Ormat Q2 profit beats estimates as energy storage revenues nearly triples
Ormat Q2 profit beats estimates as energy storage revenues nearly triples
Overview
US geothermal and renewables firm's Q2 revenue grew 10.6%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations
Energy storage revenue nearly tripled yr/yr, benefiting from merchant pricing and new capacity
Outlook
Ormat raises 2026 revenue guidance to $1.15 bln-$1.2 bln
Company expects 2026 adjusted EBITDA of $630 mln-$650 mln
Ormat sees 2026 electricity revenue at $710 mln-$725 mln, product revenue at $300 mln-$320 mln, energy storage revenue at $140 mln-$155 mln
Result Drivers
ENERGY STORAGE SURGE - Energy storage revenues nearly tripled yr/yr, driven by favorable merchant pricing in the PJM market and new capacity additions
ELECTRICITY SEGMENT GAINS - Electricity revenue rose, supported by the Blue Mountain acquisition, improved performance at Puna and Olkaria plants, higher energy rates at Puna, and lower curtailments in the USA
PRODUCT SEGMENT PRESSURE - Product segment revenue and gross margin declined due to timing of manufacturing and construction progress, higher construction costs in Europe, and currency impacts
Company press release: ID:nGNX7Sq8x0
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $258.76 mln | $240.34 mln (11 Analysts) |
Q2 Adjusted EPS | Beat | $0.50 | $0.26 (8 Analysts) |
Q2 Adjusted EBITDA | Beat | $144 mln | $139.48 mln (9 Analysts) |
Q2 Gross Margin |
| 26.50% |
|
Q2 Operating Income |
| $34.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for Ormat Technologies Inc is $135.00, about 34.9% above its August 4 closing price of $100.08
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 48 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)