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Ormat Techno
(NYSE:ORA)
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Rating:58Neutral
Price Target:
$112.00
▲(12.68% Upside)
Action:Reiterated
Date:08/07/26
ORA’s score is held back mainly by weak cash economics (consistently negative free cash flow) and increasing leverage, despite solid profitability and revenue growth. The latest earnings call was a meaningful positive with raised guidance and strong operational momentum, while technicals are neutral-to-soft (below key longer-term moving averages). Valuation remains a headwind due to a high P/E and low dividend yield.
Positive Factors
Energy storage growth
Rapid energy storage revenue expansion and an operating fleet plus a multi‑GW pipeline create a durable, higher‑margin growth vector beyond geothermal. Over 2–3 years this diversifies cash flows, leverages merchant opportunities, and builds optionality into long‑term project economics and product/service sales.
Negative Factors
Persistent negative free cash flow
Consistent negative FCF reflects capital intensity of geothermal, storage and EGS deployment and means growth is funded externally. Over months this increases reliance on debt/equity issuance, raises refinancing needs, and constrains net cash returns unless capex efficiency or operating cash conversion materially improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Energy storage growth
Rapid energy storage revenue expansion and an operating fleet plus a multi‑GW pipeline create a durable, higher‑margin growth vector beyond geothermal. Over 2–3 years this diversifies cash flows, leverages merchant opportunities, and builds optionality into long‑term project economics and product/service sales.
Read all positive factors
Ormat Techno Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures the profit generated from core operations in each segment, reflecting operational efficiency and strategic focus.
Measures the profit generated from core operations in each segment, reflecting operational efficiency and strategic focus.
Data provided by:
The Fly
The FlyOrmat Techno (ORA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.65B
Dividend Yield0.43%
Average Volume (3M)842.95K
Price to Earnings (P/E)53.7
Beta (1Y)0.45
Revenue Growth31.13%
EPS Growth-4.27%
CountryUS
Employees1,648
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)2.08
Shares Outstanding61,496,940
10 Day Avg. Volume757,008
30 Day Avg. Volume842,946
Financial Highlights & Ratios
PEG Ratio-111.01
Price to Book (P/B)2.64
Price to Sales (P/S)6.78
P/FCF Ratio-23.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$131.50Price Target Upside32.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)2.29
Revenue Forecast (FY)$1.17B
Ormat Techno Business Overview & Revenue Model
Company Description
Ormat Technologies, Inc. (ORA) is a global enterprise dedicated to geothermal and recovered energy power solutions, with significant operations in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Ho...
How the Company Makes Money
Ormat primarily makes money through two operating segments: (1) Electricity Segment: Ormat generates revenue by producing and selling electricity from geothermal power plants it owns and operates (and, where applicable, associated renewable energy...
Ormat Techno Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed broad operational and financial momentum: double-digit revenue growth, strong gross profit expansion, a sizable year-over-year surge in energy storage revenue, raised full-year guidance, improved liquidity, and tangible progress on development and EGS initiatives. Weaknesses were concentrated in the product segment (lower revenue and margins), a modest GAAP net income decline due to a one-time storage project write-off, elevated leverage (net debt ~4.3x adjusted EBITDA), and the potential for energy storage margin normalization and weather-driven generation variability. On balance, the positive operational and strategic developments and the guidance increase outweigh the highlighted challenges.Positive Updates
Quarterly Revenue Growth
Q2 revenue increased 10.6% year-over-year to $258.8 million; first half revenue up 42.9% to $662.7 million.
Negative Updates
GAAP Net Income Slight Decline and Project Write-off
Net income attributable to stockholders decreased to $27.1 million ($0.43 per diluted share) in Q2 from $28.0 million ($0.46) year-over-year, reflecting a $6.6 million write-off of a storage project the company chose not to pursue.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q2 revenue increased 10.6% year-over-year to $258.8 million; first half revenue up 42.9% to $662.7 million.
