Enlight Renewable Energy Q4 2024 Earnings Report

Enlight Renewable Energy EPS Results

• Actual EPS: $0.04
• Consensus EPS: -$0.13
• Beat/Miss: Beat by +$0.17
• One Year Ago EPS: N/A

Enlight Renewable Energy Revenue Results

• Actual Revenue: $114.21 million
• Expected Revenue: $289.04 million
• Beat/Miss: Missed by -$174.83 million
• YoY Revenue Growth: N/A

Enlight Renewable Energy Announcement Details

• Quarter: Q4 2024
• Date: 2/19/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, February 19, 2025
• Conference Call Time: 8:00AM ET

Enlight Renewable Energy (NASDAQ:ENLT) operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

Enlight Renewable Energy Q4 2024 Earnings Call Transcript

Presentation

[Operator]

Thank you for standing by, and welcome to nLIGHT's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the call over to Yonah Weisz, Director, Investor Relations. Please go ahead.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Thank you, operator. Good morning, everyone, and thank you for joining our fourth quarter and full year twenty twenty four earnings conference call for nLIGHT 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 opportunities, 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 developments, 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 revenue and adjusted EBITDA, are forward looking statements within the meaning of U. S.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Federal securities laws, which reflect management's best judgment based on currently available information. We reference certain project metrics in this earnings 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 expectations. Please refer to our 2023 annual report filed with the SEC on 03/28/2024, 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.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Additionally, non IFRS 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 Yaritz, CEO and Co Founder of nLIGHT Nir Yehuda, CFO of nLIGHT and Adam Pychl, CEO and Co Founder of Clunera. Gilad will provide some opening remarks and will then turn the call over to Adam for a review of our U.

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

S. Activity and then to Nir for a review of our fourth quarter results. Our executive team will then be available to answer your questions.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Thank you for joining us today for nLIGHT's fourth quarter and full year twenty twenty four earnings call. In 2024, we performed well above our initial guidelines and above analyst expectations. Let's begin with a review of our accomplishments in 2024, and then I'll go into our outlook for 2025 and beyond. Full year 2024 financial results were strong. Revenues and income for the whole 2024 grew by 53% year over year to $399,000,000 Adjusted EBITDA grew by 49% to two eighty nine million dollars Our operating cash flow also increased reaching $193,000,000 for the entire year, up 29% over 2023.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Net income dropped 32% to $67,000,000 due mainly to one time item last year. In the fourth quarter, revenues and income grew by 35% over last year to $104,000,000 Adjusted EBITDA grew by 31% to $65,000,000 Operating cash flow increased by 49% to $36,000,000 Net income fell 48 to $8,000,000 due mainly to onetime items last year. This robust financial performance keeps an eye on its continuous growth path, almost tripling the company size every three years. New projects were the main driver of this growth. And in 2024, we reached CODs in Israel, Europe and The U.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

S, highlighting the diversification of Enlight asset base. We connected six fifty megawatts of generation capacity and 1.6 gigawatt hour of energy storage capacity across all three geographies, an increase of 33% on a factored gigawatt basis. Today, we have 2.5 gigawatts of generation and 1.9 gigawatt hour of energy storage capacity in operation. The business environment in 2024 was rich in opportunities. The core subject is the rising demand for power, driven mainly by data centers and EVs.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Forecast for electricity consumption in The U. S. Rose for the second consecutive year after a two decades decline trend. Equipment prices have declined throughout the year and cost of capital stabilized. Enlight's extensive construction plans in The U.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

S. Includes nine projects with 3.3 gigawatts of generation and 5.1 gigawatt hour of storage between now and the end of twenty twenty seven and are uniquely positioned to take advantage of these trends. We can offer utilities large scale project with committed COD dates. This value is being recognized in our PPA agreements. Under this environment, we currently see an average equity return of above 15% on our large scale mature portfolio segments.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

