Enlight (ENLT) Q3 2026 Earnings Call Transcript

DATE

Nov. 3, 2026

CALL PARTICIPANTS

• Director of Investor Relations - Limor Zohar Megen
• Chief Executive Officer - Adi Leviatan
• Chief Financial Officer - Nir Yehuda
• Chief Executive Officer of Clenera - Jared McKee

TAKEAWAYS

• Revenue and Income -- $231 million in the third quarter, representing 40% growth driven by newly operational projects and electricity trading in Israel.
• Adjusted EBITDA -- $154 million for the quarter, an increase of 38% reflecting the growing scale of the operating platform.
• Net Income -- $34 million, increasing 4% from $32 million in the prior year despite $20 million in onetime contract termination fees.
• Operating Cash Flow -- $104 million for the quarter, rising 26% and supporting an annualized run rate of approximately $400 million.
• Full Year 2026 Revenue Guidance -- Raised to a range of $810 million to $830 million, up from the previous range of $790 million to $820 million.
• Full Year 2026 Adjusted EBITDA Guidance -- Increased to a range of $575 million to $590 million, reflecting strong year-to-date performance and higher electricity prices.
• Total Portfolio Capacity -- 46.2 factored gigawatts (FGW), representing a 7.1% sequential increase in the total project pipeline.
• Mature Portfolio Capacity -- 12.7 FGW, which is expected to generate an annual revenue run rate of approximately $2.4 billion at full operation.
• Electricity Trading Revenue -- $56 million in Israel during the third quarter, more than doubling year over year due to customer base expansion and high seasonal summer demand.
• Tax Benefit Revenues -- $45 million in the U.S. market, increasing from $27 million in the prior year due to new projects commencing operations.
• Mature European Portfolio Revenue Run Rate -- $630 million annually, doubling over the past year as the company expanded into four new markets.
• Corporate Level Cash -- $420 million at the top-company level as of Sept. 30, with an additional $316 million held by subsidiaries.
• Capital Expenditure -- $760 million for the quarter and $2.1 billion over the first nine months of 2026 as construction activity accelerated.
• Total Long-Term Debt -- $5.6 billion, of which 80% is nonrecourse project finance and nearly 90% is at effectively fixed or hedged rates.
• Blackwater Project Development -- 600 megawatt (MW) solar and 2,000 megawatt-hour (MWh) storage project in Virginia, which secured local permitting and a 500 MW grid interconnection.
• CO Bar Complex Construction -- 1.21 gigawatt solar and 4,000 MWh storage project in Arizona, with all five phases now under construction.
• Snowflake A Progress -- 594 MW solar and 1.9 gigawatt-hour storage project in Arizona, currently on schedule for a second half of 2027 completion.
• Country Acres Commissioning -- 403 MW solar and 688 MWh storage project in California, entering final commissioning for a year-end 2026 start.
• Crimson Orchard Progress -- 120 MW solar and 400 MWh storage project in Idaho, which remains on track for completion in the second quarter of 2027.
• Finnish Storage Acquisitions -- 858 MWh across two preconstruction energy storage projects, expanding the company's regional storage platform.
• Unlevered Project Returns -- Approximately 13% for mature projects, which management expects to increase to over 18% after leverage.
• PPA Termination Costs -- $20 million expense to exit legacy contracts for the Gemstone and Rustic Hills projects to capture higher current PPA pricing.
• Safe Harbor Capacity -- 17.9 FGW in the U.S., qualifying the company for tax benefits under current federal legislation for projects through 2028 and beyond.

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RISKS

• Jared McKee stated, "the CO Bar project did have some changes to really the CapEx, largely also around the allocation of tariffs," noting a $40 million adjustment in projected costs.
• McKee warned that the decision to return projects to the market "required $20 million in termination fees" due to significant shifts in input costs and energy pricing since the original contracts were signed.
• Adi Leviatan noted that management is monitoring "the potential impact of the current conflicts in The Middle East" on the company's operations and financial condition.

SUMMARY

Enlight Renewable Energy Ltd (NASDAQ:ENLT) reported 40% year-over-year revenue growth and raised its full-year 2026 financial guidance for the second time this year. Management reported that the company's mature portfolio reached 12.7 factored gigawatts, supporting a roadmap to exceed a $2.2 billion annual revenue run rate by the end of 2028. The company is significantly expanding its energy storage footprint, which now accounts for over 50% of capacity under construction. Financial results were supported by strong seasonal electricity trading in Israel and higher electricity prices in Europe, while large-scale construction continues on flagship projects in Arizona, California, and Idaho.

