Breaking Down Ellomay Capital Ltd. (ELLO) Financial Health: Key Insights for Investors

You're looking at Ellomay Capital Ltd. (ELLO) because the renewable energy sector is hot, but honestly, the financials are a tricky knot to untangle. The direct takeaway is that while the company is showing revenue expansion, its path to sustained profitability is still a work in progress, so you need to look past the top line. Here's the quick math: ELLO's trailing twelve-month (TTM) revenue as of 2025 is sitting at $45.64 Million USD, a decent 4.45% bump from the prior year, which shows their operating assets are producing. But still, the latest unaudited interim results for the first half of 2025 show a net loss of approximately €1.6 million-an improvement from last year, but a loss is a loss. That's the tension: a premium valuation with a Price-to-Sales (P/S) ratio of 5.9x, which is more than double the industry average, is hard to justify without clean earnings. To be fair, the company's total assets are solid, clocking in at around €729.3 million as of June 30, 2025, which provides a cushion. We'll defintely map out where that asset value is coming from-mostly their 300 MW Talasol solar plant and the Manara pumped storage project-and what near-term catalysts could finally flip that net loss to a net profit. You need to know if the market is pricing in hope or actual execution.

Revenue Analysis

You need to know where Ellomay Capital Ltd. (ELLO)'s money comes from and how fast that stream is growing. The direct takeaway is that while the company's consolidated revenue is seeing modest growth, the real story is the successful execution of new solar projects and the outsized, non-consolidated profits from its Israeli natural gas investment.

Ellomay Capital Ltd.'s consolidated revenue for the trailing twelve months (TTM) ended in late 2025 reached approximately $45.64 Million USD. This represents a solid year-over-year growth rate of 4.45% compared to the $43.69 Million USD reported for the full year 2024. That's a decent bounce-back after a challenging 2024, which saw revenue drop due to lower energy prices in Europe and a fire incident at its Spanish solar facilities. The near-term opportunity is clearly in new capacity additions.

Here's the quick math on the segment contribution, focusing on the company's core power generation and renewable energy projects:

• Biogas (Netherlands): Expected 2025 revenue is €18.9 million, which translates to approximately $21.79 Million USD (using a November 2025 exchange rate of 1 EUR = 1.1530 USD). This single segment is projected to contribute about 47.74% of the company's TTM consolidated revenue.
• Solar PV (Italy & Spain): This segment includes the massive 300 MW Talasol project in Spain and the new Italian solar facilities. The Italian projects are providing a clear revenue lift; the 18.1 MW plant connected in January 2025 was a key driver for the revenue increase in the first half of 2025.

What this estimate hides is the significant contribution from the company's equity-accounted investee, Dorad Energy Ltd., a natural gas power plant in Israel. Dorad's results are reported as a 'share of profits of equity accounted investee' on the income statement, not consolidated revenue, so it doesn't inflate the top-line revenue figure. Still, it's a defintely critical source of overall profitability.

The shift in revenue streams is notable. The company is actively mitigating the impact of volatile European energy prices and past operational risks (like the 2024 Spanish fire) by bringing new, stable solar capacity online. The Biogas segment remains a powerhouse, but the new Italian solar capacity is what is fueling the recent consolidated revenue growth, pushing the six-month revenue total ended June 30, 2025, to €20.14 million. This diversification across technologies and regions (Israel, Spain, Netherlands, Italy) is a necessary risk management strategy for an independent power producer (IPP).

For a deeper dive into who is betting on these specific projects and why, you should check out Exploring Ellomay Capital Ltd. (ELLO) Investor Profile: Who's Buying and Why?

To summarize the core segments and their regional focus:

Profitability Metrics

You need a clear picture of how much money Ellomay Capital Ltd. (ELLO) actually keeps from its energy sales, and the recent results show a mixed bag: strong gross margins but a significant net loss in the last reported quarter. The company's profitability is highly sensitive to development costs and fluctuating power prices in Europe, which is a key risk you must factor into your valuation.

