Ormat Technologies (NYSE:ORA) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Company ParticipantsAssaf Ginzburg - CFODoron Blachar - CEOHannah Velasquez - Equity Research Senior AssociateJoshua Carroll - VPConference Call ParticipantsBen Kallo - Managing Director and Senior Research AnalystJustin Clare - Managing Director and Senior Research AnalystMark Strouse - Executive Director and Senior Equity AnalystNoah Kaye - Managing Director and Senior Research AnalystOperatorGood morning. Welcome to the Orm ...

Ormat Technologies (NYSE:ORA) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Speaker8Good morning. Welcome to the Ormat Technologies fourth quarter and full year 2025 earnings conference call. All participants will be in a listen-only mode. After today's presentation, there will be a opportunity to ask questions. If you would like to ask a question at that time, please press star, then the number 1 on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your quest ...

Financial Data and Key Metrics Changes - Clearway Energy delivered Adjusted EBITDA of $237 million for Q4 2025 and Cash Available for Distribution (CAFD) of $35 million, with full-year CAFD generation of $430 million, exceeding the midpoint of the original guidance range of $400 million-$440 million [17][18] - The company reiterated its 2026 CAFD guidance range of $470 million-$510 million, reflecting incremental contributions from closed and committed drop-downs and third-party acquisitions [18][19] Business Line Data and Key Metrics Changes - The renewables and storage segment experienced below median expectations in wind resources, while solar performance was impacted by the timing of debt service related to growth investments [17] - Flexible generation exhibited solid operational execution in line with budgeted expectations [17] Market Data and Key Metrics Changes - Hyperscaler demand significantly drove growth, with approximately 2 gigawatts of new Power Purchase Agreements (PPAs) signed in 2025, enhancing revenue contracting opportunities [5][8] - The pricing environment for PPAs has been favorable, with current pricing approximately double that of three years ago, indicating robust demand across various geographies [39][40] Company Strategy and Development Direction - Clearway Energy aims to achieve a CAFD per share target of $2.90-$3.10 by 2030, representing a 7%-8% compound annual growth rate (CAGR) from 2025 [5][12] - The company is focusing on proven technologies in strategic geographic markets, with a significant pipeline of storage projects expected to be cost-competitive [12][13] - Clearway plans to maintain a long-term payout ratio below 70% after 2030, with retained cash flows becoming a greater source of funding for investments [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet its 2030 targets, citing strong organic growth and a favorable M&A environment [26][29] - The management team highlighted the importance of maintaining operational excellence and high levels of plant availability, which contributed to exceeding financial guidance [18][19] Other Important Information - Clearway Energy raised $600 million in senior unsecured notes due in 2034, demonstrating strong credit quality and supporting long-term growth targets [21] - The company executed $50 million of opportunistic equity issuances, which were the least dilutive in its history, providing flexibility for future capital needs [22] Q&A Session Summary Question: M&A Outlook - The management noted that the current M&A environment is similar to the previous year, allowing for disciplined evaluation of opportunities that are accretive to existing growth [26][28] Question: PPA Pricing Environment - Management indicated that the pricing environment is robust across all geographies, with significant demand for new projects, and that they are not seeing observable price escalation [39][40] Question: Revenue Enhancement Opportunities - The company is executing new long-term unit-contingent PPAs, which will enhance the quality of earnings and provide a favorable risk profile for existing projects [78] Question: Interconnection Capacity and Hybridization - Clearway is exploring opportunities to co-locate battery storage at existing sites, particularly in solar projects, to enhance capacity and meet growing demand [82][84] Question: Deriva Acquisition Timeline - Management expects to close the Deriva acquisition well before the end of the first half of the year, with financing already in place [87]

Core Insights - Enefit Green's Q1 2025 operating income decreased by 3% year-on-year, while operating expenses increased by 35%, leading to a 27% decline in EBITDA to €31.0 million and a net profit decrease of 35% to €21.7 million [1][24]. Production and Sales Volumes - Electricity production increased by 25% to 617 GWh, with new wind and solar farms contributing to a 104% rise in production from these assets [5][6]. - Heat energy production decreased by 19% to 105 GWh, primarily due to the sale of biomass-based cogeneration and pellet business [1][5]. Financial Performance - Operating income for Q1 2025 was €66.9 million, down from €68.9 million in Q1 2024, while sales revenue increased by 11% to €62.4 million [5][8]. - EBITDA fell by €11.4 million, a 27% decrease compared to the previous year, and net profit decreased by €11.8 million [1][24]. - The average electricity price in core markets rose to €107.4/MWh from €87.0/MWh, but the implied captured electricity price dropped to €54.5/MWh from €81.4/MWh [9][10]. Investments and Projects - Construction activities are ongoing at the Kelmė II wind farm in Lithuania, and a final investment decision was made for the Strzałkowo solar farm in Poland, projected to produce 45 GWh annually [3][25]. - Total investments in Q1 2025 amounted to €37.7 million, significantly lower than the previous year, with €36.6 million allocated to development investments [25][26]. Financing and Debt - As of March 31, 2025, the group's interest-bearing liabilities stood at €734.0 million, with bank loans accounting for €724.4 million [27][28]. - The net debt/EBITDA ratio increased to 6.2, attributed to ongoing development projects [28]. Market Conditions - Despite rising regional electricity prices, Enefit Green's captured electricity price was significantly lower due to a wind discount, impacting operating income and EBITDA [2][20]. - Digital solutions and long-term power purchase agreements (PPAs) are being utilized to stabilize revenue in a volatile market [2][4].