Ormat Technologies Q3 Earnings Beat Estimates, '25 Revenue View Raised

Core Insights - Ormat Technologies Inc. (ORA) reported third-quarter 2025 adjusted earnings per share of 41 cents, exceeding the Zacks Consensus Estimate of 37 cents by 10.8%, although this represents a 2.4% decrease from 42 cents in the same quarter last year [1] - The company generated total revenues of $249.7 million, surpassing the Zacks Consensus Estimate of $233 million by 7%, and reflecting a year-over-year increase of 17.9% [2] Revenue Breakdown - Electricity segment revenues reached $167.1 million, a 1.5% increase year over year, primarily due to contributions from the Blue Mountain acquisition and improved performance at Dixie Valley [3] - Product segment revenues surged 66.6% to $62.2 million compared to the previous year, driven by the timing of revenue recognition from manufacturing and construction progress [3] - Energy segment revenues amounted to $20.4 million, up 108.1% from the prior-year quarter, attributed to contributions from the Bottleneck facility, Montague, and Lower Rio [4] Operational Performance - Total operating expenses were $26.4 million, a decline of 9.2% from the year-ago quarter, while operating income increased by 13.3% year over year to $40.4 million [5] - The total cost of revenues was $185.7 million, reflecting a year-over-year increase of 21.4% [5] - Net interest expenses rose to $35.7 million, up 2.5% year over year [5] Financial Condition - As of September 30, 2025, ORA had cash and cash equivalents of $79.6 million, down from $94.4 million as of December 31, 2024 [6] 2025 Guidance - The company updated its 2025 revenue guidance to a range of $960-$980 million, compared to the previous range of $935-$975 million, with the Zacks Consensus Estimate at $956.4 million [7] - Expected revenues for the Electricity segment are now projected between $700-$705 million, while the Product segment is anticipated to generate revenues in the range of $190-$200 million, and the Energy Storage segment is projected between $70 million and $75 million [8] - ORA anticipates annual adjusted EBITDA in the range of $575-$593 million [8]