Ormat Technologies Reports Third Quarter 2026 Financial Results

Energy Storage growth offset quarterly revenue declines in Electricity and Product, while both segments also recorded lower gross margins.

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) reported third-quarter 2026 revenue of $275.1 million, with energy storage driving growth and higher earnings. Revenue rose 10.2% year over year; net income attributable to stockholders increased 32.2% to $31.9 million, or $0.51 per diluted share. Adjusted EBITDA rose 11.1% to $153.8 million.

Energy Storage revenue increased 145.2% to $49.9 million, while Electricity and Product revenue declined 2.1% and 1.2%, respectively. Ormat raised its 2026 revenue and adjusted EBITDA guidance midpoints, expecting revenue of $1,170–$1,200 million and adjusted EBITDA of $640–$650 million. Nine-month revenue rose 31.4% to $937.8 million. Ormat estimates its expanded land position could support approximately 5–6 GW of potential enhanced geothermal systems development. Two pilot programs are advancing, while power purchase agreements for its first planned commercial project remain under negotiation.

25 points · 1 major

PositiveiHow this balance works

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0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 guidance midpoints increased; expected revenue is $1,170–$1,200 million and adjusted EBITDA $640–$650 million.
• Moderate pointQ3 revenue of $275.1 million rose 10.2% year over year.
• Moderate pointQ3 stockholder net income of $31.9 million rose 32.2%; diluted EPS increased 30.8% to $0.51.
• Moderate pointQ3 adjusted EBITDA of $153.8 million increased 11.1% year over year.
• Moderate pointEnergy Storage revenue rose 145.2% to $49.9 million in Q3 and 161.6% to $137.6 million over nine months.
• Moderate pointEnergy Storage gross margin reached 62.1% versus 39.4% in Q3; nine-month margin reached 59.3% versus 28.9%.
• Moderate pointQ3 gross profit of $77.4 million rose 20.8%; gross margin increased to 28.1% from 25.6%.
• Moderate pointQ3 operating income of $45.3 million rose 11.9% year over year.
• Moderate pointNine-month Product revenue of $285.6 million rose 85.9%; Electricity revenue increased 1.4% to $514.5 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Denali development approved: 100 MW / 400 MWh, expected completion by end-2028, with a 20-year Clean Power Alliance tolling agreement.
• Moderate point. Forward-looking: it has not happened yet and may not happen.End-2030 targets include doubling year-end 2025 capacity and annual revenue/adjusted EBITDA run rates exceeding $1.5 billion/$1 billion, excluding enhanced geothermal systems.

14 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.2026 segment revenue guidance: Electricity $700–$710 million, Product $310–$320 million, Energy Storage $160–$170 million.
• Minor pointQ3 adjusted stockholder net income of $34.8 million rose 39.8%; adjusted diluted EPS increased 36.6% to $0.56.
• Minor pointNine-month revenue of $937.8 million increased 31.4% year over year.
• Minor pointNine-month stockholder net income of $103.1 million rose 11.4%; diluted EPS increased 9.3% to $1.65.
• Minor pointNine-month adjusted EBITDA of $492.6 million rose 16.4% year over year.
• Minor pointNine-month gross profit of $266.4 million rose 37.4%; gross margin increased to 28.4% from 27.2%.
• Minor pointNine-month operating income of $159.7 million increased 26.1% year over year.
• Minor pointNine-month adjusted stockholder net income of $146.1 million rose 53%; adjusted diluted EPS increased 50% to $2.34.
• Minor pointProduct backlog stood at approximately $183 million as of November 4, 2026.
• Minor pointDominica's 10 MW geothermal plant began commercial operation in July 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Two enhanced geothermal systems pilots with SLB and Sage expect drilling to commence late 2026 or early 2027.
• Minor pointDOE funding selection of up to $35 million supports geothermal development alongside SLB and the University of Utah.
• Minor point. Forward-looking: it has not happened yet and may not happen.Potential enhanced geothermal development is estimated at approximately 5–6 GW, versus approximately 3–4 GW at Investor Day.
• Minor pointEnhanced geothermal land position expanded from approximately 70,000 to approximately 170,000 acres since Investor Day.

