Ormat Technologies(US:ORA)2025-11-05 17:57Revenue Sources - In the three and nine months ended September 30, 2025, the Electricity segment generated 70.8% and 71.8% of its revenues from U.S. operations, while 29.2% and 28.2% came from international operations[142] - The Product segment derived 4.9% and 6.4% of its revenues from U.S. operations, with 95.1% and 93.6% from the rest of the world during the same period[142] - The Energy Storage segment reported all its revenues from U.S. operations in the three and nine months ended September 30, 2025[142] - For the nine months ended September 30, 2025, foreign operations accounted for 40.2% of total revenues, compared to 36.4% in 2024[154] Revenue Growth - For the nine months ended September 30, 2025, total revenues increased by 10.0% to $713.5 million compared to $648.9 million in the same period of 2024[152] - Total revenues for the three months ended September 30, 2025, were $249.7 million, an increase of 17.9% from $211.8 million in the same period of 2024[160] - The Product segment saw a revenue increase of 53.6%, reaching $153.6 million for the nine months ended September 30, 2025, up from $100.0 million in 2024[193] - Energy Storage segment revenues increased by 96.5% to $52.6 million for the nine months ended September 30, 2025, compared to $26.8 million in 2024[194] Segment Performance - Electricity segment revenues for the three months ended September 30, 2025, were $167.1 million, a 1.5% increase from $164.6 million in the same period of 2024[152] - Energy Storage segment revenues increased by 108.1% to $20.4 million for the three months ended September 30, 2025, compared to $9.8 million in the same period of 2024[152] - The Product segment saw a significant increase in foreign revenues, reaching $59.2 million for the three months ended September 30, 2025, a 73.4% increase from $34.2 million in 2024[160] Operational Developments - The company commenced commercial operations of a 60MW/120MWh energy storage facility in Texas in September 2025, under a seven-year tolling agreement[142] - A strategic commercial agreement was signed with Sage Geosystems Inc. in August 2025 to pilot advanced pressure geothermal technology, expected to enhance operational efficiency[142] - The company signed two Geothermal Exploration and Energy Conversion Agreements with PLN in Indonesia, each covering up to 20 MW of geothermal capacity[142] - A 25-year extension to the existing power purchase agreement with SCPPA for the 52MW Heber 1 geothermal facility was announced, effective February 2026[142] Financial Performance - The gross profit for the Electricity segment decreased to $42.5 million for the three months ended September 30, 2025, down from $49.7 million in 2024[160] - Operating income for the three months ended September 30, 2025, was $40.4 million, compared to $35.7 million in the same period of 2024[160] - Net income attributable to the Company's stockholders for the three months ended September 30, 2025, was $24.1 million, an increase from $22.1 million in 2024[160] - Net income attributable to the Company's stockholders for the nine months ended September 30, 2025, was $92.5 million, an increase of 11.6% from $82.9 million for the same period in 2024[215] Cost and Expenses - Total cost of revenues increased by 21.4% to $185.7 million, with the Electricity segment's cost rising by 8.4% to $124.6 million[169] - General and administrative expenses decreased to $20.2 million, constituting 8.1% of total revenues, down from 10.8% in the prior year[176] - Research and development expenses for the three months ended September 30, 2025, were $1.3 million, a decrease from $1.8 million in 2024[160] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $252.3 million, compared to $230.1 million in 2024[236] - The Company entered into new loan agreements totaling $337.6 million during the nine months ended September 30, 2025[221] - Estimated capital needs for the remainder of 2025 include $140 million for capital expenditures and $60.6 million for long-term debt repayment[218] - The company has budgeted approximately $558.0 million in capital expenditures for new projects and enhancements, with $266.0 million already invested as of September 30, 2025[252] Debt and Financial Obligations - The outstanding carrying value of long-term debt owed by SOL and Ijen was $645.3 million and $105.0 million, respectively, as of September 30, 2025[243] - Future minimum cash payments under long-term obligations total $2,779.6 million as of September 30, 2025[228] - The Company has a 12-month debt to Adjusted EBITDA ratio of 4.42 as of September 30, 2025[224] Risk Factors - The company is exposed to foreign currency exchange risk, particularly with fluctuations in the U.S. dollar against the New Israeli Shekel, Euro, and New Zealand Dollar[260] - Inflation has increased overall operating costs from early 2022 until 2024, impacting profit margins, although some contracts include provisions to mitigate inflation risk[268] - The company has a concentration of credit risk with major customers, including Sierra Pacific Power Company and Nevada Power Company, which accounted for 12.1% and 15.1% of total revenues for the nine months ended September 30, 2025, respectively[272]