Kenon Holdings Reports Q2 2026 Results and Additional Updates

Q: What were the main drivers of OPC’s revenue increase in Q2 2026 compared to Q2 2025?

OPC’s revenue rose by $183 million in Q2 2026. In Israel, revenue from energy sales to private customers increased by $26 million, mainly from higher customer consumption and strengthening of the New Israeli Shekel, and infrastructure-services revenue rose by $24 million due to higher consumption, higher average tariffs and currency effects. In the U.S., Energy Transition electricity sales increased by $110 million due to first‑time consolidation of the Shore and Maryland power plants, and retail electricity revenue grew by $24 million from an increased scope of services.

Q: What are OPC’s and Kenon’s liquidity positions as of the latest reported dates?

As of June 30, 2026, OPC held $1,261 million in unrestricted cash and cash equivalents and $187 million in restricted cash, alongside total consolidated indebtedness of $2,977 million. As of June 30, 2026, Kenon’s stand‑alone cash was $512 million, and as of August 31, 2026 it had increased to $605 million. The company reports no material debt at the Kenon stand‑alone level.

Q: What is the impact of the Republic of Peru arbitration payment on Kenon?

In August 2026, the Republic of Peru paid approximately $203 million in connection with an arbitration award issued in favor of Kenon and its subsidiary. Kenon’s share of this payment, after allocation to a capital provider and payment of certain expenses, was approximately $93 million, subject to tax. The payment represents final settlement of amounts payable by Peru under the award and concludes this matter.

OPC drives strong revenue and EBITDA growth, while new projects, bond issuance and an arbitration payout reshape Kenon’s liquidity and asset base.

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Rhea-AI Summary

Kenon Holdings (KEN) reported Q2 2026 results led by sharp growth at 46%-owned OPC Energy and material balance-sheet and project updates.

OPC’s Q2 2026 revenue was $379 million versus $196 million in Q2 2025, and net profit rose to $15 million from $1 million. Adjusted EBITDA including proportionate share of associated companies increased to $131 million from $90 million. Revenue growth came from higher Israeli customer consumption, stronger New Israeli Shekel rates, higher infrastructure-service tariffs, and first‑time consolidation of the Shore and Maryland U.S. power plants, plus expansion of U.S. retail activities.

OPC’s cost of sales (excluding D&A) increased to $265 million from $150 million, finance expenses rose to $22 million, and share of profit of associates fell by $17 million. As of June 30, 2026, OPC held $1,261 million in unrestricted cash, $187 million in restricted cash, and total debt of $2,977 million. Kenon’s stand‑alone cash was $512 million at June 30, 2026 and $605 million at August 31, 2026 with no material parent‑level debt.

OPC reached financing and EPC agreements, obtained tariff approval, achieved financial closing and started construction for the ~850 MW Hadera Expansion Project in June 2026. It also completed construction and began commercial operations at the 114 MW Rogue’s Wind project in Pennsylvania, which received a $160 million tax partner investment. In August 2026, OPC issued NIS 600 million (approximately $202 million) of Series E bonds. Also in August 2026, the Republic of Peru paid about $203 million under an arbitration award, of which Kenon received approximately $93 million net, subject to tax, concluding this matter.

Positive

OPC revenue grew to $379 million in Q2 2026 from $196 million in Q2 2025
OPC net profit increased to $15 million in Q2 2026 from $1 million a year earlier
OPC Adjusted EBITDA including proportionate share of associates rose to $131 million from $90 million
OPC unrestricted cash totaled $1,261 million as of June 30, 2026
Kenon stand-alone cash was $605 million as of August 31, 2026 with no material parent-level debt
Peru arbitration payment of about $203 million yielded ~$93 million net to Kenon, subject to tax
Hadera Expansion Project (~850 MW) reached financing close, tariff approval and started construction
Rogue’s Wind 114 MW project entered commercial operations and received a $160 million tax partner investment
OPC bonds issuance of NIS 600 million (approximately $202 million) provides additional funding

Negative

OPC cost of sales (excl. D&A) rose to $265 million from $150 million in Q2
OPC finance expenses, net increased to $22 million from $20 million in Q2 2025
Share of profit of associates decreased by $17 million year over year in Q2 2026
OPC total consolidated debt was $2,977 million as of June 30, 2026
OPC’s proportionate share of CPV associates’ debt was $642 million versus only $56 million in related cash

Market Context

The pre-publication change was 3.86%, and this earnings report followed a selected history of mixed ...