Negative

• Moderate pointElectricity gross margin fell to 22.2% from 25.4% in Q3; nine-month margin declined to 25.7% from 27.9%.
• Moderate pointProduct gross margin fell to 16.5% from 21.7% in Q3; nine-month margin declined to 18.4% from 24.1%.
• Moderate pointDixie Valley power purchase agreements remain under negotiation, alongside agreements for other potential enhanced geothermal projects.
• Minor pointQ3 Electricity revenue fell 2.1% to $163.7 million, primarily reflecting Puna's hurricane-related forced outage.
• Minor pointQ3 Product revenue fell 1.2% to $61.5 million, largely reflecting manufacturing and construction timing.

News Explained

A twelve-cent-per-share dividend is scheduled, while Denali’s twenty-year service arrangement remains prospective until the facility is completed.

The board declared and authorized a quarterly dividend of $0.12 per share, payable on December 2, 2026 to stockholders of record at the close of business on November 18, 2026.

Separately, Ormat decided in August to proceed with developing the 100 MW / 400 MWh Denali storage facility; upon completion, expected by the end of 2028, it is anticipated to provide services under a 20-year tolling agreement.

The Department of Energy selected Ormat, alongside SLB and the University of Utah, for up to $35 million in funding for EGS work at Dixie Valley and hydrothermal development at Cove Fort.

The next stated milestone for the two EGS pilot programs is drilling, expected to begin in late 2026 or early 2027.

Key Figures

Q3 total revenue: $275.1 million Net income attributable to stockholders: $31.9 million Adjusted EBITDA: $153.8 million +5 more

Q3 total revenue

$275.1 million

Q3 2026; up 10.2% year over year

Net income attributable to stockholders

$31.9 million

Q3 2026; up 32.2% year over year

Adjusted EBITDA

$153.8 million

Q3 2026; up 11.1% year over year

Energy Storage revenue

$49.9 million

Q3 2026; up 145.2% year over year

2026 revenue guidance

$1,170 million–$1,200 million

Full-year 2026 guidance; midpoint raised

2026 Adjusted EBITDA guidance

$640 million–$650 million

Full-year 2026 guidance; midpoint raised

Potential future EGS development

5–6 GW

Potential capacity supported by the expanded EGS land position

Quarterly dividend

$0.12 per share

Declared November 4, 2026

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   Q2 earnings

   24h Move

   +9.6%

   Energy Storage revenue surged 195.1%, while 2026 revenue and Adjusted EBITDA guidance was raised.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted EBITDA, diluted EPS, power purchase agreements, enhanced geothermal systems

4 terms

adjusted EBITDA financial

"Adjusted EBITDA grew 11.1% to $153.8 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

diluted EPS financial

"Adjusted Diluted EPS ($) | 0.56 | 0.41 | 36.6%"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

power purchase agreements financial

"negotiating power purchase agreements for Dixie Valley"

A power purchase agreement is a long-term contract in which a buyer agrees to purchase electricity from a specific generator at a set price and schedule, much like a multi-year subscription for energy. For investors, these contracts matter because they lock in predictable revenue and price terms, reducing exposure to volatile wholesale power markets and making project cash flows and financing risks easier to evaluate.

enhanced geothermal systems technical

"to advance enhanced geothermal systems at Dixie Valley"

An engineered approach to produce renewable heat and electricity by creating or enlarging pathways in hot underground rock, then circulating water to capture steam or hot fluid that drives turbines. Think of it as drilling into Earth to tap a steady, low-carbon boiler; for investors it promises long-lived, weather-independent power and potential steady revenue but involves high upfront drilling, technology and permitting risk that affects returns and timelines.

