Ormat Technologies Delivers Strong Q3 Growth Driven by Product and Energy Storage Surges, Raises 2025 Outlook

Q3 Highlights: Revenue Up 17.9% on Record Product and Storage Growth

Ormat Technologies’ third quarter 2025 results point to significant momentum: revenue grew 17.9% year-over-year to $249.73 million, propelled by remarkable growth in its Product (+66.6%) and Energy Storage (+108.1%) segments. The company also reported a 13.3% rise in operating income and a 9.3% increase in net income attributable to shareholders.

What’s behind these numbers? The Product segment’s gains reflect accelerated project execution and the signing of a large contract, which raised Ormat’s backlog to $295 million—poising the company for continued strength into 2026. Meanwhile, Energy Storage results were fueled by the successful commercial launch of the Lower Rio facility and new assets added over the past year, plus higher market pricing. The Electricity segment held steady, supported by the Blue Mountain power plant acquisition and improved Dixie Valley performance, though offset by adverse weather events and lower rates at some facilities.

Strategic Expansion: Partnerships and Portfolio Boost Geothermal Growth

Recent agreements are likely to shape Ormat’s future trajectory. The company announced a strategic partnership with SLB to fast-track Enhanced Geothermal System (EGS) development and a commercial agreement with Sage Geosystems to pilot advanced Pressure Geothermal technology. Together, these moves signal Ormat’s commitment to next-generation geothermal innovation and expanding its suite of clean energy solutions.

Elsewhere, new and extended power purchase agreements—including a 25-year extension with the Southern California Public Power Authority and new exploration contracts in Indonesia—reinforce the company’s ability to capture global demand for renewable power. Notably, data centers and the AI boom are cited as key sources of long-term electricity demand growth.

2025 Outlook: Guidance Raised on Momentum from Product and Storage Segments

Management has raised its 2025 full-year guidance in response to favorable merchant pricing and outsized product segment performance. Total revenue is now forecast between $960 million and $980 million, while adjusted EBITDA is expected to land between $575 million and $593 million.

The strong third-quarter and forward-looking statements suggest the Product and Energy Storage businesses remain Ormat’s growth engines, supporting optimism despite a softer margin in the Electricity segment, due in part to storm impacts and rate pressure at select plants.

Dividend, Balance Sheet, and Takeaway: Financial Discipline Supports Expansion

In line with ongoing profitability and confidence in future cash flow, the board declared a quarterly dividend of $0.12 per share, payable December 1, 2025.

On the balance sheet, Ormat reported $504.7 million in current assets, including $79.56 million in cash, versus $654.8 million in current liabilities—reflecting prudent financial management and an active investment approach as it accelerates its buildout and new technology initiatives.

Bottom Line: Multiple Growth Catalysts and Global Demand Set the Stage

Ormat’s third quarter showcased solid operational and strategic progress: product and storage segments are fueling strong top-line and profit growth, new partnerships in advanced geothermal could unlock future opportunities, and the company’s global contract pipeline continues to expand. As demand from data centers and the ongoing clean energy transition gathers pace, Ormat appears positioned for further gains—but the mix of regulatory, technology, and weather risks remains something investors will watch as the story unfolds.

Investors can learn more or join Ormat’s management for a discussion of these results on the November 4 conference call, with webcast details available via the Investor Relations section of Ormat’s website.

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