Group 1 - The total number of shares as of January 31, 2025, is 2,660,056,599, with 3,835,000 treasury shares without voting rights [2] - The theoretical number of voting rights on April 30, 2025, is 3,177,421,164, while the number of exercisable voting rights is 3,175,879,316 [2] - The double voting right is granted to fully paid-up shares held in registered form for at least two years, effective from April 3, 2016 [1] Group 2 - The number of treasury shares without voting rights decreased from 3,835,000 on January 31, 2025, to 1,541,848 on April 30, 2025 [2] - The theoretical number of voting rights increased from 3,172,669,760 on January 31, 2025, to 3,177,421,164 on April 30, 2025 [2] - The number of voting rights exercisable also saw an increase from 3,169,834,760 on January 31, 2025, to 3,175,879,316 on April 30, 2025 [2]

Core Viewpoint - Aura Minerals Inc. has entered into a Share Purchase Agreement with AngloGold Ashanti to acquire Mineração Serra Grande S.A., which owns the Serra Grande gold mine in Brazil, highlighting the company's strategy to enhance its portfolio and production capabilities [1][4]. Transaction Details - The transaction is expected to close by Q3 2025, and no later than Q4 2025 [3]. - Aura will pay an upfront cash consideration of US$ 76 million, subject to working capital adjustments, along with deferred payments equivalent to a 3% net smelter returns participation over the identified mineral resources [9]. - The transaction is contingent upon several conditions, including anti-trust approval from Brazilian authorities and the completion of a decommissioning process by AngloGold [9]. Mine Overview - The Serra Grande mine has produced over 3 million ounces of gold since 1998, with a peak production of 193,000 ounces in 2006, indicating its significant potential [4]. - The MSG operation includes three mechanized underground mines and an open pit, with a metallurgical plant that has an annual capacity of 1.5 million tons [5]. Mineral Resources - As of December 31, 2024, AngloGold reported total measured and indicated resources of 10.75 million tons of gold at an average grade of 3.14 g/t, equating to approximately 1.08 million ounces [6]. - Inferred mineral resources were reported at 12.95 million tons at an average grade of 3.39 g/t, amounting to about 1.4 million ounces [6]. Production Data - In 2024, the Serra Grande mine produced 80,000 ounces of gold, a decrease from 86,000 ounces in 2023 [7].

Core Insights - Ormat Technologies (ORA) and GE Vernova (GEV) are being compared for their value opportunities in the alternative energy sector [1] - ORA has a stronger earnings outlook compared to GEV, with Zacks Ranks of 2 (Buy) for ORA and 3 (Hold) for GEV [3] Valuation Metrics - ORA has a forward P/E ratio of 34.22, while GEV has a significantly higher forward P/E of 64.89 [5] - The PEG ratio for ORA is 3.42, compared to GEV's PEG ratio of 3.60, indicating ORA's better valuation relative to its expected earnings growth [5] - ORA's P/B ratio stands at 1.68, whereas GEV's P/B ratio is much higher at 13.10, further supporting ORA's superior valuation metrics [6] Value Grades - ORA has a Value grade of B, while GEV has a Value grade of D, indicating that ORA is currently viewed as the better value option [6]

Core Insights - Ormat Technologies, Inc. has signed a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. to support its energy storage projects [1][2] - The partnership includes the Lower Rio 60MW/120MWh storage facility and the Arrowleaf 35MW/140MWh storage and 42MW solar projects, which are expected to achieve Commercial Operation Date (COD) by the end of 2025 [1][2] - The CEO of Ormat emphasized the importance of this partnership in optimizing project economics and supporting long-term growth, aiming to monetize $160 million in tax benefits this year [2] Company Overview - Ormat Technologies is a leading geothermal and renewable energy company with over six decades of experience [3] - The company is vertically integrated, involved in the entire process from design to operation of geothermal and recovered energy generation (REG) power plants [3] - Ormat's total generating portfolio is 1,538MW, which includes 1,248MW from geothermal and solar generation and a 290MW energy storage portfolio located in the U.S. [3]

Core Insights - Crédit Coopératif has signed a memorandum of understanding with Orange for the potential acquisition of fintech Anytime, aligning with its 2030 strategic plan "100% committed" [1][4] - The acquisition aims to enhance Crédit Coopératif's digital offerings, particularly for small and medium-sized associations, leveraging Anytime's innovative services [2][5] - Discussions initiated with Orange Bank are expected to support Anytime's evolution in the Social and Solidarity Economy markets [3][4] Company Overview - Crédit Coopératif is a cooperative bank focused on environmental and social transitions, serving clients such as cooperatives, SMEs, and non-profit organizations [7] - The bank aims to strengthen its presence in the association market and achieve a market share of over 6% among newly created associations by 2030 [8] Strategic Goals - The acquisition of Anytime is part of a broader strategy to build a 100% digital offering tailored to small associations [8] - Crédit Coopératif plans to enhance dedicated services for large Social and Solidarity Economy organizations, including advanced expense management tools [8] Anytime Overview - Founded in 2014 and a subsidiary of Orange Bank since 2020, Anytime specializes in account management and payment services for professionals and associations [5] - The fintech has developed tailored solutions for associations, including advanced expense management tools [5] Social Process - Employee representative bodies within both the Orange Group and Crédit Coopératif are being consulted regarding the acquisition, with a potential completion date set for the end of 2025 [6]

Group 1 - The article highlights the historical significance of Prince Piero Ginori Conti's achievement in 1904, where he successfully lit five light bulbs using a generator that utilized steam from the earth in Larderello, Italy [1] - This event marked the beginning of commercial geothermal energy development, showcasing the potential of harnessing natural steam for electricity generation [1] Group 2 - The article does not provide any additional relevant information regarding companies or industries beyond the historical context mentioned above [2][3]

Core Viewpoint - Orange has successfully issued €1.5 billion in the bond market, which includes a €750 million sustainable bond aimed at funding environmentally and socially impactful projects [2][3]. Group 1: Bond Issuance Details - The bond issuance consists of two tranches: €750 million for 4 years with a 2.75% annual coupon and €750 million in sustainable format for 10 years with a 3.50% annual coupon [2][4]. - The sustainable tranche will allocate approximately 50% of the funds to environmental projects, primarily focused on energy efficiency, and about 50% to societal projects, mainly for deploying fiber optics in underserved areas [3]. Group 2: Strategic Implications - This dual tranche issuance allows Orange to broaden its investor base and maintain prudent balance sheet management [4]. - The issuance aligns with Orange's strategic plan "Lead the Future," which emphasizes responsibility and efficiency in its business model [7]. Group 3: Company Overview - Orange is a leading telecommunications operator with revenues of €40.3 billion in 2024 and a global workforce of 125,800 employees as of March 31, 2025 [6]. - The company serves a total customer base of 294 million worldwide, including 256 million mobile customers and 22 million fixed broadband customers [6].

