Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Q1 2025 Earnings Presentation

50 slides from Ormat Technologies's earnings presentation, May 8, 2025

  1. Slide 1: Q1 2025 Ormat Technologies, Inc. Investor Presentation

    Q1 2025 ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MAY 2025 COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 1

  2. 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

  3. Slide 3: Introduction

    INTRODUCTION COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 3 3

  4. Slide 4: A Leading Renewable Energy Provider

    A LEADING RENEWABLE CD4, Mammoth Complex, NV, USA, 65MW ENERGY PROVIDER WITH A PROVEN TRACK RECORD IN GEOTHERMAL AND ENERGY STORAGE With Own & operate 60 1.5GW ~ 1,500 Years of Geothermal, Storage, Employees experience Solar PV & REG1 $ 880M $ 550M $ 124M 2024 revenues 2024 adj. EBITDA2 2024 Net inc

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 80% 16% 4% Of 2024 Of 2024 Of 2024 revenues revenues revenues ELECTRICITY PRODUCT ENERGY STORAGE Develop, build, own and operate Design, manufacture and sell Growing to establish geothermal, solar and recovered equipment for geothermal and leading position in the energy-based (

  6. Slide 6: Business Highlights

    BUSINESS HIGHLIGHTS Ijen, Indonesia 17 MW1 Q1 2025 +2.5% +6.4% Revenues Record +4.6% quarterly EBITDA net income attributable to the Company’s stockholders ELECTRICITY STORAGE PRODUCT 23MW was added since Revenues grew by backlog stands at the beginning of the year $314 million Working to mitigate a

  7. Slide 7: Maintaining a Strong Capital Position

    MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH 4.2x Net debt to Access to multiple sources of liquid capital Adj. EBITDA2 $419M $690.6M Expected CapEx Total for Q2-Q4 20251 liquidity3 47% Net debt to capitalization2 (1) For details on CapEx please see appendix slides (2) For key

  8. Slide 8: Electricity

    ELECTRICITY COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 8 8

  9. Slide 9: Geothermal Market

    GEOTHERMAL MARKET 1st Largest geothermal owner & operator1 STAR ENERGY PERTAMINA ORMAT CALPINE² Reykjavik KENGEN ABOITIZ ENEL EDC CFE ~ 16.5GW Ring of fire Global installed geothermal capacity1 10x Global potential EU Africa ASIA Oceania U.S LATAM vs. installed 1 Installed 3.6 0.9 4.9 1.0 3.9 1.7 Po

  10. Slide 10: Overview

    OVERVIEW Generates firm & flexible power Diversified portfolio 2022 revenue geographic breakdown 1 954 MW U.S. 3 30 MW Honduras 5 150 MW Kenya 1,248MW 76% U.S. 24% International Geothermal, Solar PV & REG 2 40 MW 4 15 MW 6 59 MW1 Guatemala Guadeloupe Indonesia 86% Growing portfolio Geothermal assets

  11. Slide 11: Blue Mountain Acquisition

    BLUE MOUNTAIN ACQUISITION Signed an agreement to acquire the 20MW Blue Mountain geothermal power plant from Cyrq Energy Acquisition priced at $88M Originally built by Ormat in 2009 CLOSING IS EXPECTED AT THE END OF JUNE Current PPA with NV Energy expiring end of 2029 Potential higher rate at renewal

  12. Slide 12: Key Factors Driving Ormat's Accelerated Geothermal Development in the U.S.

    KEY FACTORS DRIVING ORMAT’S ACCELERATED GEOTHERMAL DEVELOPMENT IN THE U.S. INCREASED DEMAND PPAS IRA EXPLORATION For renewable high- Price increase Strong tailwind Extended drilling activity capacity factor power from tax benefits sources COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 12

  13. Slide 13: Key Drivers - Demand

    KEY DRIVERS - DEMAND 35GW-47GW incremental power demand expected by 20301,2 Data Centers Electrification EVs Reshoring AI and cloud-driven Homes and businesses sales were up Increase in construction data centers sparking use more electricity 50% to ~ 1.46 M of manufacturing facilities a surge in ene

