Ormat Exceeds Third-Quarter Expectations, Raises Annual Forecast

Geothermal energy company Ormat has surpassed analyst expectations for the third quarter, reporting higher revenues and profits. The company's revenues increased by 10.2% year-over-year to $275 million, exceeding analyst predictions which anticipated revenues similar to the previous year's third quarter. While its two main segments, Electricity and Products, saw slight revenue declines, the Energy Storage segment experienced a significant surge of 145%, reaching $49.9 million and contributing higher gross profit.

Ormat's net profit attributable to shareholders rose 11.9% to $45.3 million compared to the same period last year. On a Non-GAAP basis, net profit grew by 39.8% to $34.8 million, with earnings per share reaching 51 cents, significantly higher than the 35 cents analysts had projected. For the first three quarters of 2026, Ormat's revenues climbed 31.4% to approximately $938 million, with net profit around $160 million. Non-GAAP net profit stood at $146 million, and adjusted EBITDA was about $493 million.

The company has slightly raised its full-year revenue forecast, now expecting between $1.17 billion and $1.2 billion. This adjustment comes despite a lowered revenue outlook for the Electricity segment, now projected at $700-710 million, down from $710-725 million. Conversely, the Energy Storage segment's revenue forecast was increased to $160-170 million, up from $140-155 million, and the Products segment's forecast was also revised upward. Ormat also anticipates its full-year adjusted EBITDA to be between $640 million and $650 million, a slight increase from the previous forecast of $630-650 million.

CEO Doron Blacher attributed the strong third-quarter performance to record profitability in the Energy Storage segment, driven by new power plants, high asset availability, and favorable Merchant rates in PJM. He noted that while the company continues to add new generation capacity and expand its Electricity segment portfolio, its revenues decreased by 2.1% due to an unplanned outage at the Puna plant caused by a hurricane. This impact was partially offset by the commercial operation of a 10 MW geothermal power plant in Dominica and improved performance at the Olkaria plant in Kenya.

Blacher also highlighted Ormat's growth plan, which aims to double its generation capacity by the end of 2030 compared to the end of 2025. The company targets annual revenues exceeding $1.5 billion and adjusted EBITDA exceeding $1 billion. He expressed confidence in Ormat's position to achieve sustainable growth and long-term shareholder value, citing increasing demand for reliable 24/7 electricity and a growing portfolio of long-term power purchase agreements. Ormat is currently valued at $5.8 billion and is traded in New York and Tel Aviv.