Ormat Increases Quarterly Profit by 32 Percent – Battery Storage Booms, New Geothermal Technology with Major Potential
Reno – U.S. geothermal and battery storage company Ormat Technologies increased its net profit by 32 percent in the third quarter of 2026. The battery storage business drove the growth. At the same time, Ormat significantly raised its estimated development potential for the new geothermal technology EGS.
Battery Storage Revenue Up 145 Percent – High PJM Prices Drive Results
Group revenue rose 10.2 percent to USD 275.1 million (third quarter 2025: USD 249.7 million). Net profit attributable to shareholders reached USD 31.9 million (USD 24.1 million), and adjusted EBITDA reached USD 153.8 million (up 11.1 percent). Operating income grew 11.9 percent to USD 45.3 million, significantly less than net profit.
Storage revenue rose 145.2 percent to USD 49.9 million, and the gross margin increased from 39.4 percent to 62.1 percent. At around USD 31 million, battery storage accounted for a calculated 40 percent of group gross profit.
Ormat attributes the revenue growth and improved profitability to high power marketing prices in the U.S. power market PJM, high plant availability and additional capacity. The storage revenue forecast for 2026 was raised to USD 160 million to USD 170 million, from USD 140 million to USD 155 million. Based on nine-month revenue of USD 137.6 million, the calculated fourth-quarter revenue is USD 22.4 million to USD 32.4 million, significantly less than in the third quarter.
The Denali storage project in California, with a power capacity of 100 MW and a storage capacity of 400 MWh, is scheduled to start operations by the end of 2028. A 20-year contract with Clean Power Alliance covers the use of the storage capacity.
In the power generation segment, revenue fell 2.1 percent to USD 163.7 million. A hurricane-related outage at the Puna geothermal power plant weighed on output; the new 10-MW power plant in Dominica and improved performance at Olkaria partly offset this.
For 2026, Ormat expects revenue of USD 1.17 billion to USD 1.20 billion and adjusted EBITDA of USD 640 million to USD 650 million. The lower end of both forecast ranges was raised.
EGS: Ormat Sees Development Potential of 5 GW to 6 GW
Ormat puts the potential for Enhanced Geothermal Systems (EGS) at 5 GW to 6 GW, up from 3 GW to 4 GW previously. EGS taps geothermal heat through artificially created or improved flow paths where natural water pathways are insufficient for conventional geothermal power plants.
The identified acreage grew from around 70,000 to 170,000 acres (about 68,800 hectares), including new leased land from the U.S. federal agency Bureau of Land Management (BLM) and existing sites with additional EGS potential.
By comparison, according to the 2025 geothermal market report of the U.S. National Laboratory of the Rockies, 3,969 MW of geothermal capacity was installed in the United States in 2024. Since 2021, more than USD 1.5 billion in private capital has flowed into new geothermal technologies. Ormat’s estimated potential thus exceeds installed U.S. geothermal capacity but is not a secured project pipeline.
Under the plans presented at its Investor Day, Ormat is targeting 100 MW of EGS capacity by 2030/31 and around 1 GW between 2033 and 2035. The timelines depend, among other things, on grid connections and water rights.
Ormat is advancing two EGS pilot projects with SLB and Sage; drilling is scheduled to begin in late 2026 or early 2027. For the planned commercial EGS project Dixie Valley in Nevada, Ormat is negotiating Power Purchase Agreements (PPAs).
In September 2026, Ormat, together with SLB and the University of Utah, was selected for funding of up to USD 25 million for the Dixie Valley EGS project. Up to USD 9.7 million is earmarked, together with the University of Utah, for hydrothermal development at Cove Fort. The final funding commitments are still pending.
Ormat Plans to Double Power Plant and Storage Capacity by 2030
Ormat has an installed portfolio of 1,853 MW: 1,358 MW of geothermal and solar power plants worldwide and 495 MW of battery storage in the United States.
By the end of 2030, the company aims to double its capacity compared with the end of 2025 and to reach annual run rates of revenue and adjusted EBITDA of more than USD 1.5 billion and USD 1 billion, respectively. Possible EGS contributions are not included.
While the battery storage business already makes a substantial earnings contribution, the commercial development of EGS remains an additional long-term growth prospect.
Source: IWR Online, 10 Nov 2026
