Ormat Reports 19.6% Q4 Revenue Growth, Secures Google and Switch PPAs
Ormat’s Q4 revenues climbed 19.6% year-on-year to $276.0 million, while full-year 2025 revenues rose 12.5% to $989.6 million, driven by 140.5% growth in Energy Storage and 59.1% in Product sales. The company signed 15-year, 150 MW and 20-year, 13 MW PPAs with Google and Switch and advanced EGS via an SLB joint venture.
1. Financial Performance
In Q4 2025, Ormat generated $276.0 million in revenues, up 19.6% from Q4 2024, and full-year revenues reached $989.6 million, a 12.5% increase. Net income for the quarter was $31.4 million ($0.50 per diluted share), while full-year adjusted EBITDA rose 5.7% to $582.0 million.
2. Segment Highlights
Electricity segment revenues grew 3.6% in Q4, supported by the Blue Mountain acquisition and Dixie Valley improvements. Product sales surged 59.1% to $63.1 million, and Energy Storage more than doubled to $26.3 million, delivering a 51.5% margin in the quarter.
3. Strategic Partnerships
Ormat secured a 15-year PPA for 150 MW with Google and a 20-year, 13 MW PPA with Switch, bolstering long-term contracted revenues. The company advanced enhanced geothermal systems through a joint venture with SLB and co-led a $25 million Series B financing for Sage Geosystems.
4. Outlook and Growth Targets
For 2026, Ormat projects continued revenue growth supported by record-high PPA pricing and data center demand. The company aims to expand its generating capacity to 2.6–2.8 GW by end-2028, leveraging its expanded exploration and drilling initiatives.