Enlight Renewable Energy Ltd.

and thank you for standing by. Welcome to the Enlight Renewable Energy's third quarter 2025 earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jona Weiss, Director of Investor Relations at Enlight Renewable Energy. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining the third quarter 2025 earnings conference call for Enlight Renewable Energy. Before beginning this call, I would like to draw participants' attention to the following. Certain statements made on the call today, including but not limited to statements regarding business strategy and plans, are 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 approvals and project completion, and anticipated production delays, expected impact from various regulatory developments, completion of development, the potential impact of the current conflicts in Israel on our operations and financial conditions and company actions designed to mitigate such impact, and the company's future financial and operational results and guidance, including revenues 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 2024 annual report filed with the SEC on March 28, 2025, 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-FRS 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 Gilad Yabet, Executive Chairman and Co-Founder of Enlight, Adi Leviathan, CEO of Enlight, Nir Yehuda, CFO of Enlight, and Jared McKee, CEO of Conera. Adi will provide some opening remarks and will then turn the call over to Jared for a review of our U.S. activity and then to Nir for a review of our third quarter results. Our executive team will then be available to answer your questions. Adi, would you like to begin?

Good morning or good afternoon, everyone. It's a privilege to join you today for my first conference call as CEO. I want to begin by sharing my genuine excitement about leading in life during a period of a remarkable growth and strong momentum. Following a global career in consulting and a 3M company, I'm excited to be part of an organization that not only drives innovation and business discipline, but is also fast growing and generates positive energy, both figuratively and literally. Enlight stands at the forefront of the renewable energy sector, and I am deeply committed to steering our company successfully through its dramatic expansion and transformation into a leading global energy developer and IPP. Renewable energy is the fastest growing segment within the energy industry, and recent advancements have also made it the most cost effective solution. for the growing demand for energy worldwide. Enlight is uniquely positioned to continue its growth as a global leader in this space. Thanks to our broad geographic reach, diverse technological capabilities, deep expertise across the entire value chain, and robust pipeline of projects, we anticipate continued rapid growth in both revenue and profitability. These strengths will enable Enlight to remain at the forefront of the global renewable energy sector and continue being one of the largest developers in the United States. In my first communication as Enlight CEO, I am pleased to report another quarter of strong growth, primarily driven by new projects reaching commercial operations across the United States, Israel, and Europe. Revenue and income grew by 46 percent from Q2 2025 to $165 million. adjusted EBITDA grew by 23% to $112 million, and net income grew by 33% to $32 million. At 23%, adjusted EBITDA growth was partially impacted by compensation revenue from Bjorn Berget project in Sweden, the corresponding quarter last year, that reflected a catch-up for three quarters. Given the outstanding results we have delivered this quarter, I am pleased to announce that we are once again raising our full year 2025 guidance. As we approach year end, the increased visibility and confidence in our performance have enabled us to both narrow and refine our forecast ranges. We now expect 2025 revenue and income to be between $555 million and $565 million. and we anticipate adjusted EBITDA in the range of $405 million to $415 million. These updated projections represent increases of 6% and 4.5% respectively, underscoring the strong momentum and robust growth trajectory Enlight is experiencing this year. We continue to progress faster than expected in the execution of our work plan. Energy storage is a major growth engine for Enlight across all our geographies. In Europe, the growth of renewable energy generation capacity has not been matched by our corresponding rise in storage capacity, resulting in a notable shortage of storage and presenting opportunities for the sector to achieve fast growth with substantial returns. This quarter, we strengthened our energy storage segment in Europe by signing two transactions that mark a significant entry into two of the fastest growing and most attractive energy markets in Europe. We entered Germany with the acquisition of 50% of the 860 megawatt hour Berdygov project, a mature standalone energy storage project that will begin construction in 2026. In addition, we significantly strengthened our presence in Poland by acquiring the Edison project, also a mature standalone energy storage project with a capacity of 208 megawatt hours. Both projects entered our mature portfolios pre-construction phase and are projected to deliver an average project level return of 22%, highlighting Enlight's ability to achieve high returns also by partnering with leading developers in M&A transactions. We also expanded the storage segment in Israel, adding over 800 megawatt hour. This brings our global mature storage portfolio to 11.8 gigawatt hour at the end of the third quarter. almost six times its size three years ago, reflecting an annual revenue and income of $650 to $700 million once operating, making the storage segment an important pillar for Enlight, representing over 40% of our mature portfolio revenues. Enlight's competitive advantage in global and diverse access to