olivLaw · US equity research
Ormat Technologies, Inc. ORA
Electric Services · SIC 4911 · Vertical: Electric Services (SIC 4911)
Ormat Technologies is a vertically integrated company focused on geothermal energy, with assets in electricity generation, power plant equipment and battery energy storage. The company reported total revenue growth of 10.6% in the second quarter of 2026, in a context of rising demand for reliable baseload power from data centers.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Ormat Technologies, Inc. (ORA) stock was 94.28 USD (+0.10% on the day), with market capitalisation 5.8 bn USD, P/E 46.3 on diluted EPS of 2.04 USD over the last 12 months, dividend yield 0.51%, beta 0.64, 52-week range 86.64–145.10 USD. Latest reported quarter (Q2 2026): revenue of 258.8 m USD (+10.6% YoY), net income of 27.1 m USD (−3.4% YoY), diluted EPS 0.43 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 56.0
- strong (55–70)
- Bollinger (20, 2)
- 85.45 – 94.45
- in the upper half of the band · %B 0.98 · band width 10.0%
- SMA 50 / 200
- 94.16 / 111.13
- mixed trend
- MACD (12, 26, 9)
- -0.27 / -1.25
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +3.3% | −2.0% | +5.3 pp | — |
| 3 months | −3.8% | −2.2% | −1.6 pp | — |
| 6 months | −17.9% | +4.3% | −22.2 pp | — |
| Year to date | −14.7% | +10.6% | −25.2 pp | — |
| 1 year | −13.2% | +10.5% | −23.7 pp | −3.2% |
| 3 years | +43.8% | +73.7% | −29.9 pp | +39.5% |
| 5 years | +25.2% | +61.7% | −36.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 211.8 m | 230.7 m | 229.8 m | 234.0 m | 249.7 m | 276.0 m | 403.9 m | 258.8 m |
| Cost of revenue | 152.9 m | 157.2 m | 156.8 m | 177.1 m | 185.7 m | 197.2 m | 283.5 m | 190.1 m |
| Gross profit | 58.9 m | 73.6 m | 72.9 m | 56.9 m | 64.0 m | 78.8 m | 120.4 m | 68.7 m |
| Research & development | 1.8 m | 1.4 m | 2.5 m | 1.4 m | 1.3 m | 1.0 m | 1.1 m | 1.5 m |
| Operating income | 35.7 m | 49.1 m | 50.9 m | 35.3 m | 40.4 m | 42.6 m | 80.3 m | 34.2 m |
| Depreciation & amortisation | 66.7 m | 70.1 m | 69.8 m | 70.0 m | 75.0 m | 77.3 m | 76.4 m | 79.6 m |
| Interest expense | 34.8 m | 34.5 m | 34.5 m | 36.7 m | 35.7 m | 35.0 m | 45.0 m | 43.9 m |
| Pre-tax income | 24.7 m | 31.7 m | 37.6 m | 22.0 m | 20.0 m | 26.2 m | 28.6 m | 17.2 m |
| Income tax | -1.2 m | -11.8 m | -3.8 m | -5.5 m | -4.3 m | -6.7 m | -15.5 m | -9.7 m |
| Net income | 22.1 m | 40.8 m | 40.4 m | 28.0 m | 24.1 m | 31.4 m | 44.1 m | 27.1 m |
| Diluted EPS | 0.36 | 0.67 ≈ | 0.66 | 0.46 | 0.39 | 0.51 ≈ | 0.71 | 0.43 |
| Operating cash flow | 106.4 m ≈ | 158.6 m | 88.0 m | 96.9 m ≈ | 45.2 m ≈ | 105.0 m | 78.6 m | 50.6 m ≈ |
| Capex | 109.7 m ≈ | 127.7 m | 192.6 m | 134.8 m ≈ | 147.3 m ≈ | 145.1 m | 113.8 m | 138.0 m ≈ |
| Dividends paid | 7.3 m ≈ | 7.3 m | 7.3 m | 7.3 m ≈ | 7.3 m ≈ | 7.2 m | 7.5 m | 7.2 m ≈ |
| Share repurchases | — | — | 0 | 0 ≈ | — | — | 24.4 m | -5.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 62 percentile of its own 39-quarter history (min 17.2, median 39.6, max 74.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 719.3 m | 746.0 m | 705.3 m | 663.1 m | 734.2 m | 829.4 m | 879.7 m | 989.5 m |
| Revenue YoY | +3.8% | +3.7% | −5.5% | −6.0% | +10.7% | +13.0% | +6.1% | +12.5% |
| Net income | 98.0 m | 88.1 m | 85.5 m | 62.1 m | 65.8 m | 124.4 m | 123.7 m | 123.9 m |
| Net income YoY | −26.0% | −10.1% | −3.0% | −27.3% | +6.0% | +88.9% | −0.5% | +0.1% |
| Diluted EPS | 1.92 | 1.72 | 1.65 | 1.10 | 1.17 | 2.08 | 2.04 | 2.02 |
| Diluted EPS YoY | −26.4% | −10.4% | −4.1% | −33.3% | +6.4% | +77.8% | −1.9% | −1.0% |
| net % | 13.6% | 11.8% | 12.1% | 9.4% | 9.0% | 15.0% | 14.1% | 12.5% |
| Free cash flow | -112.7 m | -43.5 m | -55.7 m | -160.5 m | -282.5 m | -309.0 m | -76.8 m | -284.7 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 147.4 m USD
- Financial debt
