H2 2025 MENA Private Capital Breakdown Contents | Introduction | 3 | | --- | --- | | Dealmaking | 4 | | Exits | 9 | | Fundraising | 11 | Institutional Research Group Published on 9 March 2026 2 H2 2025 MENA PRIVATE CAPITAL BREAKDOWN Introduction Dealmaking MENA PE dealmaking set a new benchmark in 2025. 2025 marked the fourth consecutive year of PE deal activity growth in the MENA region, a clear indication of rising interest in the asset class. Diving deeper into what caused new records to be set, a select ...

Core Insights - Statkraft and OX2 have signed a seven-year, 235-MW battery energy storage agreement in Finland, marking Statkraft's largest BESS PPA in the Nordics to date [1][2] Group 1: Agreement Details - The PPA includes two BESS facilities with capacities of 110 MW (220 MWh) and 125 MW (250 MWh), currently under construction [2] - Statkraft will optimize the batteries over a seven-year term starting in 2028, featuring an innovative revenue floor structure to support financing [2] Group 2: Strategic Importance - The agreement emphasizes Statkraft's commitment to enhancing battery energy storage in the Nordics, which is vital for improving system flexibility, stability, and renewable energy integration [3] - Battery energy storage is essential for managing intermittent renewable energy generation, ensuring supply reliability, and facilitating the energy transition [3] Group 3: Executive Insights - Hallvard Granheim from Statkraft highlighted the importance of long-term optimization agreements for predictable revenues, which aid in financing battery energy storage projects [4] - Heikki Herttuainen noted that the agreement reflects the increasing role of battery storage in Finland's energy market, particularly in managing wind power intermittency [4] - Mehmet Energin from OX2 described the agreement as a significant commercial milestone, enhancing the competitiveness of their portfolio and accelerating the growth of flexible energy solutions in the Nordics [4] Group 4: Previous Achievements - Statkraft has previously closed significant battery PPAs, including the 300 MW (600 MWh) Thurrock Storage in the UK, the largest operational BESS scheme in Great Britain [4] - Another notable agreement is with Fidera Energy for the 1.4 GW Thorpe Marsh battery energy storage scheme, which will be the largest facility in the UK once operational [4]

Financial Data and Key Metrics Changes - Q4 revenue was approximately $148 million, representing a 38.6% increase year-over-year [7] - Adjusted EBITDA for Q4 was approximately $30 million, growing by 15% year-over-year, which is 20.4% of revenue [9] - Gross profit was $46.9 million, a 16.7% increase from the prior year, but the gross profit percentage decreased to 31.6% from 37.6% [18] - Net income for Q4 was $8.1 million, compared to $7.8 million in the prior year [23] Business Line Data and Key Metrics Changes - U.S. utility-scale solar business grew by almost 11% for the full year, with a 30% increase in the second half of 2025 compared to the second half of 2024 [11] - International revenue expanded from less than $1 million in 2024 to approximately $13 million in 2025 [11] - The CC&I and OEM businesses exceeded expectations, with the OEM business growing at 47% for the full year [15] Market Data and Key Metrics Changes - The company achieved a record backlog of approximately $748 million, an 18% year-over-year increase [8] - International backlog reached a record $90 million, which is expected to drive continued growth in 2026 and beyond [15] Company Strategy and Development Direction - The company is focused on growth and diversification, with a strategy to engage with a broader range of projects and customers [10] - The new consolidated manufacturing facility is expected to improve productivity and scalability [12] - The company aims to balance growth with profitability, targeting a gross margin percentage in the low to mid-30s for the foreseeable future [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. market and the ongoing demand for solar energy [35] - The company anticipates continued growth in 2026, with revenue expectations between $560 million and $600 million, representing a year-over-year growth of 22% at the midpoint [32] - Management acknowledged the impact of tariffs and legal expenses on profitability but expects these costs to decline over time [22][26] Other Important Information - The company has invested in automation and technology to drive productivity for years to come [40] - The partnership with ON.Energy is expected to address emerging constraints for AI-driven infrastructure [16] Q&A Session Summary Question: Can you comment on the book and bill for 2026 and seasonality? - Management indicated that $50 million-$70 million in book-and-turn business is reasonable, considering new customer expectations and project delivery schedules [48][49] Question: What is the margin outlook and pricing impact? - Management expects low to mid-thirties gross margin percentage for 2026, influenced by tariffs and product mix [62] Question: Can you discuss project timing and design related to FEOC provisions? - Management noted that there is not a significant amount of volatility related to FEOC, but some redesigns may slow down project releases [102] Question: What is the status of the data center BLA product? - The product is on track for certification, with revenue recognition expected more in 2027 than 2026 [93] Question: What is the expected timeline for moving into the new facility? - The company expects to be fully operational in the new facility by the end of Q2 2026 [86]