Core Viewpoint - Ormat Technologies Inc. reported strong first-quarter 2025 results, with adjusted earnings per share exceeding expectations, although total revenues fell slightly short of estimates. The company continues to face challenges in its electricity segment but showed significant growth in its product and energy segments [1][2][4]. Financial Performance - Adjusted earnings per share for Q1 2025 were 68 cents, beating the Zacks Consensus Estimate of 58 cents by 17.2% and increasing 4.6% from 65 cents in the prior year [1]. - Total revenues reached $229.8 million, missing the Zacks Consensus Estimate of $233 million by 1.4%, but reflecting a year-over-year increase of 2.5% [2]. - GAAP earnings were reported at 66 cents, compared to 64 cents in the year-ago quarter [1]. Segmental Performance - Electricity segment revenues were $180.2 million, down 5.8% year over year due to energy curtailments and maintenance issues [3]. - Product segment revenues increased by 27.9% to $31.8 million, attributed to timing of revenue recognition and a higher backlog [4]. - Energy segment revenues surged 119.7% to $17.8 million, driven by strong performance in the PJM merchant market due to cold weather [4]. Operational Update - Total operating expenses were $24.6 million, up 1.6% from the previous year [5]. - Operating income declined 3.2% year over year to $50.9 million [5]. - Total cost of revenues increased by 7.9% year over year to $156.8 million [5]. - Net interest expenses rose 11.3% year over year to $34.5 million [5]. Financial Condition - As of March 31, 2025, cash and cash equivalents stood at $112.7 million, up from $94.4 million as of December 31, 2024 [6]. 2025 Guidance - The company reiterated its revenue guidance for 2025, expecting between $935 million and $975 million, with the Zacks Consensus Estimate at $953.6 million [7]. - Electricity segment revenues are anticipated in the range of $710 million to $725 million, product segment revenues between $172 million and $187 million, and energy storage segment revenues between $53 million and $63 million [8]. - Annual adjusted EBITDA is expected to be in the range of $563 million to $593 million [9].

Cover Page Ormat Technologies, Inc. (ORA) filed its Form 10-Q for the quarter ended March 31, 2025, as a Large Accelerated Filer[2](index=2&type=chunk)[3](index=3&type=chunk) Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock | ORA | NYSE | As of May 1, 2025, **60,662,626** shares of common stock were outstanding[3](index=3&type=chunk) [Table of Contents](index=2&type=section&id=Table%20of%20Contents) The report is structured into Part I (Financial Information) and Part II (Other Information), encompassing financial statements, MD&A, market risk, controls, legal proceedings, and risk factors[5](index=5&type=chunk) [Certain Definitions](index=3&type=section&id=Certain%20Definitions) The terms 'Ormat', 'the Company', 'we', 'us', 'our company', 'Ormat Technologies', or 'our' refer to Ormat Technologies, Inc. and its consolidated subsidiaries[7](index=7&type=chunk) [PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, statements of operations, equity, and cash flow, with detailed notes on accounting policies and financial instruments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $5,838,947 | $5,666,224 | $172,723 | 3.05% | | Total Liabilities | $3,243,601 | $3,105,844 | $137,757 | 4.44% | | Total Equity | $2,585,773 | $2,550,932 | $34,841 | 1.37% | | Cash and cash equivalents | $112,704 | $94,395 | $18,309 | 19.40% | | Restricted cash and cash equivalents | $112,001 | $111,377 | $624 | 0.56% | | Property, plant and equipment, net | $3,497,915 | $3,501,886 | $(3,971) | -0.11% | | Construction-in-process | $844,873 | $755,589 | $89,284 | 11.82% | | Total current assets | $600,854 | $547,122 | $53,732 | 9.82% | | Total current liabilities | $619,223 | $598,078 | $21,145 | 3.54% | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Condensed Consolidated Statements of Operations (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $229,762 | $224,166 | $5,596 | 2.50% | | Cost of Revenues | $156,835 | $145,356 | $11,479 | 7.89% | | Gross Profit | $72,927 | $78,810 | $(5,883) | -7.46% | | Operating Income | $50,913 | $52,583 | $(1,670) | -3.17% | | Net Income | $41,034 | $40,350 | $684 | 1.70% | | Net Income Attributable to Company's Stockholders | $40,362 | $38,587 | $1,775 | 4.60% | | Basic EPS | $0.67 | $0.64 | $0.03 | 4.69% | | Diluted EPS | $0.66 | $0.64 | $0.02 | 3.13% | Revenue Breakdown by Segment (Three Months Ended March 31, 2025 vs. 2024) | Segment | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Electricity | $180,241 | $191,253 | $(11,012) | -5.76% | | Product | $31,769 | $24,832 | $6,937 | 27.94% | | Energy Storage | $17,752 | $8,081 | $9,671 | 119.68% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Changes in Equity (Three Months Ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity attributable to Company's Stockholders | $2,461,204 | $2,425,129 | $36,075 | | Total Equity | $2,585,773 | $2,550,932 | $34,841 | | Retained Earnings | $847,607 | $814,518 | $33,089 | | Additional Paid-in Capital | $1,640,910 | $1,635,245 | $5,665 | Stock-based compensation contributed **$4.9 million** to additional paid-in capital in Q1 2025, an increase from **$4.8 million** in Q1 2024[16](index=16&type=chunk) Cash dividends declared were **$0.12 per share**, totaling **$7.273 million** in Q1 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flow](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Condensed Consolidated Statements of Cash Flow (Three Months Ended March 31, 2025 vs. 2024) | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $88,010 | $115,209 | $(27,199) | -23.61% | | Net cash used in investing activities | $(207,948) | $(377,834) | $169,886 | -44.96% | | Net cash provided by financing activities | $138,853 | $273,944 | $(135,091) | -49.31% | | Net change in cash and cash equivalents and restricted cash | $18,933 | $11,191 | $7,742 | 69.18% | Capital expenditures increased significantly to **$192.6 million** in Q1 2025 from **$103.4 million** in Q1 2024, primarily for facilities under construction[20](index=20&type=chunk) Cash used in investing activities decreased