  14. Slide 14: Increased PPA Prices Support Long-Term Portfolio Growth

    INCREASED PPA PRICES SUPPORT LONG-TERM PORTFOLIO GROWTHOver 250 MW PORTFOLIO PPA APPROACH portfolio TO STREAMLINE DEVELOPMENT PPA under negotiation $/MWh 110 Signed two PPAs 100 Negotiating 150MW Up to 260 MW with Hyper-scalers at 90 portfolio portfolio PPA rates over 80 PPA signed signed $100/MWh 7

  15. Slide 15: Regulatory Boost: Financial Impact of IRA

    REGULATORY FINANCIAL IMPACT OF IRA BOOST Q1 2025 2025 outlook Income attributable to sale of tax Benefit under Income tax (provision) benefits ($M) Expecting $46 million benefit on an annual basis that will be recorded $17.5 $17.6 proportionally throughout the year and 4.4 is expected to resulted in

  16. Slide 16: Accelerated Exploration

    ACCELERATED EXPLORATION SUPPORTED BY INCREASING LAND POSITION Secures strategic land position in Nevada Extensive exploration and Utah and drilling campaigns Expected ~4x 30 Expending exploration activities outside CA 25 and NV 20 Impact of Permitting 15 Delays and COVID-19 10 Process from core hole

  17. Slide 17: Tariffs Reform Impact

    TARIFFS REFORM IMPACT Electricity Segment Storage Segment We do not anticipate a significant impact of tariffs We do not anticipate a significant impact on on geothermal operations or development storage operation or development on the short term Expects a slight increase in CAPEX in 2025 All batter

  18. Slide 18: Electricity Segment - Summary

    ELECTRICITY SEGMENT - SUMMARY GROWTH DRIVERS: & NEW ZEALAND TARGETED GROWTH (MW): 1,650-,1,750 1,248 1,012 1,070 +17% +32% - 40% 914 +11% +6% 2019 2021 2022 2024 2028E Geothermal Solar PV COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 18 Note: Please see appendix for detailed list of projects including M

  19. Slide 19: Storage

    STORAGE COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 19 19

  20. Slide 20: Steep Growth Trajectory

    Bottleneck storage facility, CA, USA 80MW/320MWh STEEP GROWTH TRAJECTORY California & Texas continue to lead the growth U.S. FTM cumulative storage deployment forecast (MW) 4x 84GW 20GW 51% California & Texas 2022 2023 2024 2025E 2026E 2027E 2028E California Texas Nevada Arizona Hawaii New York PJM

  21. Slide 21: Energy Storage Target the Largest and Most Lucrative Markets

    ENERGY STORAGE 4 01 TARGET THE LARGEST AND MOST LUCRATIVE MARKETS: California, Texas, and PJM 1 3 02 FOCUS ON STANDALONE ENERGY STORAGE 2 Providing ancillary service, energy and capacity to the grid EXPANSION TO NEW REGIONS 290MW/658MWh 03 Short-term: additional markets in the U.S. Mid-term: interna

  22. Slide 22: Key Factors Driving Ormat's Accelerated Energy Storage Development

    KEY FACTORS DRIVING ORMAT’S ACCELERATED ENERGY STORAGE DEVELOPMENT 38% DECREASE IN LITHIUM PRICES YTD1 YTD Lithium Carbonate Price (CNY/T) 109,420 120,000 100,000 80,000 IRA Batteries Increased demand Strong pipeline 67,100 70,000 Tax benefits price reduction for RA and tolling in CA with secured Ju

  23. Slide 23: Ormat's Storage Pipeline

    ORMAT’S STORAGE PIPELINE Montague storage facility, NJ, USA 20MW/20MWh 385MW/ 1,300MWh 6 under development projects ~3.2GW / 12.0GWh 31 potential capacity prospects of total pipeline California 1,132 U.S. storage East Coast 595 pipeline WECC 580 GEOGRAPHIC Texas 480 BREAKDOWN Others 1 445 IN MW 1) E

