Enlight Renewable Energy Ltd is set to report fourth-quarter results before the market opens Tuesday, facing investor scrutiny over a sharp sequential reversal in profitability despite recent project milestones. Analysts expect the Israeli renewable energy developer to post a loss of $0.07 per share on revenue of $132.24 million—a marked decline from the prior quarter's $0.16 profit and $165.06 million in sales.
The company recently announced major development milestones for its CO Bar Complex in Arizona, a 1.2 gigawatt solar and 4.0 gigawatt-hour storage project that management called a demonstration of its "ability to execute at scale". Enlight also signed an agreement in late January to acquire a majority stake in Project Jupiter, a large-scale solar and energy storage project in Germany featuring 2,000 megawatt-hours of storage capacity.
Yet analysts remain divided on the stock, which trades at $64.11—near its 52-week high of $65.82. UBS maintains a Buy rating with a $65 price target, while JPMorgan holds a Sell rating. Deutsche Bank rates the shares a Hold at $38.
EPS estimates have risen 2.05% over the past 60 days but remained flat over the past week, suggesting analysts have largely settled on their expectations. Revenue estimates have similarly held steady. The expected 27% year-over-year revenue growth underscores the company's expansion, even as quarterly results show volatility.
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The path to sustainable profitability tops the list of concerns. Enlight will need to explain the swing from a profitable third quarter—when it beat estimates by 147%—to an expected fourth-quarter loss, and provide guidance on when margins will stabilize.
Project execution is equally critical. Investors will look for updates on commercial operation dates for CO Bar and Jupiter, and clarity on how quickly these megaprojects will contribute to revenue. With battery storage scaling rapidly to serve surging data center demand, and preserved tax credit horizons supporting renewable investments, Enlight's energy storage footprint could become a key growth driver.
The renewable sector backdrop offers both headwinds and tailwinds. Global generation from renewable sources is expected to overtake coal as the largest source of generation in 2026, and U.S. utility-scale solar generation is forecast to rise 17% this year. However, the sector faces a rollback of clean energy tax credits and new supply chain restrictions.
In the third quarter, Enlight reported $0.16 earnings per share on revenue of $165.06 million, beating consensus estimates. That surprise beat boosted confidence in the company's 27.72% revenue growth rate and 42.8% EBITDA growth. Whether Tuesday's results can maintain that momentum—or at least articulate a credible path forward—will determine if the stock can hold near its highs or faces a reset closer to the skeptics' targets.
This article was generated with the support of AI and reviewed by an editor.