Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q2 2025 Earnings Presentation
44 slides from Ormat Technologies's earnings presentation, September 2025
Slide 1: Ormat Technologies Investor Presentation September 2025
ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION SEPTEMBER 2025 CD4 Geothermal Power Plant, USA
Slide 2: Safe Harbor Statement and Non-GAAP Metrics
SAFE HARBOR STATEMENT AND NON-GAAP METRICS THIS PRESENTATION INCLUDES FORWARD-LOOKING STATEMENTS, AND THE DISCLAIMER SHOULD BE READ CAREFULLY FORWARD-LOOKING STATEMENTS This presentation, and information provided during any discussion accompanying this presentation, These forward-looking statements
Slide 3: Introduction
INTRODUCTION COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 3
Slide 4: Our Business Segments
OUR BUSINESS SEGMENTS 80% 16% 4% of 2024 of 2024 of 2024 revenues revenues revenues ELECTRICITY PRODUCT ENERGY STORAGE Develop and operate geothermal, Design and manufacture Establishing U.S. market leadership, solar and REG1 power plants geothermal and REG1 equipment expanding to Israel Serve utili
Slide 5: Six Decades of Integrated Expertise
SIX DECADES OF INTEGRATED EXPERTISE Exploration Development Engineering Manufacturing Construction Operation (Geothermal) (Geothermal) System Integration (Storage) COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 5
Slide 6: Recent Development
RECENT DEVELOPMENT + 9.9% ELECTRICITY ENERGY STORAGE PRODUCT Revenue increase VS. Q2’24 + 26.1% Net income1 increase VS. Q2’24 Completed the acquisition of Lower Rio – commenced 20MW Blue Mountain operation Backlog stands at $263M + 6.7% geothermal acquisition -$88M 60MW/120MWh Adj. EBITDA Growth $7
Slide 7: Pillars of Scalable Growth
PILLARS OF SCALABLE GROWTH STRONG DEMAND: 01 A NEW ERA OF U.S. ELECTRICITY DEMAND 02 ATTRACTIVE MARKET DYNAMICS: RECORD HIGH PPA PRICES BATTERIES PRICE REDUCTION REGULATORY UPDATES 03 TAX BENEFITS AND RISING SUPPORT FOR GEOTHERMAL AND STORAGE FROM OBBB AND PERMITTING REFORM COPYRIGHT © 2025 ORMAT TE
Slide 8: Strong Demand: A New Era of U.S. Electricity Demand
STRONG DEMAND A NEW ERA OF U.S. ELECTRICITY DEMAND US POWER DEMAND BY SECTOR1 terawatt-hours 7,000 +64% 2025-2040 CAGR: 6,000 21% TRANSPORTATION 5,000 11% DATA CENTERS 4,000 3,000 Hydrogen production 2,000 Transport Data centers 1,000 Industrial and conventional Buildings 0 2025 2030 2035 2040 1. Mc
Slide 9: Attractive Market Dynamics: Electricity Segment
ATTRACTIVE MARKET DYNAMICS: ELECTRICITY SEGMENT PPA PRICES ABOVE $100 /MWh SUPPORT NEAR AND LONG-TERM GROWTH 250 MW+ Under negotiation $/MWh 110 Negotiating Portfolio PPA 100 90 150 MW 67 MW PPAs Up to PPAs signed 260 MW signed PPAs 80 signed Negotiating 70 with Hyper-scalers 60 at rates over $100/M
Slide 10: Market Dynamics – Energy Storage
MARKET DYNAMICS – ENERGY STORAGE BATTERY COSTS AND POWER PRICES SUPPORT PROFITABLE GROWTH IN KEY MARKETS Utility-Scale Standalone (100 MW, 4-Hour) Utility-Scale Standalone (100 MW, 4-Hour) 2020 – 2025 Decrease/CAGR: (5%)1/(1%)2 $330 $296 $280 Notable declines in LCOS $257 for utility-scale and C&I $
Slide 11: Regulatory Update - One Big Beautiful Bill