Analysis

The pre-publication change was 3.86%, and this earnings report followed a selected history of mixed reactions: two positive and two negative 24-hour moves.

Key Figures

OPC Revenue: $379 million vs. $196 million OPC Net Profit: $15 million vs. $1 million Adjusted EBITDA: $131 million vs. $90 million +5 more

OPC Revenue: $379 million vs. $196 million; Q2 2026 vs. Q2 2025
OPC Net Profit: $15 million vs. $1 million; Q2 2026 vs. Q2 2025
Adjusted EBITDA: $131 million vs. $90 million; Including proportionate share of associated companies; Q2 2026 vs. Q2 2025
Peru arbitration proceeds: Approximately $93 million; Kenon's share, subject to tax
Series E bonds: NIS 600 million (approximately $202 million); Issued by OPC in August 2026
Hadera project capacity: Approximately 850 MW; Combined-cycle natural gas-fired power plant
Rogue's Wind capacity: 114 MW; Project commenced commercial operations
Tax partner investment: $160 million; Rogue's Wind project

Previous Earnings Reports

4 past events · Latest: Mar 30

Same Type 4 events

Mar 30
Full-year earnings report

24h Move

-0.8%

Reported 2025 revenue, profit, adjusted EBITDA, dividend and OPC financing updates.
Dec 03
Q3 earnings report

24h Move

+0.3%

Reported higher OPC profit and EBITDA alongside project financing and ownership updates.
Aug 28
Q2 earnings report

24h Move

+4.6%

Reported higher EBITDA, OPC offerings and progress on the Hadera power project.
May 28
Q1 earnings report

24h Move

+1.6%

Reported higher OPC profit, revenue and EBITDA alongside dividend and project updates.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-ifrs measure, engineering, procurement and construction agreement, combined-cycle natural gas-fired power plant

4 terms

adjusted ebitda financial

"OPC's Adjusted EBITDA including proportionate share of associated companies"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-ifrs measure financial

"which is a non-IFRS measure"

A non-IFRS measure is a financial number a company reports that is calculated outside standard accounting rules; it adjusts or removes items such as one-time costs, taxes, or accounting entries to highlight what management sees as the business’s recurring performance. Investors use these figures like a tailored snapshot to understand underlying trends — similar to a chef sharing a simplified recipe — but because they are not standardized, they require careful comparison and scrutiny.

engineering, procurement and construction agreement technical

"an engineering, procurement and construction agreement"

An engineering, procurement and construction agreement (EPC agreement) is a fixed-scope contract in which one contractor is responsible for designing a project, buying major equipment and materials, and building the finished facility to agreed specifications and schedule—often delivered as a turnkey project. It matters to investors because the contract concentrates construction, cost and schedule risk with the contractor and defines price, performance guarantees and penalties, which affects a project’s expected cost, timeline and cash flow.

combined-cycle natural gas-fired power plant technical

"construction of a combined-cycle natural gas-fired power plant"

A combined-cycle natural gas-fired power plant is an electricity facility that burns natural gas in a gas turbine and then captures the hot exhaust to produce steam that drives a second, steam turbine, producing more electricity from the same fuel. Like using both the stove and the oven from one burner to cook more food, this setup raises efficiency and lowers fuel cost and emissions per megawatt-hour, which affects operating costs, profitability, and competitiveness for investors in energy assets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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09/08/2026 - 04:41 PM

SINGAPORE, Sept. 8, 2026 /PRNewswire/ -- Kenon Holdings Ltd. (NYSE: KEN) (TASE: KEN) ("Kenon") announces its results for Q2 2026 and additional updates.

Q2 and Recent Highlights

Kenon

In August 2026, Kenon received approximately $93 million (net of certain outstanding costs and subject to tax) from the Republic of Peru in connection with payment of the International Centre for Settlement of Investment Disputes arbitration award in favor of Kenon and its subsidiary, concluding this matter.

