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Ormat Technologies Inc (ORA)
NYSE:ORA
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Ormat Techno
(NYSE:ORA)
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Rating:71Outperform
Price Target:
$126.00
▲(10.51% Upside)
Ormat Technologies' overall score is driven by strong technical indicators and positive earnings call outcomes, indicating robust growth prospects. However, high valuation and cash flow challenges present potential risks.
Positive Factors
Revenue Growth
The significant revenue growth reflects Ormat's successful expansion and market penetration, indicating a strong demand for its renewable energy solutions.
Strategic Partnerships
These partnerships enhance Ormat's technological capabilities and market reach, potentially accelerating the development and commercialization of innovative geothermal solutions.
Energy Storage Segment Growth
The rapid growth in the Energy Storage segment highlights Ormat's ability to diversify its offerings and capitalize on the growing demand for energy storage solutions.
Negative Factors
Cash Flow Challenges
The negative cash flow growth could hinder Ormat's ability to fund operations and growth initiatives, potentially requiring external financing.
Electricity Segment Challenges
Decreased margins in the Electricity segment due to operational disruptions could impact profitability and require strategic adjustments.
Impact of Lower Energy Prices
Lower energy prices can reduce revenue and profitability, affecting Ormat's financial performance and necessitating cost management strategies.
Ormat Techno (ORA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.93B
Dividend Yield0.42%
Average Volume (3M)612.28K
Price to Earnings (P/E)52.7
Beta (1Y)0.37
Revenue Growth6.07%
EPS Growth12.07%
CountryUS
Employees1,512
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.41
Shares Outstanding60,781,790
10 Day Avg. Volume545,201
30 Day Avg. Volume612,277
Financial Highlights & Ratios
PEG Ratio-17.29
Price to Book (P/B)1.69
Price to Sales (P/S)4.65
P/FCF Ratio-53.34
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue6.15
Enterprise Value/Gross Profit21.70
Enterprise Value/Ebitda10.65
Forecast
1Y Price Target
$122.14Price Target Upside7.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ormat Techno Business Overview & Revenue Model
Company DescriptionOrmat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. It operates through three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Energy Storage segment offers energy storage and related services, as well as services relating to the engineering, procurement, construction, operation, and maintenance of energy storage units. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.
How the Company Makes MoneyOrmat Technologies generates revenue primarily through the sale of electricity produced by its geothermal power plants, which are either owned and operated by the company or developed under power purchase agreements (PPAs) with utility companies. Additionally, the company earns revenue from the sale of its proprietary energy conversion technology and equipment for geothermal and recovered energy generation projects. Key revenue streams include long-term contracts with utilities, maintenance and operation services for third-party plants, and royalties from licensing its technology. Significant partnerships with government entities and private utilities enhance its market reach and revenue stability, particularly in regions focusing on renewable energy initiatives.
Ormat Techno Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profit after operating expenses for each business unit, providing insight into operational efficiency and segment profitability.
Measures profit after operating expenses for each business unit, providing insight into operational efficiency and segment profitability.
Data provided by:
The Fly
The FlyOrmat Techno Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with significant strategic milestones and growth in the Product and Energy Storage segments. However, challenges in the Electricity segment and external factors impacting operations were noted, balancing out the positive aspects.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Ormat delivered a 17.9% increase in revenue, a 13.3% increase in operating income, and a 9.3% growth in net income attributable to stockholders. The company also raised its revenue and adjusted EBITDA guidance for 2025.
Significant Strategic Milestones
Ormat secured a 25-year extension to the PPA for the 52MW Heber 1 facility, obtained two Geothermal exploration licenses in Indonesia totaling 40MW, and successfully commissioned the Lower Rio Energy Storage facility in Texas.
Product Segment Growth
The Product segment revenue increased by 66.6% to $62.2 million, with a backlog expansion to $295 million, representing a 79% increase compared to the third quarter of 2024.
Energy Storage Segment Success
Revenues in the Energy Storage segment increased by 108% to $20.4 million, driven by the successful commissioning of various facilities.
Innovative Partnerships
Ormat entered into a partnership with SLB and a collaboration with Sage to advance Enhanced Geothermal System (EGS) technology, aiming to accelerate the development and commercialization of EGS projects.
Negative Updates
Electricity Segment Challenges
Gross margin for the Electricity segment decreased to 25.4% from 30.2% last year, impacted by lower generation at Stillwater due to enhancement work, reduced output at Imperial Valley from a grid failure, and curtailments in the U.S.
Impact of Lower Energy Prices
Lower energy prices at the Puna complex in Hawaii reduced gross margin by approximately $3.2 million.
Curtailments and Operational Interruptions
The company faced $14 million to $15 million in curtailments and additional impacts from wildfires, maintenance, and storms, totaling an estimated $20 million to $25 million in reduced revenue for the year.
