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1. Company Snapshot

1.a. Company Description

Ormat Technologies, Inc.engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally.It operates through three segments: Electricity, Product, and Energy Storage.


The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity.The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants.The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes.


The Energy Storage segment offers energy storage and related services, as well as services relating to the engineering, procurement, construction, operation, and maintenance of energy storage units.Ormat Technologies, Inc.was founded in 1965 and is based in Reno, Nevada.

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1.b. Last Insights on ORA

Ormat Technologies' recent performance faced challenges due to Citigroup Inc. reducing its holdings by 68.2% during the third quarter, according to a recent filing with the Securities and Exchange Commission. The firm now owns 121,653 shares, representing 0.20% of the energy company. Additionally, despite strong Q4 earnings, meeting estimates, and a 19.6% revenue jump, concerns may arise from a cautious outlook. Ormat's 2026 revenue guidance is up to $1.16B. Analysts have a "Moderate Buy" consensus rating, with seven recommending a buy and four a hold.

1.c. Company Highlights

2. Ormat Technologies' 2025 Earnings: A Strong Year Ahead

Ormat Technologies reported a robust 2025, with revenue increasing 12.5% to $990 million and adjusted EBITDA improving 5.7% to $582 million. The Energy Storage segment delivered robust growth, with revenue up 109.3% to $79 million, driven by higher energy rates in the PJM market and strong performance from new operational projects. The company's net income attributable to stockholders was $123.9 million, or $2.02 per diluted share, compared to $123.7 million, or $2.04 per diluted share, in 2024. Adjusted net income attributable to stockholders for 2025 was $137.3 million, or $2.24 per diluted share.

Publication Date: Mar -02

📋 Highlights
  • Revenue & EBITDA Growth:: Revenue rose 12.5% to $990M; adjusted EBITDA increased 5.7% to $582M in 2025.
  • Energy Storage Surge:: Energy Storage revenue jumped 109.3% to $79M due to PJM market rates and new projects.
  • PPA Expansion:: Secured >200 MW of new PPAs, including 15-yr Google and 20-yr Switch agreements.
  • Tax Credit Cash Flow:: Collected $180M in 2025 from PTCs/ITCs; expects $90M in 2026 via ITCs.
  • Capital & Growth Plans:: $675M CAPEX in 2026 aims to boost capacity to 2.6–2.8 GW by 2028, with 149 MW under development.

Segment Performance

The Energy Storage segment's strong performance was a key driver of Ormat's overall growth, with revenue more than doubling. The company's Electricity segment also performed well, driven by higher energy rates and new operational projects. The company's product segment is expected to benefit from the sale of Topp 2, carrying an estimated gross margin of around 20%.

Guidance and Outlook

Ormat expects a strong start to 2026, with revenue growth projected at 14.6% year-over-year, and adjusted EBITDA expected to increase by approximately 8.2%. The company's guidance includes Electricity segment revenues projected to be $715-730 million. Ormat plans to invest approximately $675 million in capital expenditures for 2026, driving growth in its generating capacity to 2.6-2.8 gigawatts by the end of 2028.

Enhanced Geothermal Systems (EGS) Progress

Ormat has made significant progress in EGS, with partnerships with SLB and Sage Geosystems to accelerate the development and commercialization of EGS projects. The company expects to negotiate with other developers in 2026, potentially leading to EPC contracts and revenue in the second half of 2027 or 2028.

Valuation

Ormat's current valuation metrics indicate a P/E Ratio of 50.91, EV/EBITDA of 12.34, and a Dividend Yield of 0.46%. These metrics suggest that the market is pricing in significant growth expectations, which Ormat is poised to deliver through its EGS partnerships and expanding Energy Storage segment.

Storage and Exploration

Ormat has safe-harbored over 1 gigawatt of projects, including the 100-megawatt, 400-megawatt hour Griffith project. The company has secured most of its interconnections for 2028 and 2029 and reiterated its 2028 targets despite Foreign Entity of Concern (FEOC) considerations. Increased battery capacity from outside China and US production should mitigate FEOC impacts.

