Ormat Technologies Reports Second Quarter 2026 Financial Results

About this update from Ormat Technologies, Inc.

Continued Execution on Ormat's Growth Strategy Drove Double-Digit Revenue Growth While Advancing EGS Development HIGHLIGHTS CONTINUED STRONG OPERATING PERFORMANCE DROVE 10.6% REVENUE GROWTH, 20.8% GROSS PROFIT GROWTH AND 6.9% GROWTH IN ADJUSTED EBITDA ENERGY STORAGE REVENUES NEARLY TRIPLED YEAR-OVER-YEAR, BENEFITING FROM FAVORABLE MERCHANT PRICING AND NEW CAPACITY ADDITIONS ADVANCED THE COMPANY'S EGS STRATEGY THROUGH CONTINUED EXECUTION OF TWO PILOT PROGRAMS AND THE INTRODUCTION OF THE ORMEGA100 SURFACE GENERATION UNIT ORMAT INCREASES ITS FULL-YEAR REVENUE AND ADJUSTED EBITDA GUIDANCE RENO, Nev., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced financial results for the second quarter ended June 30, 2026. KEY FINANCIAL RESULTS   Q2 2026 Q2 2025 Change (%) H1 2026 H1 2025 Change (%) GAAP Measures             Revenues ($ millions)             Electricity 169.3 159.9 5.8% 350.9 340.2 3.1% Product 46.7 59.6 (21.6)% 224.1 91.4 145.3% Energy Storage 42.8 14.5 195.1% 87.7 32.2 172.0% Total Revenues 258.8 234.0 10.6% 662.7 463.8 42.9% Gross Profit 68.7 56.9 20.8% 189.1 129.8 45.6%               Gross margin (%)             Electricity 23.7% 24.2%   27.4% 29.1%   Product 9.7% 27.7%   19.0% 25.8%   Energy Storage 56.2% 11.9%   57.7% 22.2%   Gross margin (%) 26.5% 24.3%   28.5% 28.0%                 Operating income ($ millions) 34.2 35.3 (3.2)% 114.5 86.2 32.7% Net income attributable to the Company’s stockholders 27.1 28.0 (3.4)% 71.2 68.4 4.0% Diluted EPS ($) 0.43 0.46 (6.5)% 1.14 1.12 1.8%               Non-GAAP Measures             Adjusted Net income attributable to the Company’s stockholders 31.0 29.1 6.5% 111.3 70.6 57.6% Adjusted Diluted EPS ($) 0.50 0.48 4.2% 1.79 1.16 54.3% Adjusted EBITDA 1 ($ millions) 143.9 134.6 6.9% 338.8 284.9 18.9% 1 See reconciliation table below “Our second quarter results reflect the continued successful execution of our diversified growth strategy. We delivered double-digit revenue growth while expanding gross profit by more than 20%, reflecting the strength and balance of our three operating segments. Based on our strong first-half performance and positive momentum across our business, we are raising our full-year 2026 revenue and Adjusted EBITDA guidance," said Doron Blachar, Chief Executive Officer of Ormat. Blachar continued, "Our Electricity segment built on its growth momentum during the quarter, driven by contributions from our Blue Mountain geothermal power plant acquired in June 2025, improved performance at our Olkaria and Puna power plants, and lower curtailments in the USA compared to the prior-year period. Our Energy Storage segment delivered another outstanding quarter, with revenues increasing nearly threefold year-over-year. The combination of new capacity additions, high asset availability and favorable merchant pricing highlights the value of our strategy of combining long-term contracted revenues with selective merchant exposure to maximize returns while maintaining disciplined risk management." Blachar added, "Beyond our strong quarterly results, we continue to execute on the projects that will drive our growth. Since the start of the year, we expanded our generation portfolio by 155 MW with the addition of the Hoku solar and energy storage facility, the Shirk energy storage facility, the completion of the 5 MW Cove Fort upgrade and the recent commencement of commercial operations at our 10 MW Dominica geothermal power plant. Today, we have 202 MW of electricity generation projects under construction and development, all backed by long-term PPAs, together with 497 MW / 1,888 MWh of energy storage projects under construction and development, providing strong visibility into our continued growth. Combined with increasing demand for reliable renewable electricity and improving power pricing, these developments reinforce our confidence in achieving our long-term growth objectives." EGS UPDATE Blachar commented, “We continued to make significant progress on our EGS strategy during the quarter. On the subsurface side, we advanced both the SLB and Sage Geosystems pilot projects toward field execution, with each partnership taking concrete steps toward commercial-scale validation. At the Desert Peak