OPC

OPC's net profit in Q2 2026 was $15 million, as compared to $1 million in Q2 2025.
OPC's Adjusted EBITDA including proportionate share of associated companies¹ in Q2 2026 was $131 million, as compared to $90 million in Q2 2025.
In June 2026, OPC announced, in respect of the Hadera expansion project (as described below), entry into a financing agreement and an engineering, procurement and construction agreement and receipt of tariff approval from the Israeli Electricity Authority. Financial closing of the project occurred in June 2026.
In August 2026, OPC issued NIS 600 million (approximately $202 million) of Series E bonds.

Discussion of Results for the Three Months ended June 30, 2026

Kenon's consolidated results of operations primarily comprise the consolidated results of OPC Energy Ltd ("OPC"), in which Kenon holds an interest of approximately 46%².

See Exhibit 99.2 of Kenon's Form 6-K dated September 8, 2026 for a summary of Kenon's consolidated financial information; a summary of OPC's consolidated financial information; a reconciliation of OPC's EBITDA and Adjusted EBITDA including proportionate share of associated companies (which is a non-IFRS measure) to profit for the period.

OPC

The following discussion of OPC's results of operations is derived from OPC's consolidated financial statements. OPC publishes its results in U.S. Dollars starting in Q1 2026.

	For the three months ended June 30,
	2026	2025
	$ millions
Revenue	379	196
Cost of sales (excluding depreciation and amortization)	(265)	(150)
Finance expenses, net	(22)	(20)
Share of profit of associated companies, net	4	21
Profit for the period	15	1
Attributable to:
Equity holders of OPC	12	1
Non-controlling interest	3	-

Adjusted EBITDA including proportionate share of associated companies³	131	90

For condensed consolidated OPC's results for the relevant periods, please refer to Appendix B.

Revenue
	For the three months ended June 30,
	2026		2025
	$ millions

Israel			203	153
U.S.			176	43
Total			379	196

OPC's revenue increased by $183 million in Q2 2026 as compared to Q2 2025.

Set forth below is a discussion of changes in the key components in revenue for Q2 2026 as compared to Q2 2025.

Israel

Revenue from sale of energy to private customers in Israel – OPC's revenue from the sale of electricity to private customers is derived from electricity sold at the generation component tariff, as published by the Israeli Electricity Authority, with some discount. Accordingly, changes in this tariff generally affect the prices paid by customers under power purchase agreements. The weighted-average generation component tariff in Q2 2026 was NIS 0.2890 per KW hour, which is approximately 2% lower than NIS 0.2939 per KW hour in Q2 2025. OPC's revenue from the sale of energy to private customers increased by $26 million in Q2 2026 as compared to Q2 2025, primarily due to an increase of $14 million relating to higher customer consumption and an increase of $17 million driven by the strengthening of the New Israeli Shekel against the U.S. Dollar during the period; and
Revenue from private customers in respect of infrastructure services in Israel – Increased by $24 million in Q2 2026 as compared to Q2 2025, primarily as a result of an increase of $16 million due to higher customer consumption and an average increase in tariffs, and an increase of $8 million due to strengthening of the New Israeli Shekel against the U.S. Dollar during the period.

United States

Revenue from sale of electricity (Energy Transition) in the U.S. – Increased by $110 million in Q2 2026 as compared to Q2 2025, primarily as a result of the first-time consolidation of the Shore and Maryland power plants from January and May 2026, respectively; and
Revenue from sale of electricity (retail) activities in the U.S. – Increased by $24 million in Q2 2026 as compared to Q2 2025 primarily as a result of increase in scope of services.

Cost of Sales (Excluding Depreciation and Amortization)

Set forth below is a summary of OPC's cost of sales (excluding depreciation and amortization) in Israel and the U.S. for Q2 2026 and Q2 2025.

	For the three months ended June 30,
	2026	2025
	$ millions

Israel		153	115
U.S.		112	35
Total		265	150

OPC's cost of sales (excluding depreciation and amortization) increased by $115 million from Q2 2025 to Q2 2026. Set forth below is a discussion of significant changes in cost of sales between Q2 2026 and Q2 2025.

Israel

Expenses in respect of acquisition of energy in Israel – Increased by $9 million in Q2 2026 as compared to Q2 2025 primarily as a result of increased customer consumption; and
Expenses in respect of infrastructure services in Israel – Increased by $24 million in Q2 2026 as compared to Q2 2025 primarily as a result of higher average tariffs during the period.

