Ormat Technologies Reports Q4 and Full-Year 2025 Results: Strong Growth and Strategic Moves
Ormat Technologies Reports Q4 and Year-End 2025 Results: Robust Growth, Strategic Partnerships, and Outlook
Key Highlights
- Total revenues increased significantly: Full-year revenues rose by 19.6% compared to 2024, with Q4 revenues showing a substantial uptick as well. This marks a strong growth in both quarterly and annual performance.
- Long-term Power Purchase Agreements (PPAs) signed: Ormat secured major long-term PPAs with Google and Switch, strengthening its position in renewable energy supply for leading tech companies.
- Enhanced Geothermal Systems (EGS) advancement: The company entered a strategic investment and cooperation agreement with SLB to further develop EGS, which could unlock new geothermal resources and future revenue streams.
- Strong performance in Energy Storage segment: This segment experienced robust growth, helping offset certain negative impacts during the quarter.
- 2026 outlook and growth targets announced: Ormat provided guidance for continued growth in 2026, reinforcing confidence in its long-term strategy.
Financial Details
| Metric |
Q4 2025 |
FY 2025 |
Change vs. Prior Year |
| Total Revenues (\$ millions) |
276.0 |
1,054.6 |
+19.6% (FY) |
| Gross Profit (\$ millions) |
78.8 |
336.6 |
— |
| Gross Margin (%) |
28.6% |
31.9% |
— |
| Operating Income (\$ millions) |
42.6 |
172.5 |
-1.9% (FY) |
| Net Income Attributable to Stockholders (\$ millions) |
31.4 |
123.9 |
+0.1% (FY) |
| Diluted EPS (\$) |
0.50 |
2.02 |
-1.0% (FY) |
| Adjusted Net Income (\$ millions) |
41.8 |
133.7 |
+2.7% (FY) |
| Adjusted Diluted EPS (\$) |
0.67 |
2.18 |
+1.8% (FY) |
| Adjusted EBITDA (\$ millions) |
158.7 |
610.9 |
+9.1% (Q4) |
Operational and Strategic Insights
- The decline in Q4 net income (\$31.4 million vs. \$40.8 million last year) was mainly due to \$12 million in impairment charges and a slightly higher effective tax rate. However, this was offset by robust performance in energy storage.
- Impairment of long-lived assets amounted to \$12.1 million in Q4, which is a key item for investors as it can indicate asset revaluations or operational shifts.
- Ormat continues expanding its project pipeline and investing in new technologies such as EGS, positioning itself as a leader in geothermal and storage solutions.
- Income attributable to sale of tax benefits was \$18.5 million in Q4, reflecting strategic capital management and optimization of tax credits.
- Operating expenses, including R&D, selling, and marketing, remain well-controlled, supporting efficient growth.
- Balance sheet remains strong, with total assets of \$2,841 million and significant cash reserves and restricted cash, along with manageable debt levels and continued access to credit lines.
- Weighted average shares for EPS computation: ~60.8 million, up slightly from 2024.
- Shareholders’ equity stands at \$1,654 million, up from \$1,635 million in 2024, indicating continued capital accumulation.
Shareholder-Relevant, Price-Sensitive Information
- Growth in revenues and EBITDA signals strong operational performance, likely viewed positively by the market.
- Major PPAs with Google and Switch provide long-term revenue visibility and strategic customer relationships, potentially boosting investor confidence and share value.
- Advancement in EGS technology via partnership with SLB could unlock new geothermal resources, supporting future growth and innovation.
- Impairment charges and asset write-offs, while offset by other gains, may warrant investor scrutiny regarding asset quality and future earnings.
- 2026 outlook and growth targets reinforce management’s confidence in ongoing expansion and profitability.
Other Notable Items
- Ormat referenced non-GAAP financial measures, with reconciliations included, which are important for investors assessing core operational performance versus accounting impacts.
- Safe harbor statement included, highlighting forward-looking statements and risks related to projections, business strategy, and market developments.
Conclusion
Ormat Technologies delivered strong financial performance in 2025, with double-digit revenue growth, strategic partnerships with major tech firms, and continued innovation in geothermal technology. The company’s outlook for 2026 remains positive, supported by robust operations, expanding portfolio, and prudent financial management. Investors should note both the growth drivers and the impairment charges, as well as the implications of new PPAs and technological investments for future market positioning and share value.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors should review the company’s filings and consult their financial advisors before making investment decisions.
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