Press Release: Ellomay Capital Reports Results for the Three and Six Months Ended June 30, 2026

Dow Jones08-19 04:10

TEL-AVIV, Israel, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Ellomay Capital Ltd. (NYSE American; TASE: ELLO) ("Ellomay" or the "Company"), a renewable energy and power generator and developer of renewable energy and power projects in Europe, USA and Israel, today reported its unaudited interim consolidated financial results for the three and six-month periods ended June 30, 2026.

Financial Highlights

   -- Total assets as of June 30, 2026 amounted to approximately EUR959.2 
      million (including approximately EUR113.5 million in cash and cash 
      equivalents and approximately EUR53.3 million in short term deposits), 
      compared to total assets as of December 31, 2025 of approximately 
      EUR843.5 million (including approximately EUR87.6 million in cash and 
      cash equivalents). 
 
   -- Revenues1 for the three months ended June 30, 2026 were approximately 
      EUR12.4 million, compared to revenues of approximately EUR11.3 million 
      for the three months ended June 30, 2025. Revenues for the six months 
      ended June 30, 2026 were approximately EUR21.1 million, compared to 
      revenues of approximately EUR20.1 million for the six months ended June 
      30, 2025. 
 
   -- Profit for the three months ended June 30, 2026 was approximately EUR70.5 
      million, compared to loss of approximately EUR8.4 million for the three 
      months ended June 30, 2025. Profit for the six months ended June 30, 2026 
      was approximately EUR58.3 million, compared to loss of approximately 
      EUR1.6 million for the six months ended June 30, 2025. 
 
   -- EBITDA for the three months ended June 30, 2026 was approximately EUR88.5 
      million, compared to EBITDA of approximately EUR3.2 million for the three 
      months ended June 30, 2025. EBITDA for the six months ended June 30, 2026 
      was approximately EUR90.6 million, compared to EBITDA of approximately 
      EUR6.1 million for the six months ended June 30, 2025. See below under 
      "Use of Non-IFRS Financial Measures" for additional disclosure concerning 
      EBITDA and the table on page 15 of this press release for a 
      reconciliation of these numbers to profit and loss. 
 
   -- In May 2026, the Company completed the sale of its indirect holdings in 
      Ellomay Luzon Energy Infrastructures Ltd. ("Ellomay Luzon Energy") for a 
      purchase price of approximately NIS 560 million (approximately EUR167 
      million). Consequently, the Company's share of profits of Ellomay Luzon 
      Energy, which was an equity accounted investee, after elimination of 
      intercompany transactions, was presented as discontinued operations and 
      results from prior periods were adjusted accordingly. In connection with 
      such sale, the Company recorded a net profit of EUR94.8 million 
      (representing a capital gain, gross, in the amount of EUR110.8 million, 
      net of taxes in the amount of EUR16 million, comprised of tax expense on 
      income of approximately EUR27.8 million and a tax benefit from the 
      utilization of losses of EUR11.8 million) in the three months ended June 
      30, 2026.In connection with such sale, in May 2026 the Company executed 
      an early repayment of its Series E Secured Debentures, which were secured 
      by a pledge on the Ellomay Luzon Energy shares. The principal of the 
      Series E Secured Debentures was NIS 165 million (approximately EUR46.5 
      million) and the aggregate repayment amount was approximately NIS 170 
      million (approximately EUR47.9 million), which includes accrued interest 
      and the early repayment fee. 

Financial Overview for the Six Months Ended June 30, 2026

   -- Revenues were approximately EUR21.1 million for the six months ended June 
      30, 2026, compared to approximately EUR20.1 million for the six months 
      ended June 30, 2025. The increase in revenues mainly resulted from 
      revenues generated by four solar facilities in the USA that were 
      connected to the grid during the second and third quarters of 2025 and 
      during the second quarter of 2026, and from increased production and 
      revenues from the Company's biogas facilities in the Netherlands, 
      partially offset by decreases in the electricity prices in Italy and 
      Spain commencing 2025 and during the first half of 2026. 
 
   -- Operating expenses were approximately EUR9.8 million for the six months 
      ended June 30, 2026, compared to approximately EUR9.2 million for the six 
      months ended June 30, 2025. The increase in operating expenses mainly 
      resulted from higher operating expenses of the Company's biogas 
      facilities in the Netherlands, reflecting their increased production, and 
      by the achievement of the preliminary acceptance certificate ("PAC") for 
      the Company's 18 MW Italian solar facility subsequent to June 30, 2025. 
      This increase was partially offset by a lower 7% Spanish tax on revenues 
      generated from electricity production due to a decrease in revenues as a 
      result of lower electricity prices. Depreciation and amortization 
      expenses were approximately EUR9.1 million for the six months ended June 
      30, 2026, compared to approximately EUR8.5 million for the six months 
      ended June 30, 2025. 
 
   -- Project development costs were approximately EUR0.8 million for the six 
      months ended June 30, 2026, compared to approximately EUR2.9 million for 
      the six months ended June 30, 2025. The decrease in project development 
      costs is mainly due to projects that reached "ready to build" ("RTB") or 
      "permission to operate" ("PTO") status, which resulted in the 
      commencement of capitalization of expenses related to such projects into 
      fixed assets. 
 
   -- General and administrative expenses were approximately EUR4.9 million for 
      the six months ended June 30, 2026, compared to approximately EUR3.4 
      million for the six months ended June 30, 2025. The increase in general 
      and administrative expenses is mainly due to higher payroll expenses, due 
      to payment bonuses to employees, higher insurance expenses, reflecting a 
      run-off insurance policy purchased in connection with the change of 
      control in the Company, and higher consulting expenses. 
 
   -- Other income was approximately EUR1.8 million for the six months ended 
      June 30, 2026, compared to approximately EUR1.4 million for the six 
      months ended June 30, 2025. The other income recognized during the six 
      months ended June 30, 2026 mainly resulted from the recognition of a 
      proportional share of deferred income related to tax credits in 
      connection with the Company's USA solar facilities. The other income 
      during the six months ended June 30, 2025 was recognized based on agreed 
      compensation expected to be received from the engineering, procurement 
      and construction ("EPC") contractor of two of the Company's USA solar 
      facilities for loss of income due to delays in construction. 
 
   -- Financing expenses, net was approximately EUR32.6 million for the six 
      months ended June 30, 2026, compared to financing expenses, net of 
      approximately EUR1 million for the six months ended June 30, 2025. The 
      change in financing expenses, net, was mainly attributable to higher 
      expenses resulting from exchange rate differences that amounted to 
      approximately EUR24.7 million for the six months ended June 30, 2026, 
      compared to income from exchange rate differences of approximately EUR5.6 
      million for the six months ended June 30, 2025, an aggregate change of 
      approximately EUR30.3 million. The exchange rate differences were mainly 
      recorded in connection with the New Israeli Shekel ("NIS") cash and cash 
      equivalents and the Company's NIS denominated debentures and were caused 
      by the 9.4% appreciation of the NIS against the euro during the six 
      months ended June 30, 2026, compared to a 4.2% devaluation of the NIS 
      against the euro during the six months ended June 30, 2025. The increase 
      in financing expenses, net also resulted from an increase of 
      approximately EUR1.6 million in interest expenses in connection with the 
      Company's debentures and financing expenses of approximately EUR1.2 
      million in connection with the early repayment of the Series E Secured 
      Debentures, partially offset by an increase of approximately EUR3.1 
      million in income resulting from revaluation of warrants. 
 