For the second quarter ended June 30, 2025, Ellomay Capital Ltd. reported revenues of approximately €11.3 million. While the core operations show a positive gross margin, the high cost of financing its growth projects is eating up the bottom line. Here is the quick math on the Q2 2025 margins, based on the reported figures in Euros:

• Gross Profit Margin: 21.7% (€2.45 million Gross Profit / €11.28 million Revenue)
• Operating Profit Margin: Approximately 1.2% (€0.14 million Operating Profit / €11.28 million Revenue)
• Net Profit Margin: Approximately -68.1% (€-7.68 million Net Loss / €11.28 million Revenue)

The gross margin is defintely solid for a utility-scale renewable energy play, but the net loss tells the real story of a company in a capital-intensive growth phase.

Trends in Profitability and Operational Efficiency

Looking at the trends, Ellomay Capital Ltd. has shown an ability to manage operational costs, but its overall profitability remains volatile. The company's operating profit for the full year 2024 was approximately €7.7 million, marking a substantial 71% increase over 2023, despite a drop in annual revenues to €40.5 million due to low electricity prices in Spain. This increase in operating profit, alongside a 33.5% rise in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to approximately €25.1 million in 2024, points to improved cost management and efficiency in their operating assets, like the Dorad power plant.

However, the Q2 2025 net loss of €7.68 million shows that non-operating expenses, primarily interest on project debt, are the primary drag on net income. The transition from an operating profit in 2024 to a net loss in the first half of 2025 highlights the financial risk associated with its large-scale construction projects, such as the Manara Pumped Storage project.

Industry Comparison and Valuation Context

Ellomay Capital Ltd.'s profitability ratios are generally weaker than the broader North American Renewable Energy industry average, which is not uncommon for a company with a significant portfolio of projects under construction. While the industry as a whole has seen profit margins shrink in 2023 and face a challenging 2025 due to policy changes and cost pressures, Ellomay Capital Ltd.'s valuation metrics stand out.

For instance, Ellomay Capital Ltd.'s Price-to-Sales (P/S) Ratio of 5.9x is more than double the North American Renewable Energy industry average of 2.5x. This premium valuation suggests that the market is pricing in the future cash flows from their development pipeline, despite the current lack of consistent net profitability. The market is betting on the successful completion and commercial operation of new projects in Italy and the U.S. to turn that 1.2% operating margin into something much more substantial.

If you want to understand the investor sentiment driving this premium, you should be Exploring Ellomay Capital Ltd. (ELLO) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

Ellomay Capital Ltd. (ELLO) is a capital-intensive renewable energy developer, so it's no surprise that debt plays a huge role in its financing strategy. The direct takeaway here is that the company operates with a significantly high leverage ratio, a common but risky trait for a firm aggressively pursuing project development.

As of June 2025, Ellomay Capital Ltd.'s total debt stood at approximately $0.65 Billion USD, reflecting the cost of building out its solar and power generation portfolio across Europe and the US. This debt is largely long-term, tied up in project finance agreements, which is typical for the sector but still means a substantial fixed commitment. For context, the company's financial debt at the end of 2024 was about €456.9 million. That's a lot of money to service, defintely something to watch.

The core metric for understanding this balance is the Debt-to-Equity (D/E) ratio. Using the December 31, 2024 figures of approximately €456.9 million in financial debt against €131.1 million in total equity, the D/E ratio comes out to roughly 3.48:1. This is substantially higher than what you'd see in a typical industrial company, and it's noted as being higher than typical for the renewable energy sector, partly due to the full consolidation of debt from projects like Talasol. A high ratio means the company relies more on borrowing than on shareholder capital to fund its assets, which amplifies both potential returns and financial risk.

Ellomay Capital Ltd. has been active in the debt markets in 2025 to fuel its growth pipeline. In February 2025, the company issued its Series G Debentures, and in March 2025, it executed a major project finance agreement for its 198 MW solar portfolio in Italy. This project finance secured up to €110 million in senior secured notes, due in 2047, bearing a fixed interest rate of 4.50% per annum. This kind of non-recourse project-level debt is a smart way to fund specific assets without putting the entire parent company at risk, but it does balloon the balance sheet.

