Ormat beat analyst expectations and raised its annual forecast

Ormat Technologies beat analyst expectations and raised its annual forecast - the stock rose by 4.9% in after-hours trading in New York. The geothermal energy company concluded the second quarter with a net profit of $27.1 million, compared to $28 million in the corresponding quarter. The decline was mainly due to a write-off of $6.6 million for projects the company decided not to pursue.

The company's adjusted profit, managed by Doron Blachar, totaled $31 million, compared to $27.1 million in the corresponding quarter. Adjusted earnings per share stood at 50 cents, while analysts expected a profit of only 27 cents per share. Revenue grew by 10.6% to $258.8 million, compared to market forecasts of $240.3 million in revenue.

The adjusted EBITDA for the quarter grew by 6.9% compared to the corresponding period and totaled $143.9 million, mainly thanks to the contribution of the energy storage sector, the expansion of the portfolio, and strong performance of the electricity sector. This figure also exceeded analyst forecasts, which stood at $135.5 million.

Following the positive results, Ormat raised its revenue forecast for 2026 to a range of $1.20-1.25 billion. The previous forecast, published in the first-quarter reports, stood at $1.11-1.16 billion.

Particularly prominent in the second quarter was Ormat's energy storage sector, whose revenue almost tripled to $42.8 million. The sector's revenue jumped by 195% compared to the corresponding quarter, mainly thanks to higher availability of assets, which allowed the company to benefit from higher tariffs, as well as the contribution of new assets added during the last year.

Revenue from the electricity sector, the core activity and largest division of Ormat, totaled $169.3 million, an increase of 5.8% compared to the corresponding quarter. According to the company, the improvement was mainly due to the contribution of the Blue Mountain power plant, improvement in production performance at the Puna and Olkaria facilities, and the raising of tariffs at the Puna power plant. On the other hand, revenue from the products sector fell by 21.6% to $46.7 million, due to timing gaps between production processes and the construction stages of the projects.