   -- Tax benefit was approximately EUR9.4 million for the six months ended 
      June 30, 2026, compared to tax benefit of approximately EUR1.8 million 
      for the six months ended June 30, 2025. The change is mainly due to tax 
      benefit in the amount of EUR11.8 million resulting from the utilization 
      of current and carryforward losses in connection with the sale of the 
      investment in Ellomay Luzon Energy in May 2026. Such tax benefit was 
      partially offset by a decrease of approximately EUR2.4 million in 
      deferred tax asset recorded by one of the Company's Spanish facilities in 
      connection with the expected utilization of excess financing expenses. 
      Such decrease was due to a change in estimate in respect of the expected 
      utilization based on updated forecasts. 
 
   -- Loss from continuing operations was approximately EUR25 million for the 
      six months ended June 30, 2026, compared to a loss from continuing 
      operations of approximately EUR1.6 million for the six months ended June 
      30, 2025. 
 
   -- Profit from discontinued operation (net of tax) was approximately EUR83.3 
      million for the six months ended June 30, 2026, compared to profit from 
      discontinued operation (net of tax) of approximately EUR12 thousand for 
      the six months ended June 30, 2025. As noted above, the profit from 
      discontinued operations reflects the Company's share of profits of 
      Ellomay Luzon Energy, an equity accounted investee that was sold in May 
      2026. 
 
   -- Profit for the six months ended June 30, 2026 was approximately EUR58.3 
      million, compared to loss of approximately EUR1.6 million for the six 
      months ended June 30, 2025. 
 
   -- Total other comprehensive income was approximately EUR8.7 million for the 
      six months ended June 30, 2026, compared to total other comprehensive 
      loss of approximately EUR8.7 million for the six months ended June 30, 
      2025. The change in total other comprehensive income (loss) primarily 
      resulted from foreign currency translation adjustments due to the change 
      in the NIS/euro exchange rate, representing a change of approximately 
      EUR16.3 million. The change also resulted from an approximately EUR1.1 
      million changes in fair value of cash flow hedges. 
 
   -- Total comprehensive income was approximately EUR67 million for the six 
      months ended June 30, 2026, compared to total comprehensive loss of 
      approximately EUR10.3 million for the six months ended June 30, 2025. 
 
   -- EBITDA was approximately EUR90.6 million for the six months ended June 
      30, 2026, compared to approximately EUR6.1 million for the six months 
      ended June 30, 2025. See below under "Use of Non-IFRS Financial Measures" 
      for additional disclosure concerning EBITDA and the table on page 15 of 
      this press release for a reconciliation of these numbers to profit and 
      loss. 
 
   -- Net cash used in operating activities was approximately EUR3.7 million 
      for the six months ended June 30, 2026, compared to net cash generated 
      from operating activities of approximately EUR5.1 million for the six 
      months ended June 30, 2025. The change in net cash used in operating 
      activities mainly resulted from lower revenues from the Company's Italian 
      and Spanish solar facilities and increased expenditure, including 
      interest on Debentures and loans paid and an expense in connection with 
      the early repayment of the Series E Secured Debentures. 

CEO Review First Half 2026

In the first half of 2026, the Company's revenues amounted to approximately EUR21.1 million, compared to revenues of approximately EUR20.1 million in the corresponding half last year. The increase in revenues was primarily attributable to the biogas activity in the Netherlands. Electricity prices in Spain during the first half were significantly lower compared to the corresponding half last year, while higher solar radiation increased output and partially offset the price decline. Electricity prices in Spain rose sharply after the balance sheet date, and we expect to see the impact in the third quarter. In Italy, prices are stable, although revenues declined half over half due to the transition to selling electricity under PPAs starting January 2026, compared to selling electricity at market prices in the corresponding half last year. The approximately 9% strengthening of the NIS against the euro during the half resulted in finance expenses of approximately EUR24.7 million in the first half of 2026, compared to finance income of approximately EUR5.6 million in the corresponding half last year resulting from the appreciation of the euro against the NIS. Net of exchange rate differences, finance expenses for the half amounted to approximately EUR2.3 million.

In the first quarter of 2026, an agreement was signed for the sale of the Company's 50% interest in Ellomay Luzon Energy Infrastructures Ltd., which holds a 33.75% interest in Dorad Energy Ltd., based on a Dorad valuation of NIS 4.4 billion. The transaction was completed in May 2026, and the Company received consideration of approximately NIS 560 million.

In Italy -- 38 MW solar (51% owned in partnership with Clal) is fully operating. An additional 10 MW project was connected to the grid after the balance sheet date. Construction works on additional projects with an aggregate capacity of 150 MW solar (also 51% owned in partnership with Clal) are partly in grid connection stages and partly in advanced construction, expected to be completed by the end of 2026. The remainder of the portfolio developed by the Company (100% owned) is approximately 264 MW solar, of which 210 MW have reached "ready to build" status as of the date hereof, and the rest are expected to receive permits in the near future. Construction of these 264 MW is scheduled to begin in the last quarter of 2026. Out of the 210 MW ready for construction, approximately 100 MW (2 projects) won the FER X tender, which guarantees a 20-year electricity sale contract at high prices. The Company is examining the establishment of battery-based electricity storage facilities in northern Italy. As part of this review, an agreement has been signed for the acquisition of a license with RTB status for a 50 MW peak per hour battery storage facility with 4 hours of storage capacity, and the possibility of acquiring an additional license for a 100 MW peak per hour facility with 4 hours of storage is also being considered.

In the USA -- the construction of the first five projects has been completed, of which four have been connected to the grid; the fifth project (Hillsboro, 14 MW) is expected to be connected to the grid in September 2026. The Company has begun construction of two additional projects of approximately 14 MW each in the Houston area, which are eligible for tax benefits under current regulation (a benefit of approximately 40%). Regulatory changes and uncertainty regarding tariff rates do not allow the Company to provide a forecast beyond the above, but the assumption is that the Company will find a way to continue developing and growing its portfolio in the USA in the near future.

In the Netherlands -- the license to increase production at the GGOT facility was received. The Company is in the final planning stages of the expansion project at GGOT, and the plan is to complete the project by the end of 2027. The two additional facilities are in advanced stages of receiving production increase licenses. The new regulation requiring the blending of green gas with fossil gas will commence in January 2027 (a one-year delay), however the targets for the first year have been increased. Agreements have been signed for the sale of green certificates issued in accordance with the new regulation at a price of approximately EUR1 per certificate. The blending obligation is expected to significantly increase the profitability of operations in the Netherlands under current production capacity. Following receipt of approvals to increase production quotas, the Company plans to increase production capacity from 16 million cubic meters of gas per year to approximately 24 million cubic meters of gas per year at the existing facilities. This is expected to lead to a material increase in revenues and profit.

