Kenon Holdings Ltd. (NYSE: KEN) reported third‑quarter 2025 results that surpassed expectations, with revenue rising to $265 million, a 27% year‑over‑year increase, and adjusted EBITDA reaching $156 million, up 78% from $90 million in Q3 2024. The jump in earnings was largely driven by the performance of its core subsidiary, OPC Energy, which contributed the bulk of the revenue growth and delivered an adjusted EBITDA of $156 million, a 78% increase from the $90 million reported in the same quarter last year.
OPC Energy’s revenue grew by $45 million, reflecting a $17 million increase in its Israeli operations and a $28 million rise in U.S. sales. The Israeli segment benefited from a 40% rise in average tariffs, while the U.S. segment saw a 73% increase in private‑customer revenue, driven by expanded services and higher demand for natural‑gas‑fired power. These gains offset modest headwinds in other segments and underscored the company’s pricing power in both markets.
Kenon’s cash position strengthened to $670 million in unrestricted cash and cash equivalents as of September 30 2025, up from $560 million at the end of the prior quarter. The robust liquidity base supports ongoing capital expenditures, including the construction of the Hadera 2 natural‑gas plant in Israel and the Basin Ranch gas‑fired project in Texas, both of which have reached key development milestones and are expected to contribute significantly to future cash flows.
The earnings release signals a clear acceleration in Kenon’s growth trajectory. The company’s focus on high‑margin power generation is paying off, with OPC Energy’s expanded U.S. retail footprint and Israeli tariff gains translating into higher margins. The strong cash position and continued investment in large‑scale projects position Kenon to capture surging electricity demand in both regions, reinforcing its competitive edge and supporting a positive outlook for the remainder of the year.
Overall, Kenon’s Q3 2025 results demonstrate disciplined cost control, effective pricing strategy, and successful execution of its expansion plan. The company’s ability to generate substantial earnings growth while maintaining a solid liquidity profile suggests a resilient business model that can weather market volatility and continue to deliver value to shareholders.
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