Ormat Technologies Q1 Earnings Beat Estimates, Revenues Increase Y/Y

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].