The $450 million Tesla Megapack battery energy storage facility is the Melbourne Renewable Energy Hub in Victoria, Australia—a massive 600 MW / 1.6 GWh grid-scale project featuring 444 Tesla Megapacks.Fully operational since late 2025, it powers ~200,000 homes during peak evening demand, stabilizes the grid, and boosts renewable integration on Australia’s National Electricity Market.It’s one of the largest operational battery projects in the world (and the biggest completed on the NEM grid at launch), devel ...

Financial Performance - Q3 revenue grew 34% year-over-year to $909 million, and adjusted EBITDA increased 15% to $214 million, representing an adjusted EBITDA margin of 23% [8][16] - Fiscal year-to-date revenue increased 32% year-over-year to $2.68 billion, with GAAP net income of $435 million year-to-date [8][16] - The company generated $123 million of operating cash flow in Q3 and $391 million year-to-date, with adjusted free cash flow of $119 million in Q3 and $360 million year-to-date [17] Business Line Performance - The U.S. accounted for 81% of Q3 revenue, with a 63% year-over-year increase in revenue, reflecting strong demand for the company's technology [16][12] - The non-tracker business is starting to have an impact on revenue, with a growing mix of bundled offerings including foundations, eBOS, and software services [24][25] Market Performance - Europe saw record quarterly bookings and expansion into two new countries, while the formation of Nextpower Arabia aims to serve growing demand across the MENA region [14][7] - The company is positioned to support Saudi Arabia's ambition to install 130 GW of renewable energy by 2030 [14] Company Strategy and Industry Competition - The company is evolving from a pure-play tracking systems supplier to an end-to-end solar technology platform, focusing on innovation and customer engagement [5][6] - The company aims to strengthen its competitive position through operational excellence and a diversified supply chain, while also managing tariff impacts effectively [19][18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustained growth and profitability, raising the fiscal 2026 financial outlook to expect revenue between $3.425 and $3.5 billion [20][21] - The company anticipates manageable tariff-related margin pressure and continues to focus on organic investment and disciplined M&A [18][20] Other Important Information - The company achieved a formal investment-grade credit rating, enhancing financial flexibility and customer confidence [9][18] - A share repurchase program of up to $500 million over three years was authorized, reflecting confidence in the long-term outlook [18] Q&A Session Summary Question: Bookings and Revenue Mix - The company reported strong bookings and backlog growth, with a significant portion weighted towards the U.S. market, indicating a strong quarter for bookings [24][26] Question: Permit Freeze and Project Management - Management noted that while some projects on federal lands are moving forward, overall project portfolios are progressing positively, with developers managing around constraints effectively [32][33] Question: Attach Rates and Gross Margins - The attach rate for bundled offerings is expanding, with significant projects being booked, although specific numbers were not disclosed [36][39] Question: Fiscal 2027 Outlook - The company is not updating the fiscal 2027 outlook but remains confident in the strength of the business and backlog [44][84] Question: Saudi Arabia Joint Venture - The joint venture with Abunayyan Holding is operational, with the 2.25 GW project already in progress, and expectations for future gigawatt-scale orders are positive [47][55] Question: Power Conversion and Storage Market - The company is focusing on power conversion solutions and sees a strong relationship between solar and storage, with plans to scale responsibly [72][75]

