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Ormat Techno
(NYSE:ORA)
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Rating:66Neutral
Price Target:
$122.00
▲(7.93% Upside)
Action:Reiterated
Date:06/06/26
The score is driven by strong technical momentum and a constructive earnings outlook with reaffirmed growth guidance and improved liquidity. These positives are moderated by weak free-cash-flow generation amid heavy capex needs and a high valuation (elevated P/E with a low dividend yield).
Positive Factors
Long-term contracted power sales
Ormat’s core electricity business benefits from long‑term PPAs and ownership of generating assets, supplying predictable contracted revenues and supporting project financing. This durable contract coverage underpins stable cash flows and lowers earnings volatility over the medium term.
Negative Factors
Persistent negative free cash flow
Despite positive operating cash flow, sustained negative free cash flow driven by heavy capex undermines internal funding for debt reduction, dividends or growth. Over 2–6 months this limits financial flexibility and increases reliance on external financing to fund development and storage rollouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term contracted power sales
Ormat’s core electricity business benefits from long‑term PPAs and ownership of generating assets, supplying predictable contracted revenues and supporting project financing. This durable contract coverage underpins stable cash flows and lowers earnings volatility over the medium term.
Read all positive factors
Ormat Techno Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures the profit generated from core operations in each segment, reflecting operational efficiency and strategic focus.
Measures the profit generated from core operations in each segment, reflecting operational efficiency and strategic focus.
Data provided by:
The Fly
The FlyOrmat Techno (ORA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.92B
Dividend Yield0.42%
Average Volume (3M)1.04M
Price to Earnings (P/E)53.6
Beta (1Y)0.37
Revenue Growth31.45%
EPS Growth1.12%
CountryUS
Employees1,512
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)2.10
Shares Outstanding61,453,556
10 Day Avg. Volume910,978
30 Day Avg. Volume1,039,023
Financial Highlights & Ratios
PEG Ratio-111.01
Price to Book (P/B)2.64
Price to Sales (P/S)6.78
P/FCF Ratio-23.56
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue8.94
Enterprise Value/Gross Profit32.48
Enterprise Value/Ebitda18.73
Forecast
1Y Price Target
$135.50Price Target Upside19.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.32
Revenue Forecast (FY)$1.16B
Ormat Techno Business Overview & Revenue Model
Company Description
Ormat Technologies, Inc. (ORA) is a global enterprise dedicated to geothermal and recovered energy power solutions, with significant operations in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Ho...
How the Company Makes Money
Ormat primarily makes money through two operating segments: (1) Electricity Segment: Ormat generates revenue by producing and selling electricity from geothermal power plants it owns and operates (and, where applicable, associated renewable energy...
Ormat Techno Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial story: record Q1 revenue, substantial segment-level growth (notably Product +458% and Storage +153%), strong adjusted profitability and cash build, strategic asset additions and a $1B convertible raise that improved liquidity and cost of debt. Management also emphasized progress on EGS pilots and next-generation equipment, positioning the company for long-term growth. Offsetting these positives are electricity margin pressures from weather and local rate effects, one-time charges, elevated leverage (4.2x net debt/EBITDA), concentration in product sales, and timing/permitting risks for some projects; management reiterated full-year guidance due to merchant price uncertainty. Overall, the positive operational momentum and strategic developments materially outweigh the challenges.Positive Updates
Record Quarterly Revenue
Q1 revenue of $403.9 million, a 75.8% year-over-year increase, described as a record first quarter driven by strong execution across segments.
Negative Updates
Electricity Segment Margin Pressure
Electricity segment gross margin decreased to 30.8% in Q1, pressured by lower energy rates at Puna and extremely high ambient temperatures in Nevada which reduced generation (management cited ~ $4.8 million revenue impact at Puna).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q1 revenue of $403.9 million, a 75.8% year-over-year increase, described as a record first quarter driven by strong execution across segments.