3. NewsRoom

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Aura Minerals (TSE:ORA) Shares Pass Above 200 Day Moving Average – Here’s What Happened

Mar -10

Source: defenseworld.net

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Citigroup Inc. Sells 261,079 Shares of Ormat Technologies, Inc. $ORA

Mar -01

Source: defenseworld.net

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Ormat Technologies, Inc. (ORA) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Ormat Technologies Q4 Earnings Meet Estimates, Revenues Beat

Feb -26

Source: zacks.com

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Ormat Technologies Reports Fourth Quarter and Year-End 2025 Financial Results

Feb -25

Source: globenewswire.com

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Curious about Ormat Technologies (ORA) Q4 Performance? Explore Wall Street Estimates for Key Metrics

Feb -24

Source: zacks.com

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Strength Seen in Ormat Technologies (ORA): Can Its 5.1% Jump Turn into More Strength?

Feb -18

Source: zacks.com

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Ormat signs 150 MW geothermal power deal with NV Energy to supply Google in Nevada

Feb -17

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.71%)

6. Segments

Electricity

Expected Growth: 7.5%

Ormat Technologies, Inc.'s 7.5% growth in electricity is driven by increasing demand for renewable energy, expansion into new geothermal markets, and improved operational efficiency. Additionally, government incentives and tax credits for clean energy projects, as well as rising electricity prices, contribute to the company's growth momentum.

Product

Expected Growth: 8.5%

Ormat Technologies' 8.5% growth is driven by increasing demand for renewable energy, particularly geothermal power. Expanding operations in the US and abroad, coupled with a strong project pipeline, contribute to growth. Additionally, the company's diversified revenue streams, including electricity sales and product sales, provide a stable foundation for growth.

Energy Storage

Expected Growth: 9.0%

Ormat Technologies, Inc.'s 9.0% growth in Energy Storage is driven by increasing demand for renewable energy, declining battery costs, and government incentives for clean energy adoption. Additionally, the company's expertise in geothermal energy and its expansion into new markets, such as California and Hawaii, contribute to its growth momentum.

7. Detailed Products

Geothermal Power Plants

Design, manufacture, and supply of geothermal power plants that convert heat from the Earth into electricity.

Recovered Energy Generation (REG) Systems

Systems that capture waste heat from industrial processes and convert it into electricity.

Energy Storage and Management Systems

Systems that store and manage energy for grid stability and renewable energy integration.

Electricity Generation from Biomass

Systems that generate electricity from organic waste and biomass.

Geothermal and Oil and Gas Drilling Services

Drilling and exploration services for geothermal and oil and gas industries.

8. Ormat Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ormat Technologies, Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative energy sources, such as solar and wind power, geothermal energy has its unique advantages and disadvantages.

Bargaining Power Of Customers

Ormat Technologies, Inc. has a diverse customer base, including utilities, municipalities, and industrial companies. However, the bargaining power of customers is relatively low due to the specialized nature of geothermal energy.

Bargaining Power Of Suppliers

Ormat Technologies, Inc. relies on a limited number of suppliers for its geothermal energy systems. While the company has some bargaining power, the suppliers also have some leverage due to the specialized nature of the equipment.

Threat Of New Entrants

The geothermal energy industry has high barriers to entry, including significant capital requirements and specialized expertise. This limits the threat of new entrants and provides Ormat Technologies, Inc. with a competitive advantage.

Intensity Of Rivalry

The geothermal energy industry is moderately competitive, with a few established players. Ormat Technologies, Inc. faces competition from other geothermal energy companies, but its strong market position and expertise provide a competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.48%
Debt Cost 5.74%
Equity Weight 52.52%
Equity Cost 6.31%
WACC 6.04%
Leverage 90.40%

11. Quality Control: Ormat Technologies, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.4/10

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Quality: 6.1

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

110.56$

Current Price

110.56$

Potential

-0.00%

Expected Cash-Flows