Ormat Technologies (ORA) Q4 2024 earnings summary

Executive summary

• Achieved 6.1% year-over-year revenue growth to $879.7 million and 14.3% adjusted EBITDA growth, with strong performance across all business segments and 253MW of new capacity added in 2024.

• Strategic acquisitions, including Enel Assets, and new PPAs at higher rates, especially with hyperscalers, supported growth.

• Proactively secured tax benefits and regulatory eligibility for geothermal and storage projects, with safe-harbored projects through 2028.

• Maintained robust growth trajectory, targeting 2.6–2.8GW capacity by 2028.

• Enhanced ESG performance, including increased board diversity and significant avoided emissions.

Financial highlights

• Full-year 2024 revenue: $879.7 million (+6.1% YoY); Q4 revenue: $230.7 million (-4.4% YoY).

• Full-year adjusted EBITDA: $550.5 million (+14.3% YoY); Q4 adjusted EBITDA: $145.5 million (+4.6% YoY).

• Full-year net income: $123.7 million ($2.04/share); adjusted net income: $133.7 million ($2.20/share, +9.7% YoY).

• Record product backlog of $340 million (+124% YoY), with $210 million in new contracts added in Q4 2024.

• Electricity segment generated 89% of adjusted EBITDA; product 6%; storage 5%.

Outlook and guidance

• 2025 revenue guidance: $935–$975 million; segment guidance: Electricity $710–$725 million, Product $172–$187 million, Storage $53–$63 million.

• Adjusted EBITDA guidance: $563–$593 million (+5% at midpoint); $23 million attributable to minority interest.

• Targeting 14–16% CAGR in installed capacity through 2028, reaching 2.6–2.8GW.

• 2025 CapEx expected at $570 million to support growth initiatives.

• 2025 revenue to be negatively impacted by $10–$15 million due to U.S. curtailments.