Core Viewpoint - Hypercharge Networks Corp. has launched Hypercorp Energy Solutions, an initiative aimed at expanding its services into the $40 billion USD global battery energy storage market, integrating battery storage, advanced energy management, and professional services to support large-scale electrification [1][2]. Group 1: Hypercorp Energy Solutions Overview - Hypercorp is designed as an advanced energy platform to assist commercial, fleet, and multi-family property owners in generating, storing, and optimizing energy delivery [2]. - The initiative combines battery energy storage systems (BESS), advanced energy management software, and professional services into a single offering to address infrastructure constraints and rising electricity costs [2][6]. Group 2: Target Market and Initial Launch - The initial focus will be on Hypercharge's existing customer base, which includes over 500 active sites across North America [3]. - Hypercorp aims to provide tailored energy storage and management solutions that consider site-specific electrical capacity and utility limitations, enabling customers to deploy additional EV charging and reduce operating costs [3][4]. Group 3: Technological Integration and Management - Hypercorp builds on Hypercharge's experience with battery-integrated solutions, including the deployment of GridLink battery-integrated DC fast charging stations [4]. - The Equion™ Energy Management Platform will allow properties to add EV charging and other high-capacity systems without overloading existing infrastructure, supporting demand response and time-of-day pricing programs [7]. Group 4: Business Model and Revenue Generation - Hypercorp will adopt an asset-light model by partnering with leading BESS providers, focusing on higher-margin SaaS revenue from the Equion™ platform, equipment financing, and professional services [9]. - The initiative is expected to create a more scalable and recurring revenue base for the company [5]. Group 5: Corporate Changes - Diana Mark has retired as Corporate Secretary, with Stephanie Sharma appointed to the role effective January 7, 2026 [11][12].

Core Insights - EdgeMode has experienced significant growth in 2025, with its share price increasing by over 1,100% [3] - The company is positioned for continued momentum into 2026 and beyond, focusing on AI data center infrastructure and energy solutions [2][3] Company Progress - 2025 has been a transformative year for EdgeMode, moving from concept to asset-backed progress, enhancing credibility with stakeholders [3] - The company has developed a 1.5GW AI data center portfolio in Spain, marking a significant achievement [4][5] - EdgeMode owns 75% of the development in Spain, focusing on advancing sites to Ready-To-Build status [5][6] - Strong inbound interest and advanced-stage negotiations are expected to lead to major partnerships and agreements [7] Shareholder Protection - EdgeMode has initiated a process to rescind a prior share exchange agreement to protect shareholder interests, which may return up to 1.56 billion shares to treasury [8][9] - The termination of approximately 385 million unexercised stock options has eliminated 12.8% of potential dilution [8] Battery Energy Storage Systems (BESS) - The company has made progress in its BESS business line, focusing on intraday grid trading to generate recurring revenues [13] - Approximately $20 million of a $25 million capital raise is allocated for acquiring BESS assets, reducing development risk [14] Capital Strategy and Growth - EdgeMode is advancing a $25 million convertible note raise to fund near-term milestones while maintaining shareholder alignment [15] - The company aims to replicate its business model internationally and plans to up-list to NASDAQ in 2026-2027 [16] Future Priorities - The company enters 2026 with stronger foundations and a clearer execution pathway, focusing on advancing Spanish sites, converting infrastructure into demand, and disciplined international expansion [19][17]

Energy Storage Development - Gautam Adani is building the world's largest battery energy storage facility in India [1]