- 2.7 bn USD
- Net debt
- 2.5 bn USD
- Equity
- 2.7 bn USD
- Total assets
- 6.2 bn USD
- Debt / equity
- 0.99x
- Current ratio
- 0.81x
- ROE
- 4.7%
- ROA
- 2.1%
- FCF margin
- -28.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 705.3 m | 663.1 m | 734.2 m | 829.4 m | 879.7 m | 989.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 429.1 m | 398.7 m | 465.3 m | 565.4 m | 607.0 m | 716.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 276.3 m | 264.3 m | 268.8 m | 264.0 m | 272.6 m | 272.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Research & development | 5.4 m | 4.1 m | 5.1 m | 7.2 m | 6.5 m | 6.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 214.0 m | 169.4 m | 152.8 m | 166.6 m | 172.5 m | 169.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 156.6 m | 183.0 m | 198.8 m | 224.8 m | 262.9 m | 292.1 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 370.6 m ≈ | 352.3 m ≈ | 351.6 m ≈ | 391.4 m ≈ | 435.3 m ≈ | 461.3 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 78.0 m | 82.7 m | 87.7 m | 98.9 m | 134.0 m | 141.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | 168.7 m | 103.6 m | 95.6 m | 139.1 m | 115.4 m | 105.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 67.0 m | 24.9 m | 14.7 m | 6.0 m | -16.3 m | -20.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 85.5 m | 62.1 m | 65.8 m | 124.4 m | 123.7 m | 123.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 1.65 | 1.10 | 1.17 | 2.08 | 2.04 | 2.02 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 51.9 m | 56.4 m | 56.5 m | 59.8 m | 60.8 m | 61.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 0.44 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 448.3 m | 239.3 m | 95.9 m | 195.8 m | 94.4 m | 147.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 149.2 m | 122.9 m | 128.8 m | 208.7 m | 164.1 m | 164.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 35.3 m | 28.4 m | 22.8 m | 45.0 m | 38.1 m | 45.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 779.2 m | 601.9 m | 456.7 m | 646.0 m | 547.1 m | 597.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 2.1 bn | 2.3 bn | 2.5 bn | 3.0 bn | 3.5 bn | 3.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 24.6 m | 90.0 m | 90.3 m | 90.5 m | 151.0 m | 168.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 194.4 m | 363.3 m | 333.8 m | 307.6 m | 301.7 m | 274.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 3.9 bn | 4.4 bn | 4.6 bn | 5.2 bn | 5.7 bn | 6.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 152.8 m | 143.2 m | 149.4 m | 214.5 m | 234.3 m | 234.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | — | — | 0 | — | — | — | SEC (XBRL)· 09 Nov 2023verified |
| Long-term debt | 1.5 bn | 1.9 bn | 2.1 bn | 2.0 bn | 2.3 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 248.6 m | 544.2 m | 343.9 m | 537.0 m | 598.1 m | 738.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 1.9 bn | 2.4 bn | 2.6 bn | 2.8 bn | 3.1 bn | 3.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 1.9 bn | 2.0 bn | 2.0 bn | 2.4 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 265.0 m | 258.8 m | 281.0 m | 309.4 m | 410.9 m | 335.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 320.7 m | 419.3 m | 563.5 m | 618.4 m | 487.7 m | 619.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | -55.7 m ≈ | -160.5 m ≈ | -282.5 m ≈ | -309.0 m ≈ | -76.8 m ≈ | -284.7 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -386.0 m | -638.2 m | -523.4 m | -628.3 m | -780.3 m | -726.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 503.5 m | 186.4 m | 126.3 m | 380.0 m | 287.9 m | 465.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 22.5 m | 27.0 m | 27.1 m | 28.4 m | 29.1 m | 29.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 0 | 0 | 18.0 m | 0 | 0 | — | SEC (XBRL)· 27 Feb 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