In Israel -- at the Manara pumped storage project, works across the entire project site are progressing as planned. The Company is in negotiations with the Israeli Electricity Authority for compensation for delays and war-related damages at the Manara project. In parallel, the Company is awaiting the lenders' approval for the changes required to the financing agreement as a result of the war.

In Spain -- the Company operates the existing photovoltaic portfolio (335 MWh). The Company's development activity in Spain currently focuses on battery electricity storage, whereby at Ellomay Solar (28 MW solar) the construction of a 22.7 MW peak facility with 4 hours of battery storage is planned for January 2027. The Company is also advancing a battery storage project for Talasol (250 MW peak with 4 hours of battery storage). The high volatility in electricity prices in Spain stems from a surplus of renewable energy during transition seasons and during hours of green energy production. The solution to this problem is a significant increase in storage capacity, which is currently very limited in Spain.

Use of Non-IFRS Financial Measures

EBITDA is a non-IFRS measure and is defined as earnings before financial expenses, net, taxes, depreciation and amortization. The Company presents this measure in order to enhance the understanding of the Company's operating performance and to enable comparability between periods. While the Company considers EBITDA to be an important measure of comparative operating performance, EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations or cash flow data prepared in accordance with IFRS as a measure of profitability or liquidity. EBITDA does not take into account the Company's commitments, including capital expenditures and restricted cash and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Not all companies calculate EBITDA in the same manner, and the measure as presented may not be comparable to similarly-titled measure presented by other companies. The Company's EBITDA may not be indicative of the Company's historic operating results; nor is it meant to be predictive of potential future results. The Company uses this measure internally as performance measure and believes that when this measure is combined with IFRS measure it add useful information concerning the Company's operating performance. A reconciliation between results on an IFRS and non-IFRS basis is provided on page 15 of this press release.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol "ELLO". Since 2009, Ellomay focuses its business in the renewable energy and power sectors in Europe, USA and Israel.

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy, Spain, the Netherlands and USA, including:

   -- Approximately 335.9 MW of operating solar power plants in Spain 
      (including a 300 MW solar plant in owned by Talasol, which is 51% owned 
      by the Company) and 51% of approximately 48 MW of operating solar power 
      plants in Italy; 
 
   -- Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland 
      B.V., project companies operating anaerobic digestion plants in the 
      Netherlands, with a green gas production capacity of approximately 3 
      million, 3.8 million and 9.5 million Nm3 per year, respectively; 
 
   -- 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a 
      project to construct a 156 MW pumped storage hydro power plant in the 
      Manara Cliff, Israel; 
 
   -- 51% of solar projects in Italy with an aggregate capacity of 150 MW that 
      are under construction; 
 
   -- Solar projects in Italy with an aggregate capacity of 210 MW that have 
      reached "ready to build" status; and 
 
   -- Solar projects in the Dallas Metropolitan area, Texas, USA with an 
      aggregate capacity of approximately 49 MW that are connected to the grid 
      and 14 MW that is awaiting connection to the grid. 

For more information about Ellomay, visit http://www.ellomay.com.

Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company's management. All statements, other than statements of historical facts, included in this press release regarding the Company's plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words "estimate," "project," "intend," "expect," "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company's forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company's forward-looking statements, including changes in electricity prices and demand, regulatory changes increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company's facilities (such as waste and natural gas) and in the price of oil, the impact of the war and hostilities in Israel and Gaza and between Israel and Iran, the impact of the continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company, inability to obtain the financing required for the development and construction of projects, increases in interest rates and inflation, changes in exchange rates, delays in development, construction, or commencement of operation of the projects under development, failure to obtain permits - whether within the set time frame or at all, climate change, and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. These and other risks and uncertainties associated with the Company's business are described in greater detail in the filings the Company makes from time to time with the Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Kalia Rubenbach (Weintraub)

CFO

Tel: +972 (3) 797-1111

Email: hilai@ellomay.com

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Financial 
 Position 
------------------------------------------------------------------------ 
 
                         June 30,   December 31,         June 30, 
                            2026        2025               2026 
                         Unaudited    Audited           Unaudited 
                         ---------  ------------  ---------------------- 
                                                       Convenience 
                                                   Translation into US$ 
                            EUR in thousands          in thousands* 
                         -----------------------  ---------------------- 
Assets 
Current assets: 
Cash and cash 
 equivalents               113,474        87,614                 129,344 
Short-term deposits         53,322             -                  60,780 
Restricted cash                590           656                     673 
Intangible asset from 
 green certificates            602            29                     686 
Trade and revenue 
 receivables                 7,630         7,236                   8,697 
Other receivables           15,365        14,918                  17,514 
Derivatives                  5,057         3,743                   5,764 
                           196,040       114,196                 223,458 
                         ---------  ------------  ---------------------- 
Non-current assets 
Investment in equity 
 accounted investee              -        59,542                       - 
Fixed assets               654,974       566,876                 746,578 
Right-of-use asset          48,380        44,386                  55,146 
Restricted cash and 
 deposits                   15,695        16,071                  17,890 
Deferred tax                 9,652        11,914                  11,002 
Long term receivables       20,870        18,097                  23,789 
Derivatives                 13,576        12,433                  15,475 
                           763,147       729,319                 869,880 
                         ---------  ------------  ---------------------- 
Total assets               959,187       843,515               1,093,338 
                         =========  ============  ====================== 
 
Liabilities and Equity 
Current liabilities 
Current maturities of 
 long-term bank loans       45,481        17,235                  51,842 
Current maturities of 
 other long-term loans       6,124         3,666                   6,980 
Current maturities of 
 debentures                 55,702        39,803                  63,492 
Trade payables              11,792         6,719                  13,441 
Other payables              18,204        16,633                  20,751 
Derivatives                  1,534           675                   1,749 
Current maturities of 
 lease liabilities             950           844                   1,083 
Income tax payables         16,721           512                  19,060 
Warrants                     2,062         5,929                   2,350 
                           158,570        92,016                 180,748 
                         ---------  ------------  ---------------------- 
Non-current 
liabilities 
Long-term lease 
 liabilities                39,266        35,491                  44,758 
Long-term bank loans       298,808       272,388                 340,599 
Other long-term loans       60,688        58,457                  69,176 
Debentures                 157,261       209,374                 179,255 
Deferred tax                 3,478         3,170                   3,964 
Other long-term 
 liabilities                 7,833         6,179                   8,928 
Derivatives                    967         1,300                   1,102 
                           568,301       586,359                 647,782 
                         ---------  ------------  ---------------------- 
Total liabilities          726,871       678,375                 828,530 
                         =========  ============  ====================== 
 
