Key Highlights

  • 40% growth in total revenues and income to USD 231 million from USD 165 million marked the third quarter for Enlight Renewable Energy (NASDAQ:ENLT), described by management as a record.
  • 38% growth in adjusted EBITDA to USD 154 million from USD 112 million was reported, though Net Income edged up to only USD 34 million from USD 32 million.
  • USD 810 million to USD 830 million is the new 2026 Revenue guidance, raised from USD 790 million to USD 820 million, with adjusted EBITDA guidance at USD 575 million to USD 590 million.
  • USD 20 million in termination fees was paid to exit legacy power contracts at the Gemstone and Rustic Hills projects, which management expects to recover with new contracts.

Record Quarter With Tax Benefits in the Mix

Enlight Renewable Energy (NASDAQ:ENLT) discussed third quarter 2026 results on an Earnings Call on November 3, 2026. Total revenues and income rose 40% to USD 231 million. Newly operational projects added USD 21 million of electricity sales and USD 70 million of tax benefits, a non-cash item, and exchange rates added USD 9 million. Electricity trading in Israel contributed USD 34 million, up USD 7 million. Adjusted EBITDA, a non-IFRS measure, rose 38% to USD 154 million, and Operating Cash Flow was about USD 104 million, up 26%. For nine months, revenues and income rose 49% and adjusted EBITDA rose 38% to USD 469 million. The call did not reconcile the quarter's components to the headline growth.

Why Profit Lagged Revenue Growth

Net income was USD 34 million versus USD 32 million a year earlier, because higher depreciation, financial expenses and other costs absorbed most of the USD 42 million EBITDA gain. Net financial expenses rose USD 20 million, including USD 10 million tied to newly operational projects and the absence of USD 13 million of income from a prior-year refinancing. The quarter also carried the USD 20 million contract termination fee, partly offset by USD 12 million of supplier compensation. Excluding such one-time items, management said net income rose 76%. The company also lifted guidance on better electricity trading in Israel and higher power prices in Europe and Israel. A separate figure in the transcript for annual cash flow appears with a euro symbol, likely a transcription error, so it is cited here as roughly USD 400 million.

Heavy Spending, Debt Structure and Build Risks

Capital expenditure reached about USD 760 million in the quarter and USD 2.1 billion over nine months, far above nine-month operating cash flow of USD 289 million (simple comparison of the two figures), so growth depends on financing. Long-term debt is USD 5.6 billion, 80% non-recourse project finance and close to 90% effectively fixed rate. Corporate-level cash is USD 420 million, with USD 360 million more held by subsidiaries. The company is building more than 4 factored gigawatts across 8 projects, including the CO Bar complex in Arizona, with first power targeted for the fourth quarter of 2027. Risks include trade policy, Tariff changes, financing costs and construction delays. Management said projects due in 2027 and 2028 are shielded from added costs.

Where Things Stand

Enlight Renewable Energy (NASDAQ:ENLT) raised guidance because revenue and EBITDA grew strongly, with management citing better electricity trading in Israel and higher power prices in Europe and Israel. The balance of evidence is positive on scale but more mixed on earnings, since net income barely moved and USD 70 million of the quarter's revenue and income was non-cash tax benefits. Funding appears well advanced, with about 70% of required project financing secured, though investors will watch construction milestones, power contract renewals and whether profit catches up with revenue.