ORA

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET Chief Executive Officer - Doron Blachar Chief Financial Officer - Assi Ginzburg Vice President of Investor Relations and ESG Planning Reporting - Smadar Lavi Operator: Good morning, and welcome to the Ormat Technologies second quarter 2026 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question during this time, just press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Please note that this event is being recorded. I would like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead. Josh Carroll: Thank you, operator. Hosting the call today are Doron Blachar, Chief Executive Officer, Assi Ginzburg, Chief Financial Officer, and Smadar Lavi, Vice President of Investor Relations and ESG Planning Reporting. Before beginning, we would like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results, or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, please see risk factors as described in Ormat Technologies' annual report on Form 10-K and quarterly reports on Form 10-Q that are filed with the SEC. In addition, during the call, the company will present non-GAAP financial measures such as adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures and management's reasons for presenting such information is set forth in the press release that was issued last night, as well as in the slides posted on the website. Because these measures are not calculated in accordance with GAAP, they should not be considered in isolation from the financial statements prepared in accordance with GAAP. Before I turn the call over to management, I'd like to remind everyone that a slide presentation accompanying this call may be accessed on the company's website at ormat.com under the presentation link that's found on the Investor Relations tab. With all that said, I would now like to turn the call over to Ormat's CEO, Doron Blachar. Doron? Doron Blachar: Thank you, Josh. Good morning, everyone, and thank you for joining us today. Let me begin with the key highlights from the second quarter, starting on slide four. The first half of 2026 reflects accelerating momentum across all three business segments. Second quarter revenue increased 10.6%, gross profit increased 20.8%, and adjusted EBITDA increased 6.9% compared with the prior year-period. On the strength of these results, we are raising our full-year revenue and adjusted EBITDA guidance. In our electricity segment, Blue Mountain's contribution, stronger performance at Olkaria and Puna, and lower curtailment in the U.S. drove continued growth. In energy storage segment, revenue nearly tripled year-over-year, supported by new capacity additions, high asset availability, and favorable merchant pricing in PJM. Taken together, these results demonstrate the strength and balance of our three-segment model and the returns available when long-term contracted revenues are paired with selective merchant exposure. On the development side, we added 155 megawatts to our generating portfolio since the beginning of the year, including the Juco Solar and Storage acquisition, the Shirk storage facility, and the commencement of commercial operation at our 10-megawatt Dominica geothermal power plant. On the EGS front, we advanced both the SLB and Sage pilot program toward field execution and introduced Ormega100, our new 100-megawatt binary unit designed for large-scale conventional geothermal and EGS applications, both of which I will discuss in more detail shortly. I will now turn the call over to Azi to review our financial results. Azi? Assi Ginzburg: Thank you, Doron. I will begin my review of the financial results on slide six. Second quarter revenue was $258.8 million, an increase of 10.6% compared with the prior year-period, led by strong energy storage performance and continued growth in the electricity segment. Gross profit increased 20.8% to $68.7 million, and consolidated gross margin expanded by 220 basis points to 26.5%, reflecting the strong performance and margin contribution of our storage assets in PJM. Net income attributable to the company stockholders was $27.1 million, or $0.43 per diluted share, compared with $28 million, or $0.46 per diluted share in the prior year-period. The year-over-year decrease reflects a $6.6 million write-off storage project we decided not to pursue, partially offset by stronger underlying operating performance. Adjusted net income attributable to company stockholders in the second quarter of 2026 increased 6.5% to $31 million, or $0.50 per diluted share, compared with $29.1 million, or $0.48 per diluted share in the second quarter of 2025. Adjusted EBITDA increased 6.9% to $143.9 million, led by energy storage performance. Slide seven provides additional details on our segment performance. Electricity segment revenue during the second quarter increased 5.8% to $169.3 million. The increase reflects a full quarter contribution for Blue Mountain, higher energy rates, and improved performance at Puna, stronger generation at Olkaria following well field optimization, and lower curtailments at McGinnis Hills, Dixie Valley, and Tungsten, partially offset by planned maintenance activities. Product segment revenue decreased 21.6% to $46.7 million, reflecting the timing of manufacturing and construction progress. Product segment gross margin was 9.7%, down from prior year period, mainly due to increased construction costs related to a project in Europe and the impact of foreign exchange fluctuation on manufacturing costs. We expect product segment gross margin for the second half of the year to be approximately 15% and for the full year gross margin to be approximately 18%. Energy storage segment revenue increased 195.1% to $42.8 million. High asset availability enabled us to capture strong merchant pricing in PJM, while capacity addition completed over the past 12 months contributed incremental revenue. The segment generated a gross margin of 56.2%, reflecting our strategy of optimizing the mix of contracted and merchant revenues. We expect energy storage gross margin to normalize to 30%-40% in the second half of the year and for the full year to be approximately 40%-50%. Slides eight and nine summarize our first half results. Revenue increased 42.9% to $662.7 million, driven by substantial growth across all three segments. Adjusted EBITDA increased 18.9% to $338.8 million, and adjusted diluted EPS increased 54.3% to $1.79 per share. Turning to slide 10. During the first half of 2026, we collected approximately $52 million of proceeds from tax credit monetization transaction. For the full year, we continue to expect approximately $90 million in proceeds, including approximately $70 million related to ITCs and approximately $20 million related to PTC transfers. During the second quarter, we recorded a $9.5 million ITC benefits. For the full year, we expect to record approximately $59.9 million in ITC benefits, which we expect will result in an effective income tax benefit rate of approximately 15% in the second half of the year, excluding changes, of course, in law and other one-time items. Slide 11 presents the change in our cash position during the first half of the year. Cash and cash equivalent and restricted cash totaled approximately $658 million as of June 30, 2026, compared with approximately $281 million at year-end 2025. The increase reflects the proceeds from our convertible notes offering and other financing activities, cash generated from operations, tax credit monetization, and the proceeds from the Topp 2 sale, partially offset by capital expenditures, debt repayments, acquisitions, and investments. Our total debt as of June 30, 2026, was approximately $3.4 billion, excluding deferred financing costs, and the weighted average interest rate on our debt portfolio was approximately 3.9%. Turning to slide 12. Total liquidity was approximately $1.1 billion as of June 30, 2026. Net debt was approximately $2.7 billion, equivalent to 4.3 times net debt to adjusted EBITDA. Net debt represented approximately 50% of total capitalization. We expect capital expenditures for the remainder of 2026 to be $449 million. Of that, approximately $281 million is allocated to the electricity segment for construction, exploration, drilling, and maintenance, $129 million to the storage asset construction, and approximately $20 million to the SLB pilot and other EGS activities. Our detailed capital expenditure plan is included in slide 34 of the appendix. In support of our broader development program, we secured several important financing sources. In May, we closed a unique exploration financing facility up to $40 million for the Wapsalit geothermal project in Indonesia under the World Bank's Geothermal Resource Risk Mitigation Program. This structure provides a risk-sharing mechanism that reduces the financial exposure associated with early-stage exploration. Our strong liquidity and access to capital provides us with the flexibility to fund our development pipeline, while continuing to service our debt obligations and return cash to capital shareholders. On August 5, 2026, our board of directors declared a quarterly dividend of $0.12 per share, payable on September 2nd, 2026 to shareholders of record as of August 19, 2026. The company also expects to pay a quarterly dividend of $0.12 per share in the next quarter. I will now turn the call over back to Doron to discuss the recent operating and strategic developments. Doron Blachar: Thank you, Assi. Turning to slide 14, our total operating portfolio now stands at approximately 1.85 gigawatts. On slide 15, our electricity portfolio stands at approximately 1,355 megawatts globally, with new 15 megawatts added during the quarter. We currently have 202 megawatts of electricity project under construction and development through the end of 2028, including 87 megawatts of geothermal capacity and 115 megawatts of solar capacity. All of these projects are supported by long-term PPAs, providing strong visibility for future growth. Slide 16 details the electricity segment's second quarter drivers. Curtailment in the U.S. declined by $4.2 million. Blue Mountain contributed approximately $2.6 million of revenue, and Puna revenue increased by approximately $3 million on higher rates and recovery from prior year well field issue. At Olkaria, stronger generation following well field optimization added approximately $2.5 million. Overall, power generation increased 3% year-over-year. Moving to slide 17. One of our strategic priorities over the past several years has been to proactively renegotiate contracts well ahead of expiration, extending the contract term while capturing the significant improvement we are seeing in geothermal pricing. Over the past year, we continued to make excellent progress on this initiative. In addition to signing new PPAs for projects with expiring contracts, we executed several blend-and-extend agreements, including the Blue Mountain Power Plant that increased the value of our existing asset base while providing our customers with long-term price certainty and reliable baseload renewable energy. The recontracted and blend-and-extend PPAs are expected to increase annual revenues by approximately $14 million as they become effective over the next several years, starting in 2026 and continuing through 2030. Importantly, these contracts are secured with minimal incremental capital investments, making them one of the most attractive sources of value creation within our portfolio. Looking further ahead, we continue to see significant opportunities across our contracting portfolio. Between 2031 and 2034, we have approximately 190 megawatts under contract that are currently priced at a weighted average of approximately $86 per megawatt hour, lower than today's market pricing of over $100 per megawatt hour. We believe our existing geothermal fleet provides a meaningful embedded opportunity to continue repricing contracts and creating long-term shareholder value. Turning to slide 18, our product segment backlog stood at approximately $203 million as of August 5, 2026. The decrease from year-end 2025 primarily reflects the recognition of $105 million of revenue from the Topp 2 project during the first quarter. The backlog remains geographically diversified, with the majority associated with project in Asia and Oceania. Moving to slide 19. Energy storage revenue increased 195% to $42.8 million, including approximately $19.5 million of higher revenue from existing PJM assets and approximately $7.7 million generated by newly commissioned facilities. The operating portfolio now stands at 495 megawatts and 1,358 megawatt hours. Turning to slide 21. We remain on track to achieve our 2028 portfolio targets of 2.6-2.8 gigawatts, representing an expected compound annual growth rate of approximately 15%-18% from 2025. Slides 22 and 23 provide details on our geothermal and solar development pipeline. Recent milestones include commercial operations in Dominica and completion of the Cove Fort expansion, while construction and development continue across our U.S. and international portfolio, including the addition of Puna expansion and Lone Mountain. Turning to slide 24 and 25. We have seven energy storage projects under construction and development, with total capacity of 497 megawatts or 1,888 megawatt hours. This includes the new 100 megawatt, 400 megawatt hour Denali facility in California, which we recently approved for development. Denali is expected to commence operation by the end of 2028 and will provide storage services under a 20-year tolling agreement with Clean Power Alliance. Our broader U.S. energy storage pipeline now totals approximately 2.5 gigawatts or approximately 10 gigawatt hours across 25 named prospects. Turning to slide 26. Our EGS strategy advanced across three pillars during the quarter. Surface technology, subsurface pilot projects and development, footprint across the Western U.S. On the surface side, we introduced Ormega100, our modular 100-megawatt ORC unit designed for large scale geothermal and EGS application. Leveraging Ormat's decades of leadership in binary technology, Ormega100 is designed to serve both our future EGS development and third-party projects. During the year, we also continued evaluating manufacturing readiness and the associated cost structure to support future commercial deployment. On the subsurface side, we continue to advance both of our pilot projects. At our SLB Desert Peak pilot, we completed the analysis of geophysical seismic data and incorporated the results into an updated subsurface model. We also submitted drilling permits applications, progressed procurement of long lead items, and entered the final stages of vendor selection, keeping us on track to begin drilling in the fourth quarter of 2026. At the Sage pilot, we selected the project location, advanced permitting activities, reached the final stages of procurement drilling services, and made progress on the engineering work required to integrate Sage technology into an existing Ormat power plant. Beyond the pilot projects, we're expanding our geothermal land position and securing additional water rights and interconnection opportunities across the Western U.S. During the year, we were awarded federal lease covering 10,642 acres in New Mexico for EGS development, and we are currently negotiating the acquisition of additional acres in Oregon and Idaho. Our resource team has also identified two promising prospects within our existing portfolio that we believe could support large scale EGS development, and we continue to pursue additional interconnection opportunities in Nevada. These initiatives, together with our strategic partnerships, expanding resource position, and proprietary surface technology, position Ormat to leverage its deep expertise to advance EGS forward commercial deployment, driving what we believe is a compelling long-term growth opportunity for the company. Please turn to slide 27 for an updated 2026 guidance. Based on our strong first half performance and continued business momentum, we are raising our full-year revenue and adjusted EBITDA guidance. We now expect total revenues of $1.15 billion to $1.2 billion, representing growth of approximately 18.7% at the midpoint compared to 2025. By segment, we expect electricity revenue of $710 million to $725 million, product revenue of $300 million to $320 million, and energy storage revenue of $140 million to $155 million. We now expect adjusted EBITDA of $630 million to $650 million, representing growth of approximately 10% at the midpoint compared with 2025. Approximately $17 million of adjusted EBITDA is expected to be attributable to minority interest. Let me close on slide 28. The second quarter reinforced the strength of our diversified business model and disciplined execution. Double-digit revenue growth, gross profit expansion of more than 20%, a full-year guidance raise, and continued prospects on projects that will drive our long-term growth. We also expanded our development pipeline, advanced the SLB and Sage EGS pilots, and reinforced our funding platform in a supportive policy environment. As demand for reliable, around-the-clock, low-carbon electricity continues to grow, Ormat is well positioned to capture that demand through our combination of operating expertise, development capabilities, technology leadership, and strong capital position. We remain focused on executing our strategy, achieving our 2028 growth objective, and creating long-term value for our shareholders. Before we open the call for questions, I would also like to invite everyone to join us at our Investor Day, which we will host on September 8th at the New York Stock Exchange. During the event, we will provide a deeper look into Ormat's long-term growth strategy, including our plans to expand our electricity and energy storage businesses, as well as our roadmap for developing and commercializing EGS. We look forward to sharing more details with you then. With that, I will conclude our prepared remarks. Operator, we are now ready to take questions. Operator: We will now begin the question and answer session. If you would like to ask a question at this time, just press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, just press star one again. Our first question comes from the line of Justin Clare with ROTH Capital Partners. Justin, please go ahead. Justin Clare: Hi, good morning. Thanks for the time here. Wanted to just start on the electricity segment. When I look at the Q2 electricity gross margin, it looks like it declined slightly year-over-year. This is despite the improved performance at Puna and Olkaria, lower curtailments, and the contribution from Blue Mountain. Just wondering if there were other factors that maybe offset the benefits. You also did modestly lower the full year outlook, just wondering what explains the lowered expectation there for the electricity segment. Assi Ginzburg: Good morning, Justin. This is Asi. I hope everything is well. I'll start with the second part of the presentation. As you all know, in the Q2, we do update the annual forecast for the first time, the guidance. First, I'm glad to report that the company is finally going to reach close to $1.2 billion of revenues, which is a huge increase versus the last few years. We also increased the middle point of the EBITDA guidance and increased significantly the lower points of the EBITDA guidance. That came mostly as results of weather-related activities on one hand that we saw in the East Coast, offset by a lower $5 million in electricity segment, the majority of it related to two projects in the Caribbean. We do have around one or two months delays on those projects on the COD. I'm glad to report that one of them already COD. Dominica is already in full operation since July 31st. As of the offset of the gross margin on the quarter, I would say the only one time that we've seen is that we did have some planned maintenance for the quarter, and we do expect margin to improve towards the end of the year. Justin Clare: Okay, got it. That's helpful. Maybe just shifting over to the energy storage segment. For that segment, you've lifted the revenue guide, I think $45 million at the midpoint. I was just wondering if you could speak to your assumptions around merchant pricing in the back half for that storage segment relative to what you experienced in the first half. Maybe you could speak to kind of how pricing has trended in Q3, the quarter to date. Are you seeing any signs of pricing normalization in PJM at this point, or are you seeing continued strength? Doron Blachar: Hi, thank you. It's Doron. I would say on the energy storage part, pricing in the first half was very, very strong. The merchant prices, over the last few weeks, we see them becoming a bit more normal as we went toward the end of July and into August. We're looking at the second half as a more normalized pricing, although a bit higher than what we've seen in previous years. You can see also with the guidance that the first half is stronger than the second half. At the end of the day, it impacts mainly by the weather conditions in the East Coast. I would say that the weather conditions in California and Texas actually had the opposite effect, but in total, it was a very, very positive impact for the energy storage. Justin Clare: Got it. Okay, I appreciate it. Thank you. Operator: Your next question comes from the line of Noah Kaye with Oppenheimer. Noah, please go ahead. Noah Kaye: Hello, thanks for taking the questions all. Looking forward to your investor day. Maybe I'll start with the project pipeline. It's really nice to see that growing, you added Lone Mountain to the official list here. The question is, should we assume these new projects coming into pipeline are generally covered under the umbrella PPA with Google? Maybe just give us an update on how you're tracking towards meeting that portfolio target of 150 megawatts. Doron Blachar: Hi, Noah. Thank you for the question. Yes, Lone Mountain is going to be part of this portfolio PPA with Google. I expect that in the coming quarters, we'll release some more greenfield