The current U. S. Administration executive orders have generally no impact on our projects, except for a minor to negligible impact from the 10% tariff increase on equipment originating from China. These may offset by equipment cost trends and supply chain diversification. Enlight built a resilient supply chain, allowing for procurement of an equipment from several regions to mitigate the impact of policy changes and the use of safe harbor on project in The U.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

S. Most importantly, energy market fundamental favor the continuing involvement of solar generation in America's energy supply. With competitive offtake pricing, near term availability of projects and a central position in the interconnected queue, we believe that renewable energy is well placed to provide meaningful portion of the massive new power generation required to meet America's intensifying demand for electricity. In The U. S, we completed the construction and commercial operation of Project Atrisco with three sixty four megawatt of generation and 1.2 gigawatt hour of storage capacity.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

We began construction on Roadrunner, Quail Ranch And Country Acres with a combined capacity of eight ten megawatts and two gigawatt hours and COD expected between the end of twenty twenty five and 2026. Adam Pichel, CEO of our U. S. Subsidiary, Clinera, will have more details on this later in the call. We also continued to convert new additions from our extensive development portfolio to our mature portfolio.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Two notable projects include Snowflake A and Crimson Orchard with a combined seven seventy megawatts plus 2.3 gigawatt hour storage capacity. There was excellent delivery on project construction in Europe and Israel with project PUPIN in Serbia and the Israel solar and storage cluster entering into operations significantly earlier than initially planned. In light access to diverse source of capital was fully displayed in 2024. We completed the financial closing of both Atrisco Best and Roadrunner raising $1,000,000,000 in term loans and tax equity, while financial closing for Pupin, Tapolta and ACDC added an additional $137,000,000 in financing. We also concluded a major asset sell down in Israel with local institutional investors buying 44% of the Sunlight cluster for $50,000,000 that is expected to generate a $94,000,000 profit in Q1 twenty twenty five results.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

In the past year, Enlight once again demonstrated its proven ability to expand and grow. Though in 2025, we expect even greater steps on this path with a year of concentrated project construction and completion. To begin, we expect that a total of four forty megawatts and 1,100 megawatt hour of projects will reach COD during the year, led by Quail Ranch and Roadrunner in The U. S, adding an additional $130,000,000 in revenues and $105,000,000 in adjusted EBITDA on an annual basis to our financial results. This represents 25% growth in operating capacity compared to last year.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

More importantly, we expect to begin construction on an additional 1.8 gigawatts and 3.9 gigawatt hour of new project in 2025 in The U. S, Israel and Europe, including CioBar and Snowflake A, 2 mega projects located in Arizona, as well as Nardo standalone storage in Italy. Implication of this intense activity are quite significant. These projects are set to bring in light to annual recurring revenues of more than $1,000,000,000 when all reach completion by the end of twenty twenty seven. In Israel, we will be breaking new ground as we begin with our first agrivoltaic product development, while continuing to expand the reach of our electricity supply units in the country deregulated electricity market.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Turning to our 2025 guidance, we expect revenues between $490,000,000 and $510,000,000 20 5 percent higher than the 2024 results and adjusted EBITDA between $360,000,000 and $380,000,000 20 8 percent above 2024 results. Nir will describe in detail the assumptions that underline this guidance later in the call. Now, I'd like to turn the call over to Adam.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

Thank you, Gilad. We have many great achievements to share from The U. S. Since last quarter. Our power plants are operating well.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

We have started construction on several new facilities and we continue to develop a robust pipeline for future projects. In November, we celebrated the full commissioning of our Atrisco solar and storage project in New Mexico. This project with a nameplate capacity of three sixty four megawatts generation and 1.2 gigawatt hours of energy storage capacity is now delivering energy in line with our twenty year busbar PPA. It is the largest project built to date by in lite and clean air in The U. S.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