due to the absence of a large business acquisition (**$274.6 million** in Q1 2024) in Q1 2025[20](index=20&type=chunk) [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=12&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [NOTE 1 — GENERAL AND BASIS OF PRESENTATION](index=12&type=section&id=NOTE%201%20%E2%80%94%20GENERAL%20AND%20BASIS%20OF%20PRESENTATION) This note outlines the basis of presentation for interim financial statements, details new loan agreements, a battery supplier settlement, war impact, exploration write-offs, and information on cash and credit risk concentration - The Company secured three new 8-year loan agreements in Q1 2025: **Mizrahi 2025 Loan ($50.0 million)**, **Discount 2025 Loan ($50.0 million)**, and **Hapoalim 2025 Loan ($100.0 million)**, all with SOFR-based interest rates and covenants[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - A settlement with a battery supplier resulted in a **$35.0 million** recovery of damages, with **$3.1 million** recognized as 'Other operating income' in Q1 2025 upon meeting contingency conditions[30](index=30&type=chunk) - Write-offs for unsuccessful exploration and storage activities totaled **$0.5 million** in Q1 2025, related to abandoned storage projects[32](index=32&type=chunk) Reconciliation of Cash and Cash Equivalents and Restricted Cash (in thousands) | Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $112,704 | $94,395 | | Restricted cash and cash equivalents | $112,001 | $111,377 | | Total | $224,705 | $205,772 | - Revenues from primary customers (SCPPA, Sierra Pacific Power Company/Nevada Power Company, KPLC) accounted for **50.2%** of total revenues in Q1 2025, with overdue amounts from KPLC (**$44.7 million**) and ENEE (**$17.3 million**) partially collected post-period[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Income from transferable Production Tax Credits (PTCs) was **$7.3 million** in Q1 2025, and Investment Tax Credits (ITCs) generated a **$13.9 million** tax benefit, both net of discount[47](index=47&type=chunk) [NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS](index=15&type=section&id=NOTE%202%20%E2%80%94%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) This note details new accounting pronouncements, including ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation), aiming for enhanced transparency, while ASU 2024-04 (Convertible Debt) is not expected to have a material impact - ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective after December 15, 2024, will require enhanced disclosures on rate reconciliation and income taxes paid, disaggregated by jurisdiction[49](index=49&type=chunk)[51](index=51&type=chunk) - ASU 2024-03, 'Expense Disaggregation Disclosures,' effective after December 15, 2026, will require public entities to disclose detailed expense categories in financial statement notes[52](index=52&type=chunk) - ASU 2024-04, 'Induced Conversions of Convertible Debt Instruments,' effective after December 15, 2025, is not anticipated to materially impact the Company's consolidated financial statements[53](index=53&type=chunk) [NOTE 3 — INVENTORIES](index=16&type=section&id=NOTE%203%20%E2%80%94%20INVENTORIES) This note breaks down the Company's inventory, primarily raw materials, purchased parts, self-manufactured parts, and finished products, showing an increase from December 31, 2024, to March 31, 2025 Inventories (in thousands) | Item | March 31, 2025 | December 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Raw materials and purchased parts for assembly | $17,264 | $20,575 | $(3,311) | -16.1% | | Self-manufactured assembly parts and finished products | $24,843 | $17,517 | $7,326 | 41.8% | | Total inventories | $42,107 | $38,092 | $4,015 | 10.5% | [NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS](index=17&type=section&id=NOTE%204%20%E2%80%94%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note details fair value measurements of financial instruments by level, presents gains and losses on derivative instruments (currency forwards, cross-currency swaps, interest rate swaps), and provides fair value information for long-term debt - The Company's financial instruments measured at fair value primarily consist of **Level 1 cash equivalents** and **Level 2 derivatives** (interest rate swaps, cross-currency swaps, currency forward contracts)[59](index=59&type=chunk)[61](index=61&type=chunk) Gain (Loss) Recognized on Derivative Instruments (in thousands) | Derivative Type | Location of Recognized Gain (Loss) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | | Currency forward contracts (not designated as hedging) | Derivative and foreign currency transaction gains (losses) | $(347) | $1,078 | | Cross currency swap (cash flow hedging) | Derivative and foreign currency transaction gains (losses) | $(3,665) | $(3,236) | | Interest rate swap (cash flow hedging) | Interest expense, net | $101 | $457 | | Total | | $(3,564) | $(2,779) | - As of March 31, 2025, **90.0%** of consolidated long-term debt was at fixed interest rates, limiting exposure to interest rate volatility, though new variable-rate loans increased variable-rate exposure[192](index=192&type=chunk) Fair Value of Long-Term Debt (in millions) | Loan Type | Fair Value (March 31, 2025) | Fair Value (December 31, 2024) | Carrying Amount (March 31, 2025) | Carrying Amount (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Limited and non-recourse loans: fixed rate | $621.8 | $636.5 | $639.8 | $657.3 | | Full recourse loans: Fixed-rate | $883.6 | $920.4 | $897.4 | $940.4 | | Full recourse loans: Variable-rate | $252.9 | $48.5 | $248.4 | $48.4 | | Financing liability: fixed-rate | $220.2 | $223.4 | $219.7 | $220.6 | | Convertible senior note | $492.3 | $471.2 | $476.4 | $476.4 | [NOTE 5 — STOCK-BASED COMPENSATION](index=20&type=section&id=NOTE%205%20%E2%80%94%20STOCK-BASED%20COMPENSATION) This note describes the Company's stock-based compensation, including the grant of **210,961 RSUs** and **45,190 PSUs** in March 2025 under the 2018 Incentive Compensation Plan, with 1 to 3-year vesting periods - In March 2025, Ormat granted **210,961 RSUs** and **45,190 PSUs** with 1 to 3-year vesting periods, with fair values of **$68.9 per