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Kenon Holdings Annual Report: 2025 Results and Updates

Kenon Holdings Ltd. recently unveiled its comprehensive financial results for the year ending December 31, 2025, along with strategic updates that shed light on its operational performance and future direction. Here are the key highlights:

Financial Overview

For 2025, Kenon reported substantial revenue growth, primarily driven by the performance of its subsidiary, OPC Energy Ltd. The total revenue reached approximately $872 million, a notable increase from $751 million in 2024. The improvement was largely attributed to enhanced customer demand, particularly in the retail electricity sector in the United States (U.S.) and a stable revenue stream from Israeli operations.

Revenue Breakdown

• - Israel: Revenue surged to $675 million, reflecting an increase in infrastructure services and slight variances in electricity sales due to market conditions.
• - U.S.: A significant rise in revenue to $197 million was observed, thanks in part to expansion initiatives and the increase in retail electricity sales. This growth underscores OPC's strategic expansion into the U.S. market and its evolving service portfolio, particularly in renewable energy sectors.

Adjusted EBITDA

The company’s adjusted EBITDA, which includes its share in associated companies, showcased a healthy increase to $457 million, rising from $332 million in 2024. This growth indicates operational efficiency improvements and successful strategic investments.

Profitability and Expenses

Kenon’s consolidated financial performance highlighted a profit of $132 million, significantly up from $53 million reported the previous year. This profit includes a notable contribution from associated companies, particularly in the renewable energy space.

Key expense figures reflect the operational dynamics, with total costs of sales, excluding depreciation and amortization, amounting to $658 million. In Israel, cost of sales rose due to inflation in tariffs and increased operational activity, while in the U.S., costs were impacted by expansion initiatives in retail electricity services.

Dividend Declaration

In a show of confidence in its financial trajectory, Kenon’s board of directors announced a cash dividend of $3.85 per share, translating to roughly $200 million in total dividends payable to shareholders by April 20, 2026. This decision signifies Kenon's commitment to returning value to its investors while maintaining robust cash reserves.

Strategic Developments

Amid these financial results, notable developments include:

• - Private Placement: OPC successfully executed a private placement, raising about NIS 800 million (approximately $257 million) for future growth initiatives.
• - Capped Call Settlement: Kenon also reported the cash settlement of its capped call arrangement, yielding approximately $34 million in proceeds, enhancing its opportunistic financial maneuvers in the market.

Forward-Looking Statements

It is essential to note that future projections included in the report are subject to uncertainty, and actual results may vary due to various risks including operational challenges and market conditions. Kenon emphasizes their strategy to navigate these potential challenges, maintaining an optimistic outlook on future growth.

Conclusion

Overall, Kenon Holdings Ltd. has exhibited commendable financial resilience and strategic foresight in its 2025 performance. With increased revenue, profitability, and shareholder returns,
Kenon is poised for continued success in a competitive landscape. The updates reaffirm Kenon’s commitment to expanding its market presence in both the Israeli and U.S. energy sectors while ensuring shareholder value along the way.