Ormat Transforms into Energy Storage Firm as Battery Revenue Surges 145%
Translated & summarized from Calcalist by baba
Ormat's third-quarter 2026 financial reports show a significant 145% surge in revenue from its battery storage sector, making it a key growth driver. Total company revenues increased by 10% to $275 million, with net profit up 32%. The company is also expanding into Enhanced Geothermal Systems (EGS) technology.
The story in 4 lines · by baba
- Ormat's battery storage revenue soared 145% in Q3 2026, becoming a major growth engine.
- Total company revenues reached $275 million, a 10% increase, with net profit up 32%.
- The company is expanding into Enhanced Geothermal Systems (EGS) for deep underground energy production.
- A temporary shutdown at the Puna plant in Hawaii impacted electricity generation revenue.
Ormat, a geothermal energy company, is increasingly focusing on electricity storage, with its battery sector emerging as a primary growth engine. In the third quarter of 2026, revenue from the storage segment jumped 145% compared to the same period in 2025, accounting for approximately 18% of the company's total income. While Ormat's established geothermal and technology development sectors remain larger, their revenues have declined. Overall, Ormat's total revenues rose about 10% to $275 million, with net profit increasing 32% to $32 million. The gross profit margin improved to 28% from 25.6% in the prior year's third quarter.
CEO Doron Blacher attributed a 2.1% decrease in electricity generation revenue to a temporary shutdown at the Puna plant in Hawaii. Blacher also highlighted Ormat's plans to expand in Enhanced Geothermal Systems (EGS), which involves deep underground geothermal energy production exceeding 3 kilometers by injecting water. The company is currently conducting an EGS pilot project and leasing land for geothermal energy extraction.