ORMAT TECHNOLOGIES REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS
ORMAT TECHNOLOGIES, INC. (ORA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com ORMAT TECHNOLOGIES REPORTS THI
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise provide a fresh catalyst that could move the stock higher in the short term.
Market read
Ormat's earnings and guidance lift are likely to drive immediate buying interest and may lift related clean‑energy stocks.
What to watch
Potential hurricane‑related outages and execution risk on upcoming EGS projects may temper upside.
Energy Storage drives double-digit growth; Ormat raises midpoint of 2026 revenue and Adjusted EBITDA guidance and expands EGS pipeline potential to 5–6 GW
Third-quarter total revenue increased 10.2%, net income attributable to stockholders increased 32.2%, and Adjusted EBITDA increased 11.1%, led by 145.2% Energy Storage revenue growth and a 2,260 basis-point improvement in that segment's gross margin. The Company raised the midpoint of full-year revenue and Adjusted EBITDA guidance, despite declines in Electricity and Product revenue.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Total RevenuesGAAP | $275.1M | – | + 10.2 % |
| Q3 2026 Electricity revenuesGAAP | $163.7M | – | -2.1 % |
| Q3 2026 Product revenuesGAAP | $61.5M | – | -1.2 % |
| Q3 2026 Energy Storage revenuesGAAP | $49.9M | – | +145.2 % |
| Q3 2026 Gross profitGAAP | $77.4M | – | +20.8 % |
| Q3 2026 Electricity gross marginGAAP | 22.2 % | – | -330 bp |
| Q3 2026 Product gross marginGAAP | 16.5 % | – | -520 bp |
| Q3 2026 Energy Storage gross marginGAAP | 62.1 % | – | +2,260 bp |
| Q3 2026 Gross marginGAAP | 28.1 % | – | +250 bp |
| Q3 2026 Operating incomeGAAP | $45.3M | – | + 11.9 % |
| Q3 2026 Net incomeGAAP | $29.8M | – | – |
| Q3 2026 Net income attributable to the Company's stockholdersGAAP | $31.9M | – | +32.2 % |
| Q3 2026 Basic EPS attributable to the Company's stockholdersGAAP | $0.52 | – | – |
| Q3 2026 Diluted EPSGAAP | $0.51 | – | + 30.8 % |
| Q3 2026 Adjusted Net income attributable to the Company's stockholdersnon-GAAP | $34.8M | – | 39.8 % |
| Q3 2026 Adjusted Diluted EPSnon-GAAP | $0.56 | – | 36.6 % |
| Q3 2026 Adjusted EBITDAnon-GAAP | $153.8M | – | + 11.1 % |
| 9M 2026 Total RevenuesGAAP | $937.8M | – | + 31.4 % |
| 9M 2026 Electricity revenuesGAAP | $514.5M | – | +1.4 % |
| 9M 2026 Product revenuesGAAP | $285.6M | – | +85.9 % |
| 9M 2026 Energy Storage revenuesGAAP | $137.6M | – | +161.6 % |
| 9M 2026 Gross profitGAAP | $266.4M | – | +37.4 % |
| 9M 2026 Gross marginGAAP | 28.4 % | – | +120 bp |
| 9M 2026 Operating incomeGAAP | $159.7M | – | + 26.1 % |
| 9M 2026 Net income attributable to the Company's stockholdersGAAP | $103.1M | – | +11.4 % |
| 9M 2026 Diluted EPSGAAP | $1.65 | – | + 9.3 % |
| 9M 2026 Adjusted Net income attributable to the Company's stockholdersnon-GAAP | $146.1M | – | 53 % |
| 9M 2026 Adjusted Diluted EPSnon-GAAP | $2.34 | – | 50 % |
| 9M 2026 Adjusted EBITDAnon-GAAP | $492.6M | – | + 16.4 % |
| Q3 2026 Research and development expensesGAAP | $1.42M | – | – |
| Q3 2026 Selling and marketing expensesGAAP | $6.15M | – | – |
| Q3 2026 General and administrative expensesGAAP | $23.28M | – | – |
| Q3 2026 Interest expense, netGAAP | −$44.19M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ElectricityLower generation at Puna due to a hurricane-related forced outage, partially offset by the July commencement of commercial operation at the 10 MW Dominica geothermal plant and improved performance at Olkaria. | $163.7M | – | -2.1 % |
| ProductTiming of manufacturing and construction progress. | $61.5M | – | -1.2 % |
| Energy StorageHigh asset availability, strong merchant pricing in the PJM market, and new portfolio capacity additions over the past 12 months. | $49.9M | – | +145.2 % |
2026 outlook
- Revenuebetween $1,170 million and $1,200million
- NoteElectricity segment revenues between $700 million and $710 million.
