Outlook
- Ormat raises 2026 revenue guidance to $1.15 bln-$1.2 bln
- Company expects 2026 adjusted EBITDA of $630 mln-$650 mln
- Ormat sees 2026 electricity revenue at $710 mln-$725 mln, product revenue at $300 mln-$320 mln, energy storage revenue at $140 mln-$155 mln
Overview
- US geothermal and renewables firm's Q2 revenue grew 10.6%, beating analyst expectations
- Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations
- Energy storage revenue nearly tripled yr/yr, benefiting from merchant pricing and new capacity
Result Drivers
- Energy storage surge - Energy storage revenues nearly tripled yr/yr, driven by favorable merchant pricing in the PJM market and new capacity additions
- Electricity segment gains - Electricity revenue rose, supported by the Blue Mountain acquisition, improved performance at Puna and Olkaria plants, higher energy rates at Puna, and lower curtailments in the USA
- Product segment pressure - Product segment revenue and gross margin declined due to timing of manufacturing and construction progress, higher construction costs in Europe, and currency impacts
Key details and analyst coverage
ORA•