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ENERGY STORAGE DRIVES DOUBLE-DIGIT GROWTH; ORMAT RAISES MIDPOINT OF 2026 REVENUE AND ADJUSTED EBITDA GUIDANCE AND EXPANDS EGS PIPELINE POTENTIAL TO 5–6 GW

HIGHLIGHTS

• STRONG ENERGY STORAGE PERFORMANCE DRIVES THIRD QUARTER RESULTS, WITH REVENUE UP 10.2%, NET INCOME ATTRIBUTABLE TO STOCKHOLDERS UP 32.2%, AND ADJUSTED EBITDA UP 11.1%
• ENERGY STORAGE SEGMENT CONTINUES TO DELIVER RECORD RESULTS, WITH REVENUE UP 145.2% YEAR-OVER-YEAR, DRIVEN BY FAVORABLE MERCHANT MARKET PRICING, HIGH AVAILABILITY, AND CONTRIBUTIONS FROM NEWLY ADDED CAPACITY
• ORMAT RAISES THE MIDPOINT OF ITS FULL YEAR REVENUE AND ADJUSTED EBITDA GUIDANCE
• CONTINUED PROGRESS IN NEXT-GENERATION GEOTHERMAL, ADVANCING TWO EGS PILOT PROGRAMS AND THE DEVELOPMENT OF ORMAT'S FIRST COMMERCIAL EGS PROJECT.
  

RENO, Nev., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced financial results for the third quarter ended September 30, 2026.

KEY FINANCIAL RESULTS

	Q3 2026	Q3 2025	Change (%)	9M 2026	9M 2025	Change (%)
GAAP Measures
Revenues ($ millions)
Electricity	163.7	167.1	-2.1%	514.5	507.3	+1.4%
Product	61.5	62.2	-1.2%	285.6	153.6	+85.9%
Energy Storage	49.9	20.4	+145.2%	137.6	52.6	+161.6%
Total Revenues	275.1	249.7	+10.2%	937.8	713.5	+31.4%
Gross profit	77.4	64.0	+20.8%	266.4	193.9	+37.4%
Electricity	22.2%	25.4%	-330 bp	25.7%	27.9%	-220 bp
Product	16.5%	21.7%	-520 bp	18.4%	24.1%	-570 bp
Energy Storage	62.1%	39.4%	+2,260 bp	59.3%	28.9%	+3,040 bp
Gross margin (%)	28.1%	25.6%	+250 bp	28.4%	27.2%	+120 bp
Operating income ($ millions)	45.3	40.4	+11.9%	159.7	126.7	+26.1%
Net income attributable to the Company’s stockholders	31.9	24.1	+32.2%	103.1	92.5	+11.4%
Diluted EPS ($)	0.51	0.39	+30.8%	1.65	1.51	+9.3%
Non-GAAP Measures
Adjusted Net income attributable to the Company’s stockholders	34.8	24.9	39.8%	146.1	95.5	53%
Adjusted Diluted EPS ($)	0.56	0.41	36.6%	2.34	1.56	50%
Adjusted EBITDA1($ millions)	153.8	138.4	+11.1%	492.6	423.3	+16.4%

“Our strong third-quarter performance was driven by record Energy Storage profitability, supported by newly added capacity, high asset availability and favorable merchant pricing in PJM. Revenue increased 10.2%, net income attributable to stockholders rose 32.2%, and Adjusted EBITDA grew 11.1%. Our year-to-date performance and fourth-quarter outlook support an increase in the midpoints of our full-year revenue and Adjusted EBITDA guidance,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “While we continue to add new capacity and expand our Electricity segment portfolio, segment revenue slightly declined 2.1% year-over-year in the third quarter. This was primarily due to lower generation at Puna following a hurricane-related forced outage, partially offset by the July commencement of commercial operation at our 10 MW Dominica geothermal plant and improved performance at our Olkaria plant.”

“We remain focused on executing the growth plan outlined at our recent Investor Day, doubling our YE 2025 capacity and achieving annual revenue and Adjusted EBITDA run rates exceeding $1.5 billion and $1 billion, respectively, by the end of 2030. These targets exclude potential contributions from EGS. With growing demand for reliable, around-the-clock power and an expanding portfolio of contracted projects, we believe Ormat is well positioned to deliver sustainable long-term growth and shareholder value.”