• CEO Leviatan noted that infrastructure constraints are a critical factor for AI growth, stating, "This growth requires power grid access, and the ability to develop and execute complex infrastructure projects."
• Management reported that 80% of the mature portfolio is expected to be either operational or under construction by the end of 2026.
• Jared McKee stated that the Blackwater project's capacity accreditation provides "the ability to apply for a large load request against this capacity accreditation," which could serve data center development in PJM.
• The company has secured 70% of the required project financing and 60% of the required equity for its 2028 growth plan, reducing sensitivity to future interest rate volatility.
• In Finland, Enlight expanded its energy storage pipeline to include 2.3 gigawatt-hours of capacity across five projects, with expected unlevered returns of 19% to 21%.
• CEO Leviatan reported that the company's mature portfolio has reached 12.7 factored gigawatts, representing a 41% compounded annual growth rate in capacity through 2028.

INDUSTRY GLOSSARY

• FGW (Factored Gigawatt): A consolidated metric combining generation and storage capacity based on construction cost ratios.
• PPA (Power Purchase Agreement): A long-term contract to sell electricity at a fixed price to a specific utility or corporate customer.
• COD (Commercial Operation Date): The date a project begins generating electricity for commercial sale.
• PJM: A regional transmission organization coordinating wholesale electricity movement in 13 U.S. states and D.C.
• WECC (Western Electricity Coordinating Council): The entity responsible for bulk electric system reliability in the Western Interconnection.
• ITC/PTC: Federal tax credits (Investment Tax Credit and Production Tax Credit) that incentivize renewable energy investment and generation.
• MWh/GWh: Megawatt-hour and Gigawatt-hour, units of energy storage or production capacity.
• BYOG (Bring Your Own Generation): A regulatory framework allowing large customers, like data centers, to co-locate or source dedicated power generation.
• ELCC (Effective Load Carrying Capability): A metric used to measure a resource's contribution to grid reliability.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to Enlight Renewable Energy's Third Quarter 26 Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the call over to Limor Zohar Megen, director of investor relations. Please go ahead.

Limor Zohar Megen: Good morning, everyone. And thank you for joining Enlight Renewable Energy's third quarter 26 earnings conference call. Before beginning this call, I would like to draw participants' to the following: Certain statements made on the call today including, but not limited to, statements regarding business strategy and plan, 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 approval, and projects completion and anticipated production delays, expected impact from various regulatory developments completion of development, the potential impact of the current conflicts in The Middle East and our operations and financial conditions and company action 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. Federal securities laws which reflect management's best judgment based on currently available information. We reference certain project metrics in this earning 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 2025 annual report filed with the SEC on 03/30/2026, and other filings for more information on specifics factors that could cause actual results to differ materially from forward looking statements.

Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that appear after this call. Additionally, non IFRS financial measures may be discussed on the call. These non IFRS measures should be considered in addition to not as a substitute for or in isolation from are 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 Leviatan, Chief Executive Officer of Enlight, Nir Yehuda, Chief Financial Officer of Enlight and Jared McKee, chief executive officer of Clenera.

Adi will begin with an overview of our performance and key achieved during the quarter, followed by Nir, who will review our financial results for the third quarter. Gerard will then provide an update on our U. S. Operations and business activity. Our prepared remarks will be accompanied by a presentation. To follow along, access the webcast or visit enlightenergy.com/data/financialreport. Following the prepared remarks, we will open the call for a question-and-answer session. I will now turn the call over to Adi Leviatan, CEO of Enlight. Adi, please begin.

Adi Leviatan: Good morning, and good afternoon, everyone. And thank you for joining us We delivered another strong quarter at Enlight with continued growth across our key financial metrics and significant progress in line with our growth plan. This quarter demonstrates the strength of Enlight's platform across the full project life cycle. We are expanding our operating portfolio and delivering strong financial performance advancing projects through construction and into operation, and developing the next wave of growth We are executing our near term plan while building the pipeline that we expect to sustain our growth well beyond 2028. We are operating in dynamic times with markets questioning the pace and scale of the infrastructure spending of the large technology company.

As AI and data center infrastructure spending grows, so does investor scrutiny around the scale timing, and returns on that investment. We believe it is important to distinguish market volatility from the underlying infrastructure need. Capital expenditure alone cannot deliver data center growth. This growth requires power grid access, and the ability to develop and execute complex infrastructure projects Power developer and infrastructure companies will be essential to turning these investments into operating capacity. For InLight, we believe this creates a significant opportunity Our generation and storage portfolio grid connection expertise, development platform, and execution capabilities position us to help enable this growth and capture the value of providing the infrastructure it requires.

