Ormat Technologies Inc (LTS:0KDH)

Q2 2026 Ormat Technologies Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $106.91 (+8.51%)

Transcript 8-K

Key Points

Positve

Second quarter revenue increased 10.6% and gross profit rose 20.8%, with adjusted EBITDA up 6.9% year-over-year.
Energy storage segment revenue nearly tripled year-over-year, driven by new capacity, high asset availability, and strong merchant pricing in PJM.
Added 155 MW to the generating portfolio since the start of the year, including the Huo Solo and storage acquisition, the shared storage facility, and the 10 MW Dominica geothermal power plant.
Introduced Omega 100, a new 100 MW binary unit for large conventional geothermal and EGS applications, advancing technology leadership.
Raised full-year revenue and adjusted EBITDA guidance, reflecting strong first-half performance and continued business momentum.
Executed several blend-and-extend PPAs, including Blue Mountain, expected to increase annual revenues by approximately $14 million over the next several years with minimal incremental capital.
Secured a $40 million exploration facility for the Obselle geothermal project in Indonesia under the World Bank's Geothermal resources risk mitigation program, reducing early-stage exploration financial exposure.
Energy storage gross margin reached 56.2% in Q2, reflecting successful optimization of contracted and merchant revenue mix.
Expanded EGS land position with federal leases in New Mexico and negotiations for additional acres in Oregon and Idaho, supporting long-term growth.
Total liquidity stands at approximately $1.1 billion, with net debt to adjusted EBITDA at 4.3 times, providing financial flexibility.

Negative

Net income attributable to stockholders decreased year-over-year due to a $6.6 million write-off for a storage project the company decided not to pursue.
Product segment revenue decreased 21.6% year-over-year, reflecting timing of manufacturing and construction progress, with gross margin down to 9.7% due to increased construction costs and foreign exchange fluctuations.
Electricity segment gross margin declined slightly year-over-year, partly due to planned maintenance activities and a $5 million reduction from two Caribbean projects with 12-month delays.
Energy storage gross margin is expected to normalize to 30-40% in the second half of the year, down from the exceptional 56.2% in Q2.
Full-year electricity segment revenue guidance was modestly lowered due to delays in Caribbean projects, despite overall guidance raise.
The company faces potential impacts from FCC ruling on inverter imports, though management believes they can mitigate by sourcing from non-Chinese vendors.
EGS pilots are still in early stages, with drilling not expected until Q4 2026, and technological challenges remain, including managing water injection and cooling effects.
Weather conditions, such as heat domes in the West, could impact generation in Q3, though July was relatively flat.
The company's net debt to adjusted EBITDA ratio stands at 4.3 times, which may be considered high, though liquidity is strong.
The company expects capital expenditures of $449 million for the remainder of 2026, which could pressure cash flow.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ORA.N - Ormat Technologies Inc
Q2 2026 Ormat Technologies Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Let's start.

Good morning and welcome to Technologies second quarter 2026 earnings conference call.

All participants will be in listen-only mode.

After today's presentation, there will be an opportunity to ask questions.

If you would like to ask a question during this time by the number 1 on your telephone keypad.

And if you would like to withdraw your question, press 1 again.

Please note that this event is being recorded.

I would like to turn the conference over to Josh Carroll with AlphaR, please go ahead.

Thank you, operator, hosting the call today are Duran Bochard, Chief Executive Officer, Ozzie Ginsberg, Chief Financial Officer, Vice President of

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