The company balances its financing by leaning heavily on project-level debt (a form of non-recourse debt) to fund construction, while relying on equity for development and corporate activities. This model is common for developers in this space, as it allows for aggressive expansion, but it also creates a complex structure where cash flow coverage ratios are often weak compared to peers. The focus is clearly on using debt to accelerate the development of new projects, which you can read more about in their Mission Statement, Vision, & Core Values of Ellomay Capital Ltd. (ELLO).

Here's the quick math on the leverage situation:

The key action for you is to monitor the cash flow from new projects-like the 198 MW Italian solar portfolio-to ensure they start generating revenue on time to service this growing debt load. If onboarding takes 14+ days, churn risk rises.

Liquidity and Solvency

Ellomay Capital Ltd. (ELLO) maintains a liquid position in the near term, but its reliance on development-focused financing is clear. The company's Current Ratio, as of the second quarter of 2025 (Q2 2025), is comfortably above the 1.0 benchmark, signaling it can cover its short-term debts. Still, a deeper look at the Quick Ratio reveals that a significant portion of current assets is not immediately cash or trade receivables, which is typical for a capital-intensive renewable energy developer.

Here's the quick math on the liquidity positions for Ellomay Capital Ltd. (ELLO) as of June 30, 2025:

The positive working capital of $21.36 million is a definite strength, providing a buffer against unexpected operational costs. This trend shows management is keeping a healthy margin between short-term assets and obligations. But, the conservative Quick Ratio of 0.67 tells us that if Ellomay Capital Ltd. (ELLO) had to pay all its current liabilities immediately, it would need to liquidate some less-liquid current assets, like certain long-term receivables or restricted cash, to cover the gap. That's not a crisis, but it's a key detail for investors watching day-to-day cash management.

Cash Flow Dynamics and Financing

Analyzing the cash flow statement for Q2 2025 reveals the company's core business model in action. The relatively low Cash Flow from Operating Activities (CFO) of $5.93 million is common for a developer, as most of the capital is tied up in long-term projects. This is a capital-intensive business, so cash from operations is not the primary story.

The real story is in the other two sections:

• Cash Flow from Investing Activities (CFI): A significant outflow of $-56.21 million. This is a clear signal of aggressive capital expenditure (CapEx) for new renewable energy projects, which is exactly what a growth-focused developer should be doing.
• Cash Flow from Financing Activities (CFF): A large inflow of $60.99 million. This is how the CapEx is funded-through a mix of debt and equity. The company successfully raised capital, including a private placement and a €52 million investment deal with Clal Insurance for a stake in its Italian solar portfolio during H1 2025.

The net result of a $6.29 million increase in cash for the quarter ending June 30, 2025, shows the financing pipeline is currently robust enough to cover the high investment needs.

Near-Term Liquidity Strengths and Risks

The primary strength is the company's proven ability to secure project-specific financing, as evidenced by the large CFF figure. This is crucial because the core business of Ellomay Capital Ltd. (ELLO) is not generating massive free cash flow yet. The main risk, however, is the prevailing market commentary that frequently questions whether cost controls are enough, highlighting an unsatisfactory financial position due to persistent unprofitability. You need to monitor their ability to execute on projects and transition them into cash-generating assets to improve the long-term solvency picture. If you want to understand the strategic context for these investments, you should review the Mission Statement, Vision, & Core Values of Ellomay Capital Ltd. (ELLO).

Next Step: Portfolio Manager: Assess the maturity schedule of the $545.05 million in Long-Term Debt against the projected cash-on-cash returns of the new Italian solar projects to confirm solvency beyond the current year.

Valuation Analysis

You're looking at Ellomay Capital Ltd. (ELLO) and wondering if the market has priced it correctly. Honestly, the valuation metrics paint a complex picture, which is typical for a growth-oriented renewable energy developer. The short answer is: Ellomay Capital Ltd. is currently trading at a premium on traditional metrics, but that premium is tied to future project development, not current earnings.

As of November 2025, the stock price sits around $19.80, well within its 52-week trading range of $13.00 to $23.69. The market capitalization has seen a significant jump, increasing by 51.72% over the last year, which tells you investors are defintely buying into the long-term story.