Equity 
Share capital               28,008        28,002                  31,925 
Share premium               96,757        96,585                 110,289 
Treasury shares            (1,736)       (1,736)                 (1,979) 
Transaction reserve 
 with non-controlling 
 interests                  14,763        14,757                  16,828 
Reserves                    24,377        16,674                  27,787 
Retained earnings 
 (accumulated deficit)      48,198      (13,694)                  54,939 
                         ---------  ------------  ---------------------- 
Total equity attributed 
 to shareholders of the 
 Company                   210,367       140,588                 239,789 
Non-controlling 
 interest                   21,949        24,552                  25,019 
Total equity               232,316       165,140                 264,808 
                         ---------  ------------  ---------------------- 
Total liabilities and 
 equity                    959,187       843,515               1,093,338 
                         =========  ============  ====================== 
 

* Convenience translation into US$ (exchange rate as at June 30, 2026: euro 1 = US$ 1.14)

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Profit 
 or Loss and Other Comprehensive Income (Loss) 
---------------------------------------------------------------------------------- 
 
                                                           For the 
                                                             year 
                     For the three                          ended     For the six 
                   months ended June   For the six months  December  months ended 
                          30,            ended June 30,      31,       June 30, 
                   ------------------  ------------------ 
                     2026      2025      2026      2025      2025        2026 
                   --------  --------  --------  --------  --------  ------------- 
                                 Unaudited                 Audited     Unaudited 
                   --------------------------------------  -------- 
                                                                      Convenience 
                                                                      Translation 
                       EUR in thousands (except per share data)        into US$* 
                   ------------------------------------------------  ------------- 
Revenues             12,419    11,276    21,084    20,136    42,827         24,033 
Operating 
 expenses           (4,771)   (4,579)   (9,848)   (9,206)  (19,408)       (11,225) 
Depreciation and 
 amortization 
 expenses           (4,593)   (4,250)   (9,109)   (8,488)  (16,481)       (10,383) 
                   --------  --------  --------  --------  --------  ------------- 
Gross profit          3,055     2,447     2,127     2,442     6,938          2,425 
 
Project 
 development 
 costs                (435)   (1,825)     (810)   (2,870)   (2,649)          (923) 
General and 
 administrative 
 expenses           (2,467)   (1,722)   (4,942)   (3,384)   (6,369)        (5,633) 
Other income            722     1,233     1,802     1,431     3,599          2,054 
                   --------  --------  --------  --------  --------  ------------- 
Operating profit 
 (loss)                 875       133   (1,823)   (2,381)     1,519        (2,077) 
 
Financing income 
 (expense)              834   (4,430)     1,428     7,051     2,876          1,628 
Financing income 
 (expenses) in 
 connection with 
 derivatives and 
 warrants, net        3,048       815     3,540       439   (3,917)          4,035 
Financing 
 expenses in 
 connection with 
 projects 
 finance            (1,492)   (1,602)   (2,922)   (2,976)   (6,612)        (3,331) 
Financing 
 expenses in 
 connection with 
 debentures         (2,578)   (2,260)   (6,530)   (4,000)   (8,316)        (7,443) 
Interest expenses 
 on minority 
 shareholder 
 loan                 (821)     (454)   (1,556)     (930)   (2,047)        (1,774) 
Other financing 
 expenses          (23,371)     (268)  (26,560)     (562)   (9,342)       (30,275) 
Financing 
 expenses, net     (24,380)   (8,199)  (32,600)     (978)  (27,358)       (37,160) 
                   --------  --------  --------  --------  --------  ------------- 
 
Loss before taxes 
 on income         (23,505)   (8,066)  (34,423)   (3,359)  (25,839)       (39,237) 
Tax benefit          10,976       849     9,376     1,771     2,528         10,687 
Loss for the 
 period from 
 continuing 
 operations        (12,529)   (7,217)  (25,047)   (1,588)  (23,311)       (28,550) 
                   --------  --------  --------  --------  --------  ------------- 
Profit from 
 discontinued 
 operation (net 
 of tax)             83,036   (1,177)    83,334        12    16,930         94,989 
                                                                     ------------- 
Profit (loss) for 
 the period          70,507   (8,394)    58,287   (1,576)   (6,381)         66,439 
                   --------  --------  --------  --------  --------  ------------- 
Profit (loss) 
attributable 
to: 
Owners of the 
 Company             72,335   (7,684)    61,892       310   (2,133)         70,549 
Non-controlling 
 interests          (1,828)     (710)   (3,605)   (1,886)   (4,248)        (4,110) 
Profit (loss) for 
 the period          70,507   (8,394)    58,287   (1,576)   (6,381)         66,439 
                   --------  --------  --------  --------  --------  ------------- 
Other 
comprehensive 
income (loss) 
item 
that after 
initial 
recognition in 
comprehensive 
income (loss) 
were or will be 
transferred to 
profit or loss: 
Foreign currency 
 translation 
 differences for 
 foreign 
 operations          14,016       490    16,518   (9,048)     2,517         18,829 
Foreign currency 
 translation 
 differences for 
 foreign 
 operations that 
 were recognized 
 in profit or 
 loss               (9,225)         -   (9,225)         -         -       (10,515) 
Effective portion 
 of change in 
 fair value of 
 cash flow 
 hedges                 360   (1,630)     4,444     2,634     2,546          5,066 
Net change in 
 fair value of 
 cash flow hedges 
 transferred to 
 profit or loss     (2,364)   (2,619)   (3,032)   (2,282)   (2,734)        (3,456) 
Total other 
 comprehensive 
 income (loss)        2,787   (3,759)     8,705   (8,696)     2,329          9,924 
                   --------  --------  --------  --------  --------  ------------- 
 
Total other 
comprehensive 
income (loss) 
attributable 
to: 
Owners of the 
 Company              3,493   (1,898)     7,703   (8,855)     2,336          8,781 
Non-controlling 
 interests            (706)   (1,861)     1,002       159       (7)          1,143 
Total other 
 comprehensive 
 income (loss) 
 for the period       2,787   (3,759)     8,705   (8,696)     2,329          9,924 
                   --------  --------  --------  --------  --------  ------------- 
Total 
 comprehensive 
 income (loss) 
 for the period      73,294  (12,153)    66,992  (10,272)   (4,052)         76,363 
                   ========  ========  ========  ========  ========  ============= 
 
Total 
comprehensive 
income (loss) 
attributable 
to: 
Owners of the 
 Company             75,828   (9,582)    69,595   (8,545)       203         79,330 
Non-controlling 
 interests          (2,534)   (2,571)   (2,603)   (1,727)   (4,255)        (2,967) 
Total 
 comprehensive 
 income (loss) 
 for the period      73,294  (12,153)    66,992  (10,272)   (4,052)         76,363 
                   --------  --------  --------  --------  --------  ------------- 
 

* Convenience translation into US$ (exchange rate as at June 30, 2026: euro 1 = US $ 1.14)

