Executive Summary / Key Takeaways

• Enlight Renewable Energy ($ENLT) is a rapidly expanding global Independent Power Producer (IPP) and developer, strategically positioned to capitalize on soaring electricity demand driven by electrification, AI, and data centers across the U.S., Europe, and Israel.
• The company demonstrates robust financial performance, with Q2 2025 revenues up 53% year-over-year to $135 million and Adjusted EBITDA up 57% to $96 million, leading to a raised full-year 2025 guidance of $520-$535 million in revenues and $385-$400 million in Adjusted EBITDA.
• Enlight's competitive edge stems from its diversified portfolio across solar, wind, and energy storage, a resilient supply chain, and a "Connect and Expand" strategy that leverages large-scale interconnection rights, enabling attractive project returns above 15% in its mature U.S. portfolio.
• The company is executing an ambitious long-term roadmap, targeting an annual revenue run rate of $2 billion by the end of 2028, supported by a deep project pipeline, significant project financing, and strategic leadership enhancements.
• Key growth drivers include leading positions in U.S. utility-scale solar and storage, a strong focus on European energy storage (7.8 GWh in portfolio), and pioneering initiatives in Israel such as AgroSolar and integrated data center complexes.

A Global Powerhouse in a Demand-Driven Era

Enlight Renewable Energy Ltd. ($ENLT) stands as a dynamic global Independent Power Producer (IPP) and developer, strategically cultivating utility-scale solar, wind, and energy storage projects across the United States, Europe, and the MENA region, with a strong focus on Israel. Founded in 2008, Enlight has systematically built a robust platform, culminating in its 2023 U.S. IPO on Nasdaq, following a decade-long presence on the Tel Aviv Stock Exchange. The company's core strategy revolves around a continuous growth trajectory, aiming to triple its size every three years by converting an extensive development pipeline into operational assets.

The global energy landscape is undergoing a profound transformation, characterized by an unprecedented surge in electricity demand. This demand is primarily fueled by the accelerating electrification of various sectors, the exponential growth of artificial intelligence (AI), and the proliferation of data centers. Forecasts indicate that data centers alone could consume approximately 12% of the U.S. electricity output by 2030, a significant leap from about 3% in 2023. This creates a compelling backdrop for renewable energy, which is further bolstered by declining costs for solar panels and energy storage equipment, reaching historic lows. Consequently, renewables are increasingly becoming the most cost-effective method for electricity generation, widening their competitive gap against conventional energy sources.

In this competitive environment, Enlight distinguishes itself through its specialized expertise in project development and its diversified, multi-technology portfolio. While larger, more diversified utilities like NextEra Energy (NEE) leverage vast operational scale and advanced AI-driven energy management for grid optimization, Enlight's strength lies in its agile, project-focused execution and deep regional market penetration. Similarly, against Duke Energy (DUK), a major utility focused on grid modernization and resilience, Enlight offers a more specialized, end-to-end renewable development approach. Compared to electrical infrastructure contractors like MYR Group (MYRG), Enlight's emphasis on project ownership and long-term value creation provides a distinct differentiator, even as MYR excels in scalable execution for grid-related work. Enlight's ability to rapidly build and deliver large power and battery storage facilities positions it as a prime choice for utilities seeking new power sources, allowing it to outpace competitors in specific market segments.

Technological Edge and Strategic Innovation

Enlight's competitive moat is significantly reinforced by its technological focus and strategic innovation in renewable energy. The company's core technology lies in the efficient development, construction, and operation of utility-scale solar, wind, and advanced energy storage systems. This integrated approach allows Enlight to optimize energy capture and delivery, providing reliable and affordable clean power. The cost-effectiveness of its projects, particularly the low Levelized Cost of Energy (LCOE) for solar in prime development markets like the Southwest U.S., is a key tangible benefit. This economic advantage positions Enlight for continued growth even in a potential subsidy-free environment beyond 2030.

The company is also at the forefront of new technological applications and R&D initiatives. In Israel, Enlight is pioneering AgroSolar, a dual-use land strategy that combines agricultural activity with solar energy generation. Following recent land reforms, Enlight has secured dozens of land agreements for this segment, aiming to lead this revolution globally. This initiative not only maximizes land utility but also addresses specific market needs for sustainable development. Furthermore, recognizing the critical role of computing power, Enlight is in the early stages of developing its first integrated data center and renewable energy complex at Ashalim in southern Israel. This 100-megawatt IT data center, with an expected investment of $1 billion, is strategically located adjacent to renewable energy sites, demonstrating a forward-looking approach to energy-intensive industries.

Energy storage is a particularly strong technological differentiator for Enlight. The company was an early mover in identifying the opportunity in this segment, accumulating a substantial portfolio of 7.8 gigawatt-hours (GWh) of energy storage projects across five European countries, with 3.6 GWh expected to be operational by 2028. In Israel, Enlight is the leading player in energy storage, rapidly expanding with 6.9 GWh of planned storage projects and securing a 1.9 GWh bid in the country's first standalone energy storage capacity tender, solidifying its 50% market share. The declining cost of energy storage equipment, coupled with high-priced arbitrage and ancillary services revenues, is expected to generate very attractive returns in Europe. These technological advancements and strategic investments directly contribute to Enlight's competitive moat, enabling higher project returns, enhancing market positioning, and driving long-term growth.

Operational Momentum and Financial Strength

Enlight's historical journey is marked by consistent operational execution and strategic expansion. The acquisition of Clenera, its U.S. subsidiary, integrated a team with decades of experience in solar development, significantly bolstering Enlight's capabilities in the critical U.S. market. The year 2024 was a testament to this, with the company connecting 650 megawatts (MW) of generation and 1.6 GWh of energy storage capacity, representing a 33% increase in operating capacity. Key completions included the Atrisco solar and storage project in New Mexico, the Pupin project in Serbia, and the Israel Solar & Storage Cluster, many of which became operational ahead of schedule.