REGULATORY UPDATE - ONE BIG BEAUTIFUL BILL Signed July 4, 20251 TAX INCENTIVES UPDATE FEOC COMPLIANCE Max content sourced from FEOC GEOTHERMAL & STORAGE TAX BENEFITS ELIGABILITY 2026 2029+ • ITC – 30% to 50% claimed for energy storage assets Project Type Requirement1 Requirement2 • PTC - $30/MWh (up
Slide 12: Robust Growth Plan
1 ROBUST GROWTH PLAN 15%-17% 8%-9% 9%-11% CAGR CAGR CAGR 2024-2028E 2024-2028E 2024-2028E 2.6-2.8 1,200-1,250 775-825 Storage (MW) 950 – 1,050 880 550 1.5 Electricity (MW) 1,650-1,750 2024 2028E 2024 2028E 2024 2028E YE Run Rate Run Rate CAPACITY (GW) REVENUE ($M) ADJ. EBITDA ($M) Geothermal Solar P
Slide 13: Electricity Segment
ELECTRICITY . 5, SEGMENT Zz '
Slide 14: Delivering Consistent Growth with Cash Visibility
DELIVERING CONSISTENT GROWTH WITH CASH VISIBILITY SUSTAINABLE GROWTH ENGINE Revenue ($M) APPROX. 30 % 1,268 974 REVENUE GROWTH U.S. 15 $702 70 Guadeloupe $667 MW PORTFOLIO1 150 59 $632 Guatemala& Honduras Kenya Indonesia $586 DIVERSE, CASH $541 MW by Technology Type 2024 revenue by geography GENERAT
Slide 15: Geothermal Market Position and Potential
GEOTHERMAL MARKET POSITION POTENTIAL Ring of fire 1st Largest global geothermal owner & 1 operator EU Africa ASIA Oceania U.S LATAM Installed 3.6 0.9 4.9 1.0 3.9 1.7 Potential 7.2 5.1 74.3 3.6 35.0 36.4 STAR ENERGY ORMAT PERTAMINA CALPINE 16.5GW KENGEN REYKJAVIK 10x ABOITIZ ~ ENEL EDC CFE Global ins
Slide 16: Geothermal Development
GEOTHERMAL DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD Indonesia – Ijen 17(1) Q1 2025 ✓ Blue Mountain – New M&A 20 Q2 2025 ✓ New Zealand – Topp 2 50 Q4 2025 ✓ Still Water – upgrade Dominica 5 10 H2 2025 Q1 2026 ✓ ✓ 121MW Under development Salt Wells – upgrade 5 Q1 2026 ✓ across 9 pr
Slide 17: Solar Development
SOLAR DEVELOPMENT Project Projected Capacity (MW) Expected COD PPA 78MW Under development across 3 projects U.S. – Beowawe Solar 6 Q1 2025 ✓ U.S. – Arrowleaf 42 Q4 2025 ✓ U.S. – McGinness Hills Solar 14 End of 2026 ✓ Heber Complex expansion – New 22 2027 ✓ Commercial operation was completed COPYRIGH
Slide 18: Long Term View: Pipeline and PPA Recontracting
LONG TERM VIEW: PIPELINE AND PPA RECONTACTING ACCELERATED EXPLORATION NEGOTIATING PPA TO MAINTAIN A ROBUST PIPELINE WITH UPSIDE POTENTIAL PPA Price $/MWh 160 229MW 426MW with upside with upside potential potential 140 33 120 2 1 4 100 5 1 80 $88 $81 60 +40 40 geothermal sites under exploration & 20
Slide 19: Long Term View: Regulation
LONG TERM VIEW: REGULATION RISING DEMAND FOR GEOTHERMAL Faster permitting for geothermal projects under new energy emergency executive order1 Geothermal wins big in U.S. energy reform2 Full tax credits extended to projects start construction in 2033 BLM land actions Successfully secured BLM lands in
Slide 20: EGS Technologies
EGS TECHNOLOGIES DEDICATED LEADERSHIP Appointed senior management for exploration & drilling GROWTH CATALYST: EGS TECHNOLOGIES and EGS 20x more geothermal capacity TECHNOLOGY DEVELOPMENT • • • Advanced drilling techniques for asset optimization Strategic investments in EGS companies Signed commercia
Slide 21: Energy Storage Segment
ENERGY STORAGE SEGMENT
Slide 22: Driving Profitable Growth Through Strategic Market Expansion