United States

Expenses for sale of electricity (Energy Transition) in U.S. – Increased by $52 million in Q2 2026 as compared to Q2 2025, primarily as a result of the first-time consolidation of the Shore and Maryland power plants from January and May 2026, respectively; and
Expenses for sale of electricity (retail) in U.S. – Increased by $23 million in Q2 2026 as compared to Q2 2025, primarily as a result of increase in scope of services.

Finance Expenses, net

Finance expenses, net in Q2 2026 were $22 million, as compared to $20 million in Q2 2025.

Share of Profit of Associated Companies, net

OPC's share of profit of associated companies, net decreased by $17 million in Q2 2026 as compared to Q2 2025, primarily as a result of commencement of consolidation in its financial statements for the Shore, Basin Ranch (under construction) and Maryland power plants from January, February and May 2026, respectively.

For further details of the results of associated companies of CPV Group LP (a 70%-owned subsidiary of OPC), refer to OPC's immediate report published on the Tel Aviv Stock Exchange ("TASE") on August 12, 2026 and the convenience English translations furnished by Kenon on Form 6-K on August 12, 2026.

Liquidity and Capital Resources

As of June 30, 2026, OPC had unrestricted cash and cash equivalents of $1,261 million, restricted cash of $187 million (including restricted cash used for debt service), and total outstanding consolidated indebtedness of $2,977 million, consisting of $204 million of short-term indebtedness and $2,773 million of long-term indebtedness. As of June 30, 2026, a substantial portion of OPC's debt was denominated in NIS.

As of June 30, 2026, OPC's proportionate share of debt (including accrued interest) of CPV associated companies was $642 million and its proportionate share of cash and cash equivalents was $56 million.

Business and other Developments

Hadera Expansion Project updates

In June 2026, OPC announced entry into (i) a financing agreement and (ii) an engineering, procurement and construction agreement, each in respect of the construction of a combined-cycle natural gas-fired power plant with an estimated capacity of approximately 850 MW, designated for construction on land adjacent to OPC's Hadera power plant (the "Hadera Expansion Project").

Also in June 2026, OPC announced receipt of tariff approval from the Israeli Electricity Authority in accordance with the regulatory framework expected to apply to the Hadera Expansion Project. OPC subsequently reported that financial closing was completed and construction of the Hadera Expansion Project commenced in June 2026.

For further information on the Hadera Expansion Project, see Kenon's Reports on Form 6-K furnished to the Securities and Exchange Commission ("SEC") on August 12, 2026, June 19, 2026, June 3, 2026, May 21, 2026, May 20, 2026, March 2, 2026 and Kenon's Annual Report on Form 20-F filed with the SEC.

Rogue's Wind project updates

OPC reported completion of construction and commencement of commercial operations of the Rogue's Wind project, a wind project located in Pennsylvania with a capacity of 114 MW, and receipt of the project's tax partner $160 million investment.

Series E Bonds

In August 2026, OPC issued NIS 600 million (approximately $202 million) of Series E bonds.

Additional Kenon Updates

Kenon's (stand-alone) Liquidity and Capital Resources

As of June 30, 2026, Kenon's stand-alone cash was $512 million. As of August 31, 2026, Kenon's stand-alone cash was $605 million. There is no material debt at the Kenon level.

Kenon's stand-alone cash includes cash and cash equivalents and other treasury management instruments.

Receipt of Payment of Arbitration Award by the Republic of Peru

In August 2026, the Republic of Peru paid the International Centre for Settlement of Investment Disputes arbitration award issued in favor of Kenon in October 2023 (the "Award"). The total payment was approximately $203 million, of which Kenon's share (after allocation of a portion of the proceeds to a capital provider and payment of certain outstanding expenses) was approximately $93 million, subject to tax. The payment reflects final payment of amounts payable by the Republic of Peru in connection with the Award and conclusion of this matter.

For further information, see Kenon's Report on Form 6-K furnished to the SEC on August 19, 2026.