Blachar added, “Ormat’s six decades of geothermal experience and integrated capabilities position the Company to participate in EGS as a developer, owner, operator and technology provider, while pursuing a diversified approach that extends beyond a single emerging technology. We are advancing two pilot projects with SLB and Sage and negotiating power purchase agreements for Dixie Valley, our first planned commercial EGS project, and for other potential projects. Since the start of the year, we have also secured approximately 40,000 acres of BLM leases for EGS development and identified additional acreage with EGS potential within our existing portfolio. Our total EGS land position now stands at approximately 170,000 acres, which we estimate could support 5 to 6 gigawatts of potential future EGS development, a significant opportunity for long-term growth.”

FINANCIAL HIGHLIGHTS

• Net income attributable to stockholders for the three months ended September 30, 2026, was $31.9 million, or $0.51 per diluted share, compared to $24.1 million, or $0.39 per diluted share, in the prior year period. The 32.2% increase was mainly driven by the increase in the Energy Storage revenue and gross profit.
• Adjusted net income for the three months ended September 30, 2026, was $34.8 million, or $0.56 per diluted share, compared to $24.9 million, or $0.41 per diluted share, in the prior year period.
• Adjusted EBITDA for the three months ended September 30, 2026, increased 11.1% to $153.8 million, driven by strong contributions from the Energy Storage segment, which benefited from higher merchant prices, high availability and portfolio expansion.
• Electricity segment revenues declined 2.1% in the third quarter compared to the prior year period, primarily driven by lower generation at Puna due to a hurricane-related forced outage, partially offset by the commencement of commercial operation at our power plant in Dominica and improved performance at our Olkaria plant.
• Energy Storage revenues for the three months ended September 30, 2026, increased 145.2% compared to the prior year period. Growth was driven by the high availability of our assets, which allowed us to capitalize on strong merchant pricing in the PJM market, as well as new portfolio capacity additions over the past 12 months.
• Product segment revenues for the three months ended September 30, 2026, declined 1.2% compared to the prior year period due largely to the timing of manufacturing and construction progress.
• Product segment backlog stands at approximately $183 million as of November 4, 2026.
  

BUSINESS HIGHLIGHTS:

• In August 2026, Ormat decided to proceed with the development of the 100 MW / 400 MWh Denali energy storage facility in California. Upon completion, expected by the end of 2028, the project is anticipated to provide energy storage services under a 20-year tolling agreement with Clean Power Alliance.
• In July 2026, Ormat achieved commercial operation of its 10 MW Dominica geothermal power plant, reflecting continued execution across the Company's global development pipeline.

EGS UPDATE:

• Ormat continues to advance the two EGS pilot programs with SLB and Sage, with drilling expected to commence late 2026 or early 2027 in both locations.
• Ormat is negotiating PPAs for Dixie Valley, Nevada, its first planned commercial EGS project, and for other potential EGS projects.
• In September 2026, Ormat was selected by the U.S. Department of Energy (DOE) for up to $35 million in funding, alongside SLB and the University of Utah, to advance enhanced geothermal systems at Dixie Valley, Nevada, and hydrothermal development at Cove Fort, Utah.
• Since its Investor Day, Ormat has significantly expanded its EGS land position, from approximately 70,000 acres to approximately 170,000 acres. This includes approximately 16,000 acres of new BLM leases acquired in Nevada’s October 2026 lease sale and significant existing land portfolio that have been identified as having EGS potential. Ormat estimates that this expanded land position could support approximately 5 to 6 GW of potential future EGS development, compared with the approximately 3 to 4 GW estimate presented at Investor Day.

2026 GUIDANCE

• Total revenues are expected to be between $1,170 million and $1,200million.
  • Electricity segment revenues between $700 million and $710 million.
  • Product segment revenues of between $310 million and $320 million.
  • Energy Storage revenues of between $160 million and $170 million.
• Adjusted EBITDA is expected to be between $640 million and $650 million.
  • Of which approximately $13.0 million is attributed to minority interest.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and nine months ended September 30, 2026. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts, the probable significance of which cannot be determined. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

DIVIDEND

On November 4, 2026, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on December 2, 2026, to stockholders of record as of the close of business on November 18, 2026.