We delivered record third quarter results across all key financial metrics. Total revenues and income were $231 million up 40% year over year. While adjusted EBITDA increased 38% to $154 million Operating cash flow reached approximately $104 million, up 26% year over year. Reflecting our ability to convert operating performance into growing cash generation. Which is becoming an increasingly important internal source of capital to support our continued growth. These results demonstrate the growing scale of our operating platform. Over the past several years, we have invested significantly in the capabilities required to develop finance, construct, and operate large and increasingly complex renewable energy projects across multiple markets As our portfolio grows, that investment is translating into tangible financial results.

Demonstrating the growing scale of our operating platform. Beyond our near term financial performance, we also made significant progress advancing the portfolio this quarter. Our mature portfolio has reached 12.7 factored gigawatts. With an expected annual revenue rate of $2.4 billion while our development and advanced development portfolios grew by 9% to 33.5 factored gigawatts. Equally important is the portfolio's continued maturation into construction and operations. We are on track to have a record level of capacity under construction by the end of 26. Our financial strength underpins our growth. We are generating cash flow at an annualized rate of approximately $400 million in 2026. While maintaining a disciplined debt structure that is predominantly non or limited recourse.

And fixed or hedged interest rates. Near will review our financial position in greater detail shortly. We also achieved important milestones this quarter. We continue to expand and advance our portfolio in the Central and Eastern U.S. Most notably Blackwater, 1 of the largest projects in PJM. Jared will discuss this progress in more detail later in the presentation. In Europe, we continue to expand our energy storage pipeline. Bringing the annual revenue run rate of our mature European portfolio to approximately $630 million, double over the past year. I will now turn the call over to Nir to review our financial results.

Nir Yehuda: Thank you, Adi. Enlight's third quarter financial results are yet another demonstration of the strength and scale of our platform across our market. They reflect our ability to consistently translate strong execution and operational capability into solid financial performance. Providing a strong foundation for sustained growth in the years ahead. And so, total revenue and income increased to $231 million, up 40% from $165 million in Q3 25. The growth was driven by newly operational projects, which contributed $21 million in electricity sales and $70 million in tax benefits. While favorable exchange rate movement contributed $9 million.

In addition, revenues from electricity trading activity in Israel contributed $34 million, an increase of $7 million compared to 2025, excluding the impact of the exchange rate. This growth was driven by the expansion of our customer base and strong seasonal demand. The company adjusted EBITDA increased by 38% to $154 million from $112 million in Q3 25. The $66 million increase in revenue income was partially offset by a $22 million increase in cost of sales mainly related to the expansion of electricity trading activity in Israel and newly operational project. Third quarter net income amounted to $34 million compared to $32 million in Q3 25.

The $42 million increase in adjusted EBITDA was largely offset by €9 million increase in depreciation and amortization, mainly due to newly operational projects, a $3 million increase in share based compensation expenses, and a $10 million net increase in other expenses. In addition, net financial expenses increased by $20 million, reflecting $10 million related to newly operational project and the absence of $13 million in financial income from the Gecama refinancing recorded in Q3 25, partially offset by a $3 million increase in interest income on cash deposits. Excluding onetime items, net income increased by 76% compared to Q3 25.

On a pretax basis, these items included a $20 million PPA termination fee, for the Gemstone solar project, partially offset by $12 million in compensation and advanced payment refund from a supplier as well as $13 million in financial income mentioned above. Jared will elaborate on the PPA termination shortly. Strong operating cash flow generation continued supporting on an annual run rate of about €400 million. This recurring cash flow is an important source of internally generated capital reinforcing our ability to execute our growth strategy. The strong financial performance continued throughout the first 9 months of 2026 with revenues and income increasing by 49%.

Adjusted EBITDA increased by $130 million or 38% to $469 million and by 48%, excluding the contribution from the sale of interest in Sunlight Plus. Excluding the Sunlight transaction and the onetime items in Q3 25 and Q3 26 discussed earlier, net income increased by 122% year over year. Operating cash flow for the first 9 months of 2026 increased by 39% to $289 million, reflecting strong cash conversion of EBITDA excluding noncash tax benefit. Based on our strong year to date financial performance, we are once again raising and narrowing our full year 2026 guidance.

Revenue guidance is now $810 million to $830 million, up from $790 million to $820 million, and adjusted EBITDA guidance is $575 million to $590 million up from $565 million to $585 million. The increase reflects our strong financial performance and improved revenue outlook for Enlight electricity trading operation in Israel as well as higher electricity price in Europe and Israel. We expect 2026 to be another year of strong profitable growth continuing the track record of elevated yet consistent growth we have demonstrated since our inception. Turning to our financial position, I would like to highlight the resilience of our debt structure, particularly in the current interest rate environment.

