Ormat Technologies (ORA) Q4 2025 earnings summary

Executive summary

• Revenue grew 12.5% year-over-year to $990 million for FY 2025, with Q4 revenue up 19.6% to $276 million, reflecting strong execution across product and energy storage segments.

• Adjusted EBITDA increased 5.7% year-over-year to $582 million, with Q4 up 9.1%.

• Major new PPAs totaling ~200 MW were secured with Google (up to 150 MW for 15 years), Switch (13 MW for 20 years), and other hyperscalers and utilities at elevated prices.

• Strategic investments and partnerships in next-generation geothermal technologies, including a $25 million investment in Sage Geosystems and collaboration with SLB, advanced EGS commercialization.

• Acquisitions of Hoku (HI) and Blue Mountain (NV), and commissioning of Arrowleaf (CA), expanded the hybrid and geothermal portfolios.

Financial highlights

• Full-year gross margin was 27.6%, down from 31% last year, mainly due to electricity segment curtailments and revenue mix shift; Q4 gross margin was 28.6%.

• Q4 net income attributable to stockholders was $31.4 million ($0.50/share), down from $40.8 million last year, impacted by asset impairments and higher tax rate.

• Adjusted net income for 2025 was $137.3 million ($2.24/share), up from $133.7 million ($2.20/share) in 2024.

• Product segment revenue surged 55.2% year-over-year; Storage segment revenue more than doubled (+109.3%), with Q4 Storage revenue up 140.5%.

• Cash from operations for 2025 was $335 million; total liquidity at year-end was $680 million.

Outlook and guidance

• 2026 revenue guidance: $1,110–$1,160 million (+14.6% at midpoint); Adjusted EBITDA: $615–$645 million (+8.2%).

• Segment revenue guidance for 2026: Electricity $715–$730 million; Product $300–$320 million; Energy Storage $95–$110 million.

• Storage segment revenue expected to grow 42.8% in 2026; Product segment up 29.7%.

• Growth plan targets 15–18% CAGR in capacity through 2028, reaching 2.6–2.8 GW.

• Curtailment impact expected to drop to $4–$5 million in 2026, with gross margin in electricity segment projected to rise by 1–2%.