Ormat Technologies, Inc. (ORA) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

We recognize in the first quarter approximately 60% of the segment expected annual revenue, gross profit, and EBITDA. The energy storage segment reported gross margin of 59.1% during the first quarter, making a significant improvement versus the prior year. The increase was driven by the effectiveness of our strategic approach to balance between contracted pricing and merchant exposure. For the full year 2026, we expect the storage segment gross margin to be approximately 35% to 40%, reflecting the fact that we currently do not forecast similar merchant prices condition during the remainder of the year. Moving to slide eight, we collected $48.6 million in cash from monetizing PTCs and ITC through tax equity transactions. For the full year 2026, we expect to collect approximately $90 million from ITC tax equity transaction and PTC transfers, including ITC tax equity proceeds from the recently signed Burdock tax equity transaction. As we discussed during our fourth quarter call, in 2026, we expect to record a tax benefit driven by higher ITC level that will result in a negative tax rate of 15% to 20%. Slide nine detail our cash flow over the last three months, illustrating OMAD's ability to generate strong cash flow, which allow us to reinvest in our strategic growth, while servicing debt obligation and returning capital to shareholders. Cash and cash equivalents, and restricted cash and cash equivalents, as of March 31st, 2026, were approximately $763 million, compared to approximately $281 million at the end of 2025. Our total debt as of March 31st, 2026 was approximately $3.4 billion net of deferred financing cost. And our cost of debt decreased significantly following the recent convertible notes offering to 3.9%. Moving to slide 10, our net debt as of March 31st, ...