Core Insights - ReNew has signed a $331 million financing deal with the Asian Development Bank (ADB) for a large-scale renewable energy project in Andhra Pradesh, which will also receive an additional $146 million from other lenders [1][2] - The project will feature 837 MWp of wind and solar capacity along with a 415 MWh battery energy storage system, designed to deliver 300 MW of peak power [1][2] - This project marks ADB's first financing of a peak power renewable energy project, expected to generate approximately 1,641 GWh of clean energy annually [4] Financing Details - The $331 million financing includes up to $291 million in local currency from ADB's ordinary capital resources and up to $40 million from the ADB-administered Leading Asia's Private Infrastructure Fund 2 (LEAP 2) [2] - ADB will arrange the remaining financing for the project [2] Strategic Developments - ReNew had previously announced a $2.5 billion investment for a 2.8 GW hybrid renewable energy complex in Andhra Pradesh [2] - The company is actively selling assets as part of its capital recycling strategy, including a recent agreement to sell 300 MW of solar projects to Sembcorp Industries for around $100 million [6] Company Positioning - ReNew's gross clean energy portfolio stands at 18.2 GW, with 1.1 GW of battery energy storage systems as of August 13, 2025 [8] - The company also has 6.4 GW of solar module and 2.5 GW of solar cell manufacturing capacity [8] Market Impact - The integration of battery energy storage with wind-solar hybrid systems is expected to be transformative, providing reliable clean power and stabilizing the grid [4] - The CEO of ReNew emphasized that the project demonstrates the competitive delivery of renewable energy at grid scale [3]

Financial Data and Key Metrics Changes - Total sales for Q1 FY 2026 were $54.6 million, an increase from $53.7 million in Q1 FY 2025, representing a 1.6% year-over-year growth [2][7] - Excluding healthcare, net sales increased by 6.8% [7] - Consolidated gross margin improved to 31.0% from 30.6% year-over-year [8] - Operating income for Q1 FY 2026 was $1.0 million, compared to $0.3 million in the prior year [9] - Net income rose to $1.9 million from $0.6 million year-over-year, with diluted earnings per share increasing to $0.13 from $0.04 [9] Business Line Data and Key Metrics Changes - PMT sales increased by 2.8%, and excluding healthcare, PMT sales were up 10.5% due to higher demand from semiconductor wafer fab customers [7][12] - Canvys sales increased by 8.3%, reflecting improved market conditions in Europe [8] - GES sales decreased by 10.2% year-over-year, primarily due to the non-recurrence of a large EV locomotive order from the previous year [8][13] - The wind segment within GES saw significant growth, increasing by 86.1% year-over-year [14] Market Data and Key Metrics Changes - The company reported strong demand in the RF and microwave components business, particularly in military applications and semiconductor wafer fab manufacturing [16][68] - GES is focusing on expanding its market share internationally, with new orders from customers in Australia, India, France, and Italy [14][39] Company Strategy and Development Direction - The company is prioritizing engineered solutions and has made investments in infrastructure and design capabilities to support growth [15][17] - Strategic initiatives include the Energy Storage System (ESS) program and global expansion of green energy products [16][18] - The company is adapting to a changing regulatory environment and is focusing on repowering existing wind turbines rather than new installations [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the project-based business, despite the challenges in forecasting [19] - The company is navigating uncertainties related to tariffs and market conditions but is leveraging its global capabilities to mitigate risks [18] - Management anticipates continued growth in both PMT and GES for FY 2026, driven by strong demand in semiconductor and RF applications [20] Other Important Information - The company generated positive operating cash flow for six consecutive quarters, with a cash position of $35.7 million [5][10] - Capital expenditures for Q1 FY 2026 were $1.0 million, primarily related to manufacturing improvements [11] - The company declared a quarterly cash dividend of $0.06 per common share [11] Q&A Session Summary Question: Status of ULTRA3000s on GE's approved vendor list - The engineering team has signed off, and final signatures from GE's legal team are expected soon, with testing to follow [31][33] Question: Year-over-year growth expectations for semi-fab sales - Q1 of last year was a trough for semi-fab sales, and strong growth is expected in Q3 and Q4 of FY 2026 based on forecasts [34][35] Question: Sales performance outside the U.S. - Sales outside the U.S. are growing, with successful product launches in Australia, India, France, and Italy [38][39] Question: Expected CapEx for the year - Estimated CapEx is in the $4 million-$5 million range, slightly higher than last year [40][42] Question: Details on non-recurring gain in operating income - The non-recurring gain of $0.9 million was from a confidential contractual settlement [51][52] Question: Insights on repower initiatives and operating leverage - The repowering trend supports aftermarket business, and operating expenses are expected to remain controlled with minimal increases [58][63]