Ormat Technologies, Inc.

Second-quarter revenue was $258.8 million, up 10.6% year over year. Gross profit was $68.7 million, up 20.8%, and consolidated gross margin expanded 220 basis points to 26.5%. Adjusted EBITDA was $143.9 million, up 6.9%; adjusted diluted EPS was $0.50 versus $0.48 a year ago, while reported diluted EPS was $0.43 versus $0.46. For the first half, revenue increased 42.9% to $662.7 million, adjusted EBITDA increased 18.9% to $338.8 million, and adjusted diluted EPS rose 54.3% to $1.79. Full-year 2026 guidance was raised to revenue of $1.15 billion-$1.2 billion and adjusted EBITDA of $630 million-$650 million. By segment, management now expects electricity revenue of $710 million-$725 million, product revenue of $300 million-$320 million, and energy storage revenue of $140 million-$155 million. Product segment gross margin is expected to be about 15% in the second half and about 18% for the full year; energy storage gross margin is expected to normalize to 30%-40% in the second half and about 40%-50% for the full year.

Doron Blachar framed the quarter as evidence that Ormat’s three-segment model is working, citing growth in electricity, storage and development activity. He emphasized portfolio expansion, including 155 MW added since the start of the year, progress on EGS pilots, and the introduction of Ormega100 as a new binary unit for geothermal and EGS applications. His tone was confident and constructive, repeatedly pointing to the company’s ability to create value through long-term contracting, selective merchant exposure, and a growing pipeline.

Assi Ginzburg focused on the quarter’s financial outperformance and balance sheet strength. He cited $258.8 million of revenue, $68.7 million of gross profit, $143.9 million of adjusted EBITDA, $658 million of cash and restricted cash at June 30, 2026, $3.4 billion of total debt, and a weighted average interest rate of about 3.9%; net debt was about $2.7 billion, or 4.3x net debt to adjusted EBITDA. He also outlined expected 2026 capital expenditures of $449 million remaining, said the company collected about $52 million of tax credit monetization proceeds in the first half and still expects about $90 million for the full year, and reiterated the quarterly dividend of $0.12 per share.

Analysts pressed on why electricity gross margin was a bit softer in Q2 despite better operating performance, and management said planned maintenance and a roughly $5 million offset in electricity tied mostly to two Caribbean projects were the main drags; one of those projects, Dominica, is already in full operation. Questions on storage merchant pricing prompted management to say first-half PJM pricing was very strong, but prices have become more normalized in late July and August, so the second half should be more normalized though still above prior years. Analysts also asked about EGS risk and contracting, and management said the SLB partnership increases confidence, land spend is not material, and any EGS PPAs would be structured with risk management given the technology is still being developed.