- Ormat’s adjusted EBITDA for Q1 2025 was $150.3 million, marking a 6.4% increase year-over-year and surpassing the estimate of $145.9 million.
- Total revenue for the quarter was $229.8 million, a 2.5% rise from the previous year, exceeding the forecasted $227.7 million.
- Electricity revenue saw a decline of 5.8% from last year, reaching $180.2 million, slightly below the anticipated $182.7 million.
- Product revenue increased by 28% year-over-year, amounting to $31.8 million, though falling short of the $37.7 million estimate.
- Energy