Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Q4 and FY2024 Earnings Presentation

35 slides from Ormat Technologies's earnings presentation, Feb 27, 2025

  1. Slide 1: Q4&YE 2024 Earnings Call

    Q4&YE 2024 ORMAT TECHNOLOGIES, INC. EARNINGS CALL FEBRUARY 27, 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: Q4 & YE 2024 Earnings Call Agenda

    Q4 & YE 2024 EARNINGS CALL AGENDA 01 02 03 04 Delivering strong Increasing our Advancing profitable Remaining committed financial performance portfolio growth to a sustainable future COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 3

  4. Slide 4: Business Highlights

    BUSINESS HIGHLIGHTS Cove Fort, Utah, USA, 18MW SINCE THE BEGINNING 0F 2024 Added 253MW of new capacity since the beginning of 2024 ELECTRICITY STORAGE PRODUCT Successful acquisition of Enel assets Signed 2 new tolling agreements & one Record backlog $340M including +6.1% +14.3% Resource Adequacy ~$2

  5. Slide 5: Financial Performance

    01 FINANCIAL PERFORMANCE COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 5

  6. Slide 6: Solid Financial Performance: 2024 Highlights

    SOLID FINANCIAL PERFORMANCE 2024 Highlights Q4'24 comparisons vs. Q4'23 Revenues Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $230.7M 31.9% $145.5M $0.67/$0.72 (4.4)% vs 32.5% +4.6% +13.6%/ +7.5% FY '24 comparisons vs. FY '23 Total Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $879.7M 31.0% $550.5M $

  7. Slide 7: Revenues by Segment

    REVENUES BY SEGMENT 2024 Q4'24 comparisons vs. Q4'23 Total Electricity Products Energy Storage 78% 17% $230.7M $180.1M $39.6M $11.0M Electricity Products (4.4)% (2.1)% (21.4)% +56.7% 5% Storage FY '24 comparisons vs. FY '23 Total Electricity Products Energy Storage 80% 16% $879.7M $702.3M $139.7M $3

  8. Slide 8: Gross Margin by Segment

    GROSS MARGIN BY SEGMENT 2024 Q4'24 comparisons vs. Q4'23 Total Electricity Products Energy Storage 31.9% 34.9% 24.5% 9.5% vs 32.5% vs 39.5% vs 12.6% vs (8.9)% FY '24 comparisons vs. FY '23 Total Electricity Products Energy Storage 31.0% 34.6% 18.4% 10.9% vs 31.8% vs 36.6% vs 13.4% vs 6.4% COPYRIGHT

  9. Slide 9: Adjusted EBITDA by Segment

    (1) ADJUSTED EBITDA BY SEGMENT 2024 Q4'24 comparisons vs. Q4'23 Total Electricity Products Energy Storage 89% 5% Electricity Products $145.5M $129.2M $7.9M $8.4M +4.6% +2.6% (23.5)% +201.1% 6% Storage FY '24 comparisons vs. FY '23 Total Electricity Products Energy Storage 89% 6% $550.5M $487.8M $34.

  10. Slide 10: Regulatory Boost: Financial Impact of IRA

    REGULATORY FINANCIAL IMPACT OF IRA BOOST Q4 2024 2025 outlook Income attributable to sale of tax Benefit under Income tax (provision) benefits ($M) Expecting $49 million benefit on an $20.0 $18.7 annual basis that will be recorded $4.0 proportionally throughout the year and $8.4 is expected to resul

  11. Slide 11: Cash and Net Debt

    CASH AND NET DEBT Cash and cash equivalents and restricted cash Net debt1 ($M) Successfully and cash equivalents ($M) raised $ 565M 3 of new debt in $ 12 FY 2024 $ 411 $275 $2,217 Non- Controlling & $1,801 Others $488 559 $ Cash from operating Acquisition 4.66% activities Weighted average $229 Inves