Company Guidance
During the Ormat Technologies Third Quarter 2025 Earnings Conference Call, the company announced robust financial performance and updated its guidance for the year. Ormat reported a 17.9% increase in revenue to $249.7 million, a 13.3% rise in operating income, and a 9.3% growth in net income attributable to stockholders. The strong results led to an increase in the 2025 revenue guidance to a range of $960 million to $980 million and adjusted EBITDA guidance to between $575 million and $593 million. The Product segment's backlog expanded to $295 million, contributing to a 66.6% rise in segment revenues. The Energy Storage segment saw a 108% revenue increase, driven by successful commissioning of new facilities. Additionally, Ormat secured strategic milestones, including a 25-year PPA extension for the Heber 1 facility and two geothermal exploration licenses in Indonesia. The company also entered partnerships to advance Enhanced Geothermal System (EGS) technology.Ormat Techno Financial Statement Overview
Summary
Ormat Technologies shows strong revenue growth and profitability with a stable balance sheet. However, significant challenges in cash flow management could impact its ability to fund operations and growth initiatives.Income Statement
Ormat Techno shows a solid revenue growth trajectory, with a TTM revenue growth rate of 4.19%. The company maintains healthy profitability, evidenced by a TTM net profit margin of 14.12% and an EBIT margin of 26.77%. However, there is a slight decline in gross profit margin over the years, which could indicate rising costs or competitive pressures.Balance Sheet
The company's balance sheet is stable, with a low TTM debt-to-equity ratio of 0.067, indicating minimal leverage risk. Return on equity is modest at 5.38%, suggesting efficient use of equity capital. The equity ratio is not explicitly calculated, but the low leverage and stable equity base suggest a strong financial position.Cash Flow
Ormat Techno faces challenges in cash flow management, with a significant negative free cash flow growth rate of -1546.40% in the TTM. The operating cash flow to net income ratio is 0.59, indicating moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights potential issues in sustaining operations without external financing.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 944.25M | 879.65M | 829.42M | 734.16M | 663.08M | 705.34M |
| Gross Profit | 267.42M | 272.62M | 264.02M | 268.82M | 264.34M | 276.27M |
| EBITDA | 544.73M | 512.27M | 462.76M | 382.14M | 369.18M | 403.28M |
| Net Income | 133.37M | 123.73M | 124.40M | 65.84M | 62.09M | 85.46M |
Balance Sheet | ||||||
| Total Assets | 6.09B | 5.67B | 5.21B | 4.61B | 4.43B | 3.89B |
| Cash, Cash Equivalents and Short-Term Investments | 79.56M | 94.39M | 195.81M | 95.87M | 282.62M | 448.25M |
| Total Debt | 2.75B | 2.45B | 2.12B | 2.05B | 1.93B | 1.48B |
| Total Liabilities | 3.44B | 3.11B | 2.76B | 2.58B | 2.42B | 1.94B |
| Stockholders Equity | 2.51B | 2.43B | 2.32B | 1.87B | 1.85B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | -213.75M | -76.76M | -308.98M | -282.50M | -160.45M | -55.73M |
| Operating Cash Flow | 388.68M | 410.92M | 309.40M | 280.97M | 258.82M | 265.00M |
| Investing Cash Flow | -719.02M | -780.25M | -628.34M | -523.41M | -638.19M | -385.97M |
| Financing Cash Flow | 359.05M | 287.92M | 379.96M | 126.27M | 186.38M | 503.48M |
Ormat Techno Technical Analysis
Positive
114.02
Price Trends
111.34
Positive
104.43
Positive
91.61
Positive
Market Momentum
1.12
Negative
54.05
Neutral
68.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORA, the sentiment is Positive. The current price of 114.02 is above the 20-day moving average (MA) of 112.95, above the 50-day MA of 111.34, and above the 200-day MA of 91.61, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORA.
Ormat Techno Risk Analysis
Ormat Techno disclosed 46 risk factors in its most recent earnings report. Ormat Techno reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ormat Techno Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.39B | 26.84 | 6.96% | 0.99% | 45.09% | 50.54% | |
71 Outperform | $6.93B | 52.70 | 5.45% | 0.42% | 6.07% | 12.07% | |
70 Neutral | $6.46B | 12.86 | 13.20% | 5.60% | 2.54% | 124.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $6.46B | 13.69 | 13.20% | 5.29% | 2.54% | 124.89% | |
61 Neutral | $1.98B | 19.03 | 7.64% | ― | 42.09% | 219.69% | |
51 Neutral | $6.79B | -5.65 | -38.17% | 3.84% | 5.93% | -39.88% |
* Utilities Sector Average
ORA
Ormat Techno
114.02
47.86
72.34%
CWEN
Clearway Energy
32.37
8.93
38.10%
CWEN.A
Clearway Energy
30.40
8.34
37.81%
BEPC
Brookfield Renewable
37.80
12.49
49.35%
RNW
ReNew Energy Global
5.44
-1.13
-17.20%
EE
Excelerate Energy, Inc. Class A
29.76
0.17
0.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.