Here's the quick math on the core valuation ratios:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is currently -50.54 (as of early November 2025). A negative P/E is a clear signal that the company is not profitable on a trailing twelve-month (TTM) basis, reporting a net loss of €1.6 million for the first half of 2025. You can't use this ratio to compare it to profitable utility peers.
• Price-to-Book (P/B) Ratio: The P/B ratio is approximately 2.0x. This means the stock trades at twice the value of its net assets (equity), which is high for a utility-like company but common for a firm focused on building new assets like Ellomay Capital Ltd.'s solar and hydro projects.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This is the most telling metric for an asset-heavy infrastructure company. Ellomay Capital Ltd.'s EV/EBITDA is high at 68.37. Here's the thinking: the Enterprise Value (EV) is about $870.65 million USD, while the TTM EBITDA is only around $12.71 million USD. This multiple is extremely stretched and suggests the market is pricing in massive, near-term EBITDA growth from projects like the 18.1 MW Italian solar facility that was connected to the grid in January 2025.

When you look at the analyst community, the consensus rating for Ellomay Capital Ltd. is a simple Hold. This neutral stance reflects the high-risk, high-reward profile: the stock is expensive based on current cash flow, but the underlying assets (renewable energy projects) are valuable and growing. The recent legal victory regarding the acquisition of Dorad Energy Ltd. shares helps strengthen their position, but it doesn't change the immediate financial metrics.

Regarding shareholder returns, Ellomay Capital Ltd. does not prioritize them right now. The company has a 0.00% Dividend Yield and does not have an active payout ratio, as capital is being reinvested to fund new projects and expand capacity in Europe, the USA, and Israel. This is a pure growth play, not an income stock.

To be fair, the company's TTM revenue is approximately $45.64 million USD, showing a slight increase of 4.45% from the previous year, which is a sign of operational stability as new projects come online. But still, the valuation hinges entirely on successfully executing its pipeline of renewable energy projects on time and on budget. If you want a deeper dive into who is making these bets, you should be Exploring Ellomay Capital Ltd. (ELLO) Investor Profile: Who's Buying and Why?

Next Step: Review the project completion schedule for the Spanish and Italian solar facilities to validate the market's aggressive EV/EBITDA multiple.

Risk Factors

You're looking at Ellomay Capital Ltd. (ELLO) and its portfolio of renewable energy assets, but you need to see past the green energy tailwinds to the real financial and operational risks. The direct takeaway is that while management is making progress on expense control, the company's persistent unprofitability and high leverage remain the dominant near-term concerns for investors, especially given the current interest rate environment.

The core financial risk is the company's unsatisfactory financial position, as it remains unprofitable. Although management has reduced losses by an average annual rate of 4.7% over the last five years, consistent profitability is not yet in sight. This is a critical point because the market is currently valuing ELLO at a Price-to-Sales Ratio of 5.9x, which is more than double the North American Renewable Energy industry average of 2.5x. That's a sizable premium for a company still burning cash.

Here's a look at the key risks impacting the company's financial health:

• High Financial Leverage: Ellomay Capital Ltd.'s reliance on project financing means its leverage is expected to remain high, projected to be in the range of 77%-83% compared to its peer group in the coming years.
• Geopolitical and Market Volatility: Operations in Israel, Spain, and Italy expose the company to significant geopolitical risks, including the continued war and hostilities in Israel and Gaza. Also, changes in electricity prices, especially the expected lower prices in Europe, will negatively impact revenues, despite an observed upward trend in July 2024.
• Operational Concentration: A significant portion of operating cash flow still derives from its Spanish assets (PV2 projects) and the Dorad power plant. This concentration increases the impact of localized issues, like the fire near the Talasol and Ellomay Solar facilities in Spain in July 2024, which caused a loss of revenue.

To be fair, management is not sitting still. Their mitigation strategy centers on geographical diversification and financial flexibility. The company is actively advancing projects in Italy (160 MW under construction) and the U.S. (approximately 50 MW expected to start construction in 2025), which should dilute the concentration risk. Plus, they use non-recourse project financing and hedging transactions to mitigate exchange rate exposure.

