Capital Com MENA Securities Trading LLC is regulated by the Capital Market Authority.
Open platformOpen platform

Ormat's Q3 revenue beats estimates on strong energy storage performance

By Reuters News


Overview

  • US geothermal and renewable energy firm's Q3 revenue rose 10.2%, beating analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Energy storage segment revenue rose over 145% yr/yr, driven by new capacity and strong pricing


Outlook

  • Ormat sees 2026 total revenue between $1,170 million and $1,200 million

  • Company now sees 2026 adjusted EBITDA between $640 mln and $650 mln

  • Ormat expects electricity segment revenue of $700 mln to $710 mln for 2026


Result Drivers

  • ENERGY STORAGE - Record profitability in energy storage was driven by new capacity, high asset availability and strong merchant pricing

  • ELECTRICITY SEGMENT - Revenue declined due to lower generation at Puna after a hurricane-related outage, partly offset by new Dominica plant and improved Olkaria performance

  • PRODUCT SEGMENT - Revenue declined 1.2% yr/yr, attributed to timing of manufacturing and construction progress


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$275.12 mln

$248.39 mln (10 Analysts)

Q3 Adjusted EPS

Beat

$0.56

$0.36 (9 Analysts)

Q3 Adjusted EBITDA

Beat

$153.78 mln

$145.78 mln (8 Analysts)

Q3 Gross Margin

28.1%

Q3 Operating Income

$45.25 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electric utilities peer group is "buy"

  • Wall Street's median 12-month price target for Ormat Technologies Inc is $128.00, about 35.9% above its November 3 closing price of $94.19

  • The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 40 three months ago


Reuters Recommended Reads

  • Nov 4 - Sweden's Orron Energy returns to positive EBITDA in Q3

  • Nov 3 - Enlight Renewable Q3 revenue rises 40% on new projects


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.