Kenon Holdings Reports Q1 2026 Results and Additional Updates

 

Singapore, June 1, 2026. Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) (“Kenon”) announces its results for Q1 2026 and additional updates.

 

 

Kenon

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

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%. On January 1, 2026, OPC changed its presentation currency from NIS to USD, while its functional currency (NIS) remained unchanged.

See Exhibit 99.2 of Kenon’s Form 6-K dated June 1, 2026 for a summary of Kenon’s consolidated financial information; a summary of OPC’s consolidated financial information; and a reconciliation of OPC’s EBITDA and Adjusted EBITDA including proportionate share in associated companies (which is a non-IFRS measure) to profit for the period.

The following discussion of OPC’s results of operations is derived from OPC’s consolidated financial statements.

Summary Financial Information of OPC

For details of OPC’s results please refer to Appendix B.

Revenue

OPC’s revenue increased by $134 million in Q1 2026 as compared to Q1 2025.

Set forth below is a discussion of changes in the key components in revenue for Q1 2026 as compared to Q1 2025.

Israel

2 Non-IFRS measure. See Exhibit 99.2 of Kenon’s Form 6-K dated June 1, 2026 for the definition of OPC’s EBITDA and Adjusted EBITDA including proportionate share in associated companies and a reconciliation to profit for the applicable period.

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 Q1 2026 and Q1 2025.

OPC’s cost of sales (excluding depreciation and amortization) increased by $106 million in Q1 2026 as compared to Q1 2025. Set forth below is a discussion of significant changes in cost of sales between Q1 2025 and Q1 2026.

Israel

Financing Expenses, net

Financing expenses, net in Q1 2026 were $20 million, as compared to $13 million in Q1 2025.

Share in Profit of Associated Companies, net

OPC’s share in profit in associated companies, net decreased by $4 million in Q1 2026 as compared to Q1 2025.

For further details of the results of associated companies of CPV, refer to OPC’s immediate report published on the Tel Aviv Stock Exchange (“TASE”) on May 20, 2026 and the convenience English translations furnished by Kenon on Form 6-K on May 20, 2026.

Liquidity and Capital Resources

As of March 31, 2026, OPC had unrestricted cash and cash equivalents of $1,158 million, restricted cash of $165 million (including restricted cash used for debt service), and total outstanding consolidated indebtedness of $2,281 million, consisting of $145 million of short-term indebtedness and $2,136 million of long-term indebtedness. As of March 31, 2026, a substantial portion of OPC’s debt was denominated in NIS.

As of March 31, 2026, OPC’s proportionate share of debt (including accrued interest) of CPV associated companies was $904 million and its proportionate share of cash and cash equivalents of CPV associated companies was $110 million.

 

Business and other Developments

 

Receipt of building permit for Hadera 2 Project

In May 2026, OPC’s project company Hadera 2 (“Hadera 2”) was granted a building permit for the Hadera 2 project, a plan for the construction of an 850 MW natural gas-fired power plant on land adjacent to OPC’s Hadera power plant.

Completion of transaction to swap interests in Maryland Power Plant and Three Rivers Power Plant

In May 2026, CPV Group LP (a 70%-owned subsidiary of OPC) (“CPV Group”) completed its previously announced transaction with the other partner (the “Seller”) in CPV Maryland, LLC (“CPV Maryland”) for the Seller’s 25% ownership interest in CPV Maryland, which owns a 745 MW power plant located in Maryland, in exchange for CPV Group’s 10% interest in CPV Three Rivers LLC (“CPV Three Rivers”), which owns a 1,258 MW power plant in Illinois. As a result, CPV Group now owns 100% of CPV Maryland, and no longer holds any interest in CPV Three Rivers.

Update on Ramat Beka Project

In April 2026, OPC’s Ramat Beka project company signed an engineering, procurement and construction (EPC) agreement for the construction of a solar power plant with an estimated installed capacity of 550 MW with integrated storage of about 3,850 megawatts/hr, with a total cost of approximately $158 million - $160 million.

Signing of agreement for supply of electricity to data centers in Israel

In May 2026, OPC, through an Israeli subsidiary, signed an electricity supply agreement (PPA) with an existing customer for the supply of electricity to data centers owned or being developed by the customer, with capacity expected by OPC to gradually reach approximately 460 megawatts, for a term of 19 years.

OPC Officer summoned in connection with Competition Authority investigation

In May 2026, an officer of OPC was summoned in connection with an investigation by the Israel Competition Authority relating to the tender conducted by the Israel Electric Corporation for the “Eshkol” power plant in 2023.

