and advanced projects?

A: Gilad noted strong demand for energy storage in Europe, with 1.6 GWh advanced BESS pipeline; Israel has agrosolar, energy storage, and data center growth trends.