RSU** and **$70.9 per PSU**[69](index=69&type=chunk)[70](index=70&type=chunk) [NOTE 6 — INTEREST EXPENSE, NET](index=21&type=section&id=NOTE%206%20%E2%80%94%20INTEREST%20EXPENSE%2C%20NET) This note details the components of net interest expense, which increased to **$34.5 million** in Q1 2025 from **$31.0 million** in Q1 2024, primarily due to new loan agreements Components of Interest Expense, Net (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest related to sale of tax benefits | $3,799 | $4,896 | $(1,097) | -22.4% | | Interest expense | $34,436 | $29,124 | $5,312 | 18.2% | | Less — amount capitalized | $(3,762) | $(3,052) | $(710) | 23.3% | | Total interest expense, net | $34,473 | $30,968 | $3,505 | 11.3% | - The increase in net interest expense was primarily driven by new loan agreements, including Mammoth Senior Secured Notes, DEG 4 Loan, Discount 2024/2024 II loans, Bottleneck Loan, and Mizrahi 2025 Loan[147](index=147&type=chunk) [NOTE 7 — EARNINGS PER SHARE](index=21&type=section&id=NOTE%207%20%E2%80%94%20EARNINGS%20PER%20SHARE) This note provides the computation of basic and diluted earnings per share, showing an increase for Q1 2025 compared to Q1 2024, and clarifies that convertible senior notes had no dilutive effect as conversion conditions were not met Earnings Per Share (EPS) and Weighted Average Shares (in thousands, except EPS) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Basic EPS | $0.67 | $0.64 | $0.03 | 4.69% | | Diluted EPS | $0.66 | $0.64 | $0.02 | 3.13% | | Weighted average basic shares | 60,559 | 60,386 | 173 | 0.29% | | Weighted average diluted shares | 60,840 | 60,536 | 304 | 0.50% | - Convertible senior notes had no dilutive effect on EPS for Q1 2025, as the common stock price (**$90.27**) did not exceed the conversion price and other conditions were not met[75](index=75&type=chunk) [NOTE 8 — BUSINESS SEGMENTS](index=21&type=section&id=NOTE%208%20%E2%80%94%20BUSINESS%20SEGMENTS) This note disaggregates financial information into Electricity, Product, and Energy Storage segments, providing detailed revenue, gross profit, and operating income data, highlighting distinct operations and cost allocation - Ormat operates in three segments: **Electricity** (geothermal, solar PV, REG power plants), **Product** (equipment design, manufacturing, EPC services), and **Energy Storage** (grid-connected BESS)[76](index=76&type=chunk)[77](index=77&type=chunk) Segment Performance (Three Months Ended March 31, 2025 vs. 2024, in thousands) | Segment | Net Revenue (2025) | Net Revenue (2024) | Gross Profit (2025) | Gross Profit (2024) | Operating Income (2025) | Operating Income (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Electricity | $180,241 | $191,253 | $60,408 | $74,523 | $40,843 | $52,681 | | Product | $31,769 | $24,832 | $7,085 | $3,678 | $3,636 | $842 | | Energy Storage | $17,752 | $8,081 | $5,434 | $609 | $6,434 | $(940) | | Consolidated Total | $229,762 | $224,166 | $72,927 | $78,810 | $50,913 | $52,583 | - Foreign operations in the Electricity segment, primarily Kenya, Guatemala, Honduras, and Guadeloupe, contributed disproportionately to gross profit (**34.8%** in Q1 2025) and net income (**53.8%** in Q1 2025) due to lower costs and newer plants[121](index=121&type=chunk) [NOTE 9 — COMMITMENTS AND CONTINGENCIES](index=24&type=section&id=NOTE%209%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses legal proceedings and commitments, including a class action settlement and a **$47.5 million** breach of contract claim, along with PPA renegotiations in Kenya, neither expected to be material to financial statements - A class action lawsuit by a former employee in California alleging Labor Code violations has reached a settlement in principle for an immaterial amount, pending court approval[88](index=88&type=chunk) - Engie Resources, LLC filed a **$47.5 million** breach of contract claim against a subsidiary related to the February 2021 Texas power crisis; the Company intends to vigorously defend and has not accrued for potential losses[89](index=89&type=chunk)[91](index=91&type=chunk) - Discussions are ongoing in Kenya regarding the review and potential renegotiation of Power Purchase Agreements (PPAs) between KPLC and independent power producers, including Ormat's Olkaria complex PPA[93](index=93&type=chunk) [NOTE 10 — INCOME TAXES](index=25&type=section&id=NOTE%2010%20%E2%80%94%20INCOME%20TAXES) This note reports an income tax benefit of **$3.8 million** for Q1 2025, with an effective tax rate benefit of **(10.1)%**, primarily due to investment tax credits and jurisdictional mix of earnings, with an immaterial Pillar 2 impact Income Tax Provision (Benefit) and Effective Tax Rate | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income tax (provision) benefit | $3,795 | $147 | | Effective tax rate benefit | (10.1)% | (0.4)% | - The effective tax rate benefit is primarily driven by the generation of investment tax credits (**$13.9 million** in Q1 2025) and the jurisdictional mix of earnings[151](index=151&type=chunk) - The Company became subject to OECD Pillar 2 global minimum corporate tax rules effective January 1, 2025, but the impact was immaterial in Q1 2025[95](index=95&type=chunk) [NOTE 11 — SUBSEQUENT EVENTS](index=25&type=section&id=NOTE%2011%20%E2%80%94%20SUBSEQUENT%20EVENTS) This note discloses significant subsequent events, including a **$0.12 per share** quarterly dividend and the **$88.0 million** acquisition of the Blue Mountain geothermal plant, with planned capacity upgrades and solar integration, expected to close in Q2 2025 - On May 7, 2025, the Board declared a quarterly dividend of **$0.12 per share** (**$7.3 million** total), payable on June 4, 2025[96](index=96&type=chunk) - On May 5, 2025, Ormat agreed to acquire the **20MW Blue Mountain** geothermal power plant for **$88.0 million**, with plans to upgrade capacity by **3.5MW** and add a **13MW solar facility**, expected to close in Q2 2025[97](index=97&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=26&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on Q1 2025 financial condition and results, discussing business segments, recent developments, trends, uncertainties, and analyzing revenues, costs, operating