3 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet12
- Valuation16
- Quality54
- Growth100
- Returns34
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 40.25 – 51.50 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Dividend discount (DDM)outside the aggregate6.31 – 8.48 (Mid 7.24)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E40.25 – 51.50 (Mid 46.90)15 companies used · median multiple 23.0x · quartiles 19.8x – 25.3xAEP, CEG, CNP, D, ES, ETR, FE, IDA, NEE, NRG, PNW, POR, PPL, SO, VST
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.7% | 54 (vs peers) | 9% |
| Revenue CAGR 3Y · Growth | 10.5% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 20.0% | 100 (on a fixed band) | 12% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 1.2x | 0 (on a fixed band) | 15% |
| Current ratio · Balance sheet | 1.0x | 43 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 46.3x | 16 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| Dividend yield · Returns | 0.5% | 5 (vs peers) | 21% |
| Payout ratio (EPS) · Returns | 23.6% | 100 (on a fixed band) | 9% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet12/100 · 2/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality· partial54/100 · 1/2 factors with a value
- Returns34/100 · 2/2 factors with a value
- Valuation· partial16/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ORMAT TECHNOLOGIES, INC. (ORA). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 989.5 m USD in 2025; YoY growth 12.5%; net margin 10.7%; ROE 5.0%.
The estimated value range is 40.25–51.50 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 46.90 USD, the price of 94.28 USD leaves a potential of -50.3% (value / price − 1) and a margin of safety of -101.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: quality, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 10.5%
- EPS CAGR 3Y: 20.0%
- Payout ratio (EPS): 23.6%
What contradicts it
- Interest coverage: 1.2x
- P/E (TTM): 46.3x
- Dividend yield: 0.5%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Electric Services (SIC 4911) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NEENextera Energy Inc | 175.9 bn | 21.4 | 15.6% | 31.5% | +9.8% | −2% / +44% |
| SOSouthern Co | 105.7 bn | 24.0 | 11.3% | 14.5% | +10.6% | +3% / +32% |
| CEGConstellation Energy Corporation | 93.3 bn | 25.7 | 15.3% | 11.1% | +8.3% | −28% / +118% |
| PAMPampa Energy Inc. | 88.2 bn | 141.0 | 21.8% | 33.0% | +8.3% | −28% / +38% |
| AEPAmerican Electric Power Company, Inc. | 70.7 bn | 19.0 | 12.8% | 16.9% | +10.9% | +5% / +63% |
| DDominion Energy, Inc | 58.7 bn | 19.8 | 10.5% | 16.9% | +14.2% | +6% / +47% |
| ETREntergy Corp | 49.9 bn | 27.7 | 11.1% | 13.6% | +9.0% | +12% / +115% |
| VSTVistra Operations Company LLC | 46.9 bn | 23.0 | 43.1% | 11.6% | +3.0% | −22% / +294% |
| CNPCenterpoint Energy Inc | 27.8 bn | 26.1 | 9.6% | 11.4% | +8.3% | +6% / +50% |
| FEFirstenergy Corp | 27.3 bn | 25.7 | 8.4% | 6.9% | +12.0% | −1% / +28% |
| PPLPPL Corp | 26.9 bn | 21.8 | 8.3% | 13.1% | +6.9% | −3% / +37% |
| ESEversource Energy | 26.0 bn | 17.9 | 9.1% | 10.4% | +13.8% | +3% / +16% |
| EIXEdison International | 22.9 bn | 6.3 | 20.8% | 19.6% | +9.8% | +1% / −11% |
| NRGNRG Energy, Inc | 20.2 bn | 24.9 | 23.8% | 2.6% | +9.2% | −43% / +101% |
| TLNTalen Energy Corporation | 15.5 bn | — | -16.7% | -6.4% | +22.0% | −9% / +523% |
| PNWPinnacle West Capital Corporation | 12.8 bn | 19.8 | 9.1% | 11.7% | +4.2% | +16% / +41% |
| IDAIDACORP, Inc. | 8.7 bn | 23.2 | 9.9% | 20.5% | −1.2% | +12% / +53% |
| BEPBrookfield Renewable Partners L.P. | 8.5 bn | — | -1.9% | -1.1% | +9.0% | +8% / +25% |
| CWENClearway Energy, Inc. | 7.3 bn | 72.6 | 1.8% | 6.4% | +4.2% | −2% / +43% |
| ORAOrmat Technologies, Inc. | 5.8 bn | 46.3 | 5.0% | 10.7% | +12.5% | −13% / +44% |