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Profit 
 or Loss and Other Comprehensive Income (Loss) (cont'd) 
--------------------------------------------------------------------- 
 
                                              For the 
                  For the                       year 
                three months   For the six     ended     For the six 
                 ended June    months ended   December  months ended 
                    30,          June 30,       31,       June 30, 
                ------------  -------------- 
 
                2026   2025    2026    2025     2025        2026 
                ----  ------  ------  ------  --------  ------------- 
                         Unaudited            Audited     Unaudited 
                ----------------------------  --------  ------------- 
                                                         Convenience 
                  EUR in thousands (except per share     Translation 
                                data)                     into US$* 
                --------------------------------------  ------------- 
Basic profit 
 (loss) per 
 share          5.25  (0.60)    4.49    0.02    (0.16)           5.12 
Diluted profit 
 (loss) per 
 share          5.25  (0.60)    4.47    0.02    (0.16)           5.10 
                ====  ======  ======  ======  ========  ============= 
 
Basic profit 
 (loss) per 
 share 
 continuing 
 operations     5.24  (0.51)  (1.56)    0.02    (1.44)         (1.77) 
Diluted profit 
 (loss) per 
 share 
 continuing 
 operations     5.24  (0.51)  (1.55)    0.02    (1.44)         (1.77) 
                ====  ======  ======  ======  ========  ============= 
 
Basic profit 
 per share 
 discontinued 
 operation      0.01    0.09    6.05       -      1.28           6.89 
Diluted profit 
 per share 
 discontinued 
 operation      0.01    0.09    6.02       -      1.28           6.86 
                ====  ======  ======  ======  ========  ============= 
 
 

* Convenience translation into US$ (exchange rate as at June 30, 2026: euro 1 = US$ 1.14)

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Changes 
 in Equity 
------------------------------------------------------------------------------------------------------------------------------------------- 
 
                                                                                                                         Non- 
                                                                                                                      controlling   Total 
                                     --------------------- 
                                                       Attributable to shareholders of the Company                     Interests    Equity 
                                     -------------------------------------------------------------------------------  -----------  -------- 
                                                                      Translation 
                                                                        reserve               Transaction 
                                       Retained earnings                 from                reserve with 
                    Share    Share       (accumulated       Treasury    foreign    Hedging  non-controlling 
                   capital  premium        deficit)          shares   operations   reserve     interests      Total 
                   -------  -------  ---------------------  --------  -----------  -------  ---------------  ------- 
                                                                       EUR in thousands 
                   ------------------------------------------------------------------------------------------------------------------------ 
For the six 
months ended 
June 30, 2026 
(unaudited): 
Balance as at 
 January 1, 2026    28,002   96,585               (13,694)   (1,736)       10,935    5,739           14,757  140,588       24,552   165,140 
Profit (loss) for 
 the period              -        -                 61,892         -            -        -                -   61,892      (3,605)    58,287 
Other 
 comprehensive 
 income (loss) 
 for the period          -        -                      -         -        6,995      708                -    7,703        1,002     8,705 
                   -------  -------  ---------------------  --------  -----------  -------  ---------------  -------  -----------  -------- 
Total 
 comprehensive 
 income (loss) 
 for the period          -        -                 61,892         -        6,995      708                -   69,595      (2,603)    66,992 
Transactions 
with owners of 
the Company, 
recognized 
directly in 
equity: 
Proceeds from 
 transactions 
 with 
 non-controlling 
 interests               -        -                      -         -            -        -                6        6            -         6 
Options exercise         6       18                      -         -            -        -                -       24            -        24 
Share-based 
 payments                -      154                      -         -            -        -                -      154            -       154 
Balance as at 
 June 30, 2026      28,008   96,757                 48,198   (1,736)       17,930    6,447           14,763  210,367       21,949   232,316 
                   =======  =======  =====================  ========  ===========  =======  ===============  =======  ===========  ======== 
 
 
For the six 
months ended 
June 30, 2025 
(unaudited): 
Balance as at 
 January 1, 2025    25,613   86,271               (11,561)   (1,736)        8,446    5,892            5,697  118,622       10,663   129,285 
Profit (loss) for 
 the period              -        -                    310         -            -        -                -      310      (1,886)   (1,576) 
Other 
 comprehensive 
 income (loss) 
 for the period          -        -                      -         -      (8,900)       45                -  (8,855)          159   (8,696) 
Total 
 comprehensive 
 income (loss) 
 for the period          -        -                    310         -      (8,900)       45                -  (8,545)      (1,727)  (10,272) 
Transactions 
with owners of 
the Company, 
recognized 
directly in 
equity: 
Sale of shares in 
 subsidiaries 
 from 
 non-controlling 
 interests               -        -                      -         -            -        -            9,060    9,060       16,996    26,056 
Issuance of 
 capital note to 
 non-controlling 
 interest                -        -                      -         -            -        -                -        -        1,148     1,148 
Share-based 
 payments                -        4                      -         -            -        -                -        4            -         4 
Balance as at 
 June 30, 2025      25,613   86,275               (11,251)   (1,736)        (454)    5,937           14,757  119,141       27,080   146,221 
                   =======  =======  =====================  ========  ===========  =======  ===============  =======  ===========  ======== 
 
 

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Changes 
 in Equity (cont'd) 
-------------------------------------------------------------------------------------------------------------------------------- 
 
                                                                                                               Non- 
                                                                                                            controlling   Total 
                                     ----------- 
                                                  Attributable to shareholders of the Company                interests   Equity 
                                     ---------------------------------------------------------------------  -----------  ------- 
                                                            Translation 
                                                              reserve               Transaction 
                                                               from                reserve with 
                    Share    Share   Accumulated  Treasury    foreign    Hedging  non-controlling 
                   capital  premium    deficit     shares   operations   reserve     interests      Total 
                   -------  -------  -----------  --------  -----------  -------  ---------------  ------- 
                                                                 EUR in thousands 
                   ------------------------------------------------------------------------------------------------------------- 
For the year 
ended 
December 31, 
2025 (audited): 
Balance as at 
 January 1, 2025    25,613   86,271     (11,561)   (1,736)        8,446    5,892            5,697  118,622       10,663  129,285 
Loss for the year        -        -      (2,133)         -            -       --                -  (2,133)      (4,248)  (6,381) 
Other 
 comprehensive 
 income (loss) 
 for the year            -        -            -         -        2,489    (153)                -    2,336          (7)    2,329 
Total 
 comprehensive 
 income (loss)for 
 the year                -        -      (2,133)         -        2,489    (153)                -      203      (4,255)  (4,052) 
Transactions 
with owners of 
the Company, 
recognized 
directly in 
equity: 
Sale of shares in 
 subsidiaries 
 from 
 non-controlling 
 interests               -        -            -         -            -        -            9,060    9,060       16,997   26,057 
Options exercise         7       17            -         -            -        -                -       24            -       24 
Issuance of 
 ordinary shares     2,382   10,281            -         -            -        -                -   12,663            -   12,663 
Issuance of 
 capital note to 
 non-controlling 
 interests               -        -            -         -            -        -                -        -        1,147    1,147 
Share-based 
 payments                -       16            -         -            -        -                -       16            -       16 
Balance as at 
 December 31, 
 2025               28,002   96,585     (13,694)   (1,736)       10,935    5,739           14,757  140,588       24,552  165,140 
                   -------  -------  -----------  --------  -----------  -------  ---------------  -------  -----------  ------- 
 