expenses, liquidity, capital resources, and market risk exposure [Cautionary Note Regarding Forward-Looking Statements](index=26&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements regarding future operations, financial performance, and business strategy, identified by words like 'expects,' 'plans,' 'anticipates,' and 'believes'[99](index=99&type=chunk) - Readers are cautioned that actual future results may vary materially from expectations due to numerous risks and uncertainties beyond the Company's control, and the Company does not commit to updating these statements[99](index=99&type=chunk)[100](index=100&type=chunk) [Risks Related to the Company's Business and Operation](index=26&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Business%20and%20Operation) - Financial performance is highly dependent on the successful operation of geothermal, REG, solar PV, and energy storage facilities, which are subject to various operational risks[101](index=101&type=chunk) - Geothermal exploration and development face geological risks and uncertainties, potentially leading to insufficient growth prospects or increased costs[101](index=101&type=chunk) - Changes in U.S. and foreign government policy, including tariffs and trade agreements, could materially adversely affect global economic conditions and the Company's business[101](index=101&type=chunk) - Investments in BESS technology involve new technologies with limited reliability history, exposing the Company to risks like increased storage costs, trade restrictions, fire risks, and merchant price volatility[101](index=101&type=chunk) - Concentration of customers, specific projects, and regions, along with international operations and conditions in Israel, expose the Company to heightened financial and political risks[101](index=101&type=chunk) [Risks Related to Governmental Regulations, Laws and Taxation](index=27&type=section&id=Risks%20Related%20to%20Governmental%20Regulations%2C%20Laws%20and%20Taxation) - Responses to Israel's ongoing military conflicts may adversely affect operations and limit product production and sales[103](index=103&type=chunk) - Leases may terminate if geothermal resources are not extracted in 'commercial quantities' or if lease terms are not met, requiring new, potentially less favorable, agreements[103](index=103&type=chunk) - The reduction, elimination, or inability to monetize government incentives (e.g., ITCs, PTCs) could adversely affect business, financial condition, and cash flows[103](index=103&type=chunk) - Compliance with environmental laws and obtaining permits may result in liabilities, costs, and construction delays[103](index=103&type=chunk) [Risks Related to Economic and Financial Conditions](index=28&type=section&id=Risks%20Related%20to%20Economic%20and%20Financial%20Conditions) - The Company may struggle to obtain necessary financing on favorable terms, and substantial existing indebtedness could decrease business flexibility and increase borrowing costs[108](index=108&type=chunk) - Foreign power plants and manufacturing operations expose the Company to risks related to currency rate fluctuations, potentially reducing profits[108](index=108&type=chunk) - Defaults on limited or non-recourse project finance debt by subsidiaries could require the Company to make payments or lose power plants through foreclosure[108](index=108&type=chunk) - Future equity issuances, including through compensation plans or convertible note conversions, could result in dilution and adversely affect common stock price[108](index=108&type=chunk) [Risks Related to Force Majeure](index=28&type=section&id=Risks%20Related%20to%20Force%20Majeure) - A prolonged force majeure event or forced outage affecting a power plant or transmission system could reduce net income[108](index=108&type=chunk) - Threats of terrorism may impact operations in unpredictable ways, adversely affecting business, financial condition, and cash flow[108](index=108&type=chunk) [General Overview](index=29&type=section&id=General%20Overview) - Ormat is a leading vertically integrated company primarily engaged in geothermal energy, expanding into recovered energy generation, energy storage, and solar PV[109](index=109&type=chunk) - The Company's objective is to become a leading global provider of renewable energy, with a current generating portfolio of approximately **1.4 GW** across geothermal, energy storage, REG, and Solar PV[109](index=109&type=chunk)[110](index=110&type=chunk) - Business activities are conducted through three segments: **Electricity** (develops, builds, owns, operates power plants), **Product** (designs, manufactures, sells equipment, provides EPC services), and **Energy Storage** (owns, operates grid-connected BESS)[113](index=113&type=chunk) [Recent Developments](index=29&type=section&id=Recent%20Developments) - In May 2025, Ormat agreed to acquire the **20MW Blue Mountain** geothermal power plant for **$88 million**, with plans for a **3.5MW** capacity upgrade and a **13MW** solar facility addition[113](index=113&type=chunk) - In February 2025, Ormat won a tender for two 15-year tolling agreements for energy storage facilities in Israel, totaling approximately **300MW/1200MWh**, as a 50/50 joint venture[113](index=113&type=chunk) - The **Ijen geothermal power plant (35 MW, Ormat's share 17MW)** achieved successful commercial operation in February 2025[113](index=113&type=chunk) - A 10-year PPA was signed with Calpine Energy Solutions in January 2025 to purchase up to **15MW** from the Mammoth 2 geothermal plant, replacing an existing PPA with increased capacity and price[113](index=113&type=chunk) [Trends and Uncertainties](index=29&type=section&id=Trends%20and%20Uncertainties) - Increased U.S. import tariffs, especially on products from China, pose significant uncertainty, potentially slowing Energy Storage segment growth (reliant on imported batteries) and increasing capital expenditures for Electricity segment projects[114](index=114&type=chunk)[215](index=215&type=chunk) - The Company is working to accelerate imports during tariff pauses but cannot assure avoidance of increased operating costs, cost of revenues, or capital expenditures due to tariffs[114](index=114&type=chunk)[215](index=215&type=chunk) - Uncertainty around the continuation of Investment Tax Credits (ITC) combined with tariff increases could affect long-term growth, particularly in the Energy Storage segment in the U.S.