This operational momentum has translated into robust financial performance. For the full year 2024, revenues and income grew by 53% year-over-year to $399 million, with Adjusted EBITDA increasing by 49% to $289 million. Operating cash flow also saw a healthy rise of 29% to $193 million. The first half of 2025 continued this strong trend. In Q1 2025, revenue and income increased by 39% to $130 million, and Adjusted EBITDA surged by 84% to $132 million, significantly boosted by a $97 million pretax profit from the strategic sale of a 44% stake in the Sunlight Cluster in Israel. Q2 2025 further demonstrated this strength, with revenues and income growing 53% year-over-year to $135 million and Adjusted EBITDA increasing 57% to $96 million. Notably, when adjusted for foreign currency revaluation effects, Q2 2025 net income increased 110% year-over-year to $16 million.

Enlight's liquidity and capital resources are robust, supporting its aggressive expansion. Since Q4 2024, the company has raised $1.8 billion in project finance and $300 million from corporate debt and asset sales, primarily for its U.S. growth. This includes $1 billion in construction financing for Country Acres and Quail Ranch, and $550 million for Roadrunner.

The company also maintains $525 million in credit facilities, with only $9 million drawn, and approximately $1 billion in LC and surety bond facilities, with half available, providing substantial financial flexibility. A recent private placement in August 2025 secured approximately NIS 1.00 billion from Israeli institutional investors, with proceeds earmarked for 2026 projects. This diversified access to capital underscores investor confidence in Enlight's execution capabilities and project pipeline.

Ambitious Outlook and Strategic Roadmap

Enlight's management is highly confident in its future trajectory, reflected in its raised full-year 2025 guidance. Revenues and income are now expected to be between $520 million and $535 million, with Adjusted EBITDA projected between $385 million and $400 million. This represents a 5.5% and 6% increase, respectively, at the midpoint compared to previous guidance. A significant portion of this guidance, an estimated $70 million to $80 million, is attributed to income from U.S. tax benefits, and 90% of the 2025 generation output is expected to be sold at fixed prices through hedges or PPAs, providing revenue stability.

The company is firmly advancing its long-term roadmap, targeting an annual revenue run rate of approximately $2 billion by the end of 2028, roughly four times its 2025 revenues. This ambitious goal is supported by a deep project pipeline, including major U.S. projects like Snowflake A (600 MW solar, 1.9 GWh storage) and CO Bar (1,211 MW solar, 824 MWh storage), both of which are nearing construction and are expected to contribute significantly to future revenues. Snowflake A, for instance, has secured a 20-year PPA with Arizona's APS and is slated for Commercial Operation Date (COD) in 2027. The "Connect and Expand" strategy, leveraging large 1.0 GW grid connections for these mega-projects, creates additional development opportunities.

Strategic leadership enhancements are also in motion, with Adi Leviatan appointed as CEO, effective October 2025, bringing extensive global executive experience from 3M and McKinsey & Co. Co-founder Gilad Yavetz will transition to Executive Chairman, ensuring continuity and strategic oversight. This leadership evolution is designed to reinforce Enlight's capabilities for global expansion and operational excellence.

Managing Risks in a Dynamic Environment

While Enlight's growth trajectory is compelling, it operates within a dynamic regulatory and market environment that presents certain risks. Potential changes to U.S. IRA incentives, such as an earlier phase-down of Investment Tax Credits (ITC) or Production Tax Credits (PTC), are a concern. However, Enlight has proactively mitigated this through extensive safe harboring of projects, with 6 gigawatts already qualified, covering the majority of its plan through the end of 2027. The company also benefits from a broad consensus among legal experts suggesting no retroactive changes to safe harbor rules.

Trade tariffs, particularly the 10% increase on equipment from China, pose another risk. Enlight addresses this through a highly diversified and resilient supply chain, sourcing PV panels domestically or from non-Chinese countries for its current projects. Its strong partnership with Tesla (TSLA) for battery storage, which has high domestic production levels, further mitigates tariff exposure. Management has also demonstrated a track record of successfully adjusting Power Purchase Agreements (PPAs) with utilities to reflect changing external circumstances. Interconnection delays, as seen with the CO Bar project due to complex multi-utility involvement, are managed by leveraging a deep project portfolio and the ability to reallocate resources, as evidenced by the acceleration of the Snowflake project. Enlight's strong financial flexibility, including substantial credit facilities, also allows it to accelerate cash investments if needed to adapt to evolving market or regulatory criteria.

Conclusion

Enlight Renewable Energy stands as a compelling investment proposition, driven by its strategic positioning in a rapidly expanding global renewable energy market. The company's core investment thesis is rooted in its ability to consistently develop, finance, and operate large-scale solar, wind, and energy storage projects, leveraging a diversified asset base and a robust project pipeline. Its technological leadership in energy storage, coupled with innovative ventures like AgroSolar and integrated data centers, provides a distinct competitive advantage in meeting the soaring demand for clean electricity.

Enlight's strong financial performance, marked by consistent revenue and EBITDA growth and a healthy liquidity profile, underscores its operational effectiveness and ability to execute its ambitious roadmap. The company's proactive approach to risk mitigation, particularly regarding regulatory changes and supply chain dynamics, further strengthens its investment profile. With a clear long-term vision to achieve a $2 billion annual revenue run rate by 2028 and a strengthened leadership team, Enlight is well-positioned to continue its trajectory of outperforming the market, making it a significant player to watch in the global energy transition.