As you can see, 80% of our $5.6 billion outstanding long term debt is nonrecourse project finance and close to 90% is effectively fixed rate. With the balanced currency breakdown. Together with our balance corporate debt repayment schedule, this provides strong protection against interest rate volatility. The spread between financing costs and project returns remains attractive. Supporting the continuing expansion of our project portfolio. As of the end of the third quarter, our cash and cash equivalents at the top core level amounted to $420 million an additional $360 million held by subsidiaries.

During the quarter, we repaid our CSF bond totaling approximately $185 million Capital expenditure reached approximately $760 million during the quarter leading to a total of $2.1 billion of capital expenditure over the first 9 months of 2026. As we continue to execute our business plan. We also had $520 million in credit facility, of which about $470 million was available. And approximately $1.8 billion in LC and surety bond facilities. With 1.2 billion available further enhancing our financial flexibility. Our strong liquidity position and financial resource will continue to support our growth towards annual revenue and income of over $2.2 billion With that, I will turn the call over to Jared to review our U. S.

Operation and business activities.

Jared McKee: Thank you, Nir. We delivered another quarter of strong execution across the Clenera portfolio, expanding our advanced development and development components by more than 2 factored gigawatts, We have achieved new development milestones and continued construction across 8 projects. Despite continued volatility in trade policy and global markets, our mature portfolio projects remain on track with minimal impact to projected costs or margins. We continue to make strides expanding our presence beyond WEC into the integrated markets of PJM, MISO, and SPP. After adding about 1 factored gigawatt to the development component PJM and MISO combined during this quarter, 40% of the projects in our advanced development and development are within these markets.

We continue to expand our off take pool and make inroads with large load commercial and industrial customers. Specifically, in these integrated markets, hyperscalers are increasing their demand for new energy and storage capacity. With the bring your own generation structures, gaining clarity, our advanced portfolio projects offer attractive options for large loan customers. 1 example of these projects is our Blackwater project, which this quarter received local permitting approval clearing a major hurdle in the project pipeline. Our initial phase of work includes a 100 megawatt PV build out with potential for additional storage capacity through our interconnection agreement. As we have successfully done in the West, we are pursuing a connect and expand strategy with this project.

In PJM and MISO, we have chosen to go back to the market with our gemstone and Rustic Hills projects. Combined, these 2 projects represent 39 factored megawatts, This decision was made following rounds of negotiation with our previous contract holders. Noting market conditions for both input costs and energy pricing have greatly changed since the legacy contracts were originally signed. This decision required $20 million in termination fees. Which we believe we will more than recover with fresh contracts in the current high demand environment. This quarter has also seen changes in federal trade policy as it relates to our industry. Specifically section 32 tariffs.

As we have noted in previous quarterly reports, we have shielded our projects scheduled to reach COD in 2027 and 2028 from this kind of volatility. As a result, we are not reporting increased costs for any project in that tranche. Looking beyond 2028, we remain confident in the margins of our safe harbored portfolio of nearly 18 factored gigawatts, Our track record and portfolio scale provides strong access to a growing domestic supply chain, while increasing demand for new generation continues to support attractive PPA pricing. Moving on to updates to our projects in construction. We are currently building out more than 4 factored gigawatts of generation and energy storage across 8 projects.

Our flagship CO Bar complex in Northern Arizona includes 5-phase build-outs. Totaling 1.21 thousand megawatts of PV generation, and 4 thousand-megawatt hours of energy storage. During the third quarter, we broke ground on the remaining energy storage phases. CO Bar 4 and CO Bar 5. This milestone marks full construction mobilization on the entirety of the CO Bar complex. The complex remains on track to achieve an initial COD for CO Bar 1 in the fourth quarter of 2 thousand 27 with subsequent phases coming online through 2028. About 100 miles to the east of COBAR, north of the city of Holbrook, Arizona, we continue to construct the first phase of our snowflake complex.

Snowflake A includes 594 megawatts of PV generation, and 1.9 thousand-megawatt hours of energy storage. Piles and racking are complete. Module installation is more than half finished, and the project remains on schedule for a COD in the second half of 2027. In California, Country Acres has entered final commissioning The 403-megawatt solar and 688-megawatt-hour storage project is fully contracted with SMUD. And remains on track to achieve commercial operation by year end. In our home state of Idaho, progress continues at the Crimson Orchard Solar and Storage Project. This includes 120-megawatt PV and 400-megawatt-hour of energy storage. All batteries are on-site. Piles are complete. And mounting of the modules and wiring is more than 50% complete.

The project remains on track for a COD in the second quarter of 27. With that, I will turn the call over to Adi.

