Ormat Technologies Inc (ORA)
NYSE:ORA
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Ormat Techno
(NYSE:ORA)
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Rating:56Neutral
Price Target:
$117.00
▲(3.50% Upside)
Action:DowngradedDate:02/27/26
The score is led by improving fundamentals (notably lower balance-sheet leverage) but held back by persistent negative free cash flow. Technicals are weak with the stock below key moving averages and negative MACD, and valuation looks demanding given the high P/E and low yield. Earnings-call guidance and contract wins provide a constructive growth outlook, though margin pressure, high CapEx, and leverage remain key risks.
Positive Factors
Lower Leverage / Stronger Balance Sheet
A material reduction in leverage meaningfully lowers financial risk and increases strategic optionality. With a stronger balance sheet, Ormat can better fund capital-intensive geothermal and storage builds, pursue M&A, and withstand cyclical cash flow swings without immediate refinancing pressure.
Negative Factors
Persistent Negative Free Cash Flow
Consistent negative free cash flow signals that operating cash generation doesn't cover reinvestment needs. Over time this raises funding and execution risk, forces reliance on external financing or asset sales, and can limit ability to sustain dividends or accelerate growth without improving project returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Lower Leverage / Stronger Balance Sheet
A material reduction in leverage meaningfully lowers financial risk and increases strategic optionality. With a stronger balance sheet, Ormat can better fund capital-intensive geothermal and storage builds, pursue M&A, and withstand cyclical cash flow swings without immediate refinancing pressure.
Read all positive factors
Ormat Techno (ORA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.06B
Dividend Yield0.42%
Average Volume (3M)945.34K
Price to Earnings (P/E)54.1
Beta (1Y)0.35
Revenue Growth12.49%
EPS Growth-0.27%
CountryUS
Employees1,512
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.67
Shares Outstanding61,453,556
10 Day Avg. Volume848,040
30 Day Avg. Volume945,337
Financial Highlights & Ratios
PEG Ratio-110.96
Price to Book (P/B)2.64
Price to Sales (P/S)6.78
P/FCF Ratio-23.56
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue9.39
Enterprise Value/Gross Profit34.06
Enterprise Value/Ebitda17.07
Forecast
1Y Price Target
$127.60Price Target Upside12.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.28
Revenue Forecast (FY)$1.14B
Ormat Techno Business Overview & Revenue Model
Company Description
Ormat 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 se...
How the Company Makes Money
Ormat primarily makes money through two main sources. (1) Electricity generation: Ormat earns revenue by selling electricity produced from its geothermal and recovered-energy power plants, typically under long-term power purchase agreements (PPAs)...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line growth, strong outperformance in Energy Storage and Product segments, significant commercial wins (notably large PPAs with Google and Switch), strategic M&A and progress on EGS partnerships. However, margin pressure in the Electricity segment driven by curtailments, a Q4 net income hit from impairments, and elevated leverage are notable concerns. Management provided constructive 2026 guidance and reiterated long-term capacity targets, while flagging some one-time items and continued execution risk on EGS commercialization.Positive Updates
Revenue Growth
Total revenues for 2025 increased 12.5% year-over-year to $989.6 million; fourth quarter revenue was $276 million, up 19.6% versus prior year.
Negative Updates
Electricity Segment Margin Pressure
Overall gross margin declined to 27.6% for the full year (31.0% prior year) and 28.6% in Q4 (31.9% prior year), driven primarily by curtailments in the Electricity segment and a revenue mix shift toward lower-margin Product revenues.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Total revenues for 2025 increased 12.5% year-over-year to $989.6 million; fourth quarter revenue was $276 million, up 19.6% versus prior year.