project with SLB, we completed geophysical data acquisition, updated the subsurface model, advanced permitting and procurement of long-lead materials, and entered the final stages of vendor selection ahead of planned drilling in the fourth quarter of 2026. At the Sage Geosystems pilot, we selected a power plant in Nevada, advanced permitting activities, neared completion of procurement for drilling services and equipment and progressed engineering work to integrate the two-well EGS facility into the selected Ormat power plant. We are also actively working to expand our substantial geothermal land position and water rights to support future EGS development, in addition to applying for new interconnections, recognizing that building a strong EGS pipeline will enable us to accelerate our project development. On the surface technology side, we introduced our Ormega100 surface generation unit, a significant advancement in our ability to convert subsurface EGS resources into grid-scale power by connecting upstream development capabilities with downstream generation at an accelerated pace. Together with our growing pipeline of partnership opportunities, we anticipate that these initiatives position Ormat to accelerate the commercialization of EGS technology and capture increasing demand for next-generation geothermal power." FINANCIAL HIGHLIGHTS Net income attributable to stockholders for the three months ended June 30, 2026, was $27.1 million, or $0.43 per diluted share, compared to $28.0 million, or $0.46 per diluted share, in the prior year period. The decrease was primarily driven by a $6.6 million write-off of storage projects that we decided to no longer pursue. Adjusted net income for the three months ended June 30, 2026, was $31.0 million, or $0.50 per diluted share, compared to $29.1 million, or $0.48 per diluted share, in the prior year period. The increase reflects strong underlying performance across our operating segments. Adjusted EBITDA for the three months ended June 30, 2026, increased 6.9% to $143.9 million, reflecting strong contributions from our Energy Storage segment, which benefited from elevated merchant revenues and portfolio expansion. Electricity segment revenues increased 5.8% quarter-over-quarter, primarily driven by contributions from the Blue Mountain acquisition, improved generation at the Puna and Olkaria facilities, higher energy rates at the Puna power plant and lower curtailments compared to the prior-year period. This increase was partially offset by planned maintenance activities. Energy Storage revenues for the three months ended June 30, 2026, increased 195.1% in the second quarter compared to the prior-year period. Growth was driven by the high availability of our assets, which allowed us to capitalize on strong merchant pricing in the PJM market, as well as new portfolio capacity additions over the past 12 months. Ormat’s optimized mix of merchant and contracted revenues supported margin expansion. Product segment revenues for the three months ended June 30, 2026, declined due to the timing of manufacturing and construction progress, while first-half results continue to reflect strong execution driven by the Topp 2 sale. Product segment gross Margin (%) during the quarter declined to 9.7% due to high expenses related to the construction costs of a project in Europe and the impact of the changes in exchange rate on our overall manufacturing costs. We are expecting gross margin to improve in the second half of the year. Product backlog stood at approximately $202.8 million as of August 5, 2026, providing continued visibility into future revenue generation. BUSINESS HIGHLIGHTS In July 2026, we achieved commercial operation of our 10 MW Dominica geothermal power plant, demonstrating continued execution of the Company's global development pipeline. In June 2026, we completed the 5 MW upgrade at the Cove Fort geothermal facility, enhancing the performance and profitability of the asset acquired in 2024. In August 2026, we decided to move forward with the development of the 100 MW / 400 MWh Denali energy storage facility in California. Upon completion, expected by the end of 2028, the project is anticipated to provide energy storage services under a 20-year tolling agreement with Clean Power Alliance. In May 2026, we secured a unique exploration financing facility for up to $40 million with PT Sarana Multi Infrastruktur (SMI), Indonesia's state-owned infrastructure bank, for the Wapsalit geothermal project. Structured under the World Bank's Geothermal Resource Risk Mitigation (GREM) Program, the facility provides a risk-sharing mechanism that significantly reduces exploration risk and supports the continued expansion of Ormat's geothermal development activities in Indonesia. 