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Ormat Technologies Gains From Geothermal and Energy Storage Expansion
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Key Takeaways
Geothermal energy accounted for 81.3% of ORA's Electricity segment generation capacity in 2025.
Ormat acquired Hawaii's Hoku solar and storage facility, adding a 30-MW solar and battery project.
ORA is developing six storage projects expected to add 397 MW and 1,488 MWh to its portfolio.
Ormat Technologies Inc. (ORA - Free Report) is strengthening its growth prospects through continued investments in geothermal and energy storage projects, benefiting from the increasing global adoption of renewable energy. The company is expanding its generation capacity and advancing new projects, reinforcing its position in the geothermal energy market.
However, this Zacks Rank #3 (Hold) company remains exposed to tariff-related risks that could increase costs and pressure margins.
Key Strengths Supporting ORA’s Growth
As the global shift toward renewable energy continues, Ormat Technologies is well-positioned to capitalize on growing demand for geothermal power, a reliable and sustainable energy source. Geothermal energy represented 81.3% of the company’s Electricity segment generation capacity in 2025, highlighting its strong presence in the market.
To expand its generation capacity and strengthen long-term growth, Ormat continues to invest in strategic acquisitions and power purchase agreements. In January 2026, the company acquired the Hoku solar and storage facility in Hawaii from Innergex Renewables USA LLC for $79.3 million. The project comprises a 30-megawatt (MW) solar facility and a 30 MW/120 MWh battery storage system backed by a 25-year fixed-price power purchase agreement with HECO. This acquisition further broadened Ormat’s solar and storage portfolio and is expected to enhance profitability through operational synergies.
Ormat plans to invest $111 million in the development of its energy storage assets. The company currently has six storage projects under development that are expected to add 397 MW/1,488 MWh to its portfolio. These projects support Ormat’s goal of expanding its U.S. energy storage portfolio to 950-1,050 MW and 2,500-2,900 MWh by the end of 2028.
Challenges That Could Weigh on ORA’s Growth
Tariffs and evolving trade policies could increase costs for Ormat, as the company relies on globally sourced equipment, components and materials for its geothermal, solar and energy storage projects. Rising import duties, reciprocal tariffs or tighter trade regulations may elevate procurement and transportation expenses while potentially delaying project development. Shifts in trade policies could affect project economics and place pressure on profit margins if the company is unable to fully recover higher costs from customers.
Ormat’s facilities in Israel and the Port of Ashdod remain exposed to security risks, including rocket attacks from the Gaza Strip, while Houthi attacks in the Red Sea have disrupted global shipping routes. These events have led to longer lead times, supplier delays, higher transportation and component costs, and increased shipping and insurance expenses. The resulting supply-chain disruptions have delayed deliveries of key components and may continue to affect Ormat’s ability to meet customer commitments in its Product segment.
ORA Stock Price Movement
Over the past year, ORA shares have surged 72.8% compared with the industry’s growth of 16.6%.
The Zacks Consensus Estimate for CRGY’s 2026 sales is pinned at $4.88 billon, which indicates a year-over-year increase of 36.4%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $2.51, which implies a year-over-year jump of 39.4%.
The Zacks Consensus Estimate for BE’s 2026 sales is pinned at $3.65 billon, which calls for a year-over-year surge of 80.3%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $1.91, which indicates a massive year-over-year jump of 151.3%.
The Zacks Consensus Estimate for ALVOF’s 2026 sales stands at $77.7 million, which suggests a year-over-year rise of 34.1%. The Zacks Consensus Estimate for its 2026 EPS is pegged at 89 cents, which indicates a year-over-year increase of 45.9%.
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Ormat Technologies Gains From Geothermal and Energy Storage Expansion
Key Takeaways
Ormat Technologies Inc. (ORA - Free Report) is strengthening its growth prospects through continued investments in geothermal and energy storage projects, benefiting from the increasing global adoption of renewable energy. The company is expanding its generation capacity and advancing new projects, reinforcing its position in the geothermal energy market.
However, this Zacks Rank #3 (Hold) company remains exposed to tariff-related risks that could increase costs and pressure margins.
Key Strengths Supporting ORA’s Growth
As the global shift toward renewable energy continues, Ormat Technologies is well-positioned to capitalize on growing demand for geothermal power, a reliable and sustainable energy source. Geothermal energy represented 81.3% of the company’s Electricity segment generation capacity in 2025, highlighting its strong presence in the market.
To expand its generation capacity and strengthen long-term growth, Ormat continues to invest in strategic acquisitions and power purchase agreements. In January 2026, the company acquired the Hoku solar and storage facility in Hawaii from Innergex Renewables USA LLC for $79.3 million. The project comprises a 30-megawatt (MW) solar facility and a 30 MW/120 MWh battery storage system backed by a 25-year fixed-price power purchase agreement with HECO. This acquisition further broadened Ormat’s solar and storage portfolio and is expected to enhance profitability through operational synergies.
Ormat plans to invest $111 million in the development of its energy storage assets. The company currently has six storage projects under development that are expected to add 397 MW/1,488 MWh to its portfolio. These projects support Ormat’s goal of expanding its U.S. energy storage portfolio to 950-1,050 MW and 2,500-2,900 MWh by the end of 2028.
Challenges That Could Weigh on ORA’s Growth
Tariffs and evolving trade policies could increase costs for Ormat, as the company relies on globally sourced equipment, components and materials for its geothermal, solar and energy storage projects. Rising import duties, reciprocal tariffs or tighter trade regulations may elevate procurement and transportation expenses while potentially delaying project development. Shifts in trade policies could affect project economics and place pressure on profit margins if the company is unable to fully recover higher costs from customers.
Ormat’s facilities in Israel and the Port of Ashdod remain exposed to security risks, including rocket attacks from the Gaza Strip, while Houthi attacks in the Red Sea have disrupted global shipping routes. These events have led to longer lead times, supplier delays, higher transportation and component costs, and increased shipping and insurance expenses. The resulting supply-chain disruptions have delayed deliveries of key components and may continue to affect Ormat’s ability to meet customer commitments in its Product segment.
ORA Stock Price Movement
Over the past year, ORA shares have surged 72.8% compared with the industry’s growth of 16.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are Crescent Energy Company (CRGY - Free Report) and Bloom Energy (BE - Free Report) , which sport a Zacks Rank #1 (Strong Buy), and Alvopetro Energy (ALVOF - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRGY’s 2026 sales is pinned at $4.88 billon, which indicates a year-over-year increase of 36.4%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $2.51, which implies a year-over-year jump of 39.4%.
The Zacks Consensus Estimate for BE’s 2026 sales is pinned at $3.65 billon, which calls for a year-over-year surge of 80.3%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $1.91, which indicates a massive year-over-year jump of 151.3%.
The Zacks Consensus Estimate for ALVOF’s 2026 sales stands at $77.7 million, which suggests a year-over-year rise of 34.1%. The Zacks Consensus Estimate for its 2026 EPS is pegged at 89 cents, which indicates a year-over-year increase of 45.9%.