HIGHLIGHTS
IMPROVED OPERATING PERFORMANCE, DROVE RECORD REVENUES AND OPERATING INCOME, DELIVERING ADJUSTED EBITDA AND ADJUSTED DILUTED EPS INCREASES OF 29.7% AND 91.2%, RESPECTIVELY
ADVANCED OUR EGS STRATEGY, MAKING MEANINGFUL PROGRESS ACROSS BOTH TECHNOLOGY AND COMMERCIAL DEVELOPMENT
STRENGTHENED OUR FINANCIAL POSITION, WITH THE CLOSING OF A $1 BILLION CONVERTIBLE NOTES OFFERING AT ATTRACTIVE TERMS
ORMAT REITERATES ITS 2026 FULL-YEAR GUIDANCE
RENO, Nev., May 06, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) (the "Company" or "Ormat"), a leading geothermal and renewable energy company, today announced financial results for the first quarter ended March 31, 2026.
KEY FINANCIAL RESULTS
Q1 2026
Q1 2025
Change (%)
GAAP Measures
Revenues ($ millions)
Electricity
181.6
180.2
0.8%
Product
177.4
31.8
458.4%
Energy Storage
44.9
17.8
153.1%
Total Revenues
403.9
229.8
75.8%
Gross Profit
120.4
72.9
65.1%
Gross margin (%)
Electricity
30.8%
33.5%
Product
21.4%
22.3%
Energy Storage &
59.1%
30.6%
Gross margin (%)
29.8%
31.7%
Operating income ($ millions)
80.3
50.9
57.6%
Net income attributable to the Company's stockholders
44.1
40.4
9.2%
Diluted EPS ($)
0.71
0.66
7.6%
Non-GAAP Measures1
Adjusted Net income attributable to the Company's stockholders
80.3
41.5
93.5%
Adjusted Diluted EPS ($)
1.30
0.68
91.2%
Adjusted EBITDA1 ($ millions)
194.9
150.3
29.7%
______________________1 See reconciliation table below
"Ormat is off to a very strong start in 2026, delivering continued revenue growth across all segments alongside continued progress on our growth and funding strategies. Our 57.6% year-over-year growth in operating income, 29.7% growth in adjusted EBITDA and 91.2% increase in adjusted diluted EPS reflect not only the outstanding performance of our Energy Storage and Product segments, but also the strength and resilience of our diversified portfolio." said Doron Blachar, Chief Executive Officer of Ormat."
"Our Energy Storage segment continues to emerge as a powerful growth engine, with revenue increasing by 153.1%, driven by capacity expansion in our portfolio and high asset availability that enabled us to capture merchant opportunities and validate our strategy of balancing contracted and merchant exposure while maximizing returns. Our Product segment also delivered, as expected, significant growth, driven in part by the Topp 2 project, demonstrating the strength of our integrated business model and ability to capture value across the lifecycle of our assets."
"Since the end of the year, we have secured approximately 270MW of new Power Purchase Agreements ("PPAs") in the United States, including 67MW for a new solar-plus-storage project in Nevada and the remainder for geothermal at attractive rates. These include PPAs with Google and Switch, as well as ‘blend-and-extend' agreements that improve pricing and enhance long-term visibility across our portfolio. We also advanced our growth initiatives through disciplined capital deployment, including the acquisition of the Hoku solar-plus-storage facility in Hawaii. In parallel, we strengthened our financial position by completing a $1 billion convertible notes offering at attractive terms and we are continuing to monetize tax benefits, which is helping us secure the capital needed to support our long-term growth objectives."
"On the strategic development front, we are continuing to advance our next-generation geothermal and Enhanced Geothermal Systems (EGS) strategy, making meaningful progress across both technology and commercial development. We are actively progressing pilot initiatives, including our collaboration with SLB and our investment in Sage Geosystems, which should position us at the forefront of next-generation geothermal and EGS solutions. At the same time, we are accelerating our business development pipeline through resource mapping, land acquisition, and engagement with strategic partners, while advancing PPA discussions to support future commercialization. We are also advancing next-generation above-ground system capabilities, including the development of a larger, high-capacity Ormat Energy Converter (OEC) solution tailored for EGS, enabling scalable, industrial-scale deployment across diverse resource conditions.
Blachar concluded, "With strong execution across all segments, significant progress in our next-generation geothermal initiatives, a supportive market environment, and a clear path to growth, we remain confident in our ability to deliver on our 2028 targets. We expect to sustain this positive momentum throughout 2026, which will deliver lasting value for our shareholders."
FINANCIAL HIGHLIGHTS
Net income attributable to stockholders was $44.1 million, or $0.71 per diluted share, compared to $40.4 million, or $0.66 per diluted share, in the prior year period. The increase was driven by improved business performance, partly offset by $38.0 million of one-time pre-tax expenses, including $33.7 million related to the induced conversion resulting from the repurchase of the 2027 convertible notes, $10.2 million in write-offs and impairment charges, and an immaterial expense related to a legal settlement, partly offset by a $9.6 million gain related to the purchase of the Hoku storage and solar facility in Hawaii.
Adjusted net income was $80.3 million, or $1.30 per diluted share, compared to $41.5 million, or $0.68 per diluted share, in the prior year period. The increase reflects the strong underlying operational performance of our operating segments.
Adjusted EBITDA increased 29.7% to $194.9 million, driven by strong contributions from the Energy Storage segment, elevated merchant pricing and significant growth in the Product segment, primarily from the Topp 2 revenue contribution.
Electricity segment revenues increased 0.8% in the first quarter compared to the prior year, primarily driven by contributions from the Blue Mountain power plant, improved generation performance at the Olkaria and Stillwater facilities, and lower curtailments versus the prior year period, offset by extremely high ambient temperatures in Nevada, which reduced revenue by approximately $4.8 million.
Energy Storage revenues increased 153.1% in the first quarter compared to 2025. 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 capacity additions over the past 12 months. An optimized mix of merchant and contracted revenues supported margin expansion.
Product segment revenues increased 458.4% in the first quarter, primarily driven by the $105.1 million revenue recognition related to the Topp 2 sale. The facility was removed from the Company's Electricity pipeline following a customer's exercise of its purchase option to buy the facility.
Product segment backlog stands at approximately $239 million as of May 6, 2026, including two new contracts signed since the start of the year, totaling $56 million.
BUSINESS HIGHLIGHTS:
In April 2026, we signed a long-term PPA with NV Energy for the 67 MW Jersey Valley solar + 67 MW / 268 MWh storage project in Nevada, expected to go online by late 2027 or early 2028, which is anticipated to secure fixed-price, long-term revenues while supporting clean energy goals. The PPA is subject to Nevada PUC approval.
In March 2026, Ormat announced the closing of a $1 billion convertible senior notes offering at attractive terms, including the full exercise of initial purchasers' options to purchase additional notes. The Company used a portion of the net proceeds to repurchase a portion of its outstanding 2027 convertible senior notes, resulting in a $33.7 million induced conversion charge recognized during the quarter.
In March 2026, we commenced commercial operations at the 80MW/320MWh Shirk energy storage facility under a 15-year Resource Adequacy Purchase and Sale Agreement with the City of Riverside.
In February 2026, Ormat announced the signing and approval of a "blend-and-extend" agreement for the CD4 geothermal power plant, with the PPA reflecting an approximate 27% increase in contract pricing.
In February 2026, we executed a 15-year geothermal portfolio PPA of up to 150MW to supply Google's data centers' electricity needs through NV Energy.
In January 2026, we agreed to sell the 50MW Topp 2 project in New Zealand for approximately $107 million.
In January 2026, we acquired our second hybrid solar-plus-storage facility, the Hoku 30MW solar PV plant paired with a 30MW/120MWh battery, on Hawaii's Big Island for approximately $80 million in cash.
In January 2026, we invested $25 million in Sage Geosystems as part of its Series B financing round to advance next-generation geothermal and energy storage technologies.
In January 2026, we were awarded the Telaga Ranu Geothermal Working Area in Indonesia, strengthening Ormat's long-term development pipeline in the country.
In January 2026, we signed a 20-year PPA with Switch for approximately 13MW from our Salt Wells power plant.
2026 GUIDANCE
Total revenues are expected to be between $1,110 million and $1,160 million.
Electricity segment revenues between $715 million and $730 million.
Product segment revenues of between $300 million and $320 million.
Energy Storage revenues of between $95 million and $110 million.
Adjusted EBITDA is expected to be between $615 million and $645 million.
Adjusted EBITDA is attributable to minority interest of approximately $18.0 million.
The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended March 31, 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 May 6, 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 June 3, 2026, to stockholders of record as of the close of business on May 20, 2026. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next two quarters.
CONFERENCE CALL DETAILS
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on May 7, 2026, at 9:00 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 webcast live 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 the energy storage market 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 leveraged 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 1,835MW with a 1,340MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, 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
Three Months Ended March 31,
2026
2025
(Dollars in thousands, except per share data)
Revenues:
Electricity
181,603
180,241
Product
177,383
31,769
Energy storage
44,925
17,752
Total revenues
403,911
229,762
Cost of revenues:
