Ormat Technologies Inc
LSE:0KDH
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Ormat Technologies Inc
LSE:0KDH
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Ormat Technologies Inc
Ormat Technologies builds and runs power plants that generate electricity from geothermal heat and from waste heat recovered from industrial processes and engines. It also sells equipment and engineering services for customers that want to develop their own geothermal or energy-recovery projects. In simple terms, Ormat turns underground heat and wasted heat into usable power. Its main customers are electric utilities, independent power producers, industrial companies, and governments or developers that need reliable low-carbon electricity. Ormat makes money in two main ways: by owning power plants and selling electricity under long-term contracts, and by selling plant equipment, parts, and project services to other operators. That mix gives it both a utility-style business and an equipment business. What makes Ormat different is its focus on geothermal power, which is a steady source of renewable electricity that does not depend on sunlight or wind. The company also has a strong role in the energy value chain because it designs the technology, helps build the plants, and in many cases keeps owning and operating them. That makes Ormat both a manufacturer and a power producer in a niche part of the clean energy market.
Ormat Technologies builds and runs power plants that generate electricity from geothermal heat and from waste heat recovered from industrial processes and engines. It also sells equipment and engineering services for customers that want to develop their own geothermal or energy-recovery projects. In simple terms, Ormat turns underground heat and wasted heat into usable power.
Its main customers are electric utilities, independent power producers, industrial companies, and governments or developers that need reliable low-carbon electricity. Ormat makes money in two main ways: by owning power plants and selling electricity under long-term contracts, and by selling plant equipment, parts, and project services to other operators. That mix gives it both a utility-style business and an equipment business.
What makes Ormat different is its focus on geothermal power, which is a steady source of renewable electricity that does not depend on sunlight or wind. The company also has a strong role in the energy value chain because it designs the technology, helps build the plants, and in many cases keeps owning and operating them. That makes Ormat both a manufacturer and a power producer in a niche part of the clean energy market.
Record quarter: Ormat reported record first-quarter revenue of $403.9 million, up 75.8% year over year, with strong gains in operating income and adjusted EBITDA.
Storage surge: The Energy Storage segment was a major driver, with revenue up 153.1% and gross margin reaching 59.1% thanks to strong PJM pricing and new capacity.
Product strength: Product revenue jumped 458.4% to $177.4 million, helped by $105 million of revenue from two large projects.
Guidance held: Management kept full-year 2026 guidance unchanged, including revenue of $1,110 million to $1,160 million and adjusted EBITDA of $615 million to $645 million.
EGS push: Ormat said it is making meaningful progress on next-generation geothermal and EGS, with pilot drilling targeted for 2027 and new equipment designed specifically for EGS.
Capital return: The board declared a quarterly dividend of $0.12 per share and the company said it expects the same payout for the next three quarters.