Adi Leviatan: Thank you, Jared. Turning to Europe. We continue to make significant progress and expand our energy storage platform. During the quarter, we acquired 2 additional pre construction energy storage projects in Finland with a total capacity of 858 megawatt-hours. Which were added to the 3 Finnish storage projects in our portfolio. And over the past year, we expanded our mature portfolio into 4 new European markets. Germany, Poland, Romania, and Finland, and added 6.6 gigawatt-hours of energy storage capacity with elevated project returns. We also doubled the forecasted annual revenue run rate adding approximately $300 million This expansion builds on the local platforms and capabilities we have developed across Europe and strengthens an important additional growth engine for Enlight.

Our European portfolio continues to expand and mature. The mature component of the portfolio now totals 4.2 factored gigawatts across 12 European countries, with an expected annual revenue run rate of approximately $630 million Together with our progress in The U. S, this underscores the breadth of our platform and strengthens our visibility into Enlight's next phase of growth. While maintaining geographical and technological diversification. Which is core to our strategy. Let me now turn to our roadmap and the priorities ahead. Our global portfolio grew strongly this quarter, to 46.2 factored gigawatts, further strengthening the foundation for future growth. Our increasing scale enhances our advantages across development, procurement, financing, and execution. Ultimately, size alone does not create value.

Execution does. Advancing projects and converting our portfolio into operating assets and cash flows We made significant progress this quarter as the next slides demonstrate. During the quarter, approximately 1.2 factored gigawatts entered construction. Of this, 907 factored MW derive from stages 4 and 5 of the 3.2 gigawatt-hours of energy storage capacity. We also expanded our preconstruction portfolio primarily through the acquisition of 2 additional energy storage projects in Finland, We continued to build our presence in markets with particularly strong growth in demand for storage. Project advancements and new additions have grown the mature component of the portfolio to 12.7 factored gigawatts representing $2.4 billion in expected annual revenues.

At the same time, we continue to add early stage projects to the portfolio. Key additions this quarter included 2.1 factored gigawatts in The U. S, across PJM, MISO, and WECC. This progress reflects the core of Enlight's business model and discipline. Advancing projects towards construction and operations, while replenishing the pipeline with new opportunities allowing us to sustain growth at scale over time. Importantly, this progress spans across multiple geographies and technologies. Diversification is a fundamental strength of Enlight's model. Markets move at different speeds Our multiple growth platforms give us the flexibility to allocate capital and execution resources towards opportunities where we see the most attractive risk adjusted returns. We expect this pace of project advancements to continue.

Building on the 1.2 factored gigawatts, that entered construction over the past 3 months, we expect an additional 1.3 factored gigawatts to begin construction in the next few months. By year end, roughly 80% of our mature portfolio is expected to be either operational or under construction. This is a clear measure of execution. We are building a large pipeline and steadily converting it into projects that are moving closer to being operational and generating cash. This progress strengthens our visibility into achieving our 2028 targets. We now have 8.7 factored gigawatts are under construction or expected to begin construction, through 2027. With the majority of the required capital already secured. Much of the execution framework is already in place.

Approximately 80% of this capacity will be under construction by the end of 26. And 85% is either contracted primarily through PPAs or intentionally merchant. Given this potential upside in the current environment of rising electricity prices. Our capital plan is also well advanced. Approximately 70% of the required project financing is secured. And 60% of the required equity has been invested. With a substantial portion of our funding needs already locked in, our growth plans remaining exposure to interest rate volatility is relatively limited. Together, these milestones give us a high level of confidence in our roadmap to exceed $2.2 billion in annual revenue run rate by the end of 28. Supported by 12 factored gigawatts of capacity.

This represents a 41% compounded annual growth rate in both capacity and revenues. Our road map is grounded in the execution of known and fully developed projects, rather than assumptions about future pipeline additions. Our visibility extends beyond 2028. As projects advance, an increasing share of our mature portfolio represents capacity and revenues expected to come online in 2029. While executing our 2028 plan, we are already building the next phase of growth. This is a core strength of our model as 1 wave of projects approaches operations the next is already maturing behind it. Growth creates value only when it delivers attractive returns, That is why capital discipline is fundamental to how we manage that growth.

And the returns embedded in our mature portfolio demonstrate this discipline in practice. Projects currently under construction and in preconstruction are expected to generate unlevered returns of approximately 13%. Increasing to over 18% after leverage. Even in a higher cost of capital environment in some markets, we continue to see attractive opportunities and healthy spreads between project returns and our cost of capital. We continuously reassess project economics as projects mature and deploy capital where we believe the risk adjusted returns are accretive to our shareholders. We believe Enlight is entering its next phase of growth from the strongest position in our history. We have leading platforms across our geographies.