capital is reflected in the scale of our capital-raising achievements in the past 12 months. totaling about $4.8 billion. Sources included project finance of about $3.3 billion, U.S. tax equity partnerships of half a billion dollars, $300 million of an equity offering, sell downs, bond issuances, and mezzanine loans. These resources are expected to cover all the corporate capital needs for our mature portfolio. and support capital needs for additional projects in advanced development phase. Earlier this week, we reported the $1.44 billion financial close for one of our flagship projects, Snowflake A in Arizona. A megaproject with an expected capacity of 600 megawatts and storage capacity of 1,900 megawatt hour expected to generate approximately $130 million in revenue and over $100 million in EBITDA in its first full year of operation. This is the largest project in Enlight's history to reach financial close, with commercial operation expected during the second half of 2027. The revenue model is based on a 20-year bus bar PPA with Arizona Public Service Company, the largest utility in Arizona, and on a low-risk availability model for the batteries. This allows us to benefit from attractive financing costs with an interest rate in the range of 5.4% to 5.8%, as well as a low equity contribution, thereby maximizing the return on equity and achieving pre-leveraged return of approximately 12%. The project highlights the strength of our platform in the US and the ability to execute large-scale projects from the planning stage through financing to operation. Snowflake A, marks the initial phase of the broader snowflake complex in Arizona. The upcoming second and larger phase, currently in Enlight's advanced development portfolio, will leverage the strategic one gigawatt grid interconnection, enabling us to maximize operational and development efficiencies and reach total complex capacity of approximately 2.4 factory gigawatts. This project exemplifies Enlight's Connect and Expand Strategy, the potential of robust grid connections to facilitate greater scale and enhance project returns at a lower risk. This quarter, we also continued the expansion of our portfolio, which will serve as the source of our rapid growth in the coming years, with a 6% growth in Q3 in the total portfolio, reaching 37 factored gigawatts. and a 5% growth in the mature components of the portfolio, reaching 9.6 factored gigawatts. We continue to progress projects to advanced stages. Projects totaling 250 factored megawatts in Europe and the U.S. moved from development to advanced development, and projects totaling about 240 megawatts in Israel moved from advanced development to the pre-construction phase. Enlight's excellent execution capabilities are also reflected in our U.S. portfolio. 100% of the pre-construction projects, 91% of our advanced development projects, and 52% of our development projects have completed the system impact study, the most critical stage for securing great connection. We were also proactive this year and have made rapid progress in recent months to secure eligibility for tax equity. Since May 2025, we safe harbored approximately six factored gigawatts of projects, and we estimate that by July 2026, we will secure safe harbor for approximately five to eight additional factored gigawatts. Thanks to these advancements, we project that annual revenue and income from our mature portfolio will reach $1.6 billion upon commencement of operations in the 2027 to 2028 timeframe, a realization of our strategy of tripling the size of our business every three years, and light benefits from strong tailwinds and favorable business environment in our operating markets. The race for AI investments is expected to lead to unprecedented growth in demand for processing capacity and electricity. Approximately $400 billion is expected to be invested in 2025 by the large tech companies in AI infrastructure and data centers. This accelerated growth is expected to result in data centers' share of US energy consumption rising from about 4% in 2025 to approximately 12% in 2030. Renewable energy is the best answer to the emerging electricity demand and is therefore the fastest growing segment in the energy world due to both the relatively fast construction pace compared to other technologies, and the attractive cost of energy, or LCOE, produced from solar combined with energy storage. The regulatory environment is also improving. Following the favorable resolution of OBA in July, the U.S. and China recently agreed to reduce tariffs on various imported products from China from an average of 57% to an average of 47%. We monitor the tariffs litigation in the U.S. Supreme Court and continue to find ways to mitigate the effects of tariffs on our U.S. business. Altogether, thanks to positive market fundamentals, visionary strategy, and excellent execution, Enlight's generation capacity is expected to reach 11 to 13 factored gigawatts, and the annual revenue run rate by the end of 2028 is expected to reach about $2 billion. As we continue to expand our operations and grow our portfolio, our commitment to profitability remains. We maintain a disciplined focus on ensuring that all our projects deliver strong returns on investments. We expect 11 to 12% return on investments for our mature projects that are not already operating, which positions our return on equity above 15%. This approach guarantees that our growth is not only rapid, but also disciplined, sustainable, and value-generating for our stakeholders. With our expertise in the development, construction, financing, and operation of renewable energy projects, Enlight is positioned very well for the future, and I am personally committed to ensuring we continue to capitalize on our strengths and the positive trends in the market to become one of the leading global renewable energy developers and IPP. I would now like to turn the call over to Jared the CEO of Cleanera, in Light's U.S. subsidiary.