CONFERENCE CALL DETAILS

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on November 5, 2026, at 10:00 a.m. ET.

Participants within the United States and Canada, please dial 1-833-461-5787, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-585-542-9983. The access code for the call is 244015737. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a webcast live on the Investor Relations section of the Company's website. 

A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-833-309-1852. From outside of the United States and Canada, please dial +1-929-828-5978. Please use the replay access code 244015737. The webcast will also be archived on the Investor Relations section of the Company's website. 

ABOUT ORMAT TECHNOLOGIES

With over six decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,600MW of gross capacity. Ormat has leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,853MW with a 1,358MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, Guadeloupe, and Dominica, and a 495MW energy storage portfolio that is located in the U.S.

Ormat is the only single-solution company with tangible and proven end-to-end capabilities that span subsurface exploration, project development, power plant technology, construction and operations. The Company is leveraging this experience to advance EGS pilot programs and commercial development opportunities. As electricity demand accelerates, driven by AI data centers, electric vehicles, industrial reshoring, and the electrification of heating and cooling, Ormat's geothermal and EGS capabilities position the Company to help meet this growing demand and lead technological advancement in the market. The Company's industry-leading business model and strong reputation are built on long-standing expertise, operational excellence, high-performance teams, and delivering reliable long-term energy generation.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, including EGS projects and pilot programs, the potential capacity of our lease portfolio, legal, market, industry and geopolitical developments and incentives, technological changes, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may,” “will,” “could,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “intends,” “targets,” “goal”, “outlook,” “guidance,” “contemplate,” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives, goals and expectations for future operations and are based upon management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties, including risks related to regulatory changes, geopolitical developments, commodity prices, merchant energy pricing, interest rates, supply chain disruptions, the technical and commercial viability of EGS, our ability to obtain power purchase agreements, permits and government funding, and other risks described under "Risk Factors" in Ormat’s most recent Annual Report on Form 10-K, and in subsequent filings with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Statement of Operations

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
($ in thousands, except per share data)
Revenues:
Electricity	163,664		167,110		514,520		507,263
Product	61,516		62,247		285,638		153,628
Energy storage	49,941		20,370		137,638		52,616
Total revenues	275,121		249,727		937,796		713,507
Cost of revenues:
Electricity	127,411		124,588		382,276		365,657
Product	51,390		48,766		233,016		116,568
Energy storage	18,943		12,336		56,060		37,423
Total cost of revenues	197,744		185,690		671,352		519,648
Gross profit	77,377		64,037		266,444		193,859
Operating expenses:
Research and development expenses	1,424		1,284		4,057		5,265
Selling and marketing expenses	6,146		4,895		17,691		13,437
General and administrative expenses	23,276		20,174		71,716		57,869
Other operating income	(1,000	)	(3,125	)	(6,125	)	(10,519	)
Impairment of long-lived assets	150		—		8,578		—
Write-off of unsuccessful exploration and storage activities	2,131		377		10,824		1,144
Operating income	45,250		40,432		159,703		126,663
Other income (expense):
Interest income	5,867		1,626		14,368		4,868
Interest expense, net	(44,191	)	(35,677	)	(133,122	)	(106,832	)
Derivatives and foreign currency transaction gains (losses)	(199	)	(891	)	(1,462	)	6,237
Income attributable to sale of tax benefits	15,677		14,356		48,851		48,178
Other non-operating income (expense), net	192		124		(19,952	)	422
Income from operations before income tax and equity in earnings of investees	22,596		19,970		68,386		79,536
Income tax benefit	6,775		4,283		31,911		13,544
Equity in earnings of investees, net	452		455		153		861
Net income	29,823		24,708		100,450		93,941
Net income (loss) attributable to noncontrolling interest	2,085		(571	)	2,612		(1,396	)
Net income attributable to the Company's stockholders	31,908		24,137		103,062		92,545
Earnings per share attributable to the Company's stockholders:
Basic:	0.52		0.40		1.68		1.53
Diluted:	0.51		0.39		1.65		1.51
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic	61,501		60,749		61,312		60,666
Diluted	62,165		61,252		62,428		61,132