A large and diversified portfolio, strong access to capital and global supply chains and proven execution capabilities across the full project life cycle. These strengths are reinforced by a global network of leading financial, commercial and strategic partners. Market conditions increasingly favor these strengths. Electricity demand is accelerating. Power prices have increased in several of our operating markets. While grid capacity is becoming increasingly scarce and valuable. Equipment costs remain attractive, particularly for solar and storage. While regulation continues to evolve in The U. S, and Europe, new frameworks are emerging to accommodate large load demand in The U. S, bring your own generation approaches in markets such as PJM and SPP could create additional need for new renewable generation.

In this environment, Enlight's scale diversification, and execution capabilities provide increasingly valuable competitive advantages. Supportive market dynamics and the platform we have built position us exceptionally well to deliver our existing growth plan and capture the next generation of opportunities across the full energy value chain. Our priorities are clear deliver our 2028 plan and build the next phase of growth beyond it. With that, I will open the call for questions.

Operator: Thank you. A question, you will need to press star-1 on your telephone. To remove yourself from the queue, you may press star-1 again. Please limit yourself to 1 question and 1 follow-up to allow everyone the opportunity to participate. Please standby while we compile the Q and A roster. Our first question comes from the line of Justin Clare of ROTH Capital Partners. Your line is open, Justin.

Justin Clare: Hi. Thanks for the time here. Wanted to just start off with the guidance. And so for Q4,, it looks like the guide implies deceleration in the year over year growth rate for revenue and adjusted EBITDA compared with the growth rates that you had achieved in the first 3 quarters of the year? So wondering if you could just walk through the primary drivers of that slowdown. Is it really just a function of project COD timing? Or are there any nonrecurring items or timing related factors that you are anticipating in Q4 here?

Itay Banayan: Hey, Justin. Good morning. Itay is here. I am here with Adi and Nir and Hi, Justin. So, Justin, there is no slowdown. it is just a matter of specific quarter timing of COD of projects. If you remember last year in December, we connected 2 projects And then if you compare quarter by quarter, then you might see some different gross numbers based on the guidance for the year.

But if you look at the first 9 months, of the year, you see almost 50% growth in revenues than and if you without considering Sunlight also in the EBITDA, And, we, in general, look at the overall growth of the company on an annual basis, and then there is no specific magnitude for the. For a specific order from our perspective.

Justin Clare: Got it. Okay. That. that is helpful. And then I just wanted to touch on CLBAR. It looks like the CapEx anticipated here is a little bit higher than what you had previously anticipated, and then EBITDA slightly lower just wondering if you could explain what is driving the movement there and then just more broadly, are tariffs and equipment costs contributing to any inflation across the portfolio, particularly in The US? Or are you seeing kind of broader pricing declines kind of offsetting any, effective tariffs?

Itay Banayan: Yeah. You are right. I will transfer the mic to Jared to see if he wants to take on it. I just wanna mention that, yes, you are right. There are slight movement, $40 million out of project of about $3 billion of CapEx. So it is within the range, and the and the return is still ex. Very high, but, I would let Jared provide more details. Jared, are you here?

Jared McKee: Yeah. Yeah. So the CO Bar project did have some changes to really the CapEx, largely also around the allocation of tariffs. We also had some changes in allocation to how the ITC and PTC adjusts across the 5 projects. As you know, CO Bar has 5 different projects. And so you do see some movement as the project is being fine tuned. This process of fine tuning a project can also improve returns as we have seen previously with our Snowflake project. It had kind of an opposite phenomenon where we actually saw some increases on the returns over the fine tuning process when you are going from late stage development into start of construction.

Justin Clare: Got it. Okay. I appreciate it. Thank you.

Itay Banayan: Thank you, Justin. Thank you.

Operator: Our next question comes from the line of Christopher Souther of Truist. Your line is open, Christopher.

Christopher Souther: Hey, thanks for taking my questions here. Maybe just to start on the electricity trading, like what is baked in for the remainder of the guidance this year? And how should we think about the durability of the growth that we have seen there? Is that something that we can continue to expand in 2027? Are we starting to reach kind of levels that you think is, like, a consistent run rate on a go forward just to any color there would be very helpful.

Adi Leviatan: Thank you, Christopher. This is Adi. So the. This activity in Israel primarily at this point is activity in which we are adding and expanding the profitability of our projects in Israel to include an element of trading on top of the existing project And as we have been very successful in this, we have also started to trade on electricity that is manufactured by other producers in Israel. This has been going. It has exceeded our expectations, and therefore, in this specific quarter, it is the revenues from this activity are higher than what was initially in our goal.