that will be part of the portfolio PPA with Google. We feel very comfortable in meeting the minimum and maximum targets in the portfolio. We signed the portfolio with the range like in the past, with the minimum and maximum in order to allow us flexibility in managing the portfolios as pricing continue to increase. Noah Kaye: Okay. Very good. Thanks. Appreciate all of the updates on the EGS pilots as they advance. Can you maybe help us understand, appreciate a little bit more, what you're working towards solving in terms of the key technical challenges when you're looking to I know these are quite small projects, but when you're looking to integrate them into some of your existing operations. I mean, basically, what have you had to sort of figure out in terms of operating these pilots safely and without having any real impact to the existing assets? Doron Blachar: Thanks. The pilots that we're doing, and we're planning in both pilots to drill the appraisal well or monitoring well this year and the full pilots next year, should not have any impact on the existing facilities. They're going to be drilled outside of the existing reservoir and be connected to the existing facilities. We might have a short shutdown of a couple of days in order to connect them, Even that, I believe, will be very small and should happen hopefully by the end of 2027 or beginning of 2028. I would say the main challenges with the EGS technology, at the end of the day, is how you maintain the water on one hand, build a facility that the fractures are connecting, and how you reduce the cooling effect that you continuously inject or through the structure, the cold water. In a traditional geothermal, we have the large pool of reservoir that is heated up from below. Here, continuously move water. I think this is one of the challenges that exists. Noah Kaye: Very helpful, Kollet. Thank you. Operator: Your next question comes from the line of Jon Windham with UBS. John, please go ahead. Jon Windham: Hey. Perfect. Congratulations on the result. I guess not taking it for granted. Thanks, again, for all the transparency on the projects. Maybe a couple quick things I want to dig into. First, unfortunately, is weather, but you mentioned it before. I'm just trying to think through or if you have any color on potential impacts on the third quarter generation due to the heat dome in the West. I know a lot of the total generation of geothermal is a little bit about the temperature differentiation between subsurface and above ground. Just any comments you have on that, and I'll have a quick follow-up. Doron Blachar: Yeah. Since we did finish July and we're gathering all the information, all in all, July had some very hot days, but some days were not hotter than the average. I'd say that all in all, July was relatively as we expected. August is starting very hot, and as you say, very hot has a impact on geothermal. We need to see how the weather continues in the West during August and September to know. July was relatively flat. Jon Windham: Okay, thanks. Assi Ginzburg: We have. Jon Windham: Another one. I know it's a smaller part of Oh, sorry. Go ahead. Assi Ginzburg: I was just saying it's flat versus the guidance that we gave, which mean there is no change to the guidance. It's more or less what we thought. Jon Windham: Perfect. Thank you for that. Maybe just quickly, I know it's a smaller part of your business on the solar side, but any thoughts about the FCC's ruling on banning new models for inverter imports, whether that's any impact to your storage or the solar business you have? Thanks so much. Doron Blachar: Of course, we are looking into it and following all the unknown changes that is coming. We do think that we will be able, at this point, to buy from China inverters, and we will be able basically to eliminate the ability to connect to them from remotely. That option is available when we talk to our vendors, and it looks like that's the main restriction at this point. We are moving forward. We do have Jersey Valley Solar and Storage that it's under construction. We do have Denali that we just announced. We actually have unprecedented amount of solar and storage under construction these days. I will say, we do think that we will be able to eliminate the ability to connect from a remote to those inverters, and therefore, we will be able to buy foreign, not just Chinese, but in general, foreign inverters. Lately, we've gotten some of those from Spain, and we think that we'll be able to buy more. Operator: Your next question comes from the line of Davis Sunderland with Baird. Davis, please go ahead. Davis Sunderland: Hey, good morning, guys. Congrats on the results, thank you very much for taking our questions. Doron Blachar: Thank you. Davis Sunderland: Maybe I have two, both on strategy. I guess I'll start first with energy storage. I wanted to just ask if the grid congestion, the weather events, all the things that have led to higher pricing for the merchant contracts specifically, have made you guys rethink or recontemplate the strategy of merchant versus tolling and that mix element and just what you guys prefer in each region. Doron Blachar: Thank you for the question. We started our strategy, there's a lot of questions whether we should go fully contracted, like geothermal or fully merchant, and we chose a risk and managed approach of 50% contracted and 50% merchant. We are still with this strategy. There are markets where we see that the merchant prices are very low, like in Texas and California, and over those markets, we look for a tolling agreement, PJM, that has a very fluctuated merchant pricing where merchant. Our strategy hasn't changed. Overall, we're looking at 50/50. I can say that we are looking at additional markets like Georgia, Oklahoma, and others to build a project there. You can see in the pipeline that we have today almost two gigawatt hour of projects under construction that will be COD'd not later than the end of 2028. That's increasing significantly our portfolio. This is one of the decision we made a few years ago to focus on energy storage as a strong supporter for our renewable energy platforms. Davis Sunderland: Thank you very much, Doron. Maybe turning to electricity and just looking at the PPA environment, appreciate your commentary about it still remaining very constructive. I just wanted to ask how far out are negotiations stretching, your philosophy on contracting today versus waiting for potentially higher prices down the road or any other considerations on the PPA backdrop. Thank you guys very much. Doron Blachar: We see a PPA pricing continue to increase. We are negotiating some additional contracts for project. It's in the early stages of negotiations. It's always a question whether to sign today a future contract or not. When we see a high PPA like the one that we signed with Google and with Switch, that takes away the risk of exploration. These are things that we're happy to sign. They are limited in magnitude, in number of megawatts, as well as timing. In case we see continued pricing increase, we can continue to sign new PPAs. As I said, all of the PPAs have a minimum and a maximum on all the portfolio, this allows us, in case pricing goes up, to go to the lower level, if prices stays down, to go to the higher level. I will say that also on the EGS front, we are discussing EGS PPAs. These