 

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Changes 
 in Equity (cont'd) 
---------------------------------------------------------------------------------------------------------------------------------------- 
 
                                                                                                                       Non- 
                                                                                                                    controlling   Total 
                                     ------------------- 
                                                      Attributable to shareholders of the Company                    interests   Equity 
                                     -----------------------------------------------------------------------------  -----------  ------- 
                                                                    Translation 
                                                                      reserve               Transaction 
                                     Accumulated deficit               from                reserve with 
                    Share    Share        (retained       Treasury    foreign    Hedging  Non-controlling 
                   capital  premium       earnings)        shares   operations   Reserve     interests      Total 
                   -------  -------  -------------------  --------  -----------  -------  ---------------  ------- 
 
                                                     Convenience translation into US$ (exchange rate as 
                                                            at June 30, 2026: euro 1 = US$ 1.14) 
                   --------------------------------------------------------------------------------------------------------------------- 
For the six 
months ended 
June 30, 2026 
(unaudited): 
Balance as at 
 January 1, 2026    31,918  110,092             (15,610)   (1,979)       12,464    6,542           16,821  160,248       27,986  188,234 
Profit (loss) for 
 the period              -        -               70,549         -            -        -                -   70,549      (4,110)   66,439 
Other 
 comprehensive 
 income (loss) 
 for the period          -        -                    -         -        7,974      807                -    8,781        1,143    9,924 
                   -------  -------  -------------------  --------  -----------  -------  ---------------  -------  -----------  ------- 
Total 
 comprehensive 
 income (loss) 
 for the period          -        -               70,549         -        7,974      807                -   79,330      (2,967)   76,363 
Transactions 
with owners of 
the Company, 
recognized 
directly in 
equity: 
Proceeds from 
 transactions 
 with 
 non-controlling 
 interests               -        -                    -         -            -        -                7        7            -        7 
Options exercise         7       21                    -         -            -        -                -       28            -       28 
Share-based 
 payments                -      176                    -         -            -        -                -      176            -      176 
Balance as at 
 June 30, 2026      31,925  110,289               54,939   (1,979)       20,438    7,349           16,828  239,789       25,019  264,808 
                   =======  =======  ===================  ========  ===========  =======  ===============  =======  ===========  ======= 
 
 

Ellomay Capital Ltd. and its Subsidiaries

 
Condensed Consolidated Interim Statements of Cash 
 Flow 
----------------------------------------------------------------------------------- 
 
                                                             For the 
                                                               year 
                      For the three                           ended    For the six 
                    months ended June   For the six months   December  months ended 
                           30,            ended June 30,       31,       June 30 
                   -------------------  -------------------  --------  ------------ 
                     2026       2025      2026       2025      2025        2026 
                   ---------  --------  ---------  -------- 
                                  Unaudited                  Audited    Unaudited 
                   ----------------------------------------  --------  ------------ 
                                                                       Convenience 
                                                                       Translation 
                                    EUR in thousands                    into US$* 
                   --------------------------------------------------  ------------ 
Cash flows from 
operating 
activities 
Profit (loss) for 
 the period           70,507   (8,394)     58,287   (1,576)   (6,381)        66,439 
Adjustments for: 
---------------- 
Financing 
 expenses, net        24,380     8,199     32,600       978    27,358        37,160 
Profit from 
 settlement of 
 derivatives 
 contract                  -         -          -         -       424             - 
Profit from 
 discontinued 
 operations        (110,804)         -  (110,804)         -         -     (126,301) 
Share of 
 (profits) loss 
 of equity 
 accounted 
 investee                  -     1,177      (298)      (12)  (16,930)         (340) 
Taxes on income 
 in connection 
 with the sale of 
 an equity 
 accounted 
 investee             27,785         -     27,785         -         -        31,671 
Depreciation and 
 amortization 
 expenses              4,593     4,250      9,109     8,488    16,481        10,383 
Share-based 
 payment 
 transactions            154         -        154         4        16           176 
Loss on early 
 redemption of 
 debentures          (1,224)         -    (1,224)         -         -       (1,395) 
Change in trade 
 receivables and 
 other 
 receivables           1,516     1,207    (2,295)     7,385     5,883       (2,616) 
Change in other 
 assets                (196)     (506)      (196)   (1,002)     (713)         (224) 
Change in trade 
 payables                 20     1,411       (80)     2,678       551          (91) 
Change in other 
 payables              2,272       548      1,003   (4,810)   (5,832)         1,143 
Tax benefit         (10,976)     (849)    (9,376)   (1,771)   (2,528)      (10,687) 
Income taxes paid        104      (27)      (500)      (27)     (583)         (571) 
Interest received        616       993      1,325     1,344     2,160         1,510 
Interest paid        (6,002)   (3,218)    (9,231)   (6,626)  (17,470)      (10,522) 
                    (72,305)    13,185   (62,028)     6,629     8,817      (70,704) 
                   ---------  --------  ---------  --------  --------  ------------ 
Net cash provided 
 by (used in) 
 operating 
 activities          (1,799)     4,791    (3,741)     5,053     2,436       (4,265) 
                   =========  ========  =========  ========  ========  ============ 
Cash flows from 
investing 
activities 
Acquisition of 
 fixed assets       (55,193)  (18,380)   (66,408)  (36,930)  (97,828)      (75,696) 
Interest paid 
 capitalized to 
 fixed assets          (832)     (951)    (1,806)   (1,827)   (4,052)       (2,059) 
Proceeds from a 
 sale of an 
 equity accounted 
 investee            167,503         -    167,503         -         -       190,930 
Advances on 
 account of 
 investments               -         -          -         -       547             - 
Proceeds from 
 (investment in) 
 in restricted 
 cash, net            21,857  (10,473)      2,131   (9,166)     1,584         2,429 
Investment in 
 short-term 
 deposits, net      (55,025)    39,132   (55,025)         -         -      (62,721) 
Net cash provided 
 by (used in) 
 investing 
 activities           78,310     9,328     46,395  (47,923)  (99,749)        52,883 
                   =========  ========  =========  ========  ========  ============ 
Cash flows from 
financing 
activities 
Issuance of 
 warrants                  -       475          -       475       475             - 
Cost associated 
 with long-term 
 loans                 (629)     (399)    (1,332)   (1,057)   (4,575)       (1,518) 
Proceeds from 
 issuance of 
 shares                    -         -          -         -    12,663             - 
Options exercise           -         -         24         -         -            27 
Sale of shares in 
 subsidiaries to 
 non-controlling 
 interests                 -    20,852          6    20,852         -             7 
Proceeds from 
 minority 
 partners in the 
 Italian solar 
 portfolio                 -         -          -         -    51,458             - 
Payment of 
 principal of 
 lease 
 liabilities           (235)      (80)      (541)     (452)   (1,548)         (617) 
Proceeds from 
 short-term 
 loans                11,194    17,434     24,338    17,434         -        27,742 
Proceeds from 
 long-term loans      11,735       159     43,852       465    51,681        49,985 
Repayment of 
 long-term loans    (23,727)   (4,961)   (25,537)   (6,753)  (35,414)      (29,109) 
Repayment of 
 debentures         (48,627)  (35,691)   (63,941)  (35,691)  (35,691)      (72,884) 
Proceeds from 
 issuance of 
 debentures, net           -         -          -    56,729    91,181             - 
Proceeds from the 
 sale of tax 
 credits                   -         -      3,980         -    10,160         4,537 
Proceeds from 
 exercise of 
 options                   -         -          -         -        24             - 
Net cash provided 
 by (used in) 
 financing 
 activities         (50,289)   (2,211)   (19,151)    52,002   140,414      (21,830) 
                   =========  ========  =========  ========  ========  ============ 
Effect of 
 exchange rate 
 fluctuations on 
 cash and cash 
 equivalents           3,554     (556)      2,357   (3,766)     3,379         2,687 
Increase in cash 
 and cash 
 equivalents          29,777    11,352     25,860     5,366    46,480        29,475 
Cash and cash 
 equivalents at 
 the beginning of 
 the period           83,697    35,148     87,614    41,134    41,134        99,869 
                   ---------  --------  ---------  --------  --------  ------------ 
Cash and cash 
 equivalents at 
 the end of the 
 period              113,474    46,500    113,474    46,500    87,614       129,344 
-----------------  =========  ========  =========  ========  ========  ============ 
 

