Ormat Technologies — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenues for Q3 2026 reached $275.1 million, a 10.2% increase year-over-year compared to $249.7 million in Q3 2025.
• Nine-month 2026 total revenues were $937.8 million, up 31.4% from $713.5 million in the same period of 2025.
• Net income attributable to stockholders for Q3 2026 was $31.9 million ($0.51 diluted EPS), up 32.2% from $24.1 million ($0.39 diluted EPS) in Q3 2025.
• For the nine months ended September 30, 2026, net income attributable to stockholders was $103.1 million ($1.65 diluted EPS), an 11.4% increase from $92.5 million ($1.51 diluted EPS) in 2025.
• Adjusted EBITDA for Q3 2026 was $153.8 million, an 11.1% increase from $138.4 million in Q3 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $492.6 million, up 16.4% from $423.3 million in 2025.
• Gross margin for Q3 2026 was 28.1%, an improvement of 250 basis points from 25.6% in Q3 2025.
• Energy Storage segment revenue for Q3 2026 was $49.9 million, a 145.2% increase year-over-year, with a gross margin of 62.1% compared to 39.4% in the prior year.
• Electricity segment revenue for Q3 2026 was $163.7 million, a 2.1% decrease year-over-year, with a gross margin of 22.2% compared to 25.4% in the prior year.
• Product segment revenue for Q3 2026 was $61.5 million, a 1.2% decrease year-over-year, with a gross margin of 16.5% compared to 21.7% in the prior year.
• Cash and cash equivalents increased to $347.968 million as of September 30, 2026, from $147.448 million as of December 31, 2025.
• Total assets were $6.767 billion as of September 30, 2026, compared to $6.247 billion as of December 31, 2025.

Guidance and Future Outlook

• Ormat raised the midpoint of its full-year 2026 revenue guidance to a range of $1,170 million to $1,200 million.
• Full-year 2026 Adjusted EBITDA guidance was raised to a range of $640 million to $650 million.
• Segment guidance for 2026 includes Electricity revenues of $700–$710 million, Product revenues of $310–$320 million, and Energy Storage revenues of $160–$170 million.
• Management targets doubling year-end 2025 capacity and achieving annual revenue and Adjusted EBITDA run rates exceeding $1.5 billion and $1 billion, respectively, by the end of 2030.
• These 2030 targets exclude potential contributions from Enhanced Geothermal Systems (EGS).
• The Company estimates its current EGS land position of approximately 170,000 acres could support 5 to 6 gigawatts of potential future EGS development.

Business Segments and Product Lines

• Energy Storage segment growth was driven by favorable merchant market pricing in PJM, high asset availability, and contributions from newly added capacity.
• Electricity segment revenue decline in Q3 2026 was primarily due to lower generation at Puna following a hurricane-related forced outage, partially offset by the July 2026 commercial operation of the 10 MW Dominica geothermal plant and improved performance at the Olkaria plant.
• Product segment revenue decline in Q3 2026 was largely due to the timing of manufacturing and construction progress.
• Product segment backlog stood at approximately $183 million as of November 4, 2026.
• In August 2026, Ormat approved the development of the 100 MW / 400 MWh Denali energy storage facility in California, expected to be completed by the end of 2028 under a 20-year tolling agreement with Clean Power Alliance.
• The Company's total generating portfolio is 1,853 MW, including 1,358 MW of geothermal and solar generation and 495 MW of energy storage.

Market and Competitive Landscape

• Ormat positions itself as the only vertically integrated company engaged in geothermal and recovered energy generation with plans to accelerate growth in the energy storage market.
• The Company is advancing two EGS pilot programs with SLB and Sage, with drilling expected to commence late 2026 or early 2027.
• Ormat is negotiating power purchase agreements for Dixie Valley, Nevada, its first planned commercial EGS project.
• In September 2026, Ormat was selected by the U.S. Department of Energy for up to $35 million in funding to advance EGS at Dixie Valley and hydrothermal development at Cove Fort, Utah.
• Since the Investor Day, Ormat expanded its EGS land position from approximately 70,000 acres to approximately 170,000 acres, including 16,000 acres of new BLM leases acquired in Nevada's October 2026 lease sale.

Risks and Challenges

• Forward-looking statements note risks related to regulatory changes, geopolitical developments, commodity prices, merchant energy pricing, interest rates, and supply chain disruptions.
• Specific risks include the technical and commercial viability of EGS, the ability to obtain power purchase agreements, permits, and government funding.
• The Company does not provide guidance on net income or a reconciliation of Adjusted EBITDA guidance to net income due to high variability and complexity regarding impairments, disposition/acquisition of business interests, income tax expense, and other non-cash expenses.
• Q3 2026 results included impairment of long-lived assets ($150,000) and write-offs of unsuccessful exploration and storage activities ($2.131 million).

Management Commentary and Tone

• CEO Doron Blachar stated that strong third-quarter performance was driven by record Energy Storage profitability, supported by newly added capacity, high asset availability, and favorable merchant pricing in PJM.
• Management expressed confidence in delivering sustainable long-term growth and shareholder value, citing growing demand for reliable, around-the-clock power and an expanding portfolio of contracted projects.
• Blachar highlighted Ormat's six decades of geothermal experience and integrated capabilities as positioning the Company to participate in EGS as a developer, owner, operator, and technology provider.

Other Key Points

• On November 4, 2026, the Board of Directors declared a quarterly dividend of $0.12 per share, payable on December 2, 2026, to stockholders of record as of November 18, 2026.
• The Company issued 2031 Convertible Notes during the period, incurring induced conversion expenses of $34.4 million for the nine months ended September 30, 2026.
• A conference call to discuss results was held on November 5, 2026, at 10:00 a.m. ET.
• The Company's total EGS land position now stands at approximately 170,000 acres, up from the 3–4 GW potential estimate presented at Investor Day, now estimated at 5–6 GW.