- NoteProduct segment revenues of between $310 million and $320 million.
- NoteEnergy Storage revenues of between $160 million and $170 million.
- NoteAdjusted EBITDA is expected to be between $640 million and $650 million.
- NoteOf which approximately $13.0 million is attributed to minority interest.
Capital returns
- On November 4, 2026, the Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share.
- The dividend will be paid on December 2, 2026, to stockholders of record as of the close of business on November 18, 2026.
What drove it
- Energy Storage gross margin was 62.1 %, compared to 39.4 % in Q3 2025.
- Energy Storage profitability benefited from newly added capacity, high asset availability and favorable merchant pricing in PJM.
- Product segment backlog stands at approximately $183 million as of November 4, 2026.
- In July 2026, Ormat achieved commercial operation of its 10 MW Dominica geothermal power plant.
- In August 2026, Ormat decided to proceed with the development of the 100 MW / 400 MWh Denali energy storage facility in California, expected by the end of 2028 under a 20-year tolling agreement with Clean Power Alliance.
- The Company expanded its EGS land position from approximately 70,000 acres to approximately 170,000 acres and estimates it could support approximately 5 to 6 GW of potential future EGS development.
Concerns
- Electricity segment revenue declined 2.1 % year-over-year, primarily due to lower generation at Puna following a hurricane-related forced outage.
- Product segment revenue declined 1.2 % year-over-year due largely to the timing of manufacturing and construction progress.
- Electricity gross margin was 22.2 %, compared to 25.4 % in Q3 2025, while Product gross margin was 16.5 %, compared to 21.7 %.
- Interest expense, net was $(44,191) in Q3 2026, compared to $(35,677) in Q3 2025.
- The Company is negotiating PPAs for Dixie Valley, its first planned commercial EGS project, and for other potential EGS projects.
What to watch
- Execution against 2026 total revenue guidance of between $1,170 million and $1,200million and Adjusted EBITDA guidance of between $640 million and $650 million.
- Electricity generation recovery at Puna following the hurricane-related forced outage.
- Energy Storage merchant pricing in PJM, asset availability, and the contribution from portfolio additions.
- Drilling at the two EGS pilot programs with SLB and Sage, expected to commence late 2026 or early 2027.
- Progress in negotiations for PPAs for Dixie Valley and other potential EGS projects.
- Development of the Denali facility, expected by the end of 2028.
Balance sheet and cash flow
- Cash and cash equivalents were $347,968 as of September 30, 2026, compared to $147,448 as of December 31, 2025.
- Restricted cash and cash equivalents were $164,169 as of September 30, 2026, compared to $133,418 as of December 31, 2025.
- Short term revolving credit lines with banks (full recourse) were — as of September 30, 2026, compared to $80,000 as of December 31, 2025.
- Commercial paper was $99,987 as of September 30, 2026, compared to $99,983 as of December 31, 2025.
- Convertible senior notes current portion was $361,045 as of September 30, 2026, compared to — as of December 31, 2025.
- Long-term debt, net of current portion, limited and non-recourse was $668,225 as of September 30, 2026, compared to $645,803 as of December 31, 2025.
- Long-term debt, net of current portion, full recourse was $841,210 as of September 30, 2026, compared to $1,009,090 as of December 31, 2025.
- Long-term convertible senior notes were $807,353 as of September 30, 2026, compared to $472,334 as of December 31, 2025.
- Cash flow from operating activities and free cash flow were not reported in the filing. All balance-sheet amounts are in thousands.
Analysis
Ormat reported a strong third quarter, with GAAP total revenues of $275.1 million, up 10.2 %, and gross profit of $77.4 million, up 20.8 %. Gross margin expanded to 28.1 % from 25.6 %, while operating income increased 11.9 % to $45.3 million. Net income attributable to the Company's stockholders increased 32.2 % to $31.9 million, or $0.51 per diluted share. Adjusted EBITDA increased 11.1 % to $153.8 million, and adjusted diluted EPS was $0.56.