DRIVING PROFITABLE GROWTH THROUGH STRATEGIC MARKET EXPANSION TARGET THE LARGEST AND MOST LUCRATIVE MARKETS: California and PJM 350MW/778MWh CURRENT OPERATING PORTFOLIO FOCUS ON STANDALONE ENERGY STORAGE Providing ancillary service, energy and capacity to the grid 4 1 2 EXPANSION TO NEW REGIONS New m
Slide 23: U.S. Market: Steep Growth Trajectory
U.S. MARKET: STEEP GROWTH TRAJECTORY U.S. FTM CUMULATIVE STORAGE DEPLOYMENT FORECAST (MW) 5x 106GW 5x Deployment growth 2023-2028 23GW 44% California & Texas 2023 2024 2025E 2026E 2027E 2028E California Texas Nevada Arizona Hawaii New York PJM (& NJ) All Others Source: Wood Mackenzie U.S. energy sto
Slide 24: Energy Storage Development
ENERGY STORAGE DEVELOPMENT Projected Projected Expected Battery Project Capacity ITC%1 PPA MWh COD Status (MW) Full TX – Lower Rio 60 120 40% Q3 2025 Installed Tolling CA – Arrowleaf 35 140 30% Q4 2025 Full Tolling Installed Merchant CA – Shirk 80 320 40% Q1 2026 & RA Installed contract Already in T
Slide 25: ITC Safe Harbor Secured for All Storage Projects Through 2028 and Beyond
ITC SAFE HARBOR SECURED FOR ALL STORAGE PROJECTS THROUGH 2028 AND BEYOND Strategic procurement processes ensure ITC eligibility for entire storage portfolio by 2028 Safe Harbor Secured for Safe Harbor Secured for 4 projects in 2024 2 Projects in 2025 With total capacity: TX – Lower Rio 200 MW / 600
Slide 26: Energy Storage Pipeline
ENERGY STORAGE PIPELINE 3.0GW / 11.0GWh 28 potential capacity of U.S. storage pipeline Named prospects GEOGRAPHICAL BREAKDOWN (MW) California 1,132 WECC 580 Others 445 Texas 400 Bottleneck storage facility, CA, USA East Coast1 395 1. East coast market includes PJM, ISO-NE, NYISO and SERC COPYRIGHT ©
Slide 27: Products Segment
PRODUCTS SEGMENT
Slide 28: Product Segment Overview
PRODUCT SEGMENT Primary provider of geothermal binary plants OVERVIEW Suppliers of geothermal power plants 2019 – 2024 capacity (MW) 54% 58% A market leader Binary Ormat BINARY Built approximately 190 power plants and 1,740 MW 936 MW TOTAL installed approx. 3,400 MW¹ of geothermal & REG over the yea
Slide 29: Product Segment
PRODUCT SEGMENT 3RD PARTY CONTRACTS ~$ 263M 27.7% Backlog1 Gross Margin increased by 59% vs. Q2 2024 compared to 13.7% vs. Q2 2024 BACKLOG ($M) GEOGRAPHIC BREAKDOWN2 7% 4% $340 3% $$314 6% $263 $152 $148 80% $54 New Zealand Dominica Guatemala $31 Portugal Others Salak, Indonesia, 15MW Q4'20 Q4'21 Q4
Slide 30: Focusing on Strategic Territories
FOCUSING ON STRATEGIC TERRITORIES 2.5 GW IN 5 years Expected release of geothermal binary capacity 80 MW 159 MW 655 MW 177 MW USA EUROPE TURKEY EAST ASIA 246 MW 202 MW 505 MW 432 MW LATAM & CARIBBEANS AFRICA INDONESIA NEW ZEALAND Source: Thinkgeoenergy.com and Ormat analysis COPYRIGHT © 2025 ORMAT T
Slide 31: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 32: Strong Capital Position
STRONG CAPITAL POSITION $ 551 M $ 185 M $ 295 M Total liquidity1 H1 2025 Cash Expected CapEx from Operation H2 20252 $ 2.5 B 4.4x 49% Net debt Net debt Net debt June 30 , 2025 to Adj. EBITDA3 to capitalization3 1. Cash, cash equivalents, restricted cash and available lines of credit as of June 30, 2
Slide 33: Strong Financial Positioning
STRONG FINANCIAL POSITIONING INSTALLED CAPACITY GROWTH (MW) REVENUES GROWTH ($M) 1,521 1.558 $880M $906M 1,285 290 290 $829M 1,095 1,158 $705M $734M 170 122 128 $663M 1,005 88 70 50 50 83 7 37 53 53 73 7 53 53 992 1,059 1,090 952 980 872 2020 2021 2022 2023 2024 June 30, 2020 2021 2022 2023 2024 LTM