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

As of March 31, 2026, Kenon’s stand-alone cash was $709 million. As of June 1, 2026, Kenon’s stand-alone cash was $512 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.

Collar transaction relating to approximately 2% of OPC shares

In May 2026, Kenon entered into a collar transaction with an investment bank relating to 6,000,000 ordinary shares of OPC. The 6,000,000 OPC shares subject to the collar transaction represent 2% of OPC’s outstanding shares.

The collar transaction provides a potential source of liquidity to Kenon as the collar transaction allows Kenon, in certain circumstances, to elect to borrow against the collar transaction under the terms thereof.  The collar transaction also allows Kenon to retain exposure to potential upside in the collar shares up to the call strike price, while limiting the impact of potential decline in the share price.

For further information, see Kenon’s Report on Form 6-K furnished to the SEC on May 28, 2026.

Interim Dividend for the Year Ending December 31, 2026

In April 2026, Kenon distributed an interim cash dividend of approximately $200 million ($3.85 per share) for the year ending December 31, 2026.

 

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 (i) OPC’s projects including expected capacity of projects, costs of contracts, PPAs and other non-historical matters relating to OPC and (ii) the collar transaction 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 (i) OPC’s projects including risks relating to timing of completion, cost and capacity of projects, risks relating to the PPA discussed herein including the ultimate capacity of the PPA and other risks relating to OPC’s business and (ii) risks relating to future trading prices of OPC shares and impact on the outcome of the collar transaction and amounts that Kenon may be able to borrow in connection with the collar transaction 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.

 

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Financial Information for the Three Months Ended March 31, 2026 and 2025 of Kenon and OPC and

Reconciliation of Certain non-IFRS Financial Information

Table of Contents

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Financial Position (Unaudited)

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss (Unaudited)

 

 

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited)

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited), continued

Information regarding reportable segments

 

Information regarding activities of the reportable segments are set forth in the following table.

 

 

Summary of OPC consolidated financial information

 

OPC’s Consolidated Statements of Profit or Loss

 

Summary Data from OPC’s Consolidated Statement of Cash Flows

 

Summary Data from OPC’s Consolidated Statement of Financial Position

 

		As at
		March 31, 2026				December 31, 2025
		$ millions
Total financial liabilities1			2,281				1,769
Total monetary assets2			1,323				1,077
Investment in associated companies			1,348				1,626
Total equity attributable to the owners			2,288				2,028
Total assets			5,691				4,698

 

 

Definition of OPC’s EBITDA and Adjusted EBITDA including proportionate share in associated companies and non-IFRS reconciliation

 

This press release presents OPC’s Adjusted EBITDA including proportionate share in associated companies, which is a non-IFRS financial measure.

 

OPC’s EBITDA is defined for each period as net profit/(loss) before depreciation and amortization, financing expenses, net, and income tax expense. OPC’s Adjusted EBITDA, including proportionate share in associated companies, is defined as EBITDA as further adjusted for expenses not in the ordinary course of business and/or of a non-recurring nature and share of depreciation and amortization, financing expenses and income tax expenses (if any) of associated companies.  EBITDA and Adjusted EBITDA including proportionate share in associated companies are not recognized under IFRS as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. EBITDA and Adjusted EBITDA including proportionate share in associated companies are not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of EBITDA and Adjusted EBITDA including proportionate share in associated companies as measures of OPC’s profitability since it does not take into consideration certain costs and expenses that result from OPC’s business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.

 

OPC believes that the disclosure of EBITDA and Adjusted EBITDA including proportionate share in associated companies provides useful information to investors and financial analysts in their review of the company’s, its subsidiaries’, and its associated companies’ operating performance and in the comparison of such operating performance to the operating performance of other companies in the same industry or in other industries that have different capital structures, debt levels and/or income tax rates.

 

Set forth below is a reconciliation of OPC’s net profit to EBITDA and Adjusted EBITDA including proportionate share in associated companies for the periods presented. Other companies may calculate EBITDA and Adjusted EBITDA including proportionate share in associated companies differently, and therefore this presentation of EBITDA and Adjusted EBITDA including proportionate share in associated companies may not be comparable to other similarly titled measures used by other companies.

		For the three months ended March 31,
		2026				2025
		$ millions
Profit for the period			14				25
Depreciation and amortization			26				19
Financing expenses, net			20				13
Income tax expense			6				7
EBITDA			66				64
Share in depreciation and amortization and financing expenses included within share in profit of associated companies, net			41				46
Changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature			17				3
Adjusted EBITDA including proportionate share in associated companies			124				113

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