  12. Slide 12: Maintaining a Strong Capital Position

    MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH 4.0x Net debt to Access to multiple sources of liquid capital Adj. EBITDA2 $570M $667.1M Expected CapEx Total for FY 20251 liquidity3 46% Net debt to capitalization2 (1) For details on CapEx please see appendix slides (2) For key fi

  13. Slide 13: Operational and Business Update

    02 OPERATIONAL AND BUSINESS UPDATE Electricity update Product backlog Energy storage COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 13

  14. Slide 14: Electricity Operation

    ELECTRICITY OPERATION Global portfolio reached 1,248MW 1,2 Robust and balanced portfolio 1 954MW 3 30MW 5 150MW U.S. Honduras Kenya 10.0% 5.3% 158MW 2 40MW 4 15MW 6 59MW 1 Increase in generation, Revenue increase Under Guatemala Guadeloupe Indonesia excluding curtailments, vs FY 2023 development vs

  15. Slide 15: New PPAs

    NEW PPAS 3 new PPAs were signed with favorable prices Mammoth 2 Bouillante Repower Heber 1 • Term - 10-year PPA • Term - 30-year PPA • Term - 25-year PPA • Offtaker - Calpine Energy • Offtaker - EDF • Offtaker - SCPPA • Size - up to 15MW • Size – 10MW • Size - up to 52MW • Start – Jan 2027 • Start –

  16. Slide 16: Product Backlog

    PRODUCT BACKLOG 3RD PARTY CONTRACTS Record Backlog ($M) 3% $340 7% 2% 14% $152 $148 ~$ 340M 124% $31 $54 All times high Increase vs. 74% Q4'20 Q4'21 Q4'22 Q4'23 Q4/24 Backlog1 Q4 2023 98% ~$ 210M Geothermal Of new contract Geographic Breakdown contracts added in Q4 2024 New Zealand Dominica Guatemal

  17. Slide 17: Energy Storage Operation

    ENERGY STORAGE OPERATION Current operating portfolio 290MW/658MWh Storage revenues breakdown ($M) by type and region Signed 15-year RA agreement for Shirk 80MW/320MWh Q4 2024 YE 2024 Signed first tolling 37.8 agreements in Texas for 28.9 10.9 two facilities 7.7 (60MW/120MWh each) 11.0 7.0 3.9 26.9 1

  18. Slide 18: Advancing Profitable Growth

    03 ADVANCING PROFITABLE GROWTH COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 18

  19. Slide 19: Robust Growth Plan

    1 ROBUST GROWTH PLAN INSTALLED CAPACITY GROWTH Significantly 14%-16% CAGR increase Total additional capacity since geothermal & the beginning of 2024 2.6GW-2.8GW solar capacity +253MW Storage (MW) +660-7602 1.3GW 1.5GW Storage (MW) +120 Electricity (MW) + 20% Electricity (MW) +402-5022 Accelerate +1

  20. Slide 20: Geothermal Development

    GEOTHERMAL DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S – Beowawe Repowering 6 ✓ Indonesia – Ijen 17(1) NEW ✓ Under development: Dominica 10 Q4 2025 ✓ 102MW New Zealand – Topp 2 50 Q4 2025 ✓ from Cove Fort – upgrade 7 End of 2025 ✓ 8 projects Still Water – upgrade 5 End of 2025 ✓

  21. Slide 21: Solar Development

    SOLAR DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S. – Steamboat Hills Solar 5 ✓ U.S. – North Valley Solar 7 ✓ Under development: U.S. – Beowawe Solar 6 NEW ✓ 56MW U.S. – Arrowleaf 42 Q4 2025 ✓ from U.S. – McGinness Hills Solar 14 H2 2026 ✓ 2 projects Commercial operation was comp

  22. Slide 22: Energy Storage Development

    ENERGY STORAGE DEVELOPMENT Bottleneck storage facility, CA, USA 80MW/320MWh Projected Projected Expected Project Capacity ITC%1 PPA MWh COD (MW) NJ – East Flemington 20 20 30% Merchant Under development: CA – Bottleneck 80 320 40% Full Tolling 385 MW/ NJ – Montague 20 20 30% Merchant 1,300 MWh NEW f