* Convenience translation into US$ (exchange rate as at June 30, 2026: euro 1 = US$ 1.14)

Ellomay Capital Ltd. and its Subsidiaries

 
Operating Segments (Unaudited) 
------------------------------------------------------------------------------------------------------------------------------------------ 
 
                    Italy              Spain              USA    Netherlands       Israel 
                   -------  ---------------------------  ------  -----------  ----------------- 
                                                                                                   Total 
                            Subsidized  28 MV                                                    reportable                      Total 
                    Solar     Plants    Solar   Talasol  Solar     Biogas     Dorad(1)  Manara    segments   Reconciliations  consolidated 
                   -------  ----------  ------  -------  ------  -----------  --------  -------  ----------  ---------------  ------------ 
                                                           For the six months ended June 30, 2026 
                   ----------------------------------------------------------------------------------------------------------------------- 
                                                                      EUR in thousands 
                   ----------------------------------------------------------------------------------------------------------------------- 
 
Revenues             2,282       1,222     394    8,339     717        8,130    15,195        -      36,279         (15,195)        21,084 
Operating 
 expenses            (391)       (214)   (285)  (1,959)   (156)      (6,842)  (11,732)        -    (21,579)           11,731       (9,848) 
Depreciation 
 expenses            (974)       (491)   (476)  (5,798)   (866)        (453)   (1,454)        -    (10,512)            1,403       (9,109) 
                   -------  ----------  ------  -------  ------  -----------  --------  -------  ----------  ---------------  ------------ 
Gross profit 
 (loss)                917         517   (367)      582   (305)          835     2,009        -       4,188          (2,061)         2,127 
 
Project 
 development 
 costs                                                                                                                               (810) 
General and 
 administrative 
 expenses                                                                                                                          (4,942) 
Other income, net                                                                                                                    1,802 
                                                                                                                              ------------ 
Operating profit 
 (loss)                                                                                                                            (1,823) 
Financing income                                                                                                                     1,428 
Financing income 
 in connection 
 with derivatives 
 and warrants, 
 net                                                                                                                                 3,540 
Financing 
 expenses in 
 connection with 
 projects 
 finance                                                                                                                           (2,922) 
Financing 
 expenses in 
 connection with 
 debentures                                                                                                                        (6,530) 
Interest expenses 
 on minority 
 shareholder 
 loan                                                                                                                              (1,556) 
Other financing 
expenses 
Financing 
 expenses, net                                                                                                                    (26,560) 
                                                                                                                              ------------ 
Loss before taxes 
 on income from 
 continuing 
 operations                                                                                                                       (34,423) 
Profit from 
discontinued 
operation (net 
of tax)(1)                                                                                                                          83,334 
 
Segment assets as 
 at June 30, 
 2026              205,207      12,340  18,182  204,448  93,417       32,930         -  259,495     826,019          133,168       959,187 
 

(_____________________________1) (As a result of the sale of the Company's indirect holdings in Ellomay Luzon Energy, the Company's share of profits of Dorad, was recognized only up to the date of signing of the sale agreement and presented as discontinued operations.)

Ellomay Capital Ltd. and its Subsidiaries

 
Reconciliation of Profit (Loss) to EBITDA (Unaudited) 
----------------------------------------------------------------------------- 
 
                                                     For the 
                                                       year 
                  For the three      For the six      ended     For the six 
                months ended June    months ended    December   months ended 
                       30,             June 30,        31,        June 30, 
                -----------------  ---------------- 
                  2026     2025     2026     2025      2025         2026 
                --------  -------  -------  -------  --------  -------------- 
                                                                Convenience 
                                                                Translation 
                                                                into US$ in 
                              EUR in thousands                   thousands* 
                ---------------------------------------------  -------------- 
Net profit 
 (loss) for 
 the period       70,507  (8,394)   58,287  (1,576)   (6,381)          66,439 
Financing 
 expenses, 
 net              24,380    8,199   32,600      978    27,358          37,160 
Tax benefit     (10,976)    (849)  (9,376)  (1,771)   (2,528)        (10,687) 
Depreciation 
 and 
 amortization 
 expenses          4,593    4,250    9,109    8,488    16,481          10,383 
                --------  -------  -------  -------  --------  -------------- 
EBITDA            88,504    3,206   90,620    6,119    34,930         103,295 
 

* Convenience translation into US$ (exchange rate as at June 30, 2026: euro 1 = US$ 1.14)

Ellomay Capital Ltd. and its Subsidiaries

 
Information for the Company's Debenture Holders 
 
 

Financial Covenants

Pursuant to the Deeds of Trust governing the Company's Series D, Series F and Series G Debentures (together, the "Debentures"), the Company is required to maintain certain financial covenants. For more information, see Items 4.A and 5.B of the Company's Annual Report on Form 20-F submitted to the Securities and Exchange Commission dated April 30, 2026, and below.

