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

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WEBVTT 00:00:00.031 -- 00:00:03.296 We recognize in the first quarter approximately 00:00:03.296 -- 00:00:05.296 60% 00:00:05.318 -- 00:00:10.406 of the segment expected annual revenue, gross profit, and 00:00:10.406 -- 00:00:12.406 EBITDA. 00:00:12.509 -- 00:00:18.317 The energy storage segment reported gross margin of 59.1% during the first quarter, 00:00:18.317 -- 00:00:22.984 making a significant improvement versus the prior year. 00:00:22.984 -- 00:00:27.770 The increase was driven by the effectiveness of our strategic approach to balance between 00:00:27.770 -- 00:00:31.518 contracted pricing and merchant exposure. 00:00:31.518 -- 00:00:36.625 For the full year 2026, we expect the storage segment gross margin to be approximately 00:00:36.625 -- 00:00:39.970 35% to 40%, reflecting 00:00:39.970 -- 00:00:45.178 the fact that we currently do not forecast similar merchant prices condition 00:00:45.178 -- 00:00:48.223 during the remainder of the year. 00:00:48.223 -- 00:00:53.631 Moving to slide eight, we collected $48.6 million in cash 00:00:53.631 -- 00:00:58.672 from monetizing PTCs and ITC through tax equity transactions. 00:00:58.672 -- 00:01:03.958 For the full year 2026, we expect to collect approximately $90 million from ITC 00:01:03.958 -- 00:01:09.024 tax equity transaction and PTC transfers, including ITC tax 00:01:09.024 -- 00:01:14.207 equity proceeds from the recently signed Burdock tax equity transaction. 00:01:14.310 -- 00:01:19.435 As we discussed during our fourth quarter call, in 2026, we expect 00:01:19.435 -- 00:01:24.461 to record a tax benefit driven by higher ITC level that will result 00:01:24.461 -- 00:01:29.164 in a negative tax rate of 15% to 20%. 00:01:29.755 -- 00:01:35.123 Slide nine detail our cash flow over the last three months, illu...