The financial impact of operational disruptions is also being managed. For the fire in Spain, the company expects to receive approximately €1.2 million in insurance compensation for the loss of income, which demonstrates a clear risk transfer mechanism is in place. Still, the underlying operational risk remains, and delays in the construction of large projects, like the 156 MW pumped storage hydro power plant in Manara Cliff, Israel, could defintely affect projected cash flows.

The table below summarizes the financial risks highlighted in the 2024 fiscal year filings, giving you a concrete view of the challenge:

You need to keep a close eye on the construction timelines for the new projects; that's the real engine for future revenue and a reduction in the current financial pressure. For a deeper look at the company's strategic direction, you can review its Mission Statement, Vision, & Core Values of Ellomay Capital Ltd. (ELLO).

Growth Opportunities

You're looking for a clear path through Ellomay Capital Ltd. (ELLO)'s financials, and the direct takeaway is this: the company's future growth is tied less to immediate, massive revenue spikes and more to the strategic, multi-year build-out of its diversified renewable energy portfolio across Europe and the US. They are planting seeds, not harvesting a full crop yet.

The company's trailing twelve-month (TTM) revenue as of 2025 sits at approximately $45.64 Million USD, showing a modest 4.45% increase over the prior year. However, the real story is in the project pipeline, which is their engine for future earnings. Ellomay Capital Ltd. is a trend-aware realist, focusing on expansion and energy storage (batteries), which is defintely where the sector is headed.

Here's the quick math on their development capacity, which points to a significant revenue ramp-up over the next few years:

• Connected to the Grid: 574 MW total capacity.
• Under Construction/Ready to Build: 418 MW, representing near-term revenue potential.
• Advanced Development: 269 MW, securing their medium-term pipeline.

This massive pipeline, totaling over 1.2 GW in various stages, is the main growth driver. The strategy is to develop and operate a mix of technologies-solar, natural gas, pumped hydro, and waste-to-energy-reducing reliance on any single market or power source.

Strategic Initiatives Driving Near-Term Revenue

The most concrete near-term revenue drivers come from project completions and smart financial maneuvers. For the first half of 2025 (H1 2025), sales were approximately €20.1 million, an increase primarily due to new Italian solar facilities coming online. Specifically, a new 18.1 MW Italian solar facility was connected to the grid in January 2025.

In the US, Ellomay Capital Ltd. executed a crucial strategic partnership by selling Investment Tax Credits (ITCs) for its Texas solar projects, a move that is expected to net the company roughly $19 million. This cash infusion, aligned with the Inflation Reduction Act (IRA), is a non-dilutive way to fund further development. The Fairfield and Malakoff solar projects, part of this deal, are expected to start operations by the end of the fourth quarter of 2025.

Another significant strategic move is the exercise of the right of first refusal by Ellomay Luzon Energy (50% held by Ellomay Capital Ltd.) to acquire an additional 15% of Dorad Energy Ltd., valuing Dorad at approximately NIS 2.8 billion. Increasing their stake in this large, 850 MW Israeli power plant gives them a larger share of a stable, operational asset.

Competitive Edge and Earnings Outlook

Ellomay Capital Ltd.'s competitive advantage lies in its geographic and technological diversification, which smooths out the volatility inherent in single-market renewable energy. They are also actively integrating battery storage in their solar projects across the US, Spain, and Italy, which is key to future profitability by allowing them to sell power during peak-price hours.

While the company is not yet consistently profitable-reporting a loss of approximately €1.6 million for the six months ended June 30, 2025-it has shown an ability to reduce losses at an average annual rate of 4.7% over the past five years. This loss reduction, combined with a Price-to-Sales (P/S) ratio of 5.9x (lower than the peer average of 7.4x), suggests the market sees the value in their asset base but is waiting for the pipeline to fully convert into net income.

The total assets as of June 30, 2025, amounted to approximately €729.3 million, up from €677.3 million at the end of 2024, showing a balance sheet that is expanding to support the development pipeline. This asset growth is a tangible sign that the capital is being deployed into future revenue-generating projects.

For a deeper dive into the company's balance sheet and valuation metrics, you should check out the full post: Breaking Down Ellomay Capital Ltd. (ELLO) Financial Health: Key Insights for Investors