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheet

	September 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	347,968			147,448
Restricted cash and cash equivalents (primarily related to VIEs)	164,169			133,418
Receivables:
Trade less allowance for credit losses of $476 and $308, respectively (primarily related to VIEs) (primarily related to VIEs)	170,120			164,772
Other	23,241			36,711
Inventories	44,244			45,268
Costs and estimated earnings in excess of billings on uncompleted contracts	64,958			30,011
Prepaid expenses and other	100,746			40,141
Total current assets	915,446			597,769
Investment in an unconsolidated companies	198,385			162,111
Deposits and other (primarily related to VIEs)	179,092			137,744
Deferred income taxes	148,486			138,903
Property, plant and equipment, net ($3,441,632 and $3,460,079 related to VIEs, respectively)	3,738,493			3,672,569
Construction-in-process ($431,352 and $392,644 related to VIEs, respectively)	1,093,232			1,048,174
Operating leases right of use ($24,940 and $17,236 related to VIEs, respectively)	68,711			41,756
Finance leases right of use (none related to VIEs)	4,088			4,690
Intangible assets, net	253,428			274,548
Goodwill	168,005			168,244
Total assets	6,767,366			6,246,508
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	197,983			234,757
Short term revolving credit lines with banks (full recourse)	—			80,000
Commercial paper (less deferred financing costs of $13 and $17, respectively)	99,987			99,983
Convertible senior notes (less deferred financing costs of $4,530)	361,045			—
Billings in excess of costs and estimated earnings on uncompleted contracts	9,005			13,159
Current portion of long-term debt:
Limited and non-recourse (primarily related to VIEs):	92,893			79,885
Full recourse	215,353			214,207
Current portion of financing liability	8,839			9,749
Operating lease liabilities	5,325			4,764
Finance lease liabilities	1,560			1,884
Total current liabilities	991,990			738,388
Long-term debt, net of current portion:
Limited and non-recourse (primarily related to VIEs and less deferred financing costs of $14,887 and $13,488, respectively)	668,225			645,803
Full recourse (less deferred financing costs of $3,395 and $4,248, respectively)	841,210			1,009,090
Convertible senior notes (less deferred financing costs of $17,647 and $4,103, respectively)	807,353			472,334
Financing liability	197,779			206,647
Operating lease liabilities	52,987			29,760
Finance lease liabilities	2,592			2,850
Liability associated with sale of tax benefits	166,649			190,168
Deferred income taxes	73,396			68,661
Liability for unrecognized tax benefits	6,179			10,378
Liabilities for severance pay	12,709			11,942
Asset retirement obligation	143,015			135,574
Other long-term liabilities	26,881			33,637
Total liabilities	3,990,965			3,555,232
Redeemable noncontrolling interest	9,701			10,402
Equity:
The Company's stockholders' equity:
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 61,986,251 and 61,104,078 shares issued; 61,502,991 and 60,845,411 shares outstanding, respectively	62			61
Additional paid-in capital	1,677,768			1,654,635
Treasury stock, at cost (483,260 and 258,667 shares held, respectively)	(42,359	)		-17,964
Retained earnings	990,303			909,343
Accumulated other comprehensive income (loss)	7,580			(2,132	)
Total stockholders' equity attributable to Company's stockholders	2,633,354			2,543,943
Noncontrolling interest	133,346			136,931
Total equity	2,766,700			2,680,874
Total liabilities, redeemable noncontrolling interest and equity	6,767,366			6,246,508

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA

We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation; (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities, including induced conversion expense; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; (viii) allowance for bad debts; (ix) bargain purchase gains; and (x) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026, and 2025:

