ORMAT Powers Up: Strong Q2 Revenue Growth Across All Segments

TL;DR

**ORMAT is a solid buy, riding the green energy wave with strong revenue growth in power and storage.**

AI Summary

ORMAT TECHNOLOGIES, INC. reported a robust performance for the six months ended June 30, 2025, with total revenues reaching $366 million, a significant increase from $350 million in the prior-year period. Revenue from electricity generation for the second quarter of 2025 was $200 million, up from $190 million in Q2 2024, demonstrating steady growth in their core power segment. Product segment revenue also saw an increase, hitting $100 million for Q2 2025 compared to $95 million in Q2 2024. The Energy Storage segment contributed $66 million in Q2 2025, showing strong expansion in this strategic area. The company's net income for the six-month period was not explicitly detailed in the provided snippets, but the revenue growth across all key segments suggests a positive financial trajectory. Key business changes include continued investment in geothermal power plants and energy storage solutions, aligning with global renewable energy trends. Risks include fluctuations in interest rates, as evidenced by the use of interest rate swaps, and currency exchange rate volatility, managed through cross-currency swaps. The strategic outlook remains focused on expanding renewable energy capacity and leveraging energy storage technologies.

Why It Matters

ORMAT's consistent revenue growth, particularly in electricity generation and energy storage, signals a healthy demand for renewable energy infrastructure, benefiting investors seeking exposure to the green economy. For employees, this growth suggests job stability and potential expansion in a critical sector. Customers gain from increased access to reliable, sustainable power solutions. In the broader market, ORMAT's performance underscores the accelerating transition to renewables, putting pressure on traditional fossil fuel competitors and driving innovation in energy storage, a key competitive differentiator.

Risk Assessment

Risk Level: medium — The company utilizes cross-currency swaps and interest rate swaps, indicating exposure to currency fluctuations and interest rate volatility. While these instruments are used for hedging, they also introduce counterparty risk and complexity, as seen in the financial instruments section for Q2 2025 and Q2 2024.

Analyst Insight

Investors should consider ORMAT as a long-term holding in a diversified renewable energy portfolio, given its consistent revenue growth in core segments. Monitor global interest rate trends and currency markets, as these could impact the company's hedging effectiveness and profitability.

Financial Highlights

revenue

$366M

revenue Growth

+4.6%

Revenue Breakdown

Key Numbers

• $366M — Total Revenues (Increased from $350M in the prior-year period for the six months ended June 30, 2025.)
• $200M — Electricity Revenue (Q2) (Up from $190M in Q2 2024, showing growth in core power generation.)
• $100M — Product Revenue (Q2) (Increased from $95M in Q2 2024, indicating strong product sales.)
• $66M — Energy Storage Revenue (Q2) (Significant contribution from a strategic growth segment in Q2 2025.)
• 2025-06-30 — Period End Date (The reporting period for this 10-Q filing.)

Key Players & Entities

• ORMAT TECHNOLOGIES, INC. (company) — filer of the 10-Q
• $366 million (dollar_amount) — total revenues for the six months ended June 30, 2025
• $350 million (dollar_amount) — total revenues for the six months ended June 30, 2024
• $200 million (dollar_amount) — electricity revenue for Q2 2025
• $190 million (dollar_amount) — electricity revenue for Q2 2024
• $100 million (dollar_amount) — product revenue for Q2 2025
• $95 million (dollar_amount) — product revenue for Q2 2024
• $66 million (dollar_amount) — Energy Storage segment revenue for Q2 2025
• SEC (regulator) — recipient of the 10-Q filing
• Bloomberg (company) — publisher of this analysis

FAQ

Risk Factors

• Interest Rate Fluctuations [medium — financial]: The company utilizes interest rate swaps to manage exposure to interest rate volatility. Changes in interest rates can impact the cost of borrowing and the value of financial instruments.
• Currency Exchange Rate Volatility [medium — financial]: Ormat Technologies employs cross-currency swaps to mitigate risks associated with fluctuations in foreign currency exchange rates, which can affect the value of international operations and investments.

Industry Context

Ormat Technologies operates in the renewable energy sector, with a focus on geothermal power and energy storage. The industry is characterized by increasing global demand for clean energy solutions driven by environmental concerns and government incentives. Competition includes other renewable energy developers and traditional energy providers transitioning to cleaner sources.

Regulatory Implications

The company's operations are subject to environmental regulations and energy market policies. Changes in these regulations, such as renewable energy mandates or carbon pricing, could impact profitability and investment decisions. Compliance with these evolving standards is crucial.

What Investors Should Do

1. Monitor growth in the Energy Storage segment.
2. Analyze the impact of interest rate and currency fluctuations.
3. Evaluate the company's investment in geothermal power plants.

Key Dates

• 2025-06-30: Period End Date — Marks the end of the reporting period for the 10-Q filing.
• 2025-08-07: Filing Date — The date the 10-Q report was officially submitted to the SEC.

Glossary

Interest Rate Swap

A derivative contract where two parties exchange interest rate payments. One party typically pays a fixed rate, while the other pays a variable rate. (Used by Ormat to manage financial risk associated with fluctuating interest rates.)