Specifically, as we relate to Q4, there is an element of seasonality in these revenues because in Israel, I mean, the vast majority of the renewables are coming from solar irradiation. And seasonally in Q4, there is less irradiance and less electricity that is being produced and the demand is also lower. In Q4. We do not have a very tough winter in Israel. For us, actually, the demand for electricity comes more in the summer with air conditioning on the cooling side. And not on the heating side in winter. So that is that is the nature of that business.

Itay Banayan: Christopher, we did not provide the breakdown for. In the guidance for what would be the revenues from the trading activity in Q4. But it is expected to be lower than Q3. For the first time, we provided a paragraph in the earning release on, the amount of the revenues, during the year and in the in the last quarter and also with the notion that the trading activities has relatively lower margins, but also very low risk, almost no G and A associated with it. It is expanding our overall returns on our assets, and it is it is another line of business that we like and is expanding.

Adi Leviatan: Yeah. No. Great to hear about kind of low capital opportunities to do some of the returns.

Christopher Souther: Can you provide maybe just a bit more color on the Blackwater project in Virginia? Like, timing for that 1, further steps to get that into the mature portfolio. And then you reference a doubling opportunity. Is that more storage more solar, or both? And then maybe just kind of broader data center customer conversations What are you seeing from a contracting perspective? Pricing, tenor, know, credit protections that you are looking for? That would be helpful. Thanks.

Adi Leviatan: Thanks for the question. We would love to talk about Blackwater. I will turn the line over to Jared, and then I will come back. To talk about the offtake for data centers and conversations with potential customers. Jared?

Jared McKee: Yeah. Absolutely. So Blackwater is scheduled today to have COD in 2030. It is a large project, and, the specific of building large projects in Virginia, you have to go through it in a very particular and very deliberate way. And so we expect the construction timing for Blackwater to be between 24 and 28 months on the heavy construction side. We are advancing through our state permits, which are really more of process driven permits. And so we expect the Blackwater project to be starting construction sometime in 2027. With that, Blackwater is a very attractive option for many large load customers.

As you may have seen, PJM has been going back and forth with FERC on getting their large load bring your own generation scheme really put in place And so we are square in the middle of having a project that has capacity both on the solar and on the battery side. That will be attractive for these large load customers. You mentioned the capacity and the ability to expand. So we have the 500 megawatts AC of the solar that we have with our current interconnection, we also have capacity to and to add energy storage.

That energy storage addition is a important component of increased ELCC and the capacity component of this project to make it more attractive for some of these large load customers.

Christopher Souther: If that is 30 Oh, sorry. Go ahead. Sorry. Just if that 1's 30, is that safe harbored?

Jared McKee: Or is that It is. Just It is safe harbored. Okay. That is correct. Alright. Yes. Thanks. Yep. I will hop in the queue.

Adi Leviatan: Follow And I will just send. Yeah. All of our advanced portfolio in the U.S. to me. I will just refer also to another part of your question. Which was about potential customers offtake of the compute capacity in these data center developments. It is conversations across our geographies. With potential customers, but we are not at a point in time where we can talk specifically about the offtake for blackwater. Just what Jared relayed which is that this capacity accreditation provides in PJM the ability to apply for a large load request against this capacity accreditation, and this large load request could be used then by a data center development That at this point, is what we can say.

Thank you.

Operator: Our next question comes from the line of Jonathan Windham of UBS. Please go ahead, John.

Jonathan Windham: Perfect. Thanks for taking the questions. I just had a quick 1 on Rustic Hills and Gemstone, which I think are Indiana and Michigan. My understanding is those largely already had regulatory approvals. Can you talk at all about the status of the land Is that under your control? Is there some time line you have to move forward or you lose control of the land? So I guess that is the first half. And the second half is just what expectations should investors have on time line for updates? On new off takers for those sites? Thanks so much.

Jared McKee: Jared, will you take that? Absolutely. So for both Rustic Hills and gemstone, we have 100% control of the land. In varying forms. Rusted Hills, we own the land. And on gemstone, we own portions of the land that are still under contract for options and other full site control of both projects. And so there is no there is no issue of either project not having site control of the necessary land for the projects. On the PPA and offtake side, we are, as mentioned, back in the market. We appreciate, working with our previous counterparties.

It was something that we always take very near to our heart to make sure that we are working in good faith as much as possible with our current with our previous counterparties. We will come back at some point either the. Through the end of the year or into the first part of next year on what our offtake plans are for both of those projects. We are having fairly advanced conversations with potential customers on those projects as they are very needed and attractive options in those markets. There is insatiable demand in the PJM and MISO market for capacity and the value that these projects can bring.

So we are having advanced conversations with both of those projects. Great. Appreciate the answer.

Itay Banayan: Thank you.