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
($ in thousands)
Net income	$	29,823			$	24,708			$	100,450			$	93,941
Adjusted for:
Interest expense, net (including interest income and amortization of deferred financing costs)		38,324				34,051				118,754				101,964
Income tax benefit		(6,775	)			(4,283	)			(31,911	)			(13,544	)
Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen		3,704				3,580				10,765				10,857
Depreciation, amortization and accretion		78,925				73,239				230,426				213,071
EBITDA	$	144,001			$	131,295			$	428,484			$	406,289
Mark-to-market (gains) or losses of derivative instruments		607				1,198				(184	)			(1,206	)
Stock-based compensation		5,498				4,941				16,466				14,473
Allowance for bad debts		1				158				669				210
Induced conversion expense in connection with the issuance of the 2031 Convertible Notes		—				—				34,413				—
Impairment of long-lived assets		150				—				8,578				—
Merger and acquisition transaction costs		1,394				479				2,826				1,488
Bargain purchase gain		—				—				(9,616	)			—
Settlement agreement expenses and other		—				—				168				900
Write-off of unsuccessful exploration and storage activities		2,131				377				10,824				1,144
Adjusted EBITDA	$	153,782			$	138,448			$	492,628			$	423,298

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted diluted EPS ¹

Adjusted Net Income attributable to the Company's stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributed to the Company's stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconcile Net income attributable to the Company's stockholders and diluted EPS to Adjusted Net income attributable to the Company’s stockholders and Adjusted diluted EPS for the three and nine months ended September 30, 2026, and 2025:

	Three Months Ended September 30					Nine Months Ended September 30,
		2026		2025			2026			2025
(in millions, except for EPS)
GAAP Net income attributable to the Company's stockholders		31.9		24.1			103.1			92.5
Induced conversion expense in connection with the issuance of the 2031 Convertible Notes		—		—			34.4			—
Bargain purchase gain		—		—			(9.6	)		—
Write-off of unsuccessful exploration and storage activities		1.68		0.3			8.55			0.9
Impairment of long-lived assets		0.12		—			6.8			—
Merger and acquisition transaction costs		1.10		0.4			2.23			1.18
Allowance for bad debts				0.1			0.53			0.17
Settlement agreement expenses and other		—		—			0.13			0.71
Adjusted Net income attributable to the Company's stockholders	$	34.8	$	24.9		$	146.1		$	95.5
GAAP diluted EPS ($)		0.51		0.39			1.65			1.51
Induced conversion expense in connection with the issuance of the 2031 Convertible Notes		—		—			0.55			—
Bargain purchase gain		—		—			(0.15	)		—
Write-off of unsuccessful exploration and storage activities		0.03		0.01			0.13			0.02
Impairment of long-lived assets		0.00		—			0.11			—
Merger and acquisition transaction costs		0.02		0.01			0.04			0.02
Allowance for bad debts		—		0.00			0.01			0.00
Settlement agreement expenses and other		—		—			0.00			0.01
Adjusted Diluted EPS	$	0.56	$	0.41		$	2.34		$	1.56

___________________
¹ Adjusted diluted EPS is computed based on adjusted net income attributable to the Company’s stockholders and diluted weighted-average shares outstanding before rounding. The individual components in the table are rounded to the nearest applicable unit; therefore, recalculation using the rounded amounts may not result in the adjusted diluted EPS presented.

Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ormat's third-quarter 2026 earnings?

Ormat reported $31.9 million in net income attributable to stockholders, or $0.51 per diluted share, for the quarter ended September 30, 2026. These compared with $24.1 million and $0.39 per diluted share in the prior-year period.

What is Ormat's updated 2026 financial guidance?

Ormat expects revenue of $1,170 million to $1,200 million and adjusted EBITDA of $640 million to $650 million for 2026. Both guidance midpoints increased. Approximately $13.0 million of expected adjusted EBITDA is attributed to minority interest.

When will Ormat pay its quarterly dividend?

Ormat will pay its $0.12-per-share quarterly dividend on December 2, 2026, to stockholders of record at the close of business on November 18, 2026. The board authorized the dividend on November 4, 2026.

What projects does Ormat's DOE funding selection support?

The selection for up to $35 million supports enhanced geothermal systems at Dixie Valley, Nevada, and hydrothermal development at Cove Fort, Utah. Ormat was selected in September 2026 alongside SLB and the University of Utah.