Read all positive updates
Company Guidance
Ormat guided 2026 revenue of $1,110M–$1,160M (≈14.6% YoY increase at the midpoint) with segment guidance of Electricity $715M–$730M, Product $300M–$320M and Energy Storage $95M–$110M, and adjusted EBITDA $615M–$645M (≈8.2% increase at the midpoint); management expects CapEx of $675M (net investment ≈$575M after the ~$100M Topp‑2 sale) with ~$465M for Electricity, ~$180M for Storage and ~$10M for the EGS pilot with SLB, and Q1 to benefit from ~ $100M of Product revenue (≈20% gross margin) from Topp‑2; tax/incentive outlook includes ~ $90M of ITC/PTC proceeds in 2026 and an expected negative tax rate of ~‑15% to ‑20% driven by new storage CODs, cash and liquidity were ~$281M and total available liquidity ~$680M at year‑end, total debt ≈$2.8B (cost of debt 4.8%) with net debt ≈$2.5B (≈4.4x net debt/EBITDA), expected curtailment ≈$4M–$5M (Q4 2025 curtailment subsided), and a quarterly dividend of $0.12/share declared (paid March 24, 2026 and planned for the next three quarters).Ormat Techno Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 989.54M | 879.65M | 829.42M | 734.16M | 663.08M |
| Gross Profit | 272.69M | 272.62M | 264.02M | 268.82M | 264.34M |
| EBITDA | 536.06M | 512.27M | 462.76M | 382.14M | 369.18M |
| Net Income | 123.90M | 123.73M | 124.40M | 65.84M | 62.09M |
Balance Sheet | |||||
| Total Assets | 6.25B | 5.67B | 5.21B | 4.61B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 280.87M | 94.39M | 195.81M | 95.87M | 282.62M |
| Total Debt | 2.86B | 2.45B | 2.12B | 2.05B | 1.93B |
| Total Liabilities | 3.56B | 3.11B | 2.76B | 2.58B | 2.42B |
| Stockholders Equity | 2.54B | 2.43B | 2.32B | 1.87B | 1.85B |
Cash Flow | |||||
| Free Cash Flow | -284.68M | -76.76M | -308.98M | -282.50M | -160.45M |
| Operating Cash Flow | 335.10M | 410.92M | 309.40M | 280.97M | 258.82M |
| Investing Cash Flow | -726.43M | -780.25M | -628.34M | -523.41M | -638.19M |
| Financing Cash Flow | 465.75M | 287.92M | 379.96M | 126.27M | 186.38M |
Ormat Techno Technical Analysis
Positive
113.04
Price Trends
113.02
Positive
114.50
Negative
105.46
Positive
Market Momentum
0.46
Negative
51.47
Neutral
42.66
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 113.04 is above the 20-day moving average (MA) of 111.93, above the 50-day MA of 113.02, and above the 200-day MA of 105.46, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.66 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 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.29B | 23.42 | 5.91% | 5.60% | ― | 92.55% | |
67 Neutral | $3.98B | 21.38 | 12.18% | 0.99% | 44.26% | 2.37% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $8.29B | 23.42 | 5.91% | 5.29% | ― | 92.55% | |
56 Neutral | $7.06B | 54.13 | 4.95% | 0.42% | 12.49% | -0.27% | |
55 Neutral | $1.96B | -231.49 | 10.05% | ― | 44.58% | 487.28% | |
48 Neutral | $6.54B | -2.94 | -1196.72% | 3.84% | -8.12% | -553.98% |
* Utilities Sector Average
ORA
Ormat Techno
113.50
41.66
57.99%
CWEN
Clearway Energy
40.30
13.03
47.79%
CWEN.A
Clearway Energy
40.43
14.97
58.77%
BEPC
Brookfield Renewable
35.20
8.13
30.01%
RNW
ReNew Energy Global
5.38
-0.93
-14.74%
EE
Excelerate Energy, Inc. Class A
34.47
9.01
35.40%
Ormat Techno Corporate Events
Business Operations and Strategy
Ormat Technologies Signs Long-Term Geothermal PPA for Google
Positive
Feb 17, 2026
On February 17, 2026, Ormat Technologies announced it had signed a long-term geothermal power purchase agreement with NV Energy to supply up to 150 MW of new geothermal capacity to support Google’s Nevada data center operations. Enabled by N...
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.