  24. Slide 24: Ormat Energy Storage Development

    ORMAT ENERGY STORAGE DEVELOPMENT Energy storage by MW Energy storage by MWh 3,000 2,500-2,900 2,500 982 2,000 1,060 1,500 950-1,050 56% - 58% 41% - 42% 1,000 2019-2028E CAGR 2019-2028E 325 CAGR 658 385 360 290 500 83 88 170 196 298 43 73 136 176 658 10 5 82 120 290 46 40 20 102 298 30 83 88 170 45 9

  25. Slide 25: Products

    PRODUCTS COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 25 2

  26. Slide 26: Product Segment Overview

    PRODUCT SEGMENT Primary provider of geothermal binary plants Suppliers of geothermal power plants 2018 – 2023 capacity (MW) OVERVIEW 61% 74% Binary Ormat A market leader 1,939 BINARY MW TOTAL Built approximately 190 power plants and installed approx. 3,400 MW of Kaishan 13% geothermal & REG over the

  27. Slide 27: Focusing on Strategic Territories

    FOCUSING ON STRATEGIC TERRITORIES(MW) 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 ORM

  28. Slide 28: Product Backlog

    PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTIES’ CONTRACTS ~$ 314M 142% Record Increase vs. 1 backlog Q1 2024 1 Backlog ($M) Geographic Breakdown $340 10% $314 3% 6% 3% $148 $152 78% $54 $31 Q4/20 Q4/21 Q4/22 Q4/23 Q4/24 New Zealand Dominica Salak, Indonesia, 15MW 1) Backlog as of May 6th, 2025. The backl

  29. Slide 29: Growth

    GROWTH COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 29 2

  30. Slide 30: Robust Growth Plan

    ROBUST GROWTH PLAN1 2.6GW – 2.8GW 69% - 82% 2028 portfolio target Expected MW growth driven by successful vs 2024 expansion efforts Significantly Accelerate increase solar storage capacity & geothermal to establish leading position in the U.S. capacity storage sector Cove Fort, Utah, USA, 18MW 1) Th

  31. Slide 31: 2028 Growth Target by Segments

    2028 GROWTH TARGET1 CD4 part of Mammoth complex, CA, USA 65MW BY SEGMENTS GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE YE 2028 TARGET 1,650MW-1,750MW 950MW-1,050MW/ 2.5 GWh-2.9 GWh MW ADDITION (VS END OF 2024) 402MW-502MW 660MW-760MW MW GROWTH 32%-40% 227%-262% Note: Change in MW growth is compared to a

  32. Slide 32: Geothermal Development

    GEOTHERMAL DEVELOPMENT Projected Expected Project Capacity PPA COD (MW) Indonesia – Ijen 17(1) Q1 2025 ✓ Under Blue Mountain – New M&A 20 End of Q2 2025 ✓ development: New Zealand – Topp 2 50 Q4 2025 ✓ 116 MW Still Water – upgrade 5 H2 2025 ✓ from Dominica 10 End of 2025 ✓ 8 projects Salt Wells 5 Q1

  33. Slide 33: Solar Development

    SOLAR DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S. – Beowawe Solar 6 Q1 2025 ✓ Under U.S. – Arrowleaf 42 Q4 2025 ✓ development: 56 MW U.S. – McGinness Hills Solar 14 End of 2026 ✓ from 2 projects Commercial operation was completed 1) Subject to PPA approval COPYRIGHT © 2025 ORMA

  34. Slide 34: Energy Storage Development

    ENERGY STORAGE DEVELOPMENT Arrowleaf Storage and Solar PV Facility Under Construction, CA, USA - Featuring 35MW/140MWh Storage Capacity and 42MW Solar Output Projecte Projected Expected Battery Project Capacity ITC%1 PPA MWh COD Status (MW) Full Already in Under TX – Lower Rio 60 120 40% Q3 2025 Tol

  35. Slide 35: 2025 Guidance ($M)

    2025 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA $935-975 $710-725 $172-187 $53-63 $563-593 TRANSITIONING TO 2.6GW-2.8GW ACCELERATED GROWTH IN STORAGE & ELECTRICITY 1.5GW + 14%-16% CAGR SEGMENTS 2024-2028E Storage Solar Geothermal 2024 2028E (1) For key financial re

  36. Slide 36: Investment Highlights

    INVESTMENT HIGHLIGHTS COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 36 3