Energy Storage was the principal growth and margin driver. Segment revenue increased 145.2 % to $49.9 million and segment gross margin increased to 62.1 % from 39.4 %. Management attributed the result to favorable merchant pricing in PJM, high availability and newly added capacity. The segment's performance offset weakness in the established generation and product businesses: Electricity revenue declined 2.1 % to $163.7 million after the Puna hurricane-related forced outage, and Product revenue declined 1.2 % to $61.5 million because of manufacturing and construction timing.
The nine-month results show broad reported growth, with total revenues of $937.8 million, up 31.4 %, and Adjusted EBITDA of $492.6 million, up 16.4 %. Nine-month Product revenue was $285.6 million, up 85.9 %, while Energy Storage revenue was $137.6 million, up 161.6 %. However, the quarter's lower Electricity and Product segment margins, at 22.2 % and 16.5 %, respectively, remain material for the revenue mix and operating-profit outlook. Net interest expense was $(44,191) in the quarter, compared with $(35,677) in the prior-year period.
The Company raised the midpoint of its 2026 total revenue outlook to a range of between $1,170 million and $1,200million and Adjusted EBITDA outlook to between $640 million and $650 million. The balance sheet reported cash and cash equivalents of $347,968 and restricted cash and cash equivalents of $164,169 at September 30, 2026. It also reported $361,045 of convertible senior notes in current liabilities and $807,353 of long-term convertible senior notes. Capital allocation included a declared quarterly dividend of $0.12 per share.
Longer-term development activity centers on the Denali energy storage project and expanded EGS activity. Ormat decided to proceed with the 100 MW / 400 MWh Denali facility, expected by the end of 2028, and is advancing two EGS pilot programs with drilling expected late 2026 or early 2027. Its EGS land position increased to approximately 170,000 acres, which the Company estimates could support approximately 5 to 6 GW of potential future EGS development. The commercial timeline remains dependent on progress in PPA negotiations for Dixie Valley and other potential EGS projects.
Management, verbatim
Our strong third-quarter performance was driven by record Energy Storage profitability, supported by newly added capacity, high asset availability and favorable merchant pricing in PJM. Revenue increased 10.2%, net income attributable to stockholders rose 32.2%, and Adjusted EBITDA grew 11.1%. Our year-to-date performance and fourth-quarter outlook support an increase in the midpoints of our full-year revenue and Adjusted EBITDA guidance.
Doron Blachar, Chief Executive Officer of Ormat Technologies
While we continue to add new capacity and expand our Electricity segment portfolio, segment revenue slightly declined 2.1% year-over-year in the third quarter. This was primarily due to lower generation at Puna following a hurricane-related forced outage, partially offset by the July commencement of commercial operation at our 10 MW Dominica geothermal plant and improved performance at our Olkaria plant.
Doron Blachar, Chief Executive Officer of Ormat Technologies
Ormat’s six decades of geothermal experience and integrated capabilities position the Company to participate in EGS as a developer, owner, operator and technology provider, while pursuing a diversified approach that extends beyond a single emerging technology.
Doron Blachar, Chief Executive Officer of Ormat Technologies
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, prior-guidance comparisons are unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Quarter-over-quarter comparisons were not reported for the presented operating metrics.
- GAAP tax rate was not reported.
- Forward guidance for gross margin, operating expenses, tax rate, net income and EPS was not provided.
- A complete cash flow statement was not included in the filing text.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ormat Technologies filed a Form 8‑K reporting Q3 2026 results, highlighting a 145% YoY jump in energy‑storage revenue and raising full‑year guidance.
Ticker impact
Ormat Technologies raised the midpoint of its 2026 revenue and adjusted EBITDA guidance and reported double‑digit growth in Q3 2026 earnings.
likely upward pressure as investors price in higher revenue and EBITDA outlook
The 8‑K filing is the first disclosure of Q3 results and an upward revision to full‑year guidance, a material catalyst for the stock.
Market effects
Energy storage and geothermal sectors may see increased investor interest from Ormat's strong performance.
U.S. renewable‑energy stocks could benefit from Ormat's guidance lift.
Positive signals from a leading geothermal player may influence global clean‑energy investment sentiment.
Counterpoint
If the energy‑storage surge proves temporary, the guidance raise could be overstated.
Key entities
- companyOrmat Technologies, Inc.
Renewable‑energy and geothermal power producer (NYSE: ORA).
