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Ormat Techno
(NYSE:ORA)
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Rating:55Neutral
Price Target:
$101.00
▼(-4.93% Downside)
Action:Reiterated
Date:09/10/26
ORA’s score is held back primarily by weak cash-flow quality (consistently negative free cash flow) and rising leverage, alongside a bearish technical setup. These risks are partially offset by constructive earnings-call signals (raised guidance, strong storage momentum, improved liquidity), but a high P/E and low dividend yield limit valuation support.
Positive Factors
Strong revenue growth and profitability
Ormat combines substantial revenue expansion with continued profitability, demonstrating that its generation, equipment, and services model is scaling. A growing earnings base can support reinvestment in new capacity, strengthen its market position, and provide a durable foundation for further expansion.
Negative Factors
Elevated leverage
Material leverage reduces financial flexibility as Ormat funds a capital-intensive expansion program. Debt service and refinancing needs could absorb cash that might otherwise support development, while higher leverage increases sensitivity to operating setbacks, funding costs, and delays in bringing projects online.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and profitability
Ormat combines substantial revenue expansion with continued profitability, demonstrating that its generation, equipment, and services model is scaling. A growing earnings base can support reinvestment in new capacity, strengthen its market position, and provide a durable foundation for further expansion.
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
$5.63B
Dividend Yield0.54%
Average Volume (3M)848.42K
Price to Earnings (P/E)43.1
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. Volume898,119
30 Day Avg. Volume848,422
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
$128.56Price Target Upside21.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.54
Revenue Forecast (FY)$1.18B
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 reportable revenue streams: Electricity Segment and Product Segment.
1) Electricity Segment (power generation)
- Revenue model: Ormat earns revenue by selling electricity generated from its owned and operat...
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
Negative
106.24
Price Trends
101.47
Negative
113.06
Negative
113.82
Negative
Market Momentum
-3.54
Positive
34.95
Neutral
21.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORA, the sentiment is Negative. The current price of 106.24 is above the 20-day moving average (MA) of 95.82, above the 50-day MA of 101.47, and below the 200-day MA of 113.82, indicating a bearish trend. The MACD of -3.54 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
62 Neutral | $5.24B | -1.10 | 243.54% | 5.44% | -2.38% | -301.98% | |
61 Neutral | $2.49B | 21.15 | 9.00% | ― | 14.06% | 11.99% | |
55 Neutral | $5.63B | 43.13 | 4.96% | 0.54% | 31.13% | -4.27% | |
53 Neutral | $6.01B | 38.12 | 1.96% | 6.37% | 7.99% | 22.73% | |
48 Neutral | $2.02B | 15.48 | 1.97% | 19.20% | -2.84% | ― |
* Utilities Sector Average
ORA
Ormat Techno
89.66
-11.21
-11.12%
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28.49
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RNW
ReNew Energy Global
6.83
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FRVO
Fervo Energy Company Class A
14.46
-22.08
-60.43%
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.