Ormat Technologies Starts the Year Strong: Revenue, EBITDA, and Profit Rise – Stock Posts Solid Gains

Reno, USA – Geothermal and energy storage specialist Ormat has reported its financial results for the first quarter of 2025. With targeted investments in power plant and storage projects, new electricity contracts, and a recent acquisition, Ormat is committed to sustainable growth. The strong results and positive outlook have impressed investors, and the stock has moved higher.

The U.S.-based geothermal and storage company Ormat Technologies began the 2025 fiscal year with solid numbers. While the electricity segment was impacted by weather and grid constraints, product and storage solutions significantly supported the quarter. The company continues to pursue a clear growth strategy through targeted acquisitions and international projects. The first quarterly dividend of the year amounts to $0.12.

Financials: Solid Growth Despite Challenges in the Power Segment

In Q1 2025, Ormat posted a 2.5% increase in revenue to approximately $229.8 million (Q1 2024: $224.2 million). GAAP net income rose by 4.6% to $40.4 million (Q1 2024: $38.6 million), resulting in diluted earnings of $0.66 per share, compared to $0.64 a year earlier. Adjusted EBITDA increased by 6.4% to $150.3 million (Q1 2024: $141.2 million).

The main revenue driver was the energy storage segment, which surged 119.7% year-over-year to $17.8 million. This growth was fueled by high prices in the PJM market on the U.S. East Coast and newly added capacity. In contrast, the electricity segment saw a 5.8% decline in revenue to $180.2 million, due to grid limitations in California and Nevada and wildfires. Product revenue rose by 27.9% to $31.8 million, supported by a strong order backlog and improved margins.

Operational Highlights: Project Milestones and Strategic Acquisitions

In February 2025, the 35-MW Ijen geothermal power plant in Indonesia was successfully brought into commercial operation. In Israel, the company secured two 15-year agreements for storage projects with a total capacity of 300 MW/1,200 MWh. Additionally, in January 2025, Ormat signed a 10-year power purchase agreement (PPA) with Calpine Energy Solutions for up to 15 MW of geothermal capacity at the Mammoth 2 plant. This new PPA will replace the currently less favorable contract with Southern California Edison beginning in Q1 2027.

Another operational highlight of the 2025 fiscal year is the signing of an agreement to acquire the 20-MW Blue Mountain geothermal plant in Nevada for $88 million in early May 2025. Built with Ormat technology, the facility is set to be expanded by 3.5 MW and complemented by a planned 13-MW solar plant. The acquisition is expected to close in Q2.

Outlook: Confidence Despite Geopolitical Uncertainty

For full-year 2025, Ormat forecasts revenues between $935 million and $975 million and adjusted EBITDA between $563 million and $593 million. Despite recent import tariffs imposed by U.S. President Donald Trump, the company feels well prepared: all batteries for current storage projects have already been secured, Ormat stated.

With a robust product order backlog of $314 million and several projects in the pipeline, Ormat remains on a growth trajectory. The company sees itself well-positioned to expand its contribution to the global energy transition, supported by sustained demand for reliable renewable energy and rising PPA prices.

On May 7, 2025, the Board of Directors approved a quarterly dividend of $0.12 per share. Ormat plans to maintain the same dividend level for the next three quarters.

Stock Price Benefits

On May 7, 2025, Ormat shares rose by 1.6% to €62.98 (closing price, Stuttgart Stock Exchange). This morning, the stock continued its upward trend, currently trading at €65.74, up 4.4% (May 8, 2025, 10:13 a.m., Stuttgart Stock Exchange).

Source: IWR Online, 08 May 2025