Caution Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify these statements by the use of words like "may", "will", "could", "should", "believe", "expect", "plan", "estimate", "forecast", "potential", "intend", "target", "future", and variations of these words or comparable words. These statements include statements relating to OPC, OPC's construction and development projects, and other non-historical matters. These statements are based on current expectations or beliefs and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Kenon's control, which could cause the actual results to differ materially from those indicated in such forward-looking statements. Such risks include risks relating to OPC's projects including, meeting the conditions to proceed with projects, financing relating to projects including capacity, expected tax benefits, expected attributes of projects, and other risks and factors including those risks set forth under the heading "Risk Factors" in Kenon's most recent Annual Report on Form 20-F filed with the SEC and other filings. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.

¹ Adjusted EBITDA including proportionate share of associated companies is a non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated September 8, 2026 for the definition of OPC's EBITDA and Adjusted EBITDA including proportionate share of associated companies and a reconciliation to profit for the applicable period.

² Including approximately 2% of OPC's outstanding shares subject to a collar arrangement.

³ Non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated September 8, 2026 for the definition of OPC's EBITDA and Adjusted EBITDA including proportionate share of associated companies and a reconciliation to profit for the applicable period.

Contact Info

Kenon Holdings Ltd.
Deepa Joseph
Chief Financial Officer
IR@kenon-holdings.com

View original content:https://www.prnewswire.com/news-releases/kenon-holdings-reports-q2-2026-results-and-additional-updates-302872817.html

SOURCE Kenon Holdings Ltd.

FAQ

What were the main drivers of OPC’s revenue increase in Q2 2026 compared to Q2 2025?

OPC’s revenue rose by $183 million in Q2 2026. In Israel, revenue from energy sales to private customers increased by $26 million, mainly from higher customer consumption and strengthening of the New Israeli Shekel, and infrastructure-services revenue rose by $24 million due to higher consumption, higher average tariffs and currency effects. In the U.S., Energy Transition electricity sales increased by $110 million due to first‑time consolidation of the Shore and Maryland power plants, and retail electricity revenue grew by $24 million from an increased scope of services.

How is OPC’s cost of sales split between Israel and the U.S. in Q2 2026?

In Q2 2026, OPC’s cost of sales (excluding depreciation and amortization) totaled $265 million, with $153 million in Israel and $112 million in the U.S. The increase versus Q2 2025 reflected higher energy acquisition costs and infrastructure-service expenses in Israel, and higher Energy Transition and retail electricity expenses in the U.S., including the impact of first‑time consolidation of the Shore and Maryland power plants.

What is the status and scale of the Hadera Expansion Project?

The Hadera Expansion Project is a combined-cycle natural gas-fired power plant with an estimated capacity of approximately 850 MW, to be built adjacent to OPC’s existing Hadera plant. In June 2026, OPC entered into a financing agreement and an engineering, procurement and construction agreement, received tariff approval from the Israeli Electricity Authority, completed financial closing and commenced construction.

What are OPC’s and Kenon’s liquidity positions as of the latest reported dates?

As of June 30, 2026, OPC held $1,261 million in unrestricted cash and cash equivalents and $187 million in restricted cash, alongside total consolidated indebtedness of $2,977 million. As of June 30, 2026, Kenon’s stand‑alone cash was $512 million, and as of August 31, 2026 it had increased to $605 million. The company reports no material debt at the Kenon stand‑alone level.

What is the impact of the Republic of Peru arbitration payment on Kenon?

In August 2026, the Republic of Peru paid approximately $203 million in connection with an arbitration award issued in favor of Kenon and its subsidiary. Kenon’s share of this payment, after allocation to a capital provider and payment of certain expenses, was approximately $93 million, subject to tax. The payment represents final settlement of amounts payable by Peru under the award and concludes this matter.

What are the key details of the Rogue’s Wind project update?

OPC reported completion of construction and commencement of commercial operations at the Rogue’s Wind project, a wind facility in Pennsylvania with a capacity of 114 MW. The project also received a $160 million investment from its tax partner.

What are the main terms of OPC’s Series E bond issuance?

In August 2026, OPC issued NIS 600 million (approximately $202 million) of Series E bonds. The proceeds provide additional capital for OPC’s activities; the announcement does not specify further financial terms of the bonds.

Kenon Holdings Reports Q2 2026 Results and Additional Updates