Enlight's 2025Q1 Earnings Call: Unpacking Contradictions in Trade Policy, Tax Incentives, and Supply Chain Resilience

Impact of U.S. trade policy changes on projects, role of tax incentives in 2025 guidance, supply chain strategy and tariff resilience, U.S. tariff impact on storage sourcing, and supply chain resilience and tariff impact are the key contradictions discussed in Enlight Renewable Energy Ltd's latest 2025Q1 earnings call.



Financial Performance and Project Development:
- Enlight Renewable Energy reported revenue and income of $130 million for Q1 2025, growing 39% year-over-year.
- The company's adjusted EBITDA increased by 84% to $132 million. Key drivers were the Sunlight transaction and new projects.
- Growth was also supported by strong project execution in the U.S. and Europe, where new projects contributed significantly to revenue.

U.S. Expansion and Tariff Resilience:
- Enlight successfully secured $1.5 billion in financing for U.S. projects, despite U.S. trade policy changes.
- The company's diversified supply chain strategy, including domestic and non-Chinese solar panels and Tesla batteries, has shielded its projects from tariff impacts.
- The resilience is evident in only minimal impacts on project returns, with a calculated reduction of between 0.2% to 1%.

European Growth and Market Diversification:
- Enlight is expanding its energy storage portfolio in Europe, with 1.3 gigawatt-hour of storage construction planned this year.
- Entry into the standalone energy storage market in Poland with 3.2 gigawatt-hour under development is part of this strategy.
- The company is leveraging rising demand for energy storage and utility-scale renewable energy projects in the region.

Middle East and North Africa (MENA) and Israeli Market Expansion:
- In Israel, Enlight won a tender for the first integrated data center and renewable energy complex at Ashalim, with a planned investment of $1 billion.
- The company further strengthened its leadership in Israel's deregulated electricity market by winning a 1.9 gigawatt-hour bid in energy storage capacity.
- These developments are part of a broader strategy to tap into growing demand for computing power and storage solutions in the region.