Econergy's electricity sales revenues continue to grow, but net loss deepens
Econergy's electricity sales revenues surged, but a spike in financing expenses led to a net loss of 28.1 million euros. Delays in grid connections forced the company to lower its year-end forecast.
Econergy's revenues from electricity sales surged, in line with its strategy, but a jump in financing expenses led to a deepening of the bottom-line loss. A delay in connecting projects to the power grid, after the company had already completed their construction, led to a downward revision of the forecast for the end of 2026. On the other hand, the acquisition of a portfolio of projects in France contributed to the affirmation of the forecast for 2027.
The renewable energy company, which operates in Europe and is managed by controlling shareholders Eyal Podhorzer and Yoav Shapira, promoted a strategic change shortly after its IPO in 2021, under which it decided to hold the projects it develops in order to benefit from the revenues from the electricity sold from them, instead of initiating their construction and selling them. The change took time, and only in 2024 did it begin to generate revenue from electricity sales from the facilities it holds. But from this stage, the pace of change became rapid.
After revenues from electricity sales of 566 thousand euros in 2024, in 2025 they jumped to 8.7 million euros. In the first quarter of 2026, they reached 5.9 million euros, a sum that was 10 times higher than their volume in the corresponding quarter last year. In the second quarter of the year, which it summarized this morning, the strong growth continued, and revenues from electricity sales already reached 10 million euros. This is a sum that is five times higher than their volume in the corresponding quarter, and even higher than their volume throughout 2025 as a whole. The jump was due to the completion of the connection to the grid of several projects and the increase in the company's holdings in its two large solar projects, which are located in Romania and have a combined capacity of about 240 megawatts, and in which it held shares until last year with partners.
At the same time, the operating loss narrowed from 6.7 million euros in the corresponding quarter to 4.1 million euros. However, since the company raises debt in bonds in shekels and uses it to finance its operations in Europe in foreign currency, the strengthening of the shekel against the euro, combined with the increase in financing expenses required due to the increase in the number of projects operated, led to a jump in Econergy's quarterly financing expenses from 3.3 million euros in the corresponding quarter to 24.3 million euros. As a result, there was also a jump in the bottom-line loss, which reached 28.1 million euros, compared to a loss of 12.5 million euros in the corresponding quarter.
Econergy completed the construction of a storage project in the UK with a capacity of 40 megawatts and a storage capacity of 120 megawatt-hours, and planned to connect it to the grid and operate it as early as the second quarter, but encountered delays. This is in parallel with delays in connecting seven projects in Romania with a combined capacity of 296 megawatts, due to difficulties of the entities responsible for the power grid in both countries. These delays, which the company estimates at about four months on average per project, led it to revise its revenue and EBITDA forecast for the end of the year downwards. According to the updated forecast, revenues from electricity sales will amount to 65 million euros, 12% less than their volume in the original forecast, and the EBITDA from this activity will amount to 53 million euros, 13% less than the original forecast. This is after the company was also forced to revise its forecast downwards in 2025 following similar delays.
While the delay in connecting the facilities affects the short term, Econergy affirmed the forecast for 2027, for revenues from electricity sales of 184 million euros and EBITDA of 150 million euros - a growth of nearly three times compared to their volume in 2026. The company relies in this on the expected pace of development and construction of new projects, and among other things also on a binding agreement it entered into earlier this month to acquire a portfolio of wind projects in France. Out of the portfolio, projects with a capacity of 128 megawatts are already in commercial operation and an additional 34 megawatts are in the construction stages, alongside other projects in earlier stages. The consideration in the transaction is 135 million euros. In addition to France, where it is expected to start operating, Econergy already operates in Romania, Italy, England, Germany, and Poland, and holds a portfolio of projects in commercial operation and ready for connection with a capacity of 1 gigawatt, alongside additional projects with a capacity of 1.3 gigawatts and 1.2 gigawatts in the construction or pre-construction stages. The company went public in July 2021 at a valuation of 1.1 billion shekels. By August 2024, its stock had fallen by 51%, but since then it has jumped by 429%, and it is currently traded at a valuation of 5 billion shekels.