| PORPortland General Electric Company | 5.5 bn | 19.7 | 6.6% | 7.7% | +4.0% | −9% / +12% |
| BEPCBrookfield Renewable Corporation | 5.4 bn | — | -501.4% | -62.9% | −10.0% | −24% / +19% |
| KENKenon Holdings Ltd. | 3.3 bn | 49.6 | 4.1% | 7.6% | +16.1% | +6% / +190% |
| DTBDte Energy Co | 3.2 bn | 2.5 | 10.4% | — | +18.6% | −15% / −26% |
| HEHawaiian Electric Industries, Inc. | 1.5 bn | 6.5 | 13.7% | 6.9% | −4.1% | −28% / −30% |
1- and 3-year price returns: for ORA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 59.76 Total return -36% · Per year -36% | 105.37 Total return 12% · Per year 12% | 158.33 Total return 69% · Per year 69% |
| 3 years | 65.16 Total return -30% · Per year -11% | 128.58 Total return 38% · Per year 11% | 211.08 Total return 126% · Per year 31% |
| 5 years | 71.05 Total return -22% · Per year -5% | 156.89 Total return 70% · Per year 11% | 281.40 Total return 203% · Per year 25% |
- Exit P/E± 32.14
- Net margin± 22.50
- Annual revenue growth± 17.47
- Annual dilution± 1.89
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
Ormat Technologies is a vertically integrated company focused on geothermal energy, with assets in electricity generation, power plant equipment and battery energy storage. The company reported total revenue growth of 10.6% in the second quarter of 2026 3, in a context of rising demand for reliable baseload power from data centers 1.
SWOT
Strengths
- The company has a geothermal portfolio with high capacity factors and long-term PPAs with fixed prices and highly rated counterparties 1.
- Vertical integration across development, equipment manufacturing and operation gives control over the chain from drilling to power delivered to the grid 1.
- Diversification across three segments reduces reliance on a single revenue source, and recent quarterly results showed gross profit growth 3.
Weaknesses
- The Product segment is volatile, and its gross margin fell in the second quarter of 2026 because of construction costs and exchange rates 3.
- The storage segment depends on imported batteries and merchant prices, which makes revenue sensitive to volatility 1.
- Geothermal operations are exposed to subsurface risks, such as reservoir pressure decline and wellfield problems, which have already led to impairments at some plants 1.
Opportunities
- Data center demand and new long-term PPAs, including one with a major provider in Nevada, could support capacity growth 1.
- EGS technology could expand the areas where geothermal energy can be developed economically, and the SLB and Sage pilots could speed commercialization 13.
- Growth in energy storage and solar-plus-storage could bring additional contracted revenue if long-term contracts are secured 1.
Threats
- Tariffs and trade restrictions could affect the supply chain and costs, particularly for imported batteries and equipment 1.
- Intensifying competition in equipment and storage could lower prices and new orders 1.
- Changes in government policy on tax incentives and PURPA qualifying facility status could affect project returns 2.
Risks
- Geological risks of geothermal reservoirshigh
Geothermal output depends on reservoir characteristics, and pressure or temperature decline can reduce generation and lead to impairments, as happened at some plants 1.
- Merchant price volatilityhigh
A significant part of storage revenue comes from merchant markets where prices are volatile, which could reduce segment profitability 1.
- Tariffs and supply chainmedium
Tariffs and trade restrictions could raise the cost of batteries and equipment and limit supplier access if policies change 12.
- EGS and emerging technology risksmedium
EGS projects have not yet been deployed at commercial scale and may face technical, drilling or regulatory difficulties that could delay returns 12.