2026 GUIDANCE Total revenues are expected to be between $1,150 million and $1,200 million. Electricity segment revenues of between $710 million and $725 million. Product segment revenues of between $300 million and $320 million. Energy Storage revenues of between $140 million and $155 million. Adjusted EBITDA is expected to be between $630 million and $650 million. Of which approximately $17.0 million is attributable to minority interest. The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and six months ended June 30, 2026. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts, the probable significance of which cannot be determined. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA. DIVIDEND On August 5, 2026, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on September 2, 2026, to stockholders of record as of the close of business on August 19, 2026. In addition, the Company expects to pay a dividend of $0.12 per share in the next quarter. CONFERENCE CALL DETAILS Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on August 6, 2026, at 10:00 a.m. ET. Participants within the United States and Canada, please dial 1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-307-1963. The access code for the call is 3818407. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast on the  Investor Relations section of the Company's website.   A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 3818407. The webcast will also be archived on the  Investor Relations section of the Company's website.   ABOUT ORMAT TECHNOLOGIES With six decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in energy storage and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,600MW of gross capacity. Ormat leverages its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,850MW with a 1,355MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, Dominica and Guadeloupe, and a 495MW energy storage portfolio that is located in the U.S. ORMAT’S SAFE HARBOR STATEMENT Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, technological changes, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may,” “will,” “could,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “intends,” “targets,” “goal”, “outlook,” “guidance,” “contemplate,” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives, goals and expectations for future operations and are based upon management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives.  Actual future results may differ materially from those projected as a result of certain risks and uncertainties, including risks related to regulatory changes, geopolitical developments, commodity prices, interest rates, supply chain disruptions, and other risks described under "Risk Factors" in Ormat’s most recent Annual Report on Form 10-K, and in subsequent filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES Condensed Consolidated Statement of Operations   Three Months Ended June 30, Six Months Ended June 30,   2026 2025 2026 2025   (Dollars in thousands, except per share data) Revenues:         Electricity 169,253 159,912 350,856 340,153 Product 46,739 59,612 224,122 91,381 Energy storage 42,772 14,494 87,697 32,246 Total revenues 258,764 234,018 662,675 463,780 Cost of revenues:         Electricity 129,121 121,236 254,865 241,069 Product 42,217 43,118 181,626 67,802 Energy storage 18,728 12,769 37,117 25,087 Total cost of revenues 190,066 177,123 473,608 333,958 Gross profit 68,698 56,895 189,067 129,822 Operating expenses:         Research and development expenses 1,501 1,439 2,633 3,981 Selling and marketing expenses 5,968 4,370 11,545 8,542 General and administrative expenses 21,104 19,786 48,440 37,695 Other operating income (1,000) (4,269) (5,125) (7,394) Impairment of long-lived assets 316 — 8,428 — Write-off of unsuccessful exploration and storage activities 6,611 251 8,693 767 Operating income 34,198 