| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 46.3x | 17.8x | Bottom tier | |
Growth | 59 | 31.1% | 7.1% | Around median | |
Quality | 27 | 4.7% | 4.5% | Bottom tier | |
Safety | 40 | 3.5x | 2.6x | Bottom tier | |
Capital Return | 21 | 0.51% | 2.12% | Bottom tier | |
Momentum | 39 | 21.6% | 2.9% | Bottom tier | |
Sentiment | 63 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ormat Technologies operates through an integrated three-segment model: electricity generation, sales of energy products and technologies, and energy storage. The Electricity segment generates revenue from geothermal and solar plants supported by long-term power purchase agreements, while the Storage segment combines contracted revenue with selective exposure to market prices, particularly in PJM. As of June 30, 2026, the total operating portfolio was approximately 1.85 gigawatts, including 1,355 megawatts in electricity and 495 megawatts and 1,358 megawatt-hours in storage.
In Q2 fiscal 2026, revenue rose 10.6% year over year to $258.8 million, gross profit increased 20.8% to $68.7 million, and gross margin expanded 220 basis points to 26.5%. Net income attributable to the company's shareholders was $27.1 million, or $0.43 per diluted share, compared with $28 million and $0.46, respectively, affected by a $6.6 million write-off for a storage project the company no longer intends to pursue. In contrast, adjusted net income rose 6.5% to $31 million, and adjusted earnings before interest, taxes, depreciation, and amortization increased 6.9% to $143.9 million.
The Electricity segment accounted for approximately 65% of Q2 fiscal 2026 revenue, with revenue of $169.3 million and growth of 5.8%, while Products revenue declined 21.6% to $46.7 million, representing approximately 18% of the mix. Energy Storage revenue jumped 195.1% to $42.8 million, or approximately 17% of revenue, and the segment achieved a gross margin of 56.2%. During the first half of fiscal 2026, revenue reached $662.7 million, up 42.9%, and adjusted earnings before interest, taxes, depreciation, and amortization reached $338.8 million, up 18.9%.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on ORA is “Neutral,” with an average price target of $134 and a wide range of between $112 and $152, reflecting differing assessments of the impact of Storage growth and contracted projects versus margin, execution, and debt risks. The average target is approximately 8.5% below the 52-week range high of $146.39, while the highest target exceeds that high, and the wide 52-week range of between $89.08 and $146.39 remains evidence of the valuation's sensitivity to growth and profitability expectations.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Ormat's revenue rose 10.6% to $258.8 million, and gross profit increased 20.8% to $68.7 million. Energy Storage was the fastest driver, with revenue surging 195.1% to $42.8 million and a gross margin of 56.2%, supported by PJM prices and capacity expansions. The Electricity segment also benefited from Blue Mountain, improvements at Puna and Olkaria, and reduced generation curtailment in the United States.
The company raised its revenue range to $1.15 billion–$1.20 billion, representing growth of approximately 18.7% at the midpoint compared with fiscal 2025. It expects Electricity revenue of between $710 million and $725 million, Products revenue of between $300 million and $320 million, and Storage revenue of between $140 million and $155 million. It also raised adjusted earnings before interest, taxes, depreciation, and amortization guidance to $630 million–$650 million, representing growth of approximately 10% at the midpoint.
Management targeted an operating portfolio of between 2.6 gigawatts and 2.8 gigawatts by 2028, equivalent to expected compound annual growth of between 15% and 18% from 2025. The company has 202 megawatts of electricity projects under construction and development through the end of 2028, including 87 megawatts of geothermal and 115 megawatts of solar, all supported by long-term power purchase agreements. In Storage, there are seven projects with total capacity of 497 megawatts and 1,888 megawatt-hours, alongside a U.S. opportunity pipeline of approximately 2.5 gigawatts and 10 gigawatt-hours across 25 identified projects.
In fiscal 2026, Ormat introduced the 100-megawatt modular Ormega100 unit to serve large-scale conventional geothermal projects and EGS applications. In the Desert Peak trial with SLB, the company completed its analysis of geophysical data and submitted drilling permit applications, and it was targeting the start of drilling in Q4 fiscal 2026. However, management identified technical challenges related to water flow, fracture connectivity, and cooling caused by injection, so EGS remains a long-term opportunity rather than a proven commercial contributor.
The Products margin was 9.7% because of higher construction costs at a European project and currency fluctuations, and management expects it to improve to approximately 15% in the second half of fiscal 2026. In Storage, the margin is expected to decline from 56.2% in Q2 to a range of 30%–40% in the second half as PJM prices return to more normal levels. A $6.6 million storage project write-off also affected reported net income, which declined to $27.1 million from $28 million.
Cash and restricted cash were approximately $658 million, and total liquidity was approximately $1.1 billion as of June 30, 2026. In contrast, total debt was approximately $3.4 billion and net debt was $2.7 billion, or 4.3 times net debt to adjusted earnings before interest, taxes, depreciation, and amortization, with an average interest rate of approximately 3.9%. The company plans capital expenditures of $449 million during the remainder of fiscal 2026, making project execution and financing discipline key factors in the stock's trajectory.