And we are proud to see it up and running. We also started construction on three major projects totaling eight ten megawatts of energy generation and over two gigawatt hours of battery storage. First, Whale Ranch Solar and Storage, which is an expansion of the Atrisco facility, adds 128 megawatts of PV generation and 400 megawatt hours of energy storage. This maximizes our existing interconnection agreement with the utility offtaker. Mobilization is well underway with nearly 200 workers on-site completing civil earthwork and driving piles for the PV racking.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

We anticipate COD by the end of this year. Next is Roadrunner, a two ninety megawatt PV and nine forty megawatt hour battery project located

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

East of Tucson, Arizona.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

More than 100 contractors are on-site clearing land and installing underground collection lines. We anticipate achieving full COD towards the end of this year. Finally, our Country Acres project with three ninety two megawatt solar and six eighty eight megawatt hour energy storage as crews on-site completing civil engineering work prior to the start of major site construction this spring. We anticipate achieving full COD by the end of twenty twenty six. Before the end of last year, we announced a major accomplishment closing on $550,000,000 to fund construction at Roadrunner.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

Within the first half of twenty twenty five, we anticipate closing construction financing on Quail Ranch And Country Acres as well. I look forward to announcing those closings soon. While the solar and battery supply chain landscape continues to evolve, we are confident we will deliver. Our procurement and executive teams have spent years developing deep relationships with manufacturers around the world. And we've also expanded our relationships with U.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

S. Suppliers sourcing American assembled PV modules for Country Acres in Quail Ranch. We are finalizing similar domestic supply contracts for the Seobar Complex and the Snowflake A project. 2024 was an incredible year for Clean Air and Enlight. I'm very proud of our team's dedication to deliver quality renewable energy projects to meet the insatiable energy demand in The U.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

S. We have demonstrated we can scale the business and execute the development, construction and operation of very large solar and storage projects in markets across The U. S. The fundamentals of our business remain strong and we expect to continue to operate, construct and develop exceptional above market returning projects to power America's future. Thank you.

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

I'll now turn the call over to Denier.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

Thank you, Adam. In the fourth quarter of twenty twenty four, the company's total revenues and income increased to $104,000,000 up from $77,000,000 last year, a growth rate of 35% year over year. This was composed of revenues from the sale of electricity, which was 26 to $93,000,000 compared to $74,000,000 in the same period of 2023, as well as a recognition of $11,000,000 in income from tax benefit, up 230% compared to $3,000,000 in Q4 twenty twenty three. Revenues from the sale of electricity grew due to the contribution of newly operational projects. Since the fourth quarter of twenty twenty three, '7 of the solar and storage cluster units in Israel are Trisco in The U.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

S, Pupin in Serbia and Tapolsa in Hungary began selling electricity. The most important increases originated at the Israel solar and storage cluster, which added $9,000,000 followed by Atrisco, which added $6,000,000 In total, new project contributed $18,000,000 to revenues from the sale of electricity. Revenues from the sale of electricity were distributed between MENA, Europe and The U. S, with 34% of revenues in the fourth quarter of twenty four denominated in Israeli shekel, 40 7 in euros and 18% in denominated U. S.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

Dollars. Fourth quarter net income amounted to $8,000,000 compared to $16,000,000 last year, a decrease of 48% year over year. In Q4 'twenty three, the company recorded a $12,000,000 net profit stemming from the recalculation of earnout payment linked to the acquisition of Cleanera. Adjusting for this figure, the net income of Q4 twenty twenty three was $4,000,000 implying year on year growth of 90% from ongoing operation. In the fourth quarter of twenty twenty four, the company's adjusted EBITDA grew by 31% to $65,000,000 compared to $50,000,000 for the same period in 2023.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

The increase in adjusted EBITDA was driven by the same factors that drove the revenues and income increase, namely new project and the recognition of higher amounts tax benefit. This was offset by an additional $6,000,000 in higher operating expenses linked to new projects, while company overhead rose by $5,000,000 year over year. Looking to our balance sheet, Allied completed a broad range of financing transaction during the quarter. We reached financial close on Project Roadrunner for a combined $550,000,000 in term debt and tax equity bridge loan at competitive terms. In addition, we raised $46,000,000 through an extension of one of our existing bond series.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

