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Ormat Technologies Inc (ORA)
NYSE:ORA
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Ormat Techno (ORA) AI Stock Analysis

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ORA

Ormat Techno

(NYSE:ORA)

Rating:71Outperform
Price Target:
$99.00
▲(7.74% Upside)
Ormat Technologies' strong financial performance and positive technical indicators are key strengths, supported by robust earnings call insights. However, high valuation and cash flow challenges slightly temper the overall outlook.
Positive Factors
Financial Performance
ORA delivered solid results with sequential growth in revenue and EBITDA, supported by strong storage and product performance.
Market Opportunities
Management has indicated a positive shift in negotiations with hyperscalers, which could further improve prospects.
Supportive Policies
Support from US politicians for geothermal power production is a positive factor for ORA.
Negative Factors
Operational Challenges
Curtailments in California and Nevada led to a decline in electricity revenue and margin compression.
Project Delays
There is a delay in projects initially planned for completion, which are now expected to be completed later than anticipated.
Supply Chain Risks
The storage segment carries the most exposure to tariffs and global supply chain risks, given heavy reliance on battery imports from China.

Ormat Techno (ORA) vs. SPDR S&P 500 ETF (SPY)

Ormat Techno Business Overview & Revenue Model

Company DescriptionOrmat Technologies, Inc. (ORA) is a leading company in the renewable energy sector, primarily focused on geothermal energy and recovered energy generation. The company designs, develops, and operates geothermal power plants and provides energy solutions that harness waste heat from industrial processes. Ormat's core products include geothermal power plants, power generation equipment, and various energy solutions aimed at enhancing energy efficiency and sustainability.
How the Company Makes MoneyOrmat Technologies generates revenue through several key streams. The primary source of income comes from the sale and operation of geothermal power plants, where the company sells electricity generated from geothermal resources to utility companies and other large-scale energy consumers under long-term power purchase agreements (PPAs). Additionally, Ormat earns revenue by providing energy generation equipment and services to third-party customers, including the design and engineering of power plants. The company also benefits from recovered energy generation projects, where it captures and converts waste heat from industrial processes into electricity, further diversifying its revenue. Strategic partnerships with governments, utilities, and industry players enhance its market presence and facilitate access to new projects, contributing to its overall financial performance.

Ormat Techno Key Performance Indicators (KPIs)

Any
Any
Gross Profit by Segment
Gross Profit by Segment
Reveals the profitability of each business segment, indicating which areas are most cost-effective and contribute most to the bottom line.
Chart InsightsOrmat Technologies' energy storage segment is showing promising growth, aligning with a significant revenue increase reported in the latest earnings call. Despite challenges in the electricity segment due to curtailments in Nevada and California, the company remains optimistic about its storage and geothermal prospects. The product segment is also gaining momentum, reflecting a strong backlog. Strategic acquisitions, like the Blue Mountain geothermal plant, are expected to bolster future growth, although tariffs on storage components could pose challenges.
Data provided by:Main Street Data

Ormat Techno Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic growth initiatives, including record revenue and significant expansion in product and energy storage segments. However, challenges were noted in the electricity segment's performance, temporary gross margin compression, and reliance on Chinese battery supply. Overall, positive growth prospects and effective strategic planning were emphasized.
Q2-2025 Updates
Positive Updates
Record Second Quarter Revenue
Ormat reported a record second quarter revenue with a 9.9% increase, reaching $234 million, driven by recovery in the product segment and improved performance of the energy storage segment.
Substantial Growth in Net Income
Net income rose by 26.1%, demonstrating the company's strong financial performance and resilience.
Significant Increase in Product and Energy Storage Segments
Product segment revenues increased by 57.6% and energy storage segment revenues grew by 62.7% year-over-year.
Successful Tax Equity and Project Finance Transactions
Secured $300 million in funding through tax equity transactions and project finance debt, supporting future development.
Expansion and Development Initiatives
Completion of Blue Mountain geothermal power plant acquisition and release of new projects including 28 MW of geothermal and 22 MW of solar projects.
Negative Updates
Decline in Electricity Segment Revenues
Electricity segment revenues decreased by 3.8% due to ongoing maintenance at the Puna power plant and energy curtailment in the U.S.
Temporary Gross Margin Compression
Gross profit decreased by 7.3%, with a decline in the electricity segment's gross margin from 33.5% to 24.2%.
Impact of Energy Curtailment and Maintenance
Approximately $12 million reduction in EBITDA due to energy curtailment in the U.S. and maintenance work at the Puna power plant.
Dependency on Chinese Battery Supply
Energy storage industry heavily reliant on batteries sourced from China, posing challenges under new U.S. regulations.
Company Guidance
During the Ormat Technologies Second Quarter 2025 Earnings Conference Call, key financial metrics were highlighted, including a 9.9% increase in revenue, a 26.1% rise in net income, and a 6.7% improvement in adjusted EBITDA. The company's total revenue for the quarter was reported at $234 million, driven by a recovery in their product segment and improved performance in energy storage. The electricity segment saw a 3.8% decrease, primarily due to maintenance work and energy curtailment in the U.S. The product segment experienced a 57.6% revenue increase, while energy storage revenue grew by 62.7%. The gross margin for the electricity segment was 24.2%, down from the previous year, but the product segment gross margin improved to 27.7%. The energy storage segment reported an 11.9% gross margin. Ormat secured $300 million in funding to support future development, with a net debt-to-EBITDA ratio of 4.4x. The company maintained its revenue guidance for 2025, expecting $935 million to $975 million, with adjusted EBITDA projected between $563 million and $593 million.