35,318 114,453 86,231 Other income (expense):         Interest income 7,071 1,929 8,501 3,242 Interest expense, net (43,938) (36,682) (88,931) (71,155) Derivatives and foreign currency transaction gains (losses) 274 5,068 (1,263) 7,128 Income attributable to sale of tax benefits 16,553 16,251 33,174 33,822 Other non-operating income (expense), net 3,001 76 (20,144) 298 Income from operations before income tax and equity in earnings (losses) of investees 17,159 21,960 45,790 59,566 Income tax (provision) benefit 9,666 5,466 25,136 9,261 Equity in earnings (losses) of investees, net (811) 773 (299) 406 Net income 26,014 28,199 70,627 69,233 Net income attributable to noncontrolling interest 1,072 (153) 527 (825) Net income attributable to the Company's stockholders 27,086 28,046 71,154 68,408 Earnings per share attributable to the Company's stockholders:         Basic: 0.44 0.46 1.16 1.13 Diluted: 0.43 0.46 1.14 1.12 Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:         Basic 61,484 60,689 61,225 60,624 Diluted 62,534 61,019 62,567 60,973           ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES Condensed Consolidated Balance Sheet   June 30, 2026   December 31, 2025 ASSETS Current assets:       Cash and cash equivalents 513,747   147,448 Restricted cash and cash equivalents (primarily related to VIEs) 144,399   133,418 Receivables:       Trade less allowance for credit losses of $476 and $308, respectively (primarily related to VIEs) 172,568   164,772 Other 38,998   36,711 Inventories 47,292   45,268 Costs and estimated earnings in excess of billings on uncompleted contracts 46,990   30,011 Prepaid expenses and other 56,782   40,141 Total current assets 1,020,776   597,769 Investment in an unconsolidated companies 204,154   162,111 Deposits and other (primarily related to VIEs) 177,282   137,744 Deferred income taxes 137,894   138,903 Property, plant and equipment, net ($3,583,076 and $3,460,079 related to VIEs, respectively) 3,789,740   3,672,569 Construction-in-process ($360,291 and $392,644 related  to VIEs, respectively) 975,428   1,048,174 Operating leases right of use ($24,671 and $17,236 related to VIEs, respectively) 50,572   41,756 Finance leases right of use (none related to VIEs) 4,334   4,690 Intangible assets, net 260,043   274,548 Goodwill 168,022   168,244 Total assets 6,788,245   6,246,508 LIABILITIES AND EQUITY Current liabilities:       Accounts payable and accrued expenses 182,216   234,757 Short term revolving credit lines with banks (full recourse) —   80,000 Commercial paper (less deferred financing costs of $14 and $17, respectively) 99,986   99,983 Convertible senior notes (less deferred financing costs of $4,990) 360,585   — Billings in excess of costs and estimated earnings on uncompleted contracts 12,265   13,159 Current portion of long-term debt:       Limited and non-recourse (primarily related to VIEs): 87,540   79,885 Full recourse 216,285   214,207 Current portion of financing liability 9,962   9,749 Operating lease liabilities 5,359   4,764 Finance lease liabilities 1,689   1,884 Total current liabilities. 975,887   738,388 Long-term debt, net of current portion:       Limited and non-recourse (primarily related to VIEs and less deferred financing costs of $15,131 and $13,488, respectively) 684,416   645,803 Full recourse (less deferred financing costs of $3,657 and $4,248, respectively) 895,899   1,009,090 Convertible senior notes (less deferred financing costs of $18,545 and $4,103, respectively) 806,455   472,334 Financing liability 203,822   206,647 Operating lease liabilities 36,955   29,760 Finance lease liabilities 2,705   2,850 Liability associated with sale of tax benefits 175,423   190,168 Deferred income taxes 73,343   68,661 Liability for unrecognized tax benefits 6,073   10,378 Liabilities for severance pay 13,110   11,942 Asset retirement obligation 141,118   135,574 Other long-term liabilities 29,054   33,637 Total liabilities 4,044,260   3,555,232         Redeemable noncontrolling interest 9,906   10,402         Equity:       The Company's stockholders' equity:       Common stock, par value $0.001 per share; 200,000,000 shares authorized; 61,980,201 and 61,104,078 shares issued; 61,496,941 and 60,845,411 shares outstanding, respectively 62   61 Additional paid-in capital 1,672,309   1,654,635 