- Exposure to Israel and international operationsmedium
Much of senior management and the main Product segment manufacturing are located in Israel, where regional conflicts could affect operations and delivery capacity 2.
Investment thesis
What would need to be true (bull case)
- If demand from data centers and clean energy buyers persists, new long-term PPAs could support revenue and adjusted EBITDA growth 13.
- The Energy Storage segment's second-quarter 2026 performance shows that assets can benefit from favorable PJM pricing and new capacity 3.
- If EGS technology proves viable at commercial scale, the company could expand the geothermal market and sell equipment for new project types 13.
What would break the thesis
- If merchant prices stay volatile or fall, storage revenue could come in below expectations 1.
- Product segment gross margin fell in the second quarter of 2026 and quarterly revenue was weaker than the prior year, which could signal persistent pressure 3.
- If tariffs or competition from equipment makers intensify, costs could rise and selling prices could fall 1.
What to watch
- Delivery against 2026 revenue and adjusted EBITDA guidance2026
- Product segment revenue recognition and gross margin trend, given expected improvement in the second halfQ3 2026
- Start of drilling for the SLB EGS pilot, planned for the fourth quarterQ4 2026
- Nevada PUC approval of the geothermal portfolio PPA with the data center customer2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
Ormat is a vertically integrated company that develops, builds, owns and operates geothermal, solar PV and recovered energy power plants, sells the electricity they generate, and supplies equipment and EPC services for such plants 1. The company aims to become a leading global renewable energy provider, offering reliable baseload and flexible alternatives to carbon-intensive energy sources 1. Beyond geothermal, it is expanding into utility-scale energy storage and solar PV combined with storage 1. In 2026 it announced plans for EGS technology, including a pilot with SLB and a pilot with Sage Geosystems, to be carried out in the field 3.
Segments
Energy Storage segment
The Energy Storage segment owns and operates grid-connected standalone BESS facilities in the United States, in California, Texas and the East Coast, earning revenue from ancillary services in the merchant market and from tolling or RA contracts 1. Revenue rose 195.1% in the second quarter of 2026 to 42.8 million USD, supported by favorable merchant pricing in the PJM market and new capacity 3. In August 2026 the company decided to proceed with a 100 MW / 400 MWh facility in California 3.
Market context
Demand for geothermal and renewable energy in the United States has grown on the need for reliable baseload power and the energy requirements of data centers 1. State renewable portfolio standards and clean energy mandates encourage or require the purchase of renewable energy 1. PPA prices for new projects and renewals could keep rising if data center demand persists, although outcomes depend on market conditions and the timing of renewals 1.
Trends
- Baseload demand and data centerstailwind
Demand for geothermal and baseload renewable energy is growing, supported by data center needs and state mandates, which could support new long-term contracts 12.
- Higher PPA pricing in the United Statestailwind
Rising demand from data centers has lifted PPA prices for new projects and renewals, which could improve profitability of existing assets if the market stays favorable 1.
- Battery prices and tariffsheadwind
Battery prices, linked to lithium and to tariffs affecting China, were volatile in 2025, and the storage segment's supply chain relies on imports 1.
- Merchant price volatility and falling Texas tolling pricesmixed
Merchant prices are volatile and new tolling agreements in Texas have declined, which could reduce the attractiveness of the model in some regions 13.
Competitive position
In geothermal equipment, competition from binary power plant suppliers, including major steam turbine manufacturers, has intensified and could push prices down 1. In energy storage, competition comes from independent power producers, developers and third-party investors 1. The company argues that its technology, accumulated experience and share of installed binary capacity give it a distinct advantage 1.
- Binary power plant and steam turbine suppliers
Major steam turbine manufacturers that have entered the binary power plant equipment market, intensifying competition for orders and prices 1.
- Independent power producers and storage developers
Companies competing for battery energy storage projects in merchant markets and under tolling contracts 1.
- Third-party storage investors
Investors competing for the same storage and solar-plus-storage opportunities 1.
- Subsurface and drilling service providers
Partners such as SLB, with which the company collaborates on EGS projects, but which may also compete in certain service areas 13.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report05 Jun 2026Shareholder vote
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement21 Apr 2026
- Current report23 Mar 2026Material agreement · Creation of a direct financial obligation · Item 3.02 · Other events · Financial statements and exhibits
- Annual report26 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Ormat Technologies, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Ormat Technologies, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Ormat Technologies, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.