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 generation, particularly in free cash flow, pose risks to financial flexibility.
Income Statement
75
Positive
Ormat Techno's income statement shows a solid performance with consistent revenue growth, evidenced by a TTM revenue growth rate of 2.38%. The company maintains healthy profitability margins, with a TTM net profit margin of 14.49% and an EBIT margin of 25.83%. However, there is a slight decline in gross profit margin over the years, indicating potential cost pressures.
Balance Sheet
70
Positive
The balance sheet reflects a strong equity position with a low TTM debt-to-equity ratio of 0.09, indicating low leverage and financial stability. The return on equity is moderate at 5.38%, suggesting efficient use of equity but room for improvement. The equity ratio is robust, highlighting a solid capital structure.
Cash Flow
60
Neutral
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -114.27% TTM. The operating cash flow to net income ratio is 0.36, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is low at 0.10, suggesting limited free cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue906.30M879.65M829.42M734.16M663.08M705.34M
Gross Profit262.25M272.62M264.02M268.82M264.34M276.27M
EBITDA512.02M521.52M468.93M387.40M364.89M397.80M
Net Income131.31M123.73M124.40M65.84M62.09M85.46M
Balance Sheet
Total Assets6.02B5.67B5.21B4.61B4.43B3.89B
Cash, Cash Equivalents and Short-Term Investments206.06M94.39M195.81M95.87M282.62M448.25M
Total Debt229.97M2.45B2.12B2.05B1.93B1.48B
Total Liabilities3.39B3.11B2.76B2.58B2.42B1.95B
Stockholders Equity2.49B2.43B2.32B1.87B1.85B1.81B
Cash Flow
Free Cash Flow27.56M-76.76M-308.98M-282.50M-160.45M-55.73M
Operating Cash Flow265.01M410.92M309.40M280.97M258.82M265.00M
Investing Cash Flow-255.29M-780.25M-628.34M-523.41M-638.19M-385.97M
Financing Cash Flow32.72M287.92M379.96M126.71M187.90M503.48M

Ormat Techno Technical Analysis

Technical Analysis Sentiment
Positive
Last Price91.89
Price Trends
50DMA
88.44
Positive
100DMA
81.04
Positive
200DMA
75.77
Positive
Market Momentum
MACD
1.50
Negative
RSI
56.51
Neutral
STOCH
49.78
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 91.89 is above the 20-day moving average (MA) of 90.07, above the 50-day MA of 88.44, and above the 200-day MA of 75.77, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 49.78 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$5.58B42.585.40%0.52%2.23%-0.82%
67
Neutral
$2.76B25.288.27%33.19%486.74%
66
Neutral
$17.37B18.105.54%3.61%6.63%11.55%
63
Neutral
$5.97B46.273.80%5.74%-0.27%-16.25%
61
Neutral
$5.97B43.763.80%6.07%-0.27%-16.25%
51
Neutral
$6.05B32.67-63.28%4.37%12.46%-388.89%
42
Neutral
$9.87B-29.93%305.08%-17.22%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORA
Ormat Techno
91.89
19.61
27.13%
CWEN
Clearway Energy
29.81
2.95
10.98%
CWEN.A
Clearway Energy
28.19
3.35
13.49%
BEPC
Brookfield Renewable
33.70
7.33
27.80%
SMR
NuScale Power
34.65
27.06
356.52%
RNW
ReNew Energy Global
7.61
1.92
33.74%

Ormat Techno Corporate Events

Executive/Board ChangesShareholder Meetings
Ormat Techno Stockholders Approve Key Proposals at Meeting
Neutral
May 8, 2025

At the 2025 Annual Meeting, Ormat Techno‘s stockholders voted on three key proposals. The election of eight directors to the board was confirmed, with each director set to serve until the 2026 annual meeting. Additionally, the compensation for named executive officers was approved on an advisory basis, and the appointment of Kesselman & Kesselman as the independent registered public accounting firm for 2025 was ratified.

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.Date of analysis: Aug 14, 2025