  23. Slide 23: Energy Storage Pipeline

    ENERGY STORAGE PIPELINE ~2.9GW/10.7GWh 26 potential capacity of named U.S. storage pipeline prospects GEOGRAPHICAL BREAKDOWN (MW) 1 East Coast 195 Others 275 Texas 380 WECC 580 California 1,432 Bottleneck storage facility, CA, USA 80MW/320MWh 1) East coast market includes PJM, ISO-NE, NYISO and SERC

  24. Slide 24: 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 GROWTH2,3 IN STORAGE & ELECTRICITY 1.5GW + 14%-16% CAGR SEGMENTS 2024-2028E Storage Solar Geothermal 2024 2028E (1) For key financial

  25. Slide 25: Summary: Strengthening the Foundation, Driving Growth and Profitability

    SUMMARY: STRENGTHENING THE FOUNDATION, DRIVING GROWTH AND PROFITABILITY 2024 Accomplishments Policy navigation 01 253MW increase to our generating portfolio LT growth targets. 04 Adapting to evolving executive orders related to IRA tax credits and excited from potential easing Strong financial resul

  26. Slide 26: Remaining Committed to a Sustainable Future

    04 REMAINING COMMITTED TO A SUSTAINABLE FUTURE COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 26

  27. Slide 27: ESG Update

    ESG UPDATE 2023 Avoided Board Reporting Sustainability Emissions diversity Report Increased female Preparing to new SEC Released and posted Ormat’s portfolio representation regulation and in Ormat’s website avoided in 2023 to 44% alignment to TCFD 2,212,518 tCO2e requirements COPYRIGHT © 2025 ORMAT

  28. Slide 28: Summary and Q&A

    SUMMARY AND Q&A COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 28

  29. Slide 29: Thank You

    THANK YOU COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM COPYRIGHT © 2025 ORMAT TECHNOLOGIES, INC. 29

  30. Slide 30: Payment of Principal Due by Period ($M)

    PAYMENT OF PRINCIPAL DUE BY PERIOD ($M)1,2,3 AVERAGE INTEREST RATE: 4.66% ($ millions) Q1-2025 Q2-2025 Q3-2025 Q4-2025 Year 2025 Long-Term non-recourse & limited recourse debt 17.8 17.4 13.5 21.5 70.2 Long Term Loans Full Recourse 40.6 53.7 40.6 26.3 161.3 Finance Liability 0.9 - 3.3 - 4.2 Total $59

  31. Slide 31: CapEx for 2025

    CAPEX FOR 2025 Actual invested Total CapEx ($M) in 12-month 2024 for 2025 Electricity Segment 309 355 Construction & Enhancements – fully released 168 160 Development enhancement, drillings and Exploration 70 140 Maintenance CapEx 71 55 Storage Segment 168 200 Product Segment 11 15 Total 488 570 (1)

  32. Slide 32: P&L Highlights

    P&L HIGHLIGHTS Q4 2024 Q4 2023 YTD 2024 YTD 2023 GAAP MEASURES Revenues ($M) Electricity 180.1 183.9 702.3 666.8 Product 39.6 50.4 139.7 133.8 Energy Storage 11.0 7.0 37.7 28.9 Total Revenues 230.7 241.3 879.7 829.4 Gross Profit ($ millions) 73.6 78.5 272.6 264.0 Gross margin (%) Electricity 34.9% 3

  33. Slide 33: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Twelve-Months Ended December 31, Ended December 31, 2024 2023 2024 2023 Net income 42,625 38,833 131,241 133,137 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 33,136 23,440 126

  34. Slide 34: 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 Twelve-Months Ended December 31, December 31, 2024 2023 2024 2023 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders 40.8 35.7 123.7 124.4 Impact

  35. Slide 35: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES December 31, 2024 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 94 Restricted cash and cash equivalents 111 Total cash and cash equivalents, marketable securities and Restricted cash (in mi

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