[114](index=114&type=chunk) [Revenues](index=30&type=section&id=Revenues) Total Revenues by Segment (in thousands) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Electricity | $180,241 | $191,253 | $(11,012) | -5.8% | | Product | $31,769 | $24,832 | $6,937 | 27.9% | | Energy Storage | $17,752 | $8,081 | $9,671 | 119.7% | | Total | $229,762 | $224,166 | $5,596 | 2.5% | - Electricity segment revenues decreased by **$11.0 million**, mainly due to curtailments at Dixie Valley and McGinness Hills, and maintenance at Neal Hot Springs and Stillwater power plants[131](index=131&type=chunk) - Energy Storage segment revenues increased by **$9.7 million**, primarily from new facilities (Bottleneck, Montague, East Flemington) and higher energy rates at PJM Interconnect facilities[134](index=134&type=chunk) - Product segment revenues increased by **$6.9 million (27.9%)**, driven by project progress and revenue recognition timing, with projects primarily in Dominica and New Zealand[133](index=133&type=chunk) - Foreign operations contributed **32.4%** of total revenues in Q1 2025, with higher Electricity gross margins than U.S. operations due to lower costs and newer plants in regions like Kenya, Guatemala, Honduras, and Guadeloupe[120](index=120&type=chunk)[121](index=121&type=chunk) [Seasonality](index=32&type=section&id=Seasonality) - Geothermal power plants produce more energy in winter due to lower ambient temperatures, leading to higher revenues and gross profit in Q1 and Q4[123](index=123&type=chunk) - Some PPAs (e.g., Mammoth Complex, North Brawley, Raft River, Neal Hot Springs, Dixie Valley) have higher electricity prices in summer months (June-September) to partially offset reduced generation from higher ambient temperatures[123](index=123&type=chunk) - The Bottleneck tolling agreement in the Energy Storage segment generates approximately **45%** of its revenues in the third quarter[123](index=123&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Key Financial Highlights (Three Months Ended March 31, 2025 vs. 2024, in thousands, except EPS) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $229,762 | $224,166 | $5,596 | 2.5% | | Total Cost of Revenues | $156,835 | $145,356 | $11,479 | 7.9% | | Total Gross Profit | $72,927 | $78,810 | $(5,883) | -7.5% | | Operating Income | $50,913 | $52,583 | $(1,670) | -3.2% | | Net Income Attributable to Company's Stockholders | $40,362 | $38,587 | $1,775 | 4.6% | | Basic EPS | $0.67 | $0.64 | $0.03 | 4.7% | | Diluted EPS | $0.66 | $0.64 | $0.02 | 3.1% | - Electricity segment gross profit decreased by **$14.1 million**, while Product and Energy Storage segments saw increases of **$3.4 million** and **$4.8 million**, respectively[127](index=127&type=chunk) - Research and development expenses increased by **$0.9 million (57.7%)**, while selling and marketing expenses decreased by **$0.9 million (18.6%)**, and general and administrative expenses decreased by **$1.6 million (8.3%)**[127](index=127&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Other operating income of **$3.1 million** was recognized in Q1 2025 from a battery supplier settlement, with no comparable amount in Q1 2024[144](index=144&type=chunk) - Interest expense, net, increased by **$3.5 million** to **$34.5 million**, primarily due to new loan agreements[147](index=147&type=chunk) - Derivatives and foreign currency transactions shifted from a **$1.6 million loss** in Q1 2024 to a **$2.1 million gain** in Q1 2025[148](index=148&type=chunk) - Income attributable to sale of tax benefits remained stable at **$17.6 million** in Q1 2025[149](index=149&type=chunk) - Equity in earnings of investees shifted from a **$0.8 million gain** in Q1 2024 to a **$0.4 million loss** in Q1 2025, partly due to Sarulla Consortium's remediation efforts[152](index=152&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the Company had **$112.7 million** in cash and cash equivalents (**$41.1 million** held by foreign subsidiaries) and **$364.8 million** in unused corporate borrowing capacity[155](index=155&type=chunk) - Estimated capital needs for the remainder of 2025 include **$419.0 million** for capital expenditures on new projects, enhancements, and exploration, and **$189.9 million** for long-term debt repayment[156](index=156&type=chunk)[188](index=188&type=chunk) - The Company expects to finance these needs through existing liquidity, positive operating cash flows, and future project financings, including construction loans and tax equity transactions[157](index=157&type=chunk) - New loan agreements totaling **$200.0 million** were entered into with Mizrahi, Discount, and Hapoalim banks in Q1 2025[159](index=159&type=chunk) - The Company is in compliance with financial covenants (e.g., net debt to adjusted EBITDA ratio of **4.18** vs. max **6.0**, equity to total assets ratio of **44.3%** vs. min **25%**), except for a **$0.9 million** equity distribution restriction from the DAC 1 Senior Secured Notes subsidiary[162](index=162&type=chunk)[164](index=164&type=chunk) [Non-GAAP Measures: EBITDA and Adjusted EBITDA](index=42&type=section&id=Non-GAAP%20Measures%3A%20EBITDA%20and%20Adjusted%20EBITDA) - EBITDA is defined as net income before interest, taxes, depreciation, amortization, and accretion[177](index=177&type=chunk) - Adjusted EBITDA further adjusts EBITDA for mark-to-market gains/losses, stock-based compensation, M&A costs, extinguishment gains/losses, settlement costs, impairment charges, and write-offs of unsuccessful exploration/storage activities[177](index=177&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net income | $41,034 | $40,350 | $684 | 1.7% | | EBITDA | $142,977 | $134,360 | $8,617 | 6.4% | | Adjusted EBITDA | $150,269 | $141,241 | $9,028 | 6.4% | [Capital Expenditures](index=43&type=section&id=Capital%20Expenditures) - Capital expenditures are focused on developing new power plants, enhancing existing ones, and investing in strategic plan activities[180](index=180&type=chunk) - Major projects under construction include **Zunil Upgrade (Guatemala, 5MW)**, **Bouillante Repowering (Guadeloupe, 10MW)**, **Topp 2 (New Zealand, 50MW)**, **Dominica geothermal (10MW)**, and U.S. plant upgrades (**Cove Fort 7MW, Stillwater 5MW, Salt Wells 5MW**)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) Energy Storage Projects Under Construction | Project Name | Size | Location | Customer | Expected COD | | :--- | :--- | :--- | :--- | :--- | | Lower Rio | 60MW/120MWh | TX | ERCOT | Q3 2025 | | Arrowleaf | 35MW/140MWh | CA | SDCP | Q4 2025 | | Bird Dog | 60MW/120MWh | CA | SDCP | Q2 2026 | | Shirk | 80MW/320MWh | CA | CAISO | Q1 2026 | | Israel High Voltage (*) | 150MW/600MWh | Israel | Israeli Electricity Authority | 2028 | - Total estimated capital expenditures for the last three quarters of 2025 are approximately **$419 million**, allocated to new projects, exploration, maintenance, and energy storage development[187](index=187&type=chunk)[188](index=188&type=chunk) [Exposure to Market Risks](index=44&type=section&id=Exposure%20to%20Market%20Risks) - Electricity price volatility risk is limited by fixed or escalating rate PPAs for most power plants, but energy storage projects and the Puna complex (until new PPA) are exposed to merchant market price changes[190](index=190&type=chunk)[191](index=191&type=chunk) - As of March 31, 2025, **90.0%** of consolidated long-term debt was at fixed interest rates, but new variable-rate loans and **$100.0 million** in commercial paper increase exposure to interest rate volatility[192](index=192&type=chunk) - Foreign currency exchange risk primarily involves fluctuations of the U.S. dollar against the New Israeli Shekel (NIS), Euro, and Kenyan Shilling (KES), impacting foreign subsidiary revenues and expenses, mitigated by cross-currency swap and forward contracts[194](index=194&type=chunk)[195](index=195&type=chunk) Sensitivity Analysis of Fair Values (March 31, 2025, in thousands) | Risk | Change in the Fair Value of: | Assuming a 10% Increase in Rates | Assuming a 10% Decrease in Rates | | :--- | :--- | :--- | :--- | | Foreign currency | Foreign currency forward contracts | $(738) | $876 | | Interest rate | Mizrahi 2025 Loan | $(1,093) | $1,130 | | Interest rate | Discount 2025 Loan | $(1,123) | $1,161 | | Interest rate | Hapoalim 2025 Loan | $(2,149) | $2,221 | | Interest rate | Financing Liability | $(9,060) | $9,639 | [Effect of Inflation](index=46&type=section&id=Effect%20of%20Inflation) - Increased inflation rates from early 2022 to early 2024 led to higher overall operating and other costs, particularly in the U.S.[200](index=200&type=chunk) - Inflation impacts Electricity segment operating costs, partially mitigated by PPA price adjustments, and Product segment profit margins, which can be offset by project pricing[201](index=201&type=chunk) - Rising interest rates, despite mostly fixed-rate debt, could increase interest expense upon refinancing or new borrowings[201](index=201&type=chunk) [Contractual Obligations and Commercial Commitments](index=46&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) - No material changes to contractual obligations have occurred since the 2024 Annual Report, outside the ordinary course of business[202](index=202&type=chunk) [Concentration of Credit Risk](index=46&type=section&id=Concentration%20of%20Credit%20Risk) - Credit risk is concentrated with major customers: Sierra Pacific Power Company/Nevada Power Company (**16.1%** of revenues), SCPPA (**22.0%**), and KPLC (**12.1%**)[203](index=203&type=chunk)[204](index=204&type=chunk) - As of March 31, 2025, KPLC had **$44.7 million** overdue (**$15.2 million** paid in April/May 2025), and ENEE had **$17.3 million** overdue (**$1.3 million** paid in April/May 2025)[204](index=204&type=chunk)[205](index=205&type=chunk) - The Company expects to collect all past due amounts from KPLC, supported by a government of Kenya support letter[204](index=204&type=chunk) [Government Grants and Tax Benefits](index=46&type=section&id=Government%20Grants%20and%20Tax%20Benefits) - Detailed information on government grants and tax benefits is available in the 2024 Annual Report[206](index=206&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=47&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section incorporates by reference the detailed discussion on market risk exposures, including electricity price volatility, interest rate risk, and foreign currency exchange risk, from Item 2's 'Exposure to Market Risks' and 'Concentration of Credit Risk' sections - Information on quantitative and qualitative disclosures about market risk is incorporated by reference from the 'Exposure to Market Risks' and 'Concentration of Credit Risk' sections in Item 2[207](index=207&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=47&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting, with no material changes in internal control over financial reporting during Q1 2025 - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting of material information[209](index=209&type=chunk) - No material changes in internal control over financial reporting occurred during the first quarter of 2025[210](index=210&type=chunk) [PART II — OTHER INFORMATION](index=48&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=48&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 9, 'Commitments and Contingencies,' for legal proceedings, including a class action settlement and a **$47.5 million** breach of contract claim, neither expected to be material to financial statements - Information on legal proceedings is incorporated by reference from Note 9, 'Commitments and Contingencies,' in the financial statements[212](index=212&type=chunk) [ITEM 1A. RISK FACTORS](index=48&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section incorporates by reference risk factors from the 2024 Annual Report, noting no material changes, but highlights ongoing uncertainty and potential negative impacts of increased U.S. import tariffs on Energy Storage and Electricity segments - No material changes to risk factors previously disclosed in the 2024 Annual Report on Form 10-K occurred during the period[213](index=213&type=chunk) - Increased U.S. import tariffs, particularly on products from China, create