Ormat Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for Q3 2026 were $275.1 million, a 10.2% increase year-over-year from $249.7 million; for the nine months ended September 30, 2026, revenues were $937.8 million, up 31.4% from $713.5 million.
• 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 the prior year period; for the nine months, net income was $103.1 million ($1.65 diluted EPS), up 11.4% from $92.5 million ($1.51 diluted EPS).
• Adjusted EBITDA for Q3 2026 was $153.8 million, an 11.1% increase year-over-year; for the nine months, Adjusted EBITDA was $492.6 million, up 16.4% from $423.3 million.
• Adjusted net income attributable to stockholders for Q3 2026 was $34.8 million ($0.56 adjusted diluted EPS), up 39.8% from $24.9 million ($0.41 adjusted diluted EPS); for the nine months, it was $146.1 million ($2.34 adjusted diluted EPS), up 53% from $95.5 million ($1.56 adjusted diluted EPS).
• Gross profit for Q3 2026 was $77.4 million (28.1% margin), up 20.8% from $64.0 million (25.6% margin) in the prior year; for the nine months, gross profit was $266.4 million (28.4% margin), up 37.4% from $193.9 million (27.2% margin).
• Operating income for Q3 2026 was $45.3 million, up 11.9% year-over-year; for the nine months, it was $159.7 million, up 26.1% from $126.7 million.
• Cash and cash equivalents were $347.968 million as of September 30, 2026, compared to $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.
• Total liabilities were $3.991 billion as of September 30, 2026, compared to $3.555 billion as of December 31, 2025.
• Short-term revolving credit lines were $0 as of September 30, 2026, compared to $80 million as of December 31, 2025.
• Commercial paper outstanding was $99.987 million as of September 30, 2026, compared to $99.983 million as of December 31, 2025.
• Convertible senior notes (current portion) were $361.045 million as of September 30, 2026, compared to $0 as of December 31, 2025.
• Long-term debt (full recourse) was $841.210 million as of September 30, 2026, compared to $1.009 billion as of December 31, 2025.
• Product segment backlog stood at approximately $183 million as of November 4, 2026.

Guidance and Future Outlook:

• The Company raised the midpoint of its full-year 2026 revenue guidance to a range of $1,170 million to $1,200 million.
• The Company raised the midpoint of its full-year 2026 Adjusted EBITDA guidance to a range of $640 million to $650 million.
• Segment revenue guidance for 2026: Electricity ($700–$710 million), Product ($310–$320 million), and Energy Storage ($160–$170 million).
• Long-term goals include 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 long-term targets exclude potential contributions from Enhanced Geothermal Systems (EGS).
• The Company estimates its expanded EGS land position could support 5 to 6 gigawatts of potential future EGS development.

Business Segments and Product Lines:

• Energy Storage revenue for Q3 2026 was $49.9 million, up 145.2% year-over-year from $20.4 million; for the nine months, it was $137.6 million, up 161.6% from $52.6 million.
• Energy Storage gross margin for Q3 2026 was 62.1%, up 2,260 basis points from 39.4% in the prior year; for the nine months, it was 59.3%, up 3,040 basis points from 28.9%.
• Energy Storage growth was driven by high asset availability, favorable merchant pricing in the PJM market, and contributions from newly added capacity.
• Electricity segment revenue for Q3 2026 was $163.7 million, down 2.1% year-over-year from $167.1 million; for the nine months, it was $514.5 million, up 1.4% from $507.3 million.
• Electricity segment revenue decline in Q3 was primarily due to lower generation at Puna following a hurricane-related forced outage, partially offset by the July commencement of commercial operation at the 10 MW Dominica geothermal plant and improved performance at the Olkaria plant.
• Product segment revenue for Q3 2026 was $61.5 million, down 1.2% year-over-year from $62.2 million; for the nine months, it was $285.6 million, up 85.9% from $153.6 million.
• Product segment revenue decline in Q3 was largely due to the timing of manufacturing and construction progress.
• In August 2026, Ormat decided to proceed with 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.
• In July 2026, Ormat achieved commercial operation of its 10 MW Dominica geothermal power plant.

Market and Competitive Landscape:

• Ormat 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, and for other potential projects.
• 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.
• Ormat's EGS land position expanded 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.
• The Company notes growing demand for reliable, around-the-clock power driven by AI data centers, electric vehicles, industrial reshoring, and the electrification of heating and cooling.

Risks and Challenges:

• Forward-looking statements are subject to risks including regulatory changes, geopolitical developments, commodity prices, merchant energy pricing, interest rates, and supply chain disruptions.

• Risks include the technical and commercial viability of EGS, the ability to obtain power purchase agreements, permits, and government funding.

• Q3 2026 results included an impairment of long-lived assets of $150,000 and a write-off of unsuccessful exploration and storage activities of $2.131 million.

• Nine months 2026 results included an impairment of long-lived assets of $8.578 million and a write-off of unsuccessful exploration and storage activities of $10.824 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 that year-to-date performance and fourth-quarter outlook support the increase in full-year guidance midpoints.
• Management emphasized Ormat's position to participate in EGS as a developer, owner, operator, and technology provider, leveraging six decades of geothermal experience.
• Management highlighted the Company's integrated capabilities and global presence as key differentiators in the energy storage and geothermal markets.

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 nine-month period, resulting in an induced conversion expense of $34.4 million included in the reconciliation of Adjusted Net Income.
• A bargain purchase gain of $9.6 million was recognized in the nine-month period.
• 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, and income tax expenses.
• A conference call to discuss results was scheduled for November 5, 2026, at 10:00 a.m. ET.