Read all positive updates
Company Guidance
On the strength of a strong first half, management raised full‑year guidance to total revenues of $1.15–1.20 billion (≈18.7% growth at the midpoint versus 2025) and adjusted EBITDA of $630–650 million (≈10% growth at the midpoint), with roughly $17 million of adjusted EBITDA attributable to minority interest; by segment they now expect electricity revenue of $710–725 million, product revenue of $300–320 million, and energy storage revenue of $140–155 million. Energy storage gross margin is expected to normalize to ~30–40% in H2 and ~40–50% for the full year, while product gross margin is expected to be ~15% in H2 and ~18% for the full year; the company also expects to record about $59.9 million of ITC benefits for 2026 and ~$90 million of tax‑credit monetization proceeds for the year (~$70M ITC, ~$20M PTC), having collected ~$52 million in H1. Capital plans for the remainder of 2026 total $449 million (approximately $281M electricity, $129M storage, $20M SLB/EGS), and balance‑sheet metrics at June 30 include cash & restricted cash of ~$658 million, total liquidity of ~$1.1 billion, total debt of ~$3.4 billion (WACC on debt ~3.9%), net debt of ~$2.7 billion (≈4.3x net debt/adjusted EBITDA, ~50% of capitalization); the board declared a $0.12 quarterly dividend payable Sept. 2 and expects the same next quarter, and the company remains on track for its 2028 portfolio target of 2.6–2.8 GW.Ormat Techno Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.19B | 989.54M | 879.65M | 829.42M | 734.16M | 663.08M |
| Gross Profit | 331.93M | 272.69M | 272.62M | 264.02M | 268.82M | 264.34M |
| EBITDA | 433.70M | 536.06M | 512.27M | 462.76M | 382.14M | 369.18M |
| Net Income | 126.64M | 123.90M | 123.73M | 124.40M | 65.84M | 62.09M |
Balance Sheet | ||||||
| Total Assets | 6.79B | 6.25B | 5.67B | 5.21B | 4.61B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 513.75M | 280.87M | 94.39M | 195.81M | 95.87M | 282.62M |
| Total Debt | 3.41B | 2.86B | 2.45B | 2.12B | 2.05B | 1.93B |
| Total Liabilities | 4.04B | 3.56B | 3.11B | 2.76B | 2.58B | 2.42B |
| Stockholders Equity | 2.60B | 2.54B | 2.43B | 2.32B | 1.87B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | -264.77M | -284.68M | -76.76M | -308.98M | -282.50M | -160.45M |
| Operating Cash Flow | 279.39M | 335.10M | 410.92M | 309.40M | 280.97M | 258.82M |
| Investing Cash Flow | -561.18M | -726.43M | -780.25M | -628.34M | -523.41M | -638.19M |
| Financing Cash Flow | 734.91M | 465.75M | 287.92M | 379.96M | 126.27M | 186.38M |
Ormat Techno Technical Analysis
Neutral
99.40
Price Trends
116.61
Negative
117.17
Negative
115.43
Negative
Market Momentum
-2.47
Negative
57.71
Neutral
90.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORA, the sentiment is Neutral. The current price of 99.4 is below the 20-day moving average (MA) of 102.74, below the 50-day MA of 116.61, and below the 200-day MA of 115.43, indicating a neutral trend. The MACD of -2.47 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ORA.
Ormat Techno Risk Analysis
Ormat Techno disclosed 42 risk factors in its most recent earnings report. Ormat Techno reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ormat Techno Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $3.95B | 23.83 | 10.90% | 0.85% | 48.97% | 3.43% | |
58 Neutral | $6.65B | 53.70 | 4.96% | 0.48% | 31.13% | -4.27% | |
57 Neutral | $2.25B | 20.09 | 8.54% | ― | 30.87% | 121.64% | |
53 Neutral | $6.70B | 43.49 | 1.96% | 5.69% | 7.99% | 22.73% | |
48 Neutral | $6.16B | -1.28 | 243.54% | 3.84% | -2.38% | -301.98% |
* Utilities Sector Average
ORA
Ormat Techno
114.46
25.98
29.37%
CWEN
Clearway Energy
34.50
6.61
23.70%
BEPC
Brookfield Renewable
34.79
2.66
8.29%
RNW
ReNew Energy Global
6.85
-0.67
-8.91%
EE
Excelerate Energy, Inc. Class A
35.36
11.64
49.06%
Ormat Techno Corporate Events
Executive/Board ChangesShareholder Meetings
Ormat Techno Shareholders Back Board, Pay and Auditor
Positive
Jun 5, 2026
At its 2026 annual meeting, Ormat Techno stockholders elected eight directors, including Isaac Angel, Ravit Barniv and Byron G. Wong, to serve until the 2027 annual meeting, reflecting broad support for the company’s existing board compositi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.