Slide 34: Strong Financial Positioning
STRONG FINANCIAL POSITIONING TOTAL DEBT ($M) NET DEBT ($M)1 $2,699 $2,422 $2,493 $2,217 $2,027 $2,088 $1,908 $1,800 $1,801 $1,456 $1,521 $919 2020 2021 2022 2023 2024 June 31, 2020 2021 2022 2023 2024 June 30, 2025 2025 Project Finance Finance liability Corporate Debt NET DEBT TO CAPITALIZATION (TOT
Slide 35: 2025 Guidance & 2028 Growth Targets
2025 GUIDANCE & 2028 GROWTH TARGETS1 2025 Guidance ($M) (2) Total revenues Electricity Products Storage Adjusted EBITDA $935-975 $710-725 $172-187 $53-63 $563-593 vs $880 actual in YE 2024 vs $702 actual in YE 2024 vs $140 actual in YE 2024 vs $38 actual in YE 2024 vs $550 actual in YE 2024 REVENUES
Slide 36: Why Ormat: Attractive Investment Thesis
ATTRACTIVE WHY ORMAT INVESTMENT THESIS 01 02 03 STRONG FINANCIAL ROBUST GROWTH ESG POSITIONING POTENTIAL Strong balance sheet and Solid, consistent domestic growth Renewable asset growth in favorable leverage profile the U.S. supported by International geothermal growth favorable regulation Long-ter
Slide 37: ESG Progress
04 ESG PROGRESS COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 37
Slide 38: Sustainability Update
SUSTAINABILITY UPDATE AVOIDED EMISSIONS BOARD DIVERSITY 2024 SUSTAINABILITY REPORT Ormat’s operations avoided approx. Achieved 50% female representation 2,488,811 tCO2e in 2024– on the Board More than 11 times our Scope 1 and 2 emissions CDP RATING REPORTING REQUIREMENTS Maintained a ‘B’- ‘Managemen
Slide 39: Committed to Continued Profitable Growth - Thank You
COMMITTED TO CONTINUED PROFITABLE GROWTH THANK YOU IR@ORMAT.COM COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 39
Slide 40: Payment of Principal Due by Period
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M)1,2,3 AVERAGE INTEREST RATE: 4.95% ($ millions) Q3-2025 Q4-2025 Year 2025 Long-Term non-recourse & limited recourse debt 13.6 21.6 35.2 Long Term Loans Full Recourse 46.9 38.9 85.8 Finance Liability 3.2 - 3.2 Total $63.8 $60.5 $124.3 Remaining 2025 2026 2027 20
Slide 41: CapEx for 2025
CAPEX FOR 2025 Actual invested Total CapEx Total CapEx ($M) in H1 2025 for H2 2025 for 2025 Electricity Segment 172 190 362 Construction & Enhancements – fully released 99 85 184 Development enhancement, drillings and Exploration 28 85 113 Maintenance CapEx 45 20 65 Storage Segment 143 95 238 Produc
Slide 42: P&L Highlights
P&L HIGHLIGHTS Q2 2025 Q2 2024 Change (%) H1 2025 H1 2024 Change (%) GAAP MEASURES Revenues ($M) Electricity 159.9 166.2 (3.8) % 340.2 357.5 (4.8) % Product 59.6 37.8 57.6 % 91.4 62.7 45.8 % Energy Storage 14.5 8.9 62.7 % 32.2 17.0 89.8 % Total Revenues 234.0 213.0 9.9 % 463.8 437.1 6.1 % Gross Prof
Slide 43: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net income 28,199 23,965 69,233 64,315 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 34,753 31,112 67,913 60,241 In
Slide 44: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q2 2025 2024 2023 2022 2021 2020 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 88 94 196 96 240 448 Marketable Securities at fair value - - - - 43 - Restricted cash and cash equivalents 118