Read all positive updates
Company Guidance
Ormat maintained 2026 guidance, forecasting revenue of $1,110–$1,160 million (≈+14.6% year‑over‑year at the midpoint) with segment revenue targets of Electricity $715–$730 million, Product $300–$320 million and Energy Storage $95–$110 million, and adjusted EBITDA of $615–$645 million (≈+8.2% at the midpoint). Management expects full‑year Product gross margin of 18–20% (Q1 recognized roughly 60% of the segment’s expected annual revenue/gross profit/EBITDA) and Energy Storage gross margin of ~35–40% for 2026 (Q1 was 59.1%), and reiterated planned CapEx for the remainder of 2026 of $587 million (≈$436M electricity, $111M storage, ~$20M EGS/pilots). The company also expects to collect about $90 million from ITC/PTC tax equity transactions in 2026 (having collected $48.6M so far), to record a tax benefit resulting in a negative tax rate of ~15–20%, and confirmed a quarterly dividend of $0.12 per share payable June 3 with $0.12 expected in each of the next three quarters.Ormat Techno Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 989.54M | 879.65M | 829.42M | 734.16M | 663.08M |
| Gross Profit | 320.13M | 272.69M | 272.62M | 264.02M | 268.82M | 264.34M |
| EBITDA | 555.08M | 536.06M | 512.27M | 462.76M | 382.14M | 369.18M |
| Net Income | 127.60M | 123.90M | 123.73M | 124.40M | 65.84M | 62.09M |
Balance Sheet | ||||||
| Total Assets | 6.77B | 6.25B | 5.67B | 5.21B | 4.61B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 762.94M | 280.87M | 94.39M | 195.81M | 95.87M | 282.62M |
| Total Debt | 3.41B | 2.86B | 2.45B | 2.12B | 2.05B | 1.93B |
| Total Liabilities | 4.05B | 3.56B | 3.11B | 2.76B | 2.58B | 2.42B |
| Stockholders Equity | 2.57B | 2.54B | 2.43B | 2.32B | 1.87B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | -215.29M | -284.68M | -76.76M | -308.98M | -282.50M | -160.45M |
| Operating Cash Flow | 325.67M | 335.10M | 410.92M | 309.40M | 280.97M | 258.82M |
| Investing Cash Flow | -644.46M | -726.43M | -780.25M | -628.34M | -523.41M | -638.19M |
| Financing Cash Flow | 857.03M | 465.75M | 287.92M | 379.96M | 126.27M | 186.38M |
Ormat Techno Technical Analysis
Negative
113.04
Price Trends
126.53
Negative
119.48
Negative
114.89
Negative
Market Momentum
-5.35
Positive
33.17
Neutral
16.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORA, the sentiment is Negative. The current price of 113.04 is below the 20-day moving average (MA) of 127.54, below the 50-day MA of 126.53, and below the 200-day MA of 114.89, indicating a bearish trend. The MACD of -5.35 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of 16.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORA.
Ormat Techno Risk Analysis
Ormat Techno disclosed 42 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.92B | 53.60 | 5.04% | 0.42% | 31.45% | 1.12% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $6.72B | 819.00 | 0.05% | 5.29% | 2.59% | -92.25% | |
57 Neutral | $2.22B | 19.98 | 8.54% | ― | 30.87% | 121.64% | |
55 Neutral | $4.33B | 30.15 | 5.92% | 0.99% | 39.34% | -19.07% | |
48 Neutral | $6.66B | -1.12 | 494.50% | 3.84% | -6.14% | -1632.62% |
* Utilities Sector Average
ORA
Ormat Techno
112.56
25.90
29.89%
CWEN
Clearway Energy
32.76
1.83
5.91%
BEPC
Brookfield Renewable
36.49
3.92
12.04%
RNW
ReNew Energy Global
6.09
-1.49
-19.66%
EE
Excelerate Energy, Inc. Class A
37.99
10.04
35.94%
Ormat Techno Corporate Events
Executive/Board ChangesShareholder Meetings
Ormat Techno Shareholders Back Board, Pay and Auditor
Positive
Jun 5, 2026
At its 2026 annual meeting, Ormat Techno stockholders elected eight directors, including Isaac Angel, Ravit Barniv and Byron G. Wong, to serve until the 2027 annual meeting, reflecting broad support for the company’s existing board compositi...
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.