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Ormat Technologies Q2 Earnings Outpace Estimates, Revenues Increase Y/Y

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Key Takeaways

  • Ormat posted Q2 adjusted EPS of 48 cents, beating estimates by nearly 30%.
  • Q2 revenues rose 9.9% year over year to $234M, driven by product and energy storage unit growth.
  • Product segment revenues surged 57.6%, while Energy Storage rose 62.7% in Q2.

Shares of Ormat Technologies Inc. (ORA - Free Report) rose 1.7% to $86.68 on Aug. 8, following the company’s second-quarter 2025 results release.

Ormat reported second-quarter 2025 adjusted earnings per share of 48 cents, which surpassed the Zacks Consensus Estimate of 37 cents by 29.7%. The bottom line also increased 20% from 40 cents in the year-ago quarter.

The company reported GAAP earnings of 46 cents compared with 37 cents in the year-ago quarter.

ORA’s Total Revenues

ORA generated revenues of $234 million, which topped the Zacks Consensus Estimate of $221 million by 6%. The top line also increased 9.9% year over year, driven by higher revenues from its product and energy storage segments.

Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote

ORA’s Segmental Performance

Electricity: Revenues in this segment amounted to $159.9 million, down 3.8% year over year. This downside was primarily due to well-field work at the company’s Puna facility and energy curtailments, mainly at its McGinness Hills and Tungsten complexes. The outage at ORA’s Stillwater plant, related to a planned upgrade, has also caused revenues in this segment to decline.

Product: This segment’s revenues increased 57.6% to $59.6 million from the year-ago quarter’s level. The improvement was due to the timing of revenue recognition from manufacturing and construction progress. 

Energy: Revenues in this division amounted to $14.5 million, up 62.7% from the prior-year quarter’s figure. This was driven by the contribution of the new assets that came online last year and strong merchant pricing in the PJM market.

ORA’s Operational Update

Ormat’s total operating expenses (research and development, selling and marketing, as well as general and administrative expenses) were $25.6 million, which rose 7% from the year-ago quarter’s level.

The operating income climbed 0.5% year over year to $35.3 million.

The total cost of revenues was $177.1 million, up 16.9% year over year.

Net interest expenses were $36.7 million, up 8.8% year over year.

Ormat’s Financial Condition

ORA had cash and cash equivalents of $88.5 million as of June 30, 2025 compared with $94.4 million as of Dec. 31, 2024.

ORA’s 2025 Guidance

The company reiterated its guidance for 2025. It still expects to generate revenues in the range of $935-$975 million. The Zacks Consensus Estimate is pegged at $955.3 million, just a tad higher than the midpoint of the guided range.

Revenues for the Electricity segment are still anticipated in the band of $710-$725 million. The Product segment’s revenues are still expected in the range of $172-$187 million. Revenues for the Energy Storage segment are still projected between $53 million and $63 million.

ORA still anticipates annual adjusted EBITDA in the band of $563-$593 million.

ORA’s Zacks Rank

Ormat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Operating revenues for the quarter totaled $7.89 billion, which missed the Zacks Consensus Estimate of $8.57 billion by 7.9%. However, the top line improved 61.2% from $4.89 billion in the prior-year quarter.

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Revenues totaled $6.1 billion, which outpaced the Zacks Consensus Estimate of $5.06 billion by 20.5%. The top line also increased 11.3% from the year-ago figure of $5.48 billion.

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