Ormat's Q3 revenue beats estimates on strong energy storage performance
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
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Nov 3 - Enlight Renewable Q3 revenue rises 40% on new projects
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(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.)