significant uncertainty and could negatively impact the Energy Storage segment (reliant on imported batteries) and Electricity segment (raw materials/equipment costs), potentially requiring investment reductions or debt restructuring[214](index=214&type=chunk)[215](index=215&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=48&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section states that there were no unregistered sales of equity securities or use of proceeds to report during the period - No unregistered sales of equity securities or use of proceeds to report[216](index=216&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=49&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section indicates that there were no defaults upon senior securities to report - No defaults upon senior securities to report[217](index=217&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=49&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that there are no mine safety disclosures required for the period - No mine safety disclosures to report[218](index=218&type=chunk) [ITEM 5. OTHER INFORMATION](index=49&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025[219](index=219&type=chunk) [ITEM 6. EXHIBITS](index=49&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the quarterly report, including certifications, XBRL taxonomy documents, and a separation agreement - The exhibit index includes certifications (31.1, 31.2, 32.1, 32.2), XBRL taxonomy extension documents (101.SC, 101.CA, 101.DE, 101.LA, 101.PR), and a separation agreement (10.1+)[221](index=221&type=chunk)[222](index=222&type=chunk) [SIGNATURES](index=50&type=section&id=SIGNATURES) The report was signed by Assaf Ginzburg, Chief Financial Officer and Authorized Signatory, on May 8, 2025[225](index=225&type=chunk) [CERTIFICATIONS](index=51&type=section&id=CERTIFICATIONS) Certifications from the CEO (Doron Blachar) and CFO (Assaf Ginzburg) affirm the accuracy of the report's financial statements and the effectiveness of disclosure controls and internal control over financial reporting[226](index=226&type=chunk)[229](index=229&type=chunk)[232](index=232&type=chunk)[235](index=235&type=chunk)

Financial Data and Key Metrics Changes - The company achieved a 2.5% increase in revenue for Q1 2025, totaling $229.8 million compared to the same period last year [5][11] - Net income attributable to stockholders rose by 4.6% to $40.4 million, or $0.66 per diluted share [5][12] - Adjusted EBITDA grew by 6.4% to a record $150.3 million, driven by strong performance in the Energy Storage segment [5][12] Business Line Data and Key Metrics Changes - Electricity segment revenues decreased by 5.8% to $180.2 million due to curtailments in California and Nevada [11][13] - Product segment revenues increased by 27.9% to $31.8 million, supported by a strong backlog [11][13] - Energy Storage segment revenues surged nearly 120% in Q1, primarily due to new facilities and strong merchant prices [11][14] Market Data and Key Metrics Changes - The gross margin for the electricity segment fell to 33.5% from 39% year-over-year, impacted by lower revenues from curtailments [11][15] - The Energy Storage segment reported a gross margin of 30.6%, a significant improvement from 7.5% in Q1 2024 [11][16] - The product segment's gross margin improved to 22.3% from 14.8% last year, reflecting better profitability [11][15] Company Strategy and Development Direction - The company plans to acquire the 20 megawatt Blue Mountain geothermal power plant for $88 million, with upgrades expected to add 3.5 megawatts by 2027 [7][8] - A restructuring of the electricity segment management is underway to enhance operational efficiency and focus on drilling and exploration activities [24][76] - The company aims to reach a generating capacity target of 2.6 to 2.8 gigawatts by the end of 2028, supported by geothermal development and energy storage expansion [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the geothermal business growth potential, citing easing project permitting timelines and strong demand for renewable energy [7][30] - The company is actively monitoring tariff impacts and is engaging with suppliers to mitigate potential disruptions [9][10] - Despite uncertainties in the regulatory environment, management believes the energy storage market will continue to grow [40][73] Other Important Information - The company declared a quarterly dividend of $0.12 per share, expected to be paid in the upcoming quarters [21] - Total expected capital expenditure for 2025 has increased to $597 million, primarily due to geothermal and storage projects [20] Q&A Session Summary Question: Impact of storage project development pipeline on tariffs - Management indicated that they are exploring multiple alternatives for battery acquisition and are prepared for potential tariff impacts [36][39] Question: Effect of tariffs on geothermal costs - Management confirmed that the impact of tariffs on geothermal CapEx is not material, as most costs are incurred in the U.S. [42] Question: EGS technology implementation timing and opportunities - Management noted that EGS technology could enhance existing plants and expand development opportunities, but technological challenges remain [44] Question: Regulatory changes to expedite geothermal development - Management highlighted a new executive order aimed at speeding up permitting processes for geothermal projects on federal land [48][49] Question: Updated view on gross margins for storage and electricity segments - Management expects storage margins to be at the higher end of 20% and product segment margins to improve to 21% [50] Question: Parameters on expected EBITDA contribution from Blue Mountain acquisition - Management stated that the asset's EBITDA multiple is expected to improve significantly post-upgrade and new PPA negotiations [53][55] Question: Update on PPA pricing and negotiations - Management reported that PPA pricing remains high, with ongoing negotiations expected to yield favorable outcomes [57] Question: Exploration activities and partnerships - Management confirmed increased exploration activities and partnerships with Schlumberger to enhance project development efficiency [64][66]