tend to be with higher PPA pricing that we have signed so far. Davis Sunderland: Super helpful. Thank you guys very much. I'll pass it on. Operator: Again, if you would like to ask a question, just press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, just press star 1 again. Our next question comes from the line of Chris DeTrailles with RBC. Chris, please go ahead. Chris Dendrinos: Good morning, and thank you. I wanted to ask a bit more on the EGS side of things here. You commented in the prepared remarks that you're adding some acreage, I think New Mexico, Oregon, looking at Idaho, as well as identified a couple of sites on your own side. Maybe just how do we think about the investment strategy that you all are making right now, just given you haven't spot a well yet. I guess from my purview, it looks like you're quite confident in the outcome of this. But what's the level of the kind of risk management, I guess, in terms of making investments today ahead of seeing initial pilot results? Thanks. Doron Blachar: Thank you. On the technology side, I mentioned before the challenges that we have. In order to deal with these challenges and what gives us a much higher confidence in the ability to solve all these issues is the joint venture that we did with SLB. As you know, SLB is one of, if not the largest, drilling company. They have the expertise of drilling and fracking. We believe that all technological issues can be solved if you have the right expert with you. We have started significantly efforts in developing the EGS. The investment to date on land is not that material, definitely not for a company the size of Ormat. We have multiple discussions in different states, on different sizes of land, and we'll update the market as we progress, and also on our Investor Day in September in New York. These so far are not a significant amount of money. Chris Dendrinos: Got it. Thank you. Maybe as a follow-up and just to the comment on the prior question, I think you mentioned that discussing PPA pricing for EGS projects that could be higher than other conversations. What's the time frame that you're kind of looking to potentially, well, A, sign these PPAs, and when do you think delivery would start? Thanks. Doron Blachar: We will obviously give a lot more information on our Investor Day. I would say that we are speaking with different hyperscalers, data centers, and utilities about EGS projects. All of them are aware of the fact that the pilots are being developed. Whatever PPA we will sign, we will take into account the fact that the technology is not fully yet developed, and will allow us to manage the risk as we've been doing for many years. Chris Dendrinos: Great. Thank you. Operator: There's no further questions at this time. I will now turn the call back over to Doron for closing remarks. Doron? Doron Blachar: Okay. Thank you everyone for joining us today. Q2 was an excellent quarter for Ormat that allowed us also to increase our guidance. We have a very good pipeline, both on the electricity, the geothermal part, as well as on the energy storage part, projects that are being developed. Looking forward to seeing all of you in our Investor Day in September. We will be able to give much more color on our pipeline for the traditional energy and also give quite a lot of more information about our EGS pipeline development. Thank you. Operator: This concludes today's call. You may now disconnect. Before you buy stock in Ormat Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ormat Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ormat (ORA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Ormat Technologies (ORA) raised its 2026 revenue and adjusted EBITDA outlook after reporting second quarter results that topped analyst expectations, highlighting strong energy storage growth, improved geothermal operations and plans for enhanced geothermal expansion. See our latest analysis for Ormat Technologies. At a share price of US$108.09, Ormat Technologies has seen a 10.77% 7 day share price return. However, the share price is still down 12.57% over 90 days, while the 1 year total shareholder return of 25.25% points to stronger longer term momentum. If the recent focus on geothermal and storage has caught your attention, it may be a good time to look at other power and grid related opportunities using the 37 power grid technology and infrastructure stocks The strong rebound in Ormat Technologies after earnings sits alongside a share price that trades below the average analyst target yet above some intrinsic estimates. Where fair value ultimately falls within that range remains uncertain. Compared with the narrative fair value of $135.45, Ormat Technologies at $108.09 screens as meaningfully cheaper, which helps explain the renewed interest around its geothermal and storage pipeline. Read the complete narrative. Curious what has to happen for Ormat Technologies to reach that fair value. The narrative leans on steady revenue gains, fatter margins, and a rich earnings multiple. The exact mix of those three inputs is where the story gets interesting. Result: Fair Value of $135.45 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Ormat Technologies story also faces pressure points, including heavy reliance on Chinese batteries and sizeable capital needs that could strain returns if funding conditions tighten. Find out about the key risks to this Ormat Technologies narrative. That 20.2% gap to the narrative fair value suggests upside, but Ormat Technologies looks expensive on earnings. The stock trades on a P/E of 52.5x compared with 27.3x for peers and 16.8x for the broader renewable energy industry, while the fair ratio sits at 25.1x. If the market leans closer to that fair ratio instead, how comfortable are you with the valuation risk that implies? For a closer look at how these earnings-based signals stack up, including where current pricing sits against the fair ratio over time, See what the numbers say about this price — find out in our valuation breakdown. There are contrasting signals around Ormat Technologies, which may leave investors both interested and cautious. Consider the situation while the details are fresh in your mind and weigh the 2 key rewards and 3 important warning signs If Ormat Technologies has sharpened your interest, do not stop here. The Simply Wall Street Screener can surface fresh stock ideas that match your personal investing style. Target reliable cash generation by scanning companies with strong cash flows and compelling prices using the 52 high quality undervalued stocks. Prioritise resilience and sleep easier at night by reviewing companies highlighted in the 83 resilient stocks with low risk scores. Hunt for future standouts early by checking companies featured in the screener containing 21 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ORA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Ormat Technologies, Inc.? Here are five stocks we like better. Ormat raised its 2026 outlook after second-quarter revenue increased 10.6% to $258.8 million and adjusted EBITDA rose 6.9% to $143.9 million. The company now expects $1.15 billion–$1.2 billion in revenue and $630 million–$650 million in adjusted EBITDA. Energy storage was the primary growth driver: revenue nearly tripled to $42.8 million, supported by strong PJM merchant pricing and newly commissioned facilities. Ormat’s operating storage portfolio reached 495 MW and 1,358 MWh, with 497 MW of additional projects under development or construction. Electricity revenue grew 5.8% as generation improved and curtailment declined, while Ormat advanced enhanced geothermal systems pilots and plans to begin drilling at its Desert Peak project in the fourth quarter of 2026. 3 Energy Stocks Racing to Fix AI's Power Problem Ormat Technologies (NYSE:ORA) raised its full-year revenue and adjusted EBITDA outlook after reporting second-quarter growth across its electricity, energy storage and product businesses, led by higher energy storage revenue and improved geothermal operations. Second-quarter revenue rose 10.6% from a year earlier to $258.8 million, while gross profit increased 20.8% to $68.7 million. Consolidated gross margin expanded 220 basis points to 26.5%, driven in part by the margin contribution from energy storage assets in the PJM market, Chief Financial Officer Assi Ginzburg said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Clean Energy Stocks With Bullish Moving Average Signals Net income attributable to company stockholders was $27.1 million, or $0.43 per diluted share, compared with $28 million, or $0.46 per diluted share, in the prior-year quarter. Ginzburg said the decline reflected a $6.6 million write-off for a storage project the company decided not to pursue. Adjusted net income rose 6.5% to $31 million, or $0.50 per diluted share, while adjusted EBITDA increased 6.9% to $143.9 million. Energy storage revenue nearly tripled, increasing 195.1% to $42.8 million. The segment’s gross margin reached 56.2%, as high asset availability enabled the company to benefit from merchant pricing in PJM and recently completed facilities added capacity. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The 6 Best Energy Stocks to Buy Now Chief Executive Officer Doron Blachar said approximately $19.5 million of the revenue increase came from existing PJM assets, while newly commissioned facilities contributed about $7.7 million. Ormat’s operating storage portfolio stood at 495 megawatts and 1,358 megawatt-hours at quarter-end. Management said it expects storage pricing to normalize during the second half of the year, though it anticipates conditions will remain stronger than in prior years. The company expects energy storage gross margin of 30% to 40% in the second half and 40% to 50% for the full year. → No Hangover: Revisiting Microsoft One Week After Earnings Blachar said the company continues to target a mix of roughly 50% contracted and 50% merchant exposure in storage. In markets where merchant pricing is lower, including Texas and California, Ormat is seeking tolling agreements, he said, while PJM’s more variable pricing supports merchant exposure. Ormat has seven storage projects under construction or development totaling 497 MW, or 1,888 MWh. The portfolio includes the recently approved 100 MW, 400 MWh Denali facility in California, which is expected to begin operations by the end of 2028 under a 20-year tolling agreement with Clean Power Alliance. Electricity segment revenue increased 5.8% to $169.3 million. The increase reflected a full-quarter contribution from Blue Mountain, higher energy rates and improved performance at Puna, stronger generation at Olkaria after well-field optimization, and reduced curtailment at McGinness Hills, Dixie Valley and Tungsten. Blachar said U.S. curtailment declined by $4.2 million during the quarter. Blue Mountain contributed about $2.6 million in revenue, Puna revenue rose about $3 million, and Olkaria added approximately $2.5 million from stronger generation. Overall power generation rose 3% year over year. Ginzburg said planned maintenance affected second-quarter electricity margins, but management expects margins to improve later in the year. The company also cited delays of about one to two months at two Caribbean projects as a factor in lowering its electricity-segment outlook. One of those projects, the 10 MW Dominica Laudat Geothermal Power Plant, began commercial operations on July 31. Ormat’s electricity portfolio totaled approximately 1,355 MW globally, including 15 MW added during the quarter. The company has 202 MW of electricity projects under construction and development through 2028, comprising 87 MW of geothermal capacity and 115 MW of solar capacity. Management said those projects are supported by long-term power purchase agreements. The company said recently recontracted and blend-and-extend agreements, including one for Blue Mountain, are expected to increase annual revenue by about $14 million as they take effect between 2026 and 2030. Ormat also has approximately 190 MW under contract between 2031 and 2034 at a weighted average price of about $86 per MWh, compared with what Blachar described as current market pricing above $100 per MWh. For 2026, Ormat now expects total revenue of $1.15 billion to $1.2 billion and adjusted EBITDA of $630 million to $650 million. The midpoint of the revenue outlook represents growth of approximately 18.7% from 2025, while the adjusted EBITDA midpoint represents approximately 10% growth, according to management. Electricity revenue is expected to be $710 million to $725 million. Product revenue is projected at $300 million to $320 million. Energy storage revenue is expected to be $140 million to $155 million. Product-segment revenue declined 21.6% to $46.7 million, which Ginzburg attributed to the timing of manufacturing and construction activity. Gross margin was 9.7%, affected by higher construction costs on a European project and foreign-exchange effects on manufacturing costs. The company expects product gross margin of about 15% in the second half and about 18% for the full year. During the first half, Ormat generated $662.7 million in revenue, up 42.9%, and adjusted EBITDA of $338.8 million, up 18.9%. Adjusted diluted earnings per share rose 54.3% to $1.79. Ormat said it advanced its enhanced geothermal systems, or EGS, efforts through pilot programs with SLB and Sage. At the SLB Desert Peak pilot, the company completed analysis of geophysical seismic data, updated its subsurface model, submitted drilling permit applications and advanced procurement. Blachar said drilling remains on track to begin in the fourth quarter of 2026. At the Sage pilot, Ormat selected a location, advanced permitting and procurement for drilling services, and continued engineering work to integrate Sage technology into an existing Ormat power plant. Blachar said the pilots are intended to operate outside existing reservoirs and should require only a short shutdown to connect to existing facilities. The company also introduced Ormega100, a modular 100 MW binary unit intended for large-scale conventional geothermal and EGS applications. Ormat said it was expanding its EGS land position, including a federal lease covering 10,642 acres in New Mexico, while negotiating additional acreage in Oregon and Idaho. As of June 30, Ormat had approximately $1.1 billion in total liquidity, $658 million in cash, cash equivalents and restricted cash, and approximately $3.4 billion in total debt. The board declared a quarterly dividend of $0.12 per share, payable Sept. 2 to shareholders of record on Aug. 19. Ormat Technologies, Inc is a leading renewable energy company specializing in geothermal and recovered energy power plants. Through its vertically integrated business model, Ormat designs, develops, engineers, constructs, owns and operates clean energy projects worldwide. The company's core technology centers on the Organic Rankine Cycle (ORC), which converts heat from geothermal sources or industrial waste streams into sustainable electricity without combustion. Ormat's offering includes turnkey power plant solutions, proprietary ORC equipment and ongoing operations and maintenance services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ormat Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Ormat Technologies (ORA) reported $258.76 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 10.6%. EPS of $0.50 for the same period compares to $0.48 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $235.87 million, representing a surprise of +9.7%. The company delivered an EPS surprise of +72.41%, with the consensus EPS estimate being $0.29. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Ormat Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Power plants generated: 1,803.73 GWH versus 1,844.44 GWH estimated by two analysts on average. Revenues- Product: $46.74 million versus the four-analyst average estimate of $43.52 million. The reported number represents a year-over-year change of -21.6%. Revenues- Energy Storage: $42.77 million versus the four-analyst average estimate of $21.62 million. Revenues- Electricity: $169.25 million versus the four-analyst average estimate of $169.21 million. The reported number represents a year-over-year change of +5.8%. Gross Profit- Electricity: $40.13 million compared to the $44.86 million average estimate based on four analysts. Gross Profit- Energy Storage: $24.04 million compared to the $4.23 million average estimate based on four analysts. Gross Profit- Product: $4.52 million versus the four-analyst average estimate of $8.44 million. View all Key Company Metrics for Ormat Technologies here>>> Shares of Ormat Technologies have returned -2.7% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Clearway Energy Inc. CWEN reported second-quarter 2026 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 24 cents by 316.7%. The bottom line also increased substantially from 28 cents reported in the year-ago quarter. Operating revenues totaled $481 million, which beat the consensus estimate of $475 million by 1.3%. The top line increased 22.7% from $392 million recorded in the prior-year quarter. Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote Adjusted EBITDA rose 19.2% to $409 million from $343 million.Total operating costs and expenses increased 18.9% to $365 million from $307 million in the prior-year quarter.The cost of operations jumped to $149 million from $131 million. Depreciation, amortization and accretion expenses increased to $196 million from $163 million, while general and administrative expenses advanced to $15 million from $11 million.Interest expense increased 26.5% year over year to $105 million. Operating income rose 36.5% year over year to $116 million. Flexible Generation generated net income of $22 million compared to a net loss of $11 million in the prior-year quarter. However, adjusted EBITDA declined to $49 million from $52 million.Renewables & Storage reported net income of $55 million compared with $63 million a year earlier. Adjusted EBITDA increased 24% to $372 million from $300 million.Corporate recorded a net loss of $47 million compared with a loss of $40 million. Its adjusted EBITDA loss widened to $12 million from $9 million. Renewables & Storage generation increased 15.5% year over year to 6.87 million megawatt-hours.Solar generation rose 28% to 3.59 million megawatt-hours, while wind generation improved 4.4% to 3.28 million megawatt-hours. Clearway Energy’s sponsor offered the company the opportunity to invest in Honeycomb Phase II, a 210-megawatt (MW) energy-storage portfolio in Utah expected to begin commercial operations in 2027. The potential corporate capital commitment is estimated at approximately $110 million.The company also highlighted the 975 MW Chimney Canyon solar and battery-storage project in Arizona. Clearway Energy estimates that its potential investment could total roughly $350 million, subject to a future dropdown offer and approval.The company completed power purchase agreement restructurings for the Elbow Creek and Langford wind facilities. Clearway Energy had cash and cash equivalents of $251 million as of June 30, 2026 compared with $231 million as of Dec. 31, 2025.Total liquidity as of June 30, 2026 was $0.99 billion compared with $1.06 billion recorded as of Dec. 31, 2025.Long-term debt as of June 30, 2026 amounted to $8.49 billion compared with $7.9 billion as of Dec. 31, 2025.Net cash provided by operating activities in the first six months of 2026 was $615 million compared with $286 million in the year-ago period. Clearway Energy reduced its full-year 2026 cash available for distribution (CAFD) guidance to $430-$470 million from the prior range of $470-$510 million.Adjusted EBITDA is now expected between $1.39 billion and $1.43 billion, down from the previous range of $1.44-$1.48 billion. Cash from operating activities is projected between $956 million and $996 million.The company projects CAFD to lie in the range of $2.90-$3.10 per share for the period, reiterating 2030. CWEN currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ormat Technologies Inc. ORA reported second-quarter 2026 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of 29 cents by 72.4%. The bottom line also increased 4.2% from 48 cents in the year-ago quarter. ORA generated revenues of $258.8 million, which topped the Zacks Consensus Estimate of $236 million by 9.7%. The top line also improved 10.6% year over year.National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million.CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents.The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ormat Technologies Inc. ORA reported second-quarter 2026 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of 29 cents by 72.4%. The bottom line also increased 4.2% from 48 cents in the year-ago quarter.The company reported GAAP earnings of 43 cents per share compared with 46 cents in the year-ago quarter. ORA generated revenues of $258.8 million, which topped the Zacks Consensus Estimate of $236 million by 9.7%. The top line also increased 10.6% year over year, driven by higher revenues from its electricity and energy storage segments. Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote Electricity: Revenues in this segment amounted to $169.3 million, up 5.8% year over year. This upside was primarily due to contributions from the Blue Mountain power plant, improved generation performance at the Olkaria and Puna facilities, higher energy rates at Puna and lower curtailments in the United States. The increase was partially offset by planned maintenance activities.Product: This segment’s revenues declined 21.6% to $46.7 million from the year-ago quarter’s level. The decrease was due to the timing of manufacturing and construction progress.Energy Storage: Revenues in this division amounted to $42.8 million, up 195.1% from the prior-year quarter’s figure. This was driven by the high availability of its assets, which allowed it to capitalize on strong merchant pricing in the PJM market, as well as new capacity additions over the past 12 months. Ormat Technologies’ total operating expenses, including research and development, selling and marketing, as well as general and administrative expenses, were $28.6 million, which rose 11.6% from the year-ago quarter’s level.Operating income declined 3.2% year over year to $34.2 million.The total cost of revenues was $190.1 million, up 7.3% year over year.Net interest expenses were $43.9 million, which rose 19.8% year over year. ORA had cash and cash equivalents of $513.7 million as of June 30, 2026, compared with $147.4 million as of Dec. 31, 2025. The company raised its 2026 revenue guidance to the range of $1.15-$1.20 billion from the prior projection of $1.11-$1.16 billion. The Zacks Consensus Estimate is pegged at $1.15 billion, which is in line with the lower end of the company’s guided range.Revenues for the Electricity segment are now anticipated in the band of $710-$725 million compared with the previous range of $715-$730 million. The Product segment’s revenue guidance was maintained at $300-$320 million. Revenues for the Energy Storage segment are now projected between $140 million and $155 million, up from the earlier forecast of $95-$110 million.ORA also raised its annual adjusted EBITDA guidance to the band of $630-$650 million from the prior range of $615-$645 million. Ormat Technologies currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million.Energy Transfer ET reported second-quarter 2026 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 39 cents by 51.28%. The bottom line increased 84.4% from 32 cents a year ago.Revenues of $34.33 billion surpassed the consensus estimate of $31.09 billion by 10.42% and climbed 78.4% year over year.CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents.The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance growth was driven by a three-segment model, specifically benefiting from the Blue Mountain acquisition, well field optimization at Olkaria, and reduced U.S. curtailments. Energy storage revenue nearly tripled due to high asset availability and the strategic capture of favorable merchant pricing in the PJM market. The company is proactively renegotiating geothermal contracts well ahead of expiration to capture market pricing exceeding $100 per megawatt hour, compared to legacy rates of $86. Product segment revenue declines were attributed to the timing of manufacturing progress and increased construction costs for specific European projects. Strategic positioning in Enhanced Geothermal Systems (EGS) was bolstered by the introduction of the Ormega100 binary unit, designed to scale both internal and third-party large-scale projects. Management emphasized a disciplined capital allocation strategy, balancing long-term contracted revenues with selective merchant exposure to maximize returns. Full-year 2026 revenue guidance was raised to $1.15 billion–$1.2 billion, assuming normalized merchant pricing in the second half of the year following a very strong Q2. The company remains on track for its 2028 portfolio target of 2.6–2.8 gigawatts, representing a compound annual growth rate of 15%–18%. EGS pilot projects at Desert Peak and Sage are scheduled to begin drilling in Q4 2026, with full integration into existing power plants expected by late 2027 or early 2028. Capital expenditure for the remainder of 2026 is budgeted at $449 million, with significant allocations toward electricity segment construction and storage asset expansion. Management expects product segment gross margins to recover to approximately 15% in the second half of the year as manufacturing cycles stabilize. A $6.6 million write-off was recorded for a storage project that management decided not to pursue, impacting GAAP net income. The company secured a $40 million exploration financing facility for the Wapsalit project in Indonesia, utilizing a World Bank risk-sharing mechanism to mitigate early-stage financial exposure. Foreign exchange fluctuations and increased construction costs in Europe pressured product segment margins during the quarter. Management flagged potential weather-related impacts on geothermal generation in the West due to high August temperatures, though July results remained flat relative to guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the slight margin decline to planned maintenance and a $5 million reduction in segment guidance due to one-to-two month COD delays for Caribbean projects. Confirmed that the Dominica project reached commercial operation on July 31st, which should support margin improvement in the second half. Pricing in PJM was exceptionally strong in the first half but began normalizing in late July and August. The company maintains a 50/50 merchant-to-contracted strategy, seeking tolling agreements in lower-priced markets like Texas and California while remaining merchant in volatile markets like PJM. Management believes they can mitigate regulatory risks by disabling remote connectivity features on Chinese inverters to comply with security requirements. The company is also diversifying its supply chain by sourcing inverters from other regions, such as Spain, to support its unprecedented solar and storage pipeline. Key technical hurdles include managing water flow through fractures and mitigating the 'cooling effect' of continuous injection. Management expressed high confidence in overcoming these challenges through their partnership with SLB, leveraging SLB's drilling and fracking expertise.

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 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. Adjusted EBITDA is expected to be between $630 million and $650 million. 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 SUBSIDIARIESCondensed Consolidated Statement of Operations ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESCondensed Consolidated Balance Sheet ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation 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: ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation 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: 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 (ORA) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +72.41%. A quarter ago, it was expected that this geothermal company would post earnings of $0.92 per share when it actually produced earnings of $1.3, delivering a surprise of +41.3%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ormat Technologies, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $258.76 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.70%. This compares to year-ago revenues of $234.02 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ormat Technologies shares have lost about 9.4% since the beginning of the year versus the S&P 500's gain of 13%. While Ormat Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ormat Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $245.52 million in revenues for the coming quarter and $2.35 on $1.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, BKV (BKV), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This natural gas producer is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -18%. The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. BKV's revenues are expected to be $319.25 million, down 0.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report BKV Corporation (BKV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research