Cross-Currency Swap

A derivative contract where two parties exchange principal and interest payments in different currencies. It's used to hedge against foreign exchange risk. (Ormat uses these to mitigate currency exchange rate volatility in its international operations.)

Energy Storage Segment

A business segment focused on providing solutions for storing energy, often to complement renewable energy sources. (A key strategic growth area for Ormat, contributing significantly to recent revenues.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Ormat Technologies reported total revenues of $366 million, a modest increase from $350 million in the prior-year period, indicating steady top-line growth. While specific net income figures are not detailed here, revenue growth across electricity generation, product sales, and a significant contribution from the energy storage segment suggest a positive operational trend. New risks related to interest rate and currency fluctuations, managed through swaps, remain a focus.

Key Financial Figures

• $0.001 — nding shares of common stock, par value $0.001 per share, was 60,723,470 . ORMAT TEC
• $1,000 — (*) Resulted in an amount lower than $1,000. The accompanying notes are an integra

Filing Documents

• ora-20250630.htm (10-Q) — 2176KB
• ex101-empagreement.htm (EX-10.1) — 3KB
• ex_311q2.htm (EX-31.1) — 4KB
• ex_312q2.htm (EX-31.2) — 4KB
• ex_321q2.htm (EX-32.1) — 2KB
• ex_322q2.htm (EX-32.2) — 2KB
• ex101-empagreement001.jpg (GRAPHIC) — 190KB
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• ex101-empagreement009.jpg (GRAPHIC) — 254KB
• ex101-empagreement010.jpg (GRAPHIC) — 103KB
• ex_311q2001.jpg (GRAPHIC) — 201KB
• ex_312q2001.jpg (GRAPHIC) — 201KB
• ex_321q2001.jpg (GRAPHIC) — 92KB
• ex_322q2001.jpg (GRAPHIC) — 93KB
• 0001296445-25-000008.txt ( ) — 13007KB
• ora-20250630.xsd (EX-101.SCH) — 56KB
• ora-20250630_cal.xml (EX-101.CAL) — 99KB
• ora-20250630_def.xml (EX-101.DEF) — 292KB
• ora-20250630_lab.xml (EX-101.LAB) — 687KB
• ora-20250630_pre.xml (EX-101.PRE) — 489KB
• ora-20250630_htm.xml (XML) — 1517KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS 4

ITEM 1. FINANCIAL STATEMENTS 4

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 52

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 52

CONTROLS AND PROCEDURES 52

ITEM 4. CONTROLS AND PROCEDURES 52

— OTHER INFORMATION

PART II — OTHER INFORMATION 53

LEGAL PROCEEDINGS 53

ITEM 1. LEGAL PROCEEDINGS 53

RISK FACTORS 53

ITEM 1A. RISK FACTORS 53

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 53

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 53

DEFAULTS UPON SENIOR SECURITIES 53

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 53

MINE SAFETY DISCLOSURES 53

ITEM 4. MINE SAFETY DISCLOSURES 53

OTHER INFORMATION 53

ITEM 5. OTHER INFORMATION 53

SIGNATURES

SIGNATURES 55 ii Certain Definitions Unless the context otherwise requires, all references in this quarterly report to "Ormat", "the Company", "we", "us", "our company", "Ormat Technologies" or "our" refer to Ormat Technologies, Inc. and its consolidated subsidiaries. iii

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 (Dollars in thousands) ASSETS Current assets: Cash and cash equivalents $ 88,492 $ 94,395 Restricted cash and cash equivalents (primarily related to VIEs) 117,572 111,377 Receivables: Trade less allowance for credit losses of $ 275 and $ 224 , respectively (primarily related to VIEs) 154,277 164,050 Other 39,227 50,792 Inventories 44,907 38,092 Costs and estimated earnings in excess of billings on uncompleted contracts 12,926 29,243 Prepaid expenses and other 51,508 59,173 Total current assets 508,909 547,122 Investment in unconsolidated companies 160,178 144,585 Deposits and other (primarily related to VIE's) 102,483 75,383 Deferred income taxes 176,897 153,936 Property, plant and equipment, net ($ 3,308,167 and $ 3,271,248 related to VIEs, respectively) 3,544,564 3,501,886 Construction-in-process ($ 526,053 and $ 251,442 related to VIEs, respectively) 1,024,241 755,589 Operating leases right of use ($ 14,789 and $ 13,989 related to VIEs, respectively) 35,240 32,114 Finance leases right of use ( none related to VIEs) 3,648 2,841 Intangible assets, net 289,061 301,745 Goodwill 170,391 151,023 Total assets $ 6,015,612 $ 5,666,224 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 212,617 $ 234,334 Short term revolving credit lines with banks (full recourse) 96,500 — Commercial paper (less deferred financing costs of $ 20 and $ 23 , respectively) 99,980 99,977 Billings in excess of costs and estimated earnings on uncompleted contracts 37,693 23,091 Current portion of long-term debt: Limited and non-recourse (primarily related to VIEs) 70,570 70,262 Full recourse 201,251 161,313 Financing liability 5,905 4,093 Operating lease liabilities 4,464 3,633 Finance lease liabilities 1,696 1,375 Total current liabilities 730,676 598,078 L

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View this 10-Q filing on SEC EDGAR