Ormat Technologies Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did ORA Beat Earnings? Q3 2025 Results
Ormat Technologies delivered a broad beat in its third quarter of 2025, with adjusted diluted EPS of $0.41 clearing the $0.38 consensus estimate by 6.94% and revenue of $249.73 million exceeding expectations by 6.60% while climbing 17.9% year-over-year. The standout driver was a transformed Energy Storage segment, which more than doubled its revenue and expanded gross margin to 39.4% from 20.2% a year ago, fueled by newly operational facilities including the 60MW Lower Rio project in Texas. The Product segment also contributed meaningfully, with 66.6% revenue growth and a backlog that reached approximately $295 million following a new contract signed during the quarter. On the back of these results and favorable merchant pricing, management raised full-year 2025 guidance, lifting total revenue expectations to $960 million to $980 million and adjusted EBITDA to $575 million to $593 million, with analysts subsequently revising price targets upward to $109. The stock had already touched a 52-week high near the reporting date, reflecting growing investor confidence in Ormat's positioning around data center demand and geothermal expansion.
- Energy Storage segment revenue up 108.1% driven by new Bottleneck, Montague, and Lower Rio facilities
- Product segment revenue up 66.6% from timing of revenue recognition on manufacturing and construction progress
- Blue Mountain power plant acquisition contributed to Electricity segment growth
- Improved performance at Dixie Valley facility
- Higher merchant pricing in PJM market supported Energy Storage results
- Energy Storage gross margin improved to 39.4% from 20.2% year-over-year
- Product segment gross margin improved to 21.7% from 19.2% year-over-year
- Tax benefits related to storage facilities commencing commercial operation
“Our strong third quarter results reflect the continued progress and execution of our growth strategy, highlighted by a 17.9% rise in revenue, 13.3% increase in operating income, 9.3% growth in net income attributable to the Company's stockholders and continued expansion in adjusted EBITDA.”
Ormat Technologies CEO, on the earnings call
Forward Guidance & Outlook
Ormat raised its full-year 2025 guidance, increasing total revenue expectations to between $960 million and $980 million (from prior levels), with Electricity segment revenues of $700–$705 million, Product segment revenues of $190–$200 million, and Energy Storage revenues of $70–$75 million. Adjusted EBITDA guidance was increased to between $575 million and $593 million, with approximately $17.5 million attributable to minority interest. The guidance increase reflects favorable merchant prices and strong Product segment performance. Management expects to finalize new PPAs in Q4 and beyond, and expressed confidence in long-term growth driven by data center demand, AI-related power needs, favorable PPA pricing, and regulatory tailwinds from the OBBBA.
ORA YoY Financials
ORA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.