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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 was driven by strong Q3 earnings, beating estimates with growth across all segments. The company raised its 2025 revenue outlook, citing strategic portfolio expansion and product segment performance. A partnership with SLB to accelerate geothermal asset development and enhanced geothermal systems also boosted prospects. Additionally, Sequoia Financial Advisors' new $358,000 investment and a "Moderate Buy" rating from thirteen brokerages, with eight recommending a buy, further supported the stock.

1.c. Company Highlights

2. Ormat Technologies' Q3 2025 Earnings: Strong Momentum Across Renewable Energy Segments

Ormat Technologies reported a 17.9% increase in revenue to $249.7 million and a 9.3% growth in net income attributable to stockholders to $24.1 million, or $0.41 per diluted share, for the third quarter of 2025, beating analyst estimates of $0.37 per share. Adjusted EBITDA was $138.4 million, a 0.6% increase from the prior year. The company's Electricity segment revenue increased by 1.5% to $167.1 million, while Product segment revenues rose by 66.6% to $62.2 million, and Energy Storage segment revenues surged by 108% to $20.4 million.

Publication Date: Nov -09

📋 Highlights
  • Revenue & Net Income Growth:: Revenue rose 17.9% to $249.7M; net income increased 9.3% to $24.1M ($0.39/share).
  • Segment Performance:: Product segment revenue surged 66.6% to $62.2M; Energy Storage grew 108% to $20.4M.
  • EBITDA & Guidance:: Adjusted EBITDA rose 0.6% to $138.4M; 2025 revenue guidance raised to $960–$980M (up 10.2% YoY).
  • EGS & Partnerships:: Secured SLB and Sage EGS pilot projects targeting hundreds of MW; $254M in Q3 funding and $206M cash reserves.

Segment Performance

The Electricity segment's revenue growth was modest, but the Product segment's significant increase was driven by strong performance and cost savings, with margins above 20%. The Energy Storage segment's revenue surge was driven by the commissioning of the Lower Rio Energy Storage facility in Texas. Ormat's Product segment revenue guidance was increased to $180-190 million, driven by strong performance and cost savings.

Enhanced Geothermal Systems (EGS) Developments

Ormat has made significant progress in advancing EGS technology, partnering with SLB and Sage to develop pilot projects. The SLB pilot will start next to Ormat's facility in Desert Peak, Nevada, and will involve drilling pilot wells in late 2026. The company expects EGS projects to be in the hundreds of megawatts, with potential for significant growth.

Valuation and Growth Prospects

With a P/E Ratio of 51.62 and an EV/EBITDA of 13.39, Ormat's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 16.0%. Ormat's long-term growth prospects are strong, driven by increasing demand for geothermal energy, particularly from data centers and AI. The company's partnership with SLB and Sage will enable it to respond to this demand and create new opportunities for traditional geothermal development.

Financial Position and Outlook

Ormat generated strong cash flow, with cash and cash equivalents of approximately $206 million and total debt of $2.7 billion. The company secured $254 million in funding during the quarter and declared a quarterly dividend of $0.12 per share. Ormat does not see a need for equity financing, with expected EBITDA and tax credits covering the majority of its CapEx needs.

3. NewsRoom

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CWENA or ORA: Which Is the Better Value Stock Right Now?

Nov -28

Source: zacks.com

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CWENA or ORA: Which Is the Better Value Stock Right Now?

Nov -12

Source: zacks.com

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Ormat Technologies, Inc. (ORA) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Ormat Technologies Q3 Earnings Beat Estimates, '25 Revenue View Raised

Nov -04

Source: zacks.com

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Ormat Technologies Reports Third Quarter 2025 Financial Results

Nov -03

Source: globenewswire.com

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SLB and Ormat Partner to Accelerate Integrated Geothermal Asset Development and Enhanced Geothermal Systems

Oct -27

Source: globenewswire.com

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SLB and Ormat Partner to Accelerate Integrated Geothermal Asset Development and Enhanced Geothermal Systems

Oct -27

Source: businesswire.com

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Ormat Technologies, Inc. (NYSE:ORA) Given Average Rating of “Moderate Buy” by Analysts

Oct -24

Source: defenseworld.net

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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Eversource

A-Score: 6.1/10

Value: 5.3

Growth: 3.3

Quality: 3.9

Yield: 8.0

Momentum: 7.0

Volatility: 9.0

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Clearway Energy

A-Score: 5.9/10

Value: 3.4

Growth: 5.4

Quality: 3.6

Yield: 9.0

Momentum: 6.0

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A-Score: 5.7/10

Value: 3.6

Growth: 4.7

Quality: 5.2

Yield: 4.0

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NextEra Energy Partners

A-Score: 5.0/10

Value: 9.4

Growth: 2.9

Quality: 4.4

Yield: 10.0

Momentum: 0.0

Volatility: 3.3

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Ormat Technologies

A-Score: 4.6/10

Value: 1.6

Growth: 4.7

Quality: 4.0

Yield: 0.0

Momentum: 8.5

Volatility: 8.7

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Fluence Energy

A-Score: 3.4/10

Value: 7.6

Growth: 7.2

Quality: 3.1

Yield: 0.0

Momentum: 2.0

Volatility: 0.7

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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

112.64$

Current Price

112.64$

Potential

-0.00%

Expected Cash-Flows