Mike McNulty

Mike McNulty inquired about the key drivers of growth within the 2026 guidance, particularly given that a significant portion of the capacity expansion is weighted towards the latter half of the year, specifically Q4.

Answer

Adi Leviatan, CEO of Enlight Renewable Energy, highlighted that U.S. projects like Quail Ranch and Roadrunner, connected in Q4 2025, will contribute their first full year of revenues in 2026. He also mentioned the contribution from the Bal-On floating PV plus storage project in Israel, connected in 2025, and other European projects expected to connect earlier in 2026, underscoring the benefits of geographical and technological diversification.

Mike McNulty asked about Enlight's expectations for partial asset sales in 2026, whether any are embedded in guidance, and the conditions that would trigger such sales, referencing the Sunlight cluster sale in 2025. He also inquired about the key drivers of growth within the 2026 guidance, given that much of the new capacity is weighted towards the latter half of the year.

Answer

Itay Benayan (Chief Corporate Development Officer) confirmed that minority sales or sell-downs are part of Enlight's strategy when accretive and will likely continue as an ordinary course of business, not a one-time event. He noted the increasing weighted average holding in the portfolio to 91% by 2028, indicating flexibility for future transactions. Adi Leviatan (CEO) explained that 2026 growth is driven by the first full year of revenues from Q4 2025 U.S. projects (Quail Ranch, Roadrunner) and Israeli projects (Bal-On), as well as earlier-year connections in Europe, leveraging the company's diversified portfolio.

Mike McNulty, Equity Research Associate at Deutsche Bank, congratulated Enlight Renewable Energy on its raised EBITDA guidance, which implies a 73% margin, and asked about the factors contributing to achieving the long-term target of 70%-80% and reaching the higher end of this range. He also inquired about the company's current India tariff exposure and its mitigation strategies.

Answer

CEO Adi Leviattan clarified that project-level EBITDA consistently exceeds 70%, with corporate adjustments influencing the overall figure. CFO Nir Yehuda added that project EBITDA ratios range from 75%-80%, depending on the region and project, with corporate expenses impacting the consolidated financial results. Jared Mckee, CEO of Clenera, addressed tariff exposure by stating that Enlight focuses on sourcing PV cells from countries not under investigation, utilizes U.S. assembly capabilities, and maintains flexibility in module and cell sourcing to mitigate country-specific risks.

Mike McNulty asked about Enlight's raised EBITDA guidance, specifically how the implied 73% EBITDA margin aligns with the long-term target of 70%-80% and strategies to achieve the higher end. He also questioned the company's current India tariff exposure and mitigation strategies.

Answer

Adi Leviatan (CEO, Enlight Renewable Energy) stated that project-level EBITDA consistently exceeds 70%. Nir Yehuda (CFO, Enlight Renewable Energy) clarified that project EBITDA ratios are 75%-80%, with corporate adjustments for headquarter expenses. Jared Mckee (CEO, Clenera) explained that for upcoming projects, PV cells are sourced from countries not under investigation, and the company maintains flexibility in sourcing and assembly (including in the U.S.) to mitigate country-specific tariff risks.

Mike McNulty, on for Corinne Blanchard, asked about the contribution of favorable foreign exchange rates to the company's raised guidance and the underlying FX assumptions. He also inquired about the differences in component costs between the U.S. and other regions and the outlook for those costs in the U.S.

Answer

CEO Gilad Yavetz acknowledged a benefit from FX but attributed the guidance raise primarily to strong operational performance and execution, which he expects to continue. He explained that U.S. component costs are higher due to tariffs and the tax equity environment, which also increases BOP costs. He believes that any tariffs will ultimately be reflected in higher electricity prices and PPAs due to strong underlying demand.

Mike McNulty, on behalf of Corinne Blanchard from Deutsche Bank, asked about the specific contribution of foreign exchange (FX) tailwinds to the company's increased full-year guidance. He also inquired about the differences in component cost trends for batteries and modules between the U.S. and the rest of the world.

Answer

Gilad Yavetz (Co-Founder, CEO & Director) responded, acknowledging a benefit from FX but attributing the guidance raise primarily to strong underlying operational performance and execution, which he expects to continue. On component costs, Mr. Yavetz explained that while components are globally sourced, U.S. costs are higher due to tariffs and the tax equity environment, which also increases Balance of Plant (BOP) costs. He expressed confidence that any cost changes from tariffs would be reflected in electricity prices due to strong market demand.

Mike McNulty, on behalf of Corinne Blanchard from Deutsche Bank AG, asked for clarification on the contribution of favorable foreign exchange rates to the raised 2025 guidance. He also inquired about the differences in component cost trends, particularly for batteries and modules, between the U.S. and the rest of the world.

Answer

CEO Gilad Yavetz acknowledged a benefit from FX but emphasized that the guidance increase was primarily driven by strong underlying operational performance and execution. Regarding component costs, he explained that U.S. equipment costs are higher due to tariffs and the tax equity environment, which also leads to higher balance of plant (BOP) costs. However, he stated that these higher costs are reflected in higher electricity prices and PPAs, supported by strong demand.

Mike McNulty, on behalf of Corinne Blanchard from Deutsche Bank AG, asked about the extent to which foreign exchange (FX) tailwinds contributed to the raised full-year guidance. He also inquired about the differences in component cost trends, specifically for batteries and modules, between the U.S. market and the rest of the world.

Answer

CEO Gilad Yavetz acknowledged the benefit from favorable FX rates but emphasized that the guidance increase was primarily driven by strong underlying operational performance and execution. Regarding component costs, he explained that U.S. costs are higher due to tariffs and the tax equity environment, but he expects that strong electricity demand will allow these higher costs to be reflected in electricity prices and PPAs.

Mike McNulty, on behalf of Deutsche Bank, asked about the PPA for the Goat Mountain project, specifically how its terms with a hyperscaler customer might differ from contracts with traditional utility counterparties.

Answer

CEO Craig Cornelius explained that the current market dynamics allow for balanced risk-sharing in PPAs with all sophisticated customers, including hyperscalers. He emphasized that contracts are structured to account for risks like tariffs and tax credit variability, protecting project returns while delivering value to the customer.

Mike McNulty from Deutsche Bank, on for Corinne Blanchard, asked about the Goat Mountain project's PPA with a hyperscaler, specifically how its terms might differ from those of more traditional utility PPA counterparts.

Answer

CEO Craig Cornelius explained that the current market dynamics, driven by the scarcity of viable projects, allow for more balanced PPA negotiations with all customers, including hyperscalers. This enables Clearway to structure contracts that fairly account for risks like tariffs and tax credit variations, ensuring the project can be executed successfully while meeting return targets.