Net Financial Debt

As of June 30, 2026, the Company's Net Financial Debt, (as such term is defined in the Deeds of Trust of the Company's Debentures), was approximately EUR50.9 million (consisting of approximately EUR416.6(2) million of short-term and long-term debt from banks and other interest bearing financial obligations, approximately EUR217.7(3) million in connection with (i) the Series D Convertible Debentures issuance (in February 2021), (ii) the Series F Debentures issuance (in January, April, August and November 2024) and (iii) the Series G Debentures issuance (in February and December 2025), net of approximately EUR166.8 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately EUR416.6(4) million of project finance and related hedging transactions of the Company's subsidiaries).

Ellomay Capital Ltd. and its Subsidiaries

 
Information for the Company's Debenture Holders (cont'd) 
 
 

Information for the Company's Series D Debenture Holders

The Deed of Trust governing the Company's Series D Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series D Deed of Trust is a cause for immediate repayment. As of June 30, 2026, the Company was in compliance with the financial covenants set forth in the Series D Deed of Trust as follows: (i) the Company's Adjusted Shareholders' Equity (as defined in the Series D Deed of Trust) was approximately EUR220.9 million, (ii) the ratio of the Company's Net Financial Debt (as set forth above) to the Company's CAP, Net (defined as the Company's Adjusted Shareholders' Equity plus the Net Financial Debt) was 18.7%, and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(5) was 0.4.

The following is a reconciliation between the Company's loss and the Adjusted EBITDA (as defined in the Series D Deed of Trust) for the four-quarter period ended June 30, 2026:

 
                                                 For the four-quarter period 
                                                     ended June 30, 2026 
                                                          Unaudited 
                                                 --------------------------- 
                                                      EUR in thousands 
                                                 --------------------------- 
Profit for the period                                                 53,482 
Financing expenses, net                                               58,980 
Tax benefit                                                         (10,133) 
Depreciation and amortization expenses                                17,102 
Share-based payments                                                     166 
Adjustment to data relating to projects with a 
 Commercial Operation Date during the four 
 preceding quarters(6)                                                   210 
Adjusted EBITDA as defined the Series D Deed of 
 Trust                                                               119,807 
 
 

Ellomay Capital Ltd. and its Subsidiaries

 
Information for the Company's Debenture Holders (cont'd) 
 
 

Information for the Company's Series F Debenture Holders

The Deed of Trust governing the Company's Series F Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series F Deed of Trust is a cause for immediate repayment. As of June 30, 2026, the Company was in compliance with the financial covenants set forth in the Series F Deed of Trust as follows: (i) the Company's Adjusted Shareholders' Equity (as defined in the Series F Deed of Trust) was approximately EUR220.2 million, (ii) the ratio of the Company's Net Financial Debt (as set forth above) to the Company's CAP, Net (defined as the Company's Adjusted Shareholders' Equity plus the Net Financial Debt) was 18.8%, and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(7) was 0.4.

The following is a reconciliation between the Company's loss and the Adjusted EBITDA (as defined in the Series F Deed of Trust) for the four-quarter period ended June 30, 2026:

 
                                         For the four-quarter period ended 
                                                   June 30, 2026 
                                                     Unaudited 
                                        ------------------------------------ 
                                                  EUR in thousands 
                                        ------------------------------------ 
Profit for the period                                                 53,482 
Financing expenses, net                                               58,980 
Taxes on income                                                     (10,133) 
Depreciation and amortization expenses                                17,102 
Share-based payments                                                     166 
Adjustment to data relating to 
 projects with a Commercial Operation 
 Date during the four preceding 
 quarters(8)                                                             210 
Adjusted EBITDA as defined the Series 
 F Deed of Trust                                                     119,807 
 
 

Ellomay Capital Ltd. and its Subsidiaries

 
Information for the Company's Debenture Holders (cont'd) 
 
 

Information for the Company's Series G Debenture Holders

The Deed of Trust governing the Company's Series G Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series G Deed of Trust is a cause for immediate repayment. As of June 30, 2026, the Company was in compliance with the financial covenants set forth in the Series G Deed of Trust as follows: (i) the Company's Adjusted Shareholders' Equity (as defined in the Series G Deed of Trust) was approximately EUR220.2 million, (ii) the ratio of the Company's Net Financial Debt (as set forth above) to the Company's CAP, Net (defined as the Company's Adjusted Shareholders' Equity plus the Net Financial Debt) was 18.8%, and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(9) was 0.4.

The following is a reconciliation between the Company's loss and the Adjusted EBITDA (as defined in the Series G Deed of Trust) for the four-quarter period ended June 30, 2026:

 
                                         For the four-quarter period ended 
                                                   June 30, 2026 
                                                     Unaudited 
                                        ------------------------------------ 
                                                  EUR in thousands 
                                        ------------------------------------ 
Profit for the period                                                 53,482 
Financing expenses, net                                               58,980 
Taxes on income                                                     (10,133) 
Depreciation and amortization expenses                                17,102 
Share-based payments                                                     166 
Adjustment to data relating to 
 projects with a Commercial Operation 
 Date during the four preceding 
 quarters(10)                                                            210 
Adjusted EBITDA as defined the Series 
 G Deed of Trust                                                     119,807 
 
 

____________________________

(1) The revenues presented in the Company's financial results included in this press release are based on IFRS and do not take into account the adjustments included in the Company's investor presentation.

(2) The amount of short-term and long-term debt from banks and other interest-bearing financial obligations provided above, includes an amount of approximately EUR5.5 million costs associated with such debt, which was capitalized and therefore offset from the debt amount that is recorded in the Company's balance sheet.

(3) The amount of the debentures provided above includes an amount of approximately EUR3.4 million associated costs, which was capitalized and discount or premium and therefore offset from the debentures amount that is recorded in the Company's balance sheet. This amount also includes the accrued interest as at June 30, 2026 in the amount of approximately EUR1.3 million.

(4) The project finance amount deducted from the calculation of Net Financial Debt includes project finance obtained from various sources, including financing entities and the minority shareholders in project companies held by the Company (provided in the form of shareholders' loans to the project companies).

(5) The term "Adjusted EBITDA" is defined in the Series D Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company's operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series D Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series D Deed of Trust). The Series D Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company's undertakings towards the holders of its Series D Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under "Use of NON-IFRS Financial Measures."

(6) The adjustment is based on the results of solar plants in the USA that were connected to the grid and commenced delivery of electricity to the grid during the four quarters preceding June 30, 2026.

(7) The term "Adjusted EBITDA" is defined in the Series F Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company's operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series F Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series F Deed of Trust). The Series F Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company's undertakings towards the holders of its Series F Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under "Use of Non-IFRS Financial Measures."

(8) The adjustment is based on the results of solar plants in the USA that were connected to the grid and commenced delivery of electricity to the grid during the four quarters preceding June 30, 2026.

(9) The term "Adjusted EBITDA" is defined in the Series G Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company's operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series G Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series G Deed of Trust). The Series G Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company's undertakings towards the holders of its Series G Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under "Use of Non-IFRS Financial Measures."

(10) The adjustment is based on the results of solar plants in the USA that were connected to the grid and commenced delivery of electricity to the grid during the four quarters preceding June 30, 2026.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment