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Ormat Technologies (ORA) Up 4.2% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Ormat Technologies (ORA - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ormat Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Ormat Technologies Q4 Earnings Meet Estimates, Revenues Beat

Ormat Technologies reported fourth-quarter 2025 adjusted earnings per share of 67 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line decreased 6.9% from 72 cents in the year-ago quarter.

The company reported GAAP earnings of 50 cents per share compared with 67 cents in the year-ago quarter.

For 2025, Ormat Technologies generated adjusted earnings of $2.24 per share, up from $2.20 reported in the previous year.

ORA’s Total Revenues

ORA generated revenues of $276 million, which topped the Zacks Consensus Estimate of $258 million by 7%. The top line also increased 19.6% year over year, driven by higher revenues from its electricity, product and energy storage segments.

For 2025, the company generated revenues worth $989.5 million, up 12.5% from $879.7 million recorded in 2024.

ORA’s Segmental Performance

Electricity: Revenues in this segment amounted to $186.6 million, up 3.6% year over year. This upside was primarily due to contributions from the Blue Mountain power plant, acquired in June 2025, and improved generation performance at Dixie Valley.

Product: This segment’s revenues surged 59.1% to $63.1 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 $26.3 million, up 140.5% from the prior-year quarter’s figure. This was driven by higher merchant pricing in the PJM market, commercial operation of Bottleneck and Montague in the fourth quarter of 2024 and Lower Rio and the Arrowleaf hybrid solar-plus-storage facility in the second half of 2025.

ORA’s Operational Update

Ormat Technologies’ total operating expenses (research and development, selling and marketing, as well as general and administrative expenses) were $28.2 million, which rose 12.3% from the year-ago quarter’s level.

The operating income declined 13.3% year over year to $42.6 million.

The total cost of revenues was $197.2 million, up 25.5% year over year.

Net interest expenses were $35 million, which rose 1.4% year over year.

Ormat’s Financial Condition

ORA had cash and cash equivalents of $147.4 million as of Dec. 31, 2025, compared with $94.4 million as of Dec. 31, 2024.

ORA’s 2026 Guidance

The company initiated its guidance for 2026. It expects to generate revenues in the range of $1.11-$1.16 billion. The Zacks Consensus Estimate is pegged at $1.15 billion, which lies at the higher end of the company’s guided range.

Revenues for the Electricity segment are anticipated in the band of $715-$730 million. The Product segment’s revenues are now expected in the range of $300-$320 million. Revenues for the Energy Storage segment are now projected between $95 million and $110 million.

ORA anticipates annual adjusted EBITDA in the band of $615-$645 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Ormat Technologies has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Ormat Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Ormat Technologies belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Clearway Energy (CWEN - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Clearway Energy reported revenues of $310 million in the last reported quarter, representing a year-over-year change of +21.1%. EPS of -$0.89 for the same period compares with $0.03 a year ago.

For the current quarter, Clearway Energy is expected to post a loss of $0.29 per share, indicating a change of -1066.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.1% over the last 30 days.

Clearway Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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