The share price of Enlight Renewable Energy (Nasdaq: ENLT; TASE: ENLT) is gaining sharply today after reporting strong second quarter results. Profit rose fivefold from the corresponding quarter last year while revenue rose dramatically.
The improved results are due to the rapid development of its solar energy projects, as well as tax benefits that have increased significantly in the US. Enlight also received major tax benefits for the future before they were canceled. As a result, Enlight is revising its 2026 guidance upwards.
Enlight's net profit in the second quarter was $31 million in the second quarter, up fivefold from $6 million in the second quarter last year. Revenue jumped by 55% to $210 million.
Enlight has completed "Safe Harbor" for solar energy projects in the US earlier than expected. As part of the Trump administration’s sweeping economic legislation (Big Beautiful Bill), the Biden administration’s tax breaks for solar energy production were dramatically cut, but only for projects that begin construction after July 4, 2026, or connect to electricity after the end of 2027. This has sparked a race to complete solar projects in the US before the deadline.
Enlight reports reaching this goal for many more projects than expected. 38% of projects in development and 91% of projects in advanced development have already achieved the promised tax breaks. This significantly enhances revenue, with revenue from electricity sales increasing "only" 43% compared with the second quarter of 2025, and revenue from tax benefits more than doubling from $18 million to $44 million. Total revenue jumped from $135 million in the same quarter last year to $210 million now.
Enlight has revised its 2026 guidance upwards. The previous revenue guidance set an upper limit of $785 million, which has become the new lower limit of $790 million, with the upper limit now $820 million. Enlight's revenue in 2025 was $582 million. Thus, Enlight is expected to maintain an extremely high growth rate in revenue, which has increased by an average of 41% per year since 2018. Enlight promises to reach a revenue rate of over $2.2 billion in 2028 in its projects, with an average ownership rate of 90%.
Enlight is focused on developing solar energy projects as quickly as possible, with most of its activities in the US. The company is profitable, which is not a given for companies focused primarily on expansion, but the profits are far from enough to cover the enormous construction and development expenses that Enlight is spending ($723 million in the last quarter alone, compared with $402 million in the corresponding quarter last year). Enlight is taking on increasing debt - $610 million from banks and banking institutions, compared with $531 million in the previous quarter.
A huge contract with Google
Enlight reports a 15-year electricity supply agreement with Google for the data centers it owns in the southwestern US, with the start of commercial operation due in 2029. In the last quarter, Enlight also financially closed the CO-BAR project in Arizona, with a huge capacity of 1.2 gigawatts (more than new conventional power plants in Israel) and storage of 4 gigawatt-hours. It is expected to bring in over $200 million from this project alone in the first year, which represents an (unleveraged) return of almost 14%. Enlight also reports entering two new markets in Europe: projects in Romania and Finland with returns reaching 17% and 18% per year. Enlight is also developing data centers with attached energy sources.
Enlight CEO Adi Leviatan said, "We are concluding another quarter of strong growth and consistent execution, with revenue increasing by 55%, significant improvements in profitability and cash flow generation, and robust performance across all of our operating regions. Our first-half results, together with the continued advancement of projects under construction and the expansion of our energy storage business, enable us to raise our 2026 revenue and Adjusted EBITDA guidance, as well as the run-rate revenues reflected in our mature projects and our yearend 2028 target.
"At the same time, the successful completion of $2.6 billion financing for the CO Bar complex, the largest in our history, along with additional milestones achieved during the quarter, highlights Enlight’s execution and financing capabilities and reflects the confidence of our financial partners.
"We remain focused and disciplined in expanding our global portfolio and converting it into sustained high-growth performance while preserving long-term profitability. At the same time, we continue to strengthen our position as a leading energy platform across the markets in which we operate."
Enlight’s share price fell 2.08% on Nasdaq yesterday, giving a market cap of $11.562 billion. After publication of results, the company’s share price is 8% higher in premarket trading on Wall Street.
Published by Globes, Israel business news - en.globes.co.il - on August 4, 2026.
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