  37. Slide 37: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenues growth ($m) 1,521 1.538 $880M $885M 1,285 290 290 $829M $705M $734M 1,095 1,158 $663M 170 122 128 1,005 88 70 50 50 83 7 37 53 53 73 7 53 53 980 992 1,059 1,070 872 952 2020 2021 2022 2023 2024 March 31, 2020 2021 2022 2023 2024 LT

  38. Slide 38: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)1 $2,563 $2,422 $2,338 $2,217 $2,027 $2,088 $1,908 $1,800 $1,801 $1,456 $1,521 $919 2020 2021 2022 2023 2024 March 31, 2020 2021 2022 2023 2024 March 31, 2025 2025 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (T

  39. Slide 39: ESG

    ESG COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 39

  40. Slide 40: Highlights

    HIGHLIGHTS Environmental 2.2 M tCO2e AVOIDED emissions compared to the local grid, only in 2023 28% Reduction in GHG emissions intensity (tCO2e/MWh) compared with 2019 baseline 17% Absolute reduction in Scope 1 and 2 GHG emissions compared with 2019 baseline CDP - achieved a “Management” (B) score r

  41. Slide 41: Highlights

    HIGHLIGHTS Governance COMMITMENT TO UPHOLDING THE HIGHEST STANDARDS ACROSS THE ORGANIZATION Our corporate governance practice is defined by honesty, openness and fairness We are constantly improving our governance and our level of disclosure on related topics, such as anti-corruption, executive remu

  42. Slide 42: Attractive Investment Thesis

    ATTRACTIVE INVESTMENT THESIS 01 02 03 Strong financial positioning Robust growth potential Sustainability Strong balance sheet and favorable Significant, consistent Renewable asset growth leverage profile domestic growth in the U.S. supported by favorable regulation Long-term contracted Internationa

  43. Slide 43: Thank You

    THANK YOU COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 43

  44. Slide 44: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 44

  45. Slide 45: Payment of Principal Due by Period ($M)

    PAYMENT OF PRINCIPAL DUE BY PERIOD ($M)1,2,3 AVERAGE INTEREST RATE: 4.79% ($ millions) Q2-2025 Q3-2025 Q4-2025 Year 2025 Long-Term non-recourse & limited recourse debt 17.5 13.5 21.5 52.6 Long Term Loans Full Recourse 59.5 45.3 34.1 138.9 Finance Liability - 3.2 - 3.2 Total $76.9 $62.1 $55.7 $194.7

  46. Slide 46: CapEx for 2025

    CAPEX FOR 2025 ACTUAL INVESTED TOTAL CAPEX TOTAL CAPEX ($M) IN Q1 2025 FOR Q2-Q4 2025 FOR 2025 Electricity Segment 75 275 350 Construction & Enhancements – fully released 47 125 172 Development enhancement, drillings and Exploration 4 120 124 Maintenance CapEx 24 30 54 Storage Segment 94 130 224 Pro

  47. Slide 47: P&L Highlights

    P&L HIGHLIGHTS Q1 2025 Q1 2024 Change (%) GAAP MEASURES Revenues ($M) Electricity 180.2 191.3 (5.8) % Product 31.8 24.8 27.9 % Energy Storage 17.8 8.1 119.7 % Total Revenues 229.8 224.2 2.5 % Gross Profit ($ millions) 72.9 78.8 (7.5) % Gross margin (%) Electricity 33.5% 39.0% -550 bps Product 22.3%

  48. Slide 48: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Ended March 31, 2025 2024 Net income 41,034 40,350 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 33,160 29,129 Income tax provision (benefit) (3,795) (147) Adjustment to invest

  49. Slide 49: Reconciliation of Adjusted Net Income and Adjusted EPS

    RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS AND ADJUSTED EPS Three Months Ended March 31, 2025 2024 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders 40.4 38.6 Write-off of unsuccessful exploration and storage activities 0.4

  50. Slide 50: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2025 2024 2023 2022 2021 2020 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 113 94 196 96 240 448 Marketable Securities at fair value - - - - 43 - Restricted cash and cash equivalents 112 1

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