Treasury stock, at cost (483,260 and 258,667 shares held, respectively) (42,359)   (17,964) Retained earnings 965,781   909,343 Accumulated other comprehensive income (loss) 1,786   (2,132) Total stockholders' equity attributable to Company's stockholders 2,597,579   2,543,943 Noncontrolling interest 136,501   136,931 Total equity 2,734,080   2,680,874 Total liabilities, redeemable noncontrolling interest and equity 6,788,245   6,246,508 ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES Reconciliation of EBITDA and Adjusted EBITDA We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; (viii) allowance for bad debts;  and (ix) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2026, and 2025:   Three Months Ended June 30,   Six Months Ended June 30,     2026       2025       2026       2025     (Dollars in thousands)   (Dollars in thousands) Net income $ 26,014     $ 28,199     $ 70,627     $ 69,233   Adjusted for:               Interest expense, net (including interest income and amortization of deferred financing costs)   36,867       34,753       80,430       67,913   Income tax provision (benefit)   (9,666 )     (5,466 )     (25,136 )     (9,261 ) Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen   3,570       3,856       7,060       7,277   Depreciation, amortization and accretion   77,158       70,676       151,501       139,832   EBITDA $ 133,943     $ 132,018     $ 284,483     $ 274,994   Mark-to-market (gains) or losses of derivative instruments   (977 )     (3,343 )     (791 )     (2,404 ) Stock-based compensation   6,244       4,621       10,968       9,533   Allowance for bad debts   1       25       668       51   Induced conversion expense in connection with the issuance of the 2031 Convertible Notes   761       —       34,413       —   Impairment of long-lived assets   316       —       8,428       —   Merger and acquisition transaction costs   669       1,009       1,432       1,009   Bargain purchase gain   —       —       (9,616 )     —   Settlement agreement expenses and other   (3,618 )     —       168       900   Write-off of unsuccessful exploration and storage activities   6,611       251       8,693       767   Adjusted EBITDA $ 143,950     $ 134,581     $ 338,846     $ 284,850   ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted diluted EPS 2 Adjusted Net Income attributable to the Company's stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributed to the Company's stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business. The following tables reconcile Net income attributable to the Company's stockholders and Adjusted diluted EPS for the three and six months ended June 30, 2026, and 2025:   Three Months Ended June 30, Six Months Ended June 30,   2026 2025 2026 2025 (in millions, except for EPS)         GAAP Net income attributable to the Company's stockholders 27.1 28.0 71.2 68.4 Induced conversion expense 0.76 — 34.4 — Bargain purchase price — — (9.6) — Impairment of long-lived assets 0.24 — 6.7 — Write-off of unsuccessful exploration and storage activities 5.22 0.2 6.87 0.6 Merger and acquisition transaction costs 0.53 0.8 1.13 0.8 Allowance for bad debts — 0.0 0.53 0.1 Settlement agreement expenses and other (2.86) — 0.13 0.7 Adjusted Net income attributable to the Company's stockholders $ 31.0 $ 29.1 $ 111.3 $ 70.6 GAAP diluted EPS 0.43 0.46 1.14 1.12 Induced conversion expense 0.01 — 0.55 — Bargain purchase price — — (0.15) — Impairment of long-lived assets 0.00 — 0.11 — Write-off of unsuccessful exploration and storage activities 0.09 0.00 0.11 0.01 Merger and acquisition transaction costs 0.01 0.02 0.02 0.02 Allowance for bad debts — 0.00 0.01 0.00 Settlement agreement expenses and other (0.04) — 0.00 0.01 Adjusted Diluted EPS $ 0.50 $ 0.48 $ 1.79 $ 1.16 2 Adjusted diluted EPS is computed based on adjusted net income attributable to the Company’s stockholders and diluted weighted-average shares outstanding before rounding. The individual components in the table are rounded to the nearest applicable unit; therefore, recalculation using the rounded amounts may not result in the adjusted diluted EPS presented. Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) [email protected] Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 [email protected]

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