Operator: Our next question comes from the line of Corinne Blanchard of Deutsche Bank. Please go ahead, Corinne.

Corinne Blanchard: Great. Thank you. Good morning, everyone. 2 questions. Maybe the first 1 on U. S. Policy. Can you share your view on the Section 32 that came out about 2 or 3 months ago? And maybe the changes you have seen since then and how do you want to navigate that environment? And then second question would be just on maybe data center again and coming back about how do you view the portfolio I think in some of the region, we started to see some you know, pushback from some local community, etcetera. Does that change how you are going to approach your overall portfolio balance with the data center strategy?

Jared McKee: Jared, would you take 32, and then I will come back for data centers after you. Yeah. Yeah. Yes. So we have seen from 32. Our near term impacts on projects that are in construction in 2027 and 2028, they are. We are not impacted. So all of our projects that are scheduled to COD in 2027 and 2028 are long term projects with a significant build. They are large. COBAR with its 5 projects, Snowflake A, is 475 megawatts on the solar side. And so these projects were already contracted. Cells and modules were already in the country. Same with Crimson Orchard. Same with Country Acres.

All of those projects were already contracted and sells and everything were in the country. For our future projects, so we have other projects that we are on the cusp of, we are working with domestic suppliers to have minimal to no impact on those projects as well. When we look to projects beyond 2028, we will see that our scale of the projects that we have will help us to have a strategic advantage as we look to our domestic supply. We are in conversations with multiple domestic cell and module manufacturers. And so our scale, size, and also will help us to minimize this impact as much as we can.

There will be some impacts to costs as costs will go up. We have seen there be a shift in the PPA prices. For those projects that we are still negotiating price that there is an increase to the PPA rates due to 232. So most if not all, of this impact will be born in those increased prices.

Operator: And just to complement that, to the rest of your question, Corinne, In the data center development, we actually, of course, we do have The United States that you were referring to the local opposition coming from certain counties.

Adi Leviatan: We are also developing data center projects in Israel and in parts of Europe and it is. In those parts of Israel and Europe, we see less of the opposition that we see also in certain counties in The US. In The US, our team, the Clenera team led by Jared of course, has actually been doing a tremendous amount of work in counties where we are have been developing generation and storage projects and have been connecting them and operating them.

Have been doing tremendous, work in maintaining excellent relationships with the local communities And thanks to that very grassroots local intense work, we do see opportunities also in The US, and we are advancing them with at a quite good pace, which we will be able to share with you down the road.

Jared McKee: And Adi, I can add 1 other piece to that is we are obviously aware of public sentiment and where these data centers sit. And we are going about it in the Enlight and Clenera way. We are we are developing both our generation and data center projects within the community, full transparency, making sure that we are doing it in such a way where there is a community good to all the projects. While the. While there is difficulty in some areas getting a permit, that is not the that is not the primary reason why projects are not moving forward. The primary reason why projects may not move forward is power.

That is where we are focusing on is power. They need the power to be able to move forward. And so our projects are a catalyst to allow projects both on the data center and other large customers to move forward with their advancements.

Corinne Blanchard: Great. Thank you. You mind if I squeeze 1 more question? Sure. Go ahead. Maybe, can you talk actually about again, US market, but can you talk about the. Your view on the midterm election? We are right in the middle of it, obviously. Do you expect any significant changes in term of policy either through further support for the 45X credit? Or do you actually also expect any changes on the on the data center? Maybe, like, you know, most people do not like a shift towards something else. Thank you.

Adi Leviatan: So, I mean, historically, we have Enlight and Clenera We have been delivering and continuing to advance and connect renewable energy projects across all administrations across, you know, different states. Obviously, midterm elections are today. We do not have much knowledge on the direction that they will be going, but we have been able to be successful across administrations Jared, would you like to add to that?

Jared McKee: Yes. I mean, such is the question when your, earnings report is also on election day. So. Yes. What we have also seen is I think no matter who is in power on the on the governmental side, we have a need for power in this country. That is our focus. We have a need for power that is sustainably delivered at an affordable cost. That is our mission. And we believe that mission will. Red or blue, will still be something that the country needs. And so we will continue to march down that sustainable renewable affordable path, and creating more power for the country.

Corinne Blanchard: Great. Thank you so much, guys.

Itay Banayan: Thank you.

Operator: I would now like to turn the conference back to Adi Leviatan for closing remarks. Ma'am?

Adi Leviatan: Thank you. And thank you, everyone, for joining us for our Q3 26 earnings release and investor presentation. We know and hope that you will join us also in the next quarter when we conclude the year of 2026. Thank you so much for joining us, and we look forward to seeing you in our coming call.

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

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