HIGHLIGHTS
- STRONG ENERGY STORAGE PERFORMANCE DRIVES THIRD QUARTER RESULTS, WITH REVENUE UP 10.2%, NET INCOME ATTRIBUTABLE TO STOCKHOLDERS UP 32.2%, AND ADJUSTED EBITDA UP 11.1%
- ENERGY STORAGE SEGMENT CONTINUES TO DELIVER RECORD RESULTS, WITH REVENUE UP 145.2% YEAR-OVER-YEAR, DRIVEN BY FAVORABLE MERCHANT MARKET PRICING, HIGH AVAILABILITY, AND CONTRIBUTIONS FROM NEWLY ADDED CAPACITY
- ORMAT RAISES THE MIDPOINT OF ITS FULL YEAR REVENUE AND ADJUSTED EBITDA GUIDANCE
- CONTINUED PROGRESS IN NEXT-GENERATION GEOTHERMAL, ADVANCING TWO EGS PILOT PROGRAMS AND THE DEVELOPMENT OF ORMAT'S FIRST COMMERCIAL EGS PROJECT.
Ormat Technologies, Inc. (NYSE: ORA) (the "Company" or "Ormat"), a leading geothermal and renewable energy company, today (Nov 4) announced financial results for the third quarter ended September 30, 2026.
"Our strong third-quarter performance was driven by record Energy Storage profitability, supported by newly added capacity, high asset availability and favorable merchant pricing in PJM. Revenue increased 10.2%, net income attributable to stockholders rose 32.2%, and Adjusted EBITDA grew 11.1%. Our year-to-date performance and fourth-quarter outlook support an increase in the midpoints of our full-year revenue and Adjusted EBITDA guidance," said Doron Blachar, Chief Executive Officer of Ormat Technologies. "While we continue to add new capacity and expand our Electricity segment portfolio, segment revenue slightly declined 2.1% year-over-year in the third quarter. This was primarily due to lower generation at Puna following a hurricane-related forced outage, partially offset by the July commencement of commercial operation at our 10 MW Dominica geothermal plant and improved performance at our Olkaria plant."
"We remain focused on executing the growth plan outlined at our recent Investor Day, doubling our YE 2025 capacity and achieving annual revenue and Adjusted EBITDA run rates exceeding $1.5 billion and $1 billion, respectively, by the end of 2030. These targets exclude potential contributions from EGS. With growing demand for reliable, around-the-clock power and an expanding portfolio of contracted projects, we believe Ormat is well positioned to deliver sustainable long-term growth and shareholder value."
Blachar added, "Ormat's six decades of geothermal experience and integrated capabilities position the Company to participate in EGS as a developer, owner, operator and technology provider, while pursuing a diversified approach that extends beyond a single emerging technology. We are advancing two pilot projects with SLB and Sage and negotiating power purchase agreements for Dixie Valley, our first planned commercial EGS project, and for other potential projects. Since the start of the year, we have also secured approximately 40,000 acres of BLM leases for EGS development and identified additional acreage with EGS potential within our existing portfolio. Our total EGS land position now stands at approximately 170,000 acres, which we estimate could support 5 to 6 gigawatts of potential future EGS development, a significant opportunity for long-term growth."
FINANCIAL HIGHLIGHTS
- Net income attributable to stockholders for the three months ended September 30, 2026, was $31.9 million, or $0.51 per diluted share, compared to $24.1 million, or $0.39 per diluted share, in the prior year period. The 32.2% increase was mainly driven by the increase in the Energy Storage revenue and gross profit.
- Adjusted net income for the three months ended September 30, 2026, was $34.8 million, or $0.56 per diluted share, compared to $24.9 million, or $0.41 per diluted share, in the prior year period.
- Adjusted EBITDA for the three months ended September 30, 2026, increased 11.1% to $153.8 million, driven by strong contributions from the Energy Storage segment, which benefited from higher merchant prices, high availability and portfolio expansion.
- Electricity segment revenues declined 2.1% in the third quarter compared to the prior year period, primarily driven by lower generation at Puna due to a hurricane-related forced outage, partially offset by the commencement of commercial operation at our power plant in Dominica and improved performance at our Olkaria plant.
- Energy Storage revenues for the three months ended September 30, 2026, increased 145.2% compared to the prior year period. Growth was driven by the high availability of our assets, which allowed us to capitalize on strong merchant pricing in the PJM market, as well as new portfolio capacity additions over the past 12 months.
- Product segment revenues for the three months ended September 30, 2026, declined 1.2% compared to the prior year period due largely to the timing of manufacturing and construction progress.
- Product segment backlog stands at approximately $183 million as of November 4, 2026.
BUSINESS HIGHLIGHTS:
- In August 2026, Ormat decided to proceed with the development of the 100 MW / 400 MWh Denali energy storage facility in California. Upon completion, expected by the end of 2028, the project is anticipated to provide energy storage services under a 20-year tolling agreement with Clean Power Alliance.
- In July 2026, Ormat achieved commercial operation of its 10 MW Dominica geothermal power plant, reflecting continued execution across the Company's global development pipeline.
EGS UPDATE:
- Ormat continues to advance the two EGS pilot programs with SLB and Sage, with drilling expected to commence late 2026 or early 2027 in both locations.
- Ormat is negotiating PPAs for Dixie Valley, Nevada, its first planned commercial EGS project, and for other potential EGS projects.
- In September 2026, Ormat was selected by the U.S. Department of Energy (DOE) for up to $35 million in funding, alongside SLB and the University of Utah, to advance enhanced geothermal systems at Dixie Valley, Nevada, and hydrothermal development at Cove Fort, Utah.
- Since its Investor Day, Ormat has significantly expanded its EGS land position, from approximately 70,000 acres to approximately 170,000 acres. This includes approximately 16,000 acres of new BLM leases acquired in Nevada's October 2026 lease sale and significant existing land portfolio that have been identified as having EGS potential. Ormat estimates that this expanded land position could support approximately 5 to 6 GW of potential future EGS development, compared with the approximately 3 to 4 GW estimate presented at Investor Day.
2026 GUIDANCE
- Total revenues are expected to be between $1,170 million and $1,200million.
- Electricity segment revenues between $700 million and $710 million.
- Product segment revenues of between $310 million and $320 million.
- Energy Storage revenues of between $160 million and $170 million.
- Adjusted EBITDA is expected to be between $640 million and $650 million.
- Of which approximately $13.0 million is attributed to minority interest.
The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and nine months ended September 30, 2026. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts, the probable significance of which cannot be determined. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.
DIVIDEND
On November 4, 2026, the Company's Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company's dividend policy. The dividend will be paid on December 2, 2026, to stockholders of record as of the close of business on November 18, 2026.
