Ellomay Capital Releases Dorad Energy Ltd. Financial Statements for 3‑Month and 9‑Month Periods Ended September 30, 2025

Key Take‑aways

• Revenue & profit: ₪ 919.1 million of revenue; ₪ 205.8 million operating profit (Q3 2025).
• Ownership: Ellomay’s indirect economic interest in Dorad is about 16.9 % via its 50 % holding in Ellomay Luzon Energy.
• Seasonality: The quarter includes the high‑demand summer months (July‑September) and the TAOZ tariff, which makes the results non‑representative of the full year.
• Financial‑statement caveats: The financials are unaudited, translated for convenience, and were not reviewed by Ellomay’s auditors or the Luzon Group.
• Cash flow spotlight: Net cash from operating activities was ₪ 554.8 million; net cash used in financing activities was ₪ 218.9 million; net cash increase for the period was ₪ 303.3 million.

Deep‑dive Analysis

Revenue dynamics – Dorad’s Q3 revenue of ₪ 919.1 million represents a 26 % year‑over‑year increase versus the same quarter in 2024 (₪ 735.0 million). The boost is driven by higher load factors during the summer and the seasonal TAOZ tariff, which lifts per‑MWh rates. For investors, the key question is whether the company can sustain this level of demand as temperatures moderate and the regulatory tariff framework evolves.

Cost structure & margins – Operating costs (energy procurement, fuel and depreciation) total ₪ 1.73 billion, yielding an operating margin of 19.6 % for the quarter. Depreciation and amortisation (₪ 168.8 million) and financing costs (net ₪ 168.8 million) are the two largest non‑cash expense items. The CPI‑linked interest expense is a material driver of the financing cost and could rise if inflation persists, putting additional pressure on margins.

Balance‑sheet health – As of 30 September 2025, total assets stood at ₪ 4.75 billion, supported by cash and cash equivalents of ₪ 1.07 billion. Net debt (including bank loans and lease liabilities) was ₪ 2.19 billion, leaving a net‑debt‑to‑EBITDA ratio of roughly 3.1×, a level that remains manageable but leaves limited headroom for new large‑scale projects without further financing.

Cash‑flow positioning – Operating cash generation of ₪ 554.8 million (≈ 60 % of operating profit) demonstrates solid cash conversion, but the company recorded a net cash outflow from financing activities of ₪ 218.9 million, driven primarily by loan repayments and dividend payments. The sharp negative cash impact from the scheduled repayment of a ₪ 5 billion loan facility (‑₪ 284.6 million) underscores the importance of the upcoming refinancing strategy.

Strategic outlook – Management highlighted three risk factors that could affect future performance: (1) seasonality and the TAOZ tariff structure; (2) CPI‑driven interest cost volatility; and (3) potential regulatory changes. Investors should watch the upcoming amortisation of the 33.75 % share in Dorad (≈ ₪ 850 million) and any adjustments to the credit‑facility terms, as these will directly impact Ellomay’s earnings per share.

What’s next?

• Ellomay will incorporate its proportional share of Dorad’s results into its own Q3 2025 filing.
• The company will monitor the impact of CPI‑linked financing costs on its interest expense.
• Future updates will focus on the 2025‑2026 capital‑expenditure plan for new solar assets in Spain, the U.S. and the Netherlands, and the progression of the 156 MW pumped‑storage project in the Manara Cliff.

Forward‑looking statement

The information in this release contains forward‑looking statements that involve known and unknown risks. The company’s actual results may differ materially from those projected due to fluctuating electricity demand, regulatory changes, currency movements, and the outcome of ongoing legal proceedings.

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