And finally, we sold 44% of the Sunlight cluster for $50,000,000 with expected profit reaching up to $94,000,000 As of the date of today's report, we have $350,000,000 of revolving credit facility at several Israeli banks, of which $70,000,000 has been drawn. This diverse sources of funds highlights the company's ability to access the capital needed to drive its expansion in the coming years. Moving to 2025 guidance, we expect revenues and income between four ninety million dollars and $510,000,000 and adjusted EBITDA of between $360,000,000 and $380,000,000 reflecting annual growth of 2528% at the midpoint respectively compared to 2024 results. Our revenues and income guidance for 2025 includes recognition of an estimated $60,000,000 to $80,000,000 in income for U. S.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

Tax benefit. 90% of '25 generation output is expected to be sold at fixed price either through hedges or PPAs. Of our total forecast revenues and income, 38 are expected to be denominated in Israeli Shekel, 30 5 percent eros and 27% in U. S. Dollar including tax benefits.

[Nir Yehuda, Chief Financial Officer at Enlight Renewable Energy]

We also assume average annual exchange rate based on forward kegs for the year implying an average of NIS 3.55 and NIS 1.05 to dollar. I will now turn it over to the operator for questions.

[Operator]

Our first question comes from Justin Clare of Roth Capital Partners. Your line is open, Justin.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Hi. Thank you.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

So I wanted to

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

start out here first on the 2025 guidance. You're anticipating the completion of some major projects here, Quail Ranch, Roadrunner in the second half of the year. So I was wondering just how much contribution from these projects are factored into the 2025 guide? And then also, I was wondering if the guide includes the ninety four million dollars profits from the sale of projects in Israel that you're anticipating in Q1. Is that in the EBITDA guidance for the year?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Yes. Hi, Justin. How are you? Good morning, Sreedad.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Good morning.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

So, yes, so for the first question, none of the new project is included in the guidance as we anticipate COV of the first project by the end of twenty twenty five. So the guidance is based on the projects that are either connected by the end of 'twenty four and thus contributing to the growth in 'twenty four or will be connected during early 'twenty five. So no dependence on the new project in construction. Regarding the profits from the sell down, so about $41,000,000 are attributed to the guidance of the EBITDA. From these sell downs, we anticipate to recognize this profit in our EBITDA in the first quarter of twenty twenty five.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Okay, got it. That's helpful. And then I was just looking at Slide 13 that shows the ramp to the more than $1,000,000,000 run rate in revenues for 2027 and it shows nLIGHT's share at 88%. So I was wondering how that slide contemplates future sell downs? Do you anticipate any minority sell downs in these projections?

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

And then just how large a role do you think asset sales are going to play going forward? And maybe you could speak to the capital needs in order to get to the projections here?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Yes, again, a great question. Thanks. So this relates exactly to the strategy we announced in the past that Enlight will remain primary in IPP and of course, Greenfield Developer. It means that we expect to hold at least 70% of the stake in our portfolio long term. So the fact that currently we are growing to 88% means that we have some mix in order to perform some sell downs to accelerate some of our growth, the equity resources for that and still maintain our strategy to hold the majority of at least 70% of our portfolio.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

I'd like to remind that the sales run that we did right now was in a very high valuation with a premium of about $380,000 per factor of megawatts and it attributed only 1% of our portfolio.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Got it, got it. Okay.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

And then I guess just wanted to check-in on the financing environment. With the new administration in The U. S, there's some uncertainty as to whether or not there will be changes to the IRA. Is that affecting the availability or the cost of either debts or tax equity? Maybe just speak to how the environment is evolving here.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Yes. So I can start and of course, Nir can compliment me or Adam, of course, regarding The U. S. Policies. So in general, the current executive orders do not have impact on our projects, except for the tariffs on goods coming from China, the 10% tariff that may have a very minor impact that can reach between 0% to 2% or 3% on the total cost of our new projects.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

And most likely, this will be offset against the other trends of equipment costs. So currently, we see a very minor or no impact. And of course, we continue to follow the policies and are doing the steps that are required in order to hedge and to substantiate the strength in the projects such as the safe harboring and so forth.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Okay, great. Thank you.

