Ormat Technologies Surpasses Q3 Expectations on Energy Storage Surge
Ormat Technologies beat Q3 expectations with revenue rising 10.2% to $275 million, driven by a 145% surge in energy storage. The company raised its full-year revenue outlook.
Ormat Technologies reported strong third-quarter financial results, surpassing analysts' expectations for both revenue and net income. Total revenue increased by 10.2% year-over-year to $275 million, driven primarily by a surge in the energy storage segment, despite slight declines in the electricity and product segments. Energy storage revenue jumped 145% to $49.9 million, delivering higher gross profitability.
Net income attributable to stockholders rose 11.9% to $45.3 million. On a non-GAAP basis, net income surged 39.8% to $34.8 million, with earnings per share reaching 51 cents, well above the consensus estimate of 35 cents. For the first nine months of 2026, Ormat's revenue grew 31.4% to approximately $938 million, with net income reaching around $160 million.
Updated Annual Guidance
Following the robust quarterly performance, Ormat updated its full-year guidance, raising the midpoint of its projected revenue range to between $1.17 billion and $1.2 billion. The company adjusted its electricity segment revenue forecast down to $700–$710 million, while raising the energy storage outlook to $160–$170 million and upgrading the product segment forecast. Adjusted EBITDA is now projected at $640–$650 million.
CEO Doron Blachar attributed the strong results to record profitability in the energy storage segment, supported by new facilities, high asset availability, and favorable merchant tariffs in the PJM market. Blachar also highlighted the company's long-term growth strategy, which aims to double generating capacity by the end of 2030 compared to late 2025 levels, targeting annual revenues exceeding $1.5 billion. Ormat is traded on the New York and Tel Aviv stock exchanges with a market capitalization of $5.8 billion.
