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Enlight Renewable Energy (IL:ENLT)
:ENLT
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Enlight Renewable Energy
(ENLT)
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Rating:58Neutral
Price Target:
23,525.00
▲(9.67% Upside)
Action:DowngradedDate:02/18/26
The score is held back primarily by leverage and weak free-cash-flow conversion despite strong growth, while the earnings call guidance and funding progress provide a meaningful positive offset. Technically the trend is strong but appears overbought, and valuation looks demanding with a high P/E and no dividend support.
Positive Factors
Strong Revenue and EBITDA Growth
Sustained double-digit top-line growth and a large EBITDA step-up demonstrate scalable project economics and improving operating leverage. Over the next 2–6 months this momentum supports higher recurring cash-generating capacity from commissioned assets and validates the development-to-operations business model.
Material Portfolio and Capacity Expansion
Rapid growth in factored GW and a larger mature portfolio materially increases future generation base and contracted revenue potential. A deeper, diversified asset base reduces single-project concentration and underpins multi-year revenue visibility as new capacity transitions to steady operations.
Robust Funding and Liquidity Progress
Substantial capital raises and available corporate facilities materially reduce near-term financing bottlenecks for large construction programs. This durable funding base supports execution on multi‑year build schedules and lowers immediate refinancing risk while projects convert to cash-generating assets.
Negative Factors
High and Rising Leverage
Elevated debt levels raise refinancing, interest‑rate and covenant risks as the company scales. If cash generation lags project commissioning, high leverage can crowd out strategic flexibility, increase financing costs, and amplify downside in a rising‑rate or stressed project‑finance environment.
Weak Free Cash Flow / Heavy Capex
Persistent negative free cash flow driven by heavy investment implies ongoing reliance on external capital until projects mature. This structural cash conversion gap pressures liquidity and increases dependence on project-level financing or asset sales, constraining organic deleveraging over the medium term.
Dependence on Tax Incentives and Regulatory Clarity
Material guidance sensitivity to U.S. tax incentives and safe-harbor outcomes makes near‑term earnings and cash flows contingent on policy execution. Delays or reduced incentives would materially affect projected EBITDA and project finance economics, increasing execution and funding risk.
Enlight Renewable Energy (ENLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪29.71B
Dividend YieldN/A
Average Volume (3M)372.96K
Price to Earnings (P/E)55.6
Beta (1Y)1.16
Revenue Growth21.55%
EPS Growth139.11%
CountryIL
Employees360
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)35.20
Shares Outstanding138,524,750
10 Day Avg. Volume460,954
30 Day Avg. Volume372,960
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)3.38
Price to Sales (P/S)10.63
P/FCF Ratio-3.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪19,081.16Price Target Upside-11.04% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Enlight Renewable Energy Business Overview & Revenue Model
Company DescriptionEnlight Renewable Energy Ltd operates in the field of renewable energy in the United States, Europe, and Israel. The company develops, designs, constructs, finances, owns, and operates solar and wind energy projects. Its renewable energy total portfolio includes 16,974 megawatts, as well as 12,200-megawatt hours of battery energy storage. Enlight Renewable Energy Ltd was incorporated in 1981 and is based in Rosh Ha'ayin, Israel.
How the Company Makes MoneyEnlight Renewable Energy generates revenue primarily through the sale of electricity produced by its renewable energy projects. The company enters into Power Purchase Agreements (PPAs) with utilities and large energy consumers, ensuring a stable and predictable revenue stream. Additional revenue comes from the sale of Renewable Energy Certificates (RECs), which are generated alongside the production of clean energy. The company may also engage in project development services for third parties, earning fees for its expertise in navigating regulatory and financial landscapes. Key partnerships with government entities and private investors further enhance its funding capabilities, enabling the expansion of its project portfolio and increasing its overall earnings potential.
Enlight Renewable Energy Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and financial progress: robust YoY revenue and adjusted EBITDA growth, meaningful portfolio and storage expansion, major U.S. project mobilizations, and substantial liquidity and tax-equity progress. Challenges noted were moderate cost increases, non-cash and financing-related pressures compressing net income, reliance on tax incentives and regulatory clarification, and timing concentration of upcoming capacity additions that introduce execution risk. On balance, the positives — sizable growth, upgraded guidance, and secured funding — materially outweigh the lowlights.Q4-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Q4 revenue and income grew 46% year-over-year to $152 million; full-year 2025 revenue and income rose 46% to $582 million. Adjusted EBITDA grew 51% in 2025 to $438 million (or +36% excluding the Sunlight sell-down); Q4 adjusted EBITDA was $99 million, +51% YoY. Company exceeded full-year revenue and EBITDA guidance by 4% and 7%, respectively.
Material Portfolio Expansion
Total portfolio expanded 26% in 2025, adding 7.8 factored GW to reach 38 factored GW. Mature portfolio grew 33% to 11.4 factored GW, and the operating portfolio increased 30% year-over-year.
U.S. Execution and Early CODs
U.S. operating portfolio doubled to 1.6 factored GW after Quail Ranch and Roadrunner achieved COD ahead of schedule (combined >800 factored MW) delivering ~13% unlevered returns. U.S. operational capacity reported as 888 MW generation and 2,540 MWh storage.
Large-Scale Projects Under Construction
Started construction on projects totaling 2.6 factored GW during 2025. CO Bar flagship (2.4 factored GW, ~$3.0 billion investment) and Snowflake A (1.1 factored GW) are major additions; CO Bar phases fully subscribed for storage and have secured interconnection approvals.
Significant Energy Storage Growth
Mature storage portfolio reached 17.5 GWh (over 50% increase from prior quarter and ~6x size vs. three years ago). Mature storage now represents ~ $1 billion of annual run-rate revenues and broad exposure to optimization and ancillary services.
Robust Funding and Liquidity Raised
Since start of 2025, raised ~$4.3 billion including $2.9 billion project finance, $470 million tax equity, $350 million mezzanine, $300 million equity and $245 million debenture. Corporate credit facilities of $525 million ( $360 million available) and LC/surety facilities ~$1.5 billion ( ~$790 million available) enhance financial flexibility.
Tax Equity / Safe Harbor Progress
Safe-harbored >4 factored GW in the past quarter, resulting in >13 factored GW eligible for tax equity before 2026; plan to safe-harbor an additional 0.5–3.5 factored GW in H1 2026. 90% of 2026 generation expected sold at fixed prices.
Ambitious and Upgraded Guidance
2026 guidance: revenues $755–$785 million and adjusted EBITDA $545–$565 million (midpoint YoY growth ~32% and ~27%). 2028 operating capacity target raised to 12–13 factored GW with expected run-rate revenue $2.1–$2.3 billion; expected unlevered returns for under-construction/preconstruction projects now 12–13% and target ROE >18%.
Negative Updates
Modest Net Income Despite Strong EBITDA
Q4 net income was $21 million despite $99 million in adjusted EBITDA. Non-cash and non-operational items reduced net profit: depreciation & amortization increased by $12 million, net financial expenses rose by $4 million, and tax expenses increased by $7 million in the quarter.
Rising Project Costs and SG&A
Cost of sales increased by ~$12 million in Q4 linked to new projects; SG&A and project development expenses increased by ~$3 million, partially offsetting revenue gains.
Timing and Concentration Risk of Capacity Additions
A substantial portion of incremental capacity and revenue is weighted toward late 2026 and 2027 (many projects target COD in H2 2027–H1 2028). This timing concentration introduces execution and schedule risk that could affect near-term revenue recognition if delays occur.
Dependency on Tax Incentives and Regulatory Clarifications
Guidance and a portion of 2026 revenue rely on U.S. tax incentives (expected $160–$180 million of tax benefit recognition in 2026) and safe-harbor outcomes. Continued FEOC clarifications remain necessary (although recent guidance was aligned with company expectations).
Ongoing Need for Project-Level Financing
While corporate funding is in place through 2028, projects still require standard project-level financing and minority asset sales may be used selectively; this adds execution complexity and market/financing risk.
Geopolitical and Market Uncertainties
Management noted potential impacts from geopolitical events (including the conflict in Israel) and general market/regulatory uncertainty that could affect operations, approvals, and project timelines.
Company Guidance
Enlight guided 2026 revenues and income of $755–785 million and adjusted EBITDA of $545–565 million (midpoint growth vs. 2025 of ~32% revenue and ~27% EBITDA), which includes an estimated $160–180 million of U.S. tax benefit; management expects ~90% of 2026 generation to be sold at fixed prices with a currency mix of ~39% USD (including tax incentives), 34% ILS and 27% EUR. They forecast a record construction year with 3–4 factored gigawatts beginning construction, roughly 7 factored gigawatts under construction during 2026, and ~1.1 factored gigawatts expected to reach COD by year‑end 2026 (adding about $137 million of annual run‑rate revenue and $109 million of adjusted EBITDA). Looking to 2028, Enlight targets 12–13 factored gigawatts of operating capacity producing $2.1–2.3 billion of annual run‑rate revenue and income (with over 11 factored GW in the mature portfolio), expects unlevered returns on under‑construction/preconstruction projects of 12–13% (up from 11–12%) and return on equity >18%, and plans to safe‑harbor an additional 0.5–3.5 factored gigawatts in H1 2026 as part of a 14–17 factored GW safe‑harbor ambition.Enlight Renewable Energy Financial Statement Overview
Summary
Strong profitability turnaround and rapid revenue/earnings growth, but offset by high and rising leverage and persistently weak free cash flow driven by heavy capex and funding reliance.Income Statement
Profitability improved meaningfully after earlier volatility, with the company moving from a large loss in 2020 to solid profitability in 2022–2024 and a sharp earnings step-up in 2025 (annual) alongside an exceptional revenue surge. Gross profit remains strong, and operating profit expanded substantially in the most recent year. Key weakness is consistency: margins swung materially across years (including negative results in 2020), suggesting earnings can be sensitive to project timing, pricing, or non-recurring items.78
Positive
Balance Sheet
The balance sheet is increasingly leveraged. Debt is high relative to equity (debt-to-equity above ~2x in 2022–2024), and total debt expanded dramatically in 2025 (annual), which raises refinancing and rate-sensitivity risk typical for capital-intensive renewables. Equity has grown over time, but the scale of debt growth outpaced it in the latest year, leaving financial flexibility more constrained if cash generation does not ramp with the asset base.52
Neutral
Cash Flow
Operating cash flow is positive and growing in absolute terms, but free cash flow has been consistently pressured by heavy investment, turning deeply negative in 2021–2023 and again sharply negative in 2025 (annual). While 2024 showed a temporary improvement to positive free cash flow, the broader pattern indicates substantial ongoing capital spending and potential reliance on external funding until projects mature and convert into steadier cash generation.34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.69B | 398.80M | 261.14M | 192.05M | 330.88M |
| Gross Profit | 704.65M | 209.21M | 144.50M | 111.10M | 61.24M |
| EBITDA | 1.30B | 292.68M | 255.01M | 123.06M | 81.26M |
| Net Income | 455.66M | 44.21M | 70.92M | 24.73M | 11.22M |
Balance Sheet | |||||
| Total Assets | 27.50B | 5.55B | 4.63B | 3.53B | 8.82B |
| Cash, Cash Equivalents and Short-Term Investments | 2.99B | 387.43M | 409.11M | 231.67M | 980.57M |
| Total Debt | 17.14B | 3.12B | 2.70B | 2.16B | 5.66B |
| Total Liabilities | 21.23B | 4.11B | 3.20B | 2.48B | 6.46B |
| Stockholders Equity | 5.30B | 1.18B | 1.17B | 803.59M | 1.66B |
Cash Flow | |||||
| Free Cash Flow | -5.53B | 193.07M | -582.61M | -548.35M | -1.30B |
| Operating Cash Flow | 726.35M | 193.07M | 149.62M | 90.32M | 168.43M |
| Investing Cash Flow | -7.53B | -941.37M | -798.96M | -819.49M | -2.08B |
| Financing Cash Flow | 7.18B | 745.99M | 855.30M | 684.31M | 2.44B |
Enlight Renewable Energy Technical Analysis
Positive
21450.00
Price Trends
17707.00
Positive
14897.50
Positive
11544.26
Positive
Market Momentum
1311.25
Positive
61.38
Neutral
33.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ENLT, the sentiment is Positive. The current price of 21450 is above the 20-day moving average (MA) of 20436.50, above the 50-day MA of 17707.00, and above the 200-day MA of 11544.26, indicating a bullish trend. The MACD of 1311.25 indicates Positive momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ENLT.
Enlight Renewable Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | ₪29.71B | 55.61 | 8.71% | ― | 21.55% | 139.11% | |
54 Neutral | ₪3.67B | -155.76 | ― | ― | -9.53% | -125.66% | |
52 Neutral | ₪8.13B | ― | ― | ― | ― | ― | |
50 Neutral | ₪11.56B | 44.08 | ― | 2.25% | -1.14% | 6.47% | |
47 Neutral | ₪12.31B | -30.78 | ― | ― | 113.54% | -242.38% | |
40 Underperform | ₪19.18M | -0.79 | ― | ― | -4.02% | 44.85% |
* Utilities Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.