Ormat Technologies Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did ORA Beat Earnings? Q2 2025 Results
Ormat Technologies delivered a convincing beat in the second quarter of 2025, with adjusted diluted EPS of $0.48 clearing the $0.38 consensus estimate by 26.25% and revenue of $234.02 million topping expectations by 5.59% while rising 9.9% year-over-year. The standout driver was a sharp rebound in the Product segment, where revenues jumped 57.6% to $59.61 million and gross margin expanded dramatically from 13.7% to 27.7%, alongside a 62.7% surge in Energy Storage revenue to $14.49 million. Those gains offset a softer Electricity segment, where planned well-field maintenance at Puna and third-party curtailments at McGinness Hills and Tungsten weighed on results; management noted those headwinds are expected to ease in the second half. Federal permitting reforms have also accelerated geothermal development activity. Looking ahead, Ormat reiterated full-year 2025 guidance calling for total revenues of $935 million to $975 million and adjusted EBITDA of $563 million to $593 million, underpinned by $300 million in recently secured project financing.
- Product segment revenue recovery with 57.6% growth and margin expansion from 13.7% to 27.7%
- Energy Storage segment benefiting from new assets that came online in 2024 and higher PJM merchant pricing
- Legal settlement with a battery supplier boosting Energy Storage results
- Better performance from Dixie Valley and Beowawe power plants
- Tax benefits related to storage facilities expected to commence commercial operation in 2025
- Puna well-field maintenance and third-party curtailments negatively impacted Electricity segment by approximately $13M in revenue and $12M in EBITDA
“Ormat reported record second quarter Revenue and Adjusted EBITDA results, with an increase of 9.9% in revenue, a 26.1% rise in net income, and a 6.7% improvement in adjusted EBITDA. This performance was driven by the continued recovery of our Product segment revenue and margin as well as improved performance in our Energy Storage segment, which continues to benefit from new projects that reached commercial operation in 2024 and higher merchant prices, specifically in the PJM market.”
Ormat Technologies CEO, on the earnings call
Forward Guidance & Outlook
Ormat reiterated its full-year 2025 guidance: total revenues of $935 million to $975 million, Electricity segment revenues of $710 million to $725 million, Product segment revenues of $172 million to $187 million, Energy Storage revenues of $53 million to $63 million, and Adjusted EBITDA of $563 million to $593 million (with approximately $21 million attributable to minority interest). Management expects energy curtailments to lessen during the second half of 2025 and anticipates receiving most of the $300 million in secured funding proceeds in H2 2025. The OBBB legislation extends PTC and ITC eligibility for projects starting construction by December 31, 2033, providing long-term policy support for growth.
ORA YoY Financials
ORA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.