Ormat Technologies Beats Analyst Expectations and Raises 2026 Revenue Forecast

Ormat Technologies, a geothermal energy company led by CEO Doron Blachar, exceeded analyst expectations in its second-quarter financial results, prompting a 4.9% rise in its stock during after-hours trading in New York. The company reported a net profit of $27.1 million for Q2, slightly down from $28 million in the same quarter last year, mainly due to a $6.6 million write-off on projects the company decided not to pursue. However, adjusted net income rose to $31 million from $27.1 million year-over-year, with adjusted earnings per share reaching 50 cents, well above the 27 cents expected by analysts.

Revenues increased by 10.6% to $258.8 million, surpassing market forecasts of $240.3 million. Adjusted EBITDA grew 6.9% to $143.9 million, driven by strong contributions from the energy storage segment, portfolio expansion, and robust performance in the electricity division, beating analyst estimates of $135.5 million. Following these results, Ormat upgraded its 2026 revenue guidance to a range of $1.20 billion to $1.25 billion, up from the previous forecast of $1.11 billion to $1.16 billion.

The energy storage segment stood out with revenues nearly tripling to $42.8 million, a 195% increase compared to the prior year, attributed to higher asset availability and new assets added over the past year. The electricity segment, Ormat's core and largest division, saw revenues rise 5.8% to $169.3 million, benefiting from contributions by the Blue Mountain power plant, improved production at Puna and Olkaria facilities, and tariff increases at Puna. Conversely, the products segment experienced a 21.6% revenue decline to $46.7 million due to timing differences between production and project construction phases.