Highlights

  • Second quarter revenue rose 10.6% to $258.8 million, with energy storage revenue nearly tripling to $42.8 million.
  • Net income attributable to stockholders was $27.1 million, or $0.43 per diluted share, versus $28.0 million and $0.46.
  • Product segment gross profit fell to $4.5 million from $16.5 million, and net interest expense rose to $43.9 million.
  • The company closed $1.0 billion of convertible notes in March and held $513.7 million of cash at June 30, 2026.

Ormat Technologies (NYSE:ORA) shares were trading near their 52-week low at USD 88.55 on October 21, 2026, up 1.42%. The geothermal and energy storage company filed its second quarter 2026 report on August 6, after starting commercial operation of a 10MW geothermal plant in Dominica on July 31 and deciding in August to develop a 100MW/400MWh storage project in California.

Based in Reno, Nevada, Ormat is a Delaware corporation that calls itself a vertically integrated company primarily engaged in geothermal power. Its generating portfolio of about 1.8 GW spans the United States, Kenya, Guatemala, Honduras, Guadeloupe and Indonesia. It reports three segments: Electricity, which develops, builds, owns and operates geothermal, solar PV and recovered energy plants; Product, which designs and sells power equipment and provides engineering, procurement and construction services; and Energy Storage, which operates grid-connected battery systems selling capacity, energy and ancillary services.

Storage Gains, Product Slows

Revenue for the quarter ended June 30, 2026 was $258.8 million versus $234.0 million. Electricity revenue rose 5.8% to $169.3 million, and energy storage revenue climbed to $42.8 million from $14.5 million. Product revenue fell 21.6% to $46.7 million. Total gross profit was $68.7 million against $56.9 million, with storage gross profit of $24.0 million compared with $1.7 million. Product gross profit fell to $4.5 million from $16.5 million.

Operating income was $34.2 million versus $35.3 million, after a $6.6 million write-off of unsuccessful exploration and storage activities. Net interest expense rose to $43.9 million from $36.7 million, and net income was $26.0 million versus $28.2 million.

For six months, revenue grew 42.9% to $662.7 million, helped by a 145.3% rise in Product revenue to $224.1 million. Net income attributable to stockholders was $71.2 million, or $1.14 per diluted share, versus $68.4 million. The period included an $8.4 million impairment of long-lived assets and $34.4 million of induced conversion expense linked to the March note transaction.

Convertible Notes, Liquidity and Covenants

In March, the company closed a private offering of $1.0 billion of 2031 convertible senior notes: $825 million of 1.50% Series A notes and $175 million of 0.00% Series B notes. It used $287.9 million of proceeds, $25.0 million of cash and 0.6 million shares valued at $64.8 million to repurchase $285.9 million of its 2027 convertible notes.

At June 30, it held $513.7 million of cash and equivalents, of which $179.8 million sat with foreign subsidiaries, plus $377.3 million of unused corporate borrowing capacity. Management estimates $449.0 million of capital spending and $133.7 million of long-term debt repayments for the rest of 2026, and said it expects to fund them from existing liquidity, operating cash flow and project financings.

The filing also discloses two compliance items. One subsidiary did not meet dividend distribution criteria on its senior secured notes, restricting $1.3 million. Another was not in compliance with a loan agreement, citing what the company called an administrative issue, and it is discussing a waiver with the lender, with $33.2 million restricted. The parent company faced no restrictions.

Projects and Planned Milestones

The Dominica plant operates under a 25-year power purchase agreement, and the 80MW/320MWh Shirk storage facility in California began operating in March. In January the company bought the Hoku solar-plus-storage facility in Hawaii for $79.3 million.

Looking ahead, a February agreement to supply up to 150MW of new Nevada geothermal capacity for Google data center needs awaits Nevada PUC approval, which the company expects in the second half of 2026, with deliveries anticipated between 2028 and 2030. The Jersey Valley solar-plus-storage project is subject to Nevada PUC approval, with operation expected late in 2027 or early 2028. The California storage project is expected online by the end of 2028, and the Ormega100 unit, announced in June, is designed for enhanced geothermal systems. The company budgeted about $1.17 billion for Electricity segment construction and upgrades, of which $310.0 million had been invested. The filing gives no numerical earnings guidance.