[Operator]

Thank you. Our next question comes from Maheep Mandeloy of Mizuho. Please go ahead, Maheep.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Hey, good morning here from Neogenath. Thanks for taking the questions. Firstly, just on the guidance of clarity on the adjusted EBITDA for the full year. You talked about the $41,000,000 coming from the asset sale. Could you just clarify how much of it is coming from the tax benefit?

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

And then just to clarify, the tax benefit is mostly the upfront saturated sales in The U. S, right? Or does that include something else as well? Thanks.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Yes. So within the guidance to $25,000,000 the adjusted EBITDA guidance between $60,000,000 to $80,000,000 are attributed to tax incentive revenues. So the one that we intend to basically to sell.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Got you. Thanks. And then maybe just on that on the tax credit aspect, the tax credits includes the others as you lay out in the project slides. As you kind of look at construction financing, are you able to get construction financing for the whole for all of the tax credit address or just the tax charge itself? Just a background, we heard from some developers that construction financing is mostly limited to 30% ITC and does not include the address.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

So I just want to clarify if you're getting favorable terms or similar further?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Again, I'll start with answering and then of course, Nir can compliment me. But in general, we don't see a change in the policy of our lenders. So if you look at the last financial close we performed, Roadrunner, about 52% of the total CapEx was included in the incentive that we got for tax benefit. So 52% was attributed to that. So net cost of the project was basically 48%.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

So currently, we don't see change in the policy. And we are, of course, waiting to upsides that are still not included in our guidance, hopefully, we will get them on domestic content on some of the projects.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Got you. And maybe just one last one on policy. Any insights as to when you expect any changes to the IR rate in The U. S?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

We are following like everybody, the policy of the new administration. And what we see currently is at least we cannot interpret, but we believe that there is a growing demand for electricity in The U. S. The fact that we have projects that are ready to connect to the grid and to provide very much needed electricity by our customers, the utilities, we believe is what is driving currently the need for our project in the market. And of course, we follow and we understand that this administration would like to promote also other form of electricity from fossil fuels.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

We do not see this underlines the demand for our project as we see a soaring growth for electricity and specifically for our project in the WEX states.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Thank you. Appreciate the color.

[Operator]

Thank you. Our next question comes from Mark Strouse of JPMorgan. Your question please Mark.

[Michael Fairbanks, Equity Research Associate at JP Morgan]

Hi, this is Michael Fairbanks on for Mark. Congrats everyone on the strong results. Maybe first, can you guys just help us think about 4Q results versus the guidance from the 3Q call? I think you had a $15,000,000 asset sales gain assumed in the guide, which didn't come during the quarter and you'd still be by a large amount. So just trying to understand what the big beat was driven by there?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

We performed the deal. We signed it by the end of twenty twenty four, but there was a CP for approval of the deal by the Israeli regulator that, by the way, approved the deal this quarter. So it will be recognized in terms of the accounting this year. It will be three times the goal. So I think we are very happy with the result and primarily we are on track regarding the sellback that we announced.

[Michael Fairbanks, Equity Research Associate at JP Morgan]

Yes. Maybe just on the core operations. So what drove the strong results versus the original expectations on the guidance?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

So I think we had very good operational performance across our sites in the multiple geographies. And also we've been able to advance some of the CODs, which is very important to us in terms of the execution, being able to construct a complicated and large project ahead of schedule. So this, together with good performance on operational side brought the results.

[Michael Fairbanks, Equity Research Associate at JP Morgan]

Okay, great. And then maybe just one more. On The U. S. Advanced development portfolio, You guys mentioned in the release a few large projects, Cedar Island, Snowflake B and Natrisco 2.

[Michael Fairbanks, Equity Research Associate at JP Morgan]

Could you maybe help us think about where each of those projects are in the development process and maybe a timeline of when you would expect those to move into the mature portfolio? Thank you.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Sure. Adam, would you like to take this question?

[Adam Pishl, Co-Founder & COO of Clenera at Enlight Renewable Energy]

I think just in terms thank you for the question. In terms of these projects, all these individual projects are moving forward as planned. I don't have anything specific to add in terms of dates on those.

[Michael Fairbanks, Equity Research Associate at JP Morgan]

Okay. Thank you.

[Operator]

Thank you. Our next question comes from Adeel Hasidam of Bank Luming. Your line is open, Adeel.

[Analyst]

Hi, thank you very much. I wonder if you can shed some light about your collaboration with NuMed Energy in Morocco. We don't see it in the portfolio, If you can share some light about this project.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Thank you, Ariel. So we believe there is a big opportunity today for project in Morocco because of the very strong wind and solar resource that is that we have in Morocco, the big the land availability and also the proximity of Morocco to Europe. So the ability of export not only using the electricity in Morocco, but also exporting the energy to Europe either through interconnection that are being built and planned between Morocco and the continent, but also through what we call Power2X. So exporting the energy in other ways such as green hydrogen or ammonia and then marine transportation to Europe to different uses. So we are now originating activities in this regard in Morocco together with NewMed, as you highlighted.

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

And this is an activity that is, of course, in the beginning, early stage. It will take several years, but this is part of our being greenfield developer in the future.

[Analyst]

Okay. Thank you very much.

[Operator]

Thank you. Our next question comes from David Paz of Wolfe Research. Please go ahead, David.

[David Paz, Senior Vice President at Wolfe Research]

Thank you for the time. Just to clarify what you said earlier about The U. S. Tax credits, how much is in your '25 EBITDA guidance? Is it the 60 to 80 that you referenced?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

Yes, 60 to $80,000,000

[David Paz, Senior Vice President at Wolfe Research]

Okay. If we do you have that number or do you have what U. S. Tax credits were for the year 2024?

[David Paz, Senior Vice President at Wolfe Research]

How much of EBITDA?

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

$21,000,000

[David Paz, Senior Vice President at Wolfe Research]

Okay. So when you came out with your $24,000,000 guidance of $235,000,000 to February last year, was that embedded in there, The U. S. Tax credit number?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

No, it was not embedded. So you need to add to that the $21,000,000

[David Paz, Senior Vice President at Wolfe Research]

Got it. Okay. And going forward, we should expect you now to include tax credits, U. S. Tax credits in your adjusted EBITDA guidance.

[David Paz, Senior Vice President at Wolfe Research]

Is that the way to think about it?

[Gilad Yavetz, Co-Founder, CEO & Director at Enlight Renewable Energy]

That is right.

[David Paz, Senior Vice President at Wolfe Research]

Okay. Thank you. Appreciate it.

[Operator]

Thank you. I would now like to turn the conference back to Yonah Weiss for closing remarks. Sir?

[Yonah Weisz, Director of Investor Relations at Enlight Renewable Energy]

Thank you everyone for joining us and we'll speak with you next quarter.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Yonah Weisz, Director of Investor Relations
• Gilad Yavetz, Co-Founder, CEO & Director
• Adam Pishl, Co-Founder & COO of Clenera
• Nir Yehuda, Chief Financial Officer

Analysts

• Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC
• Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group
• Michael Fairbanks, Equity Research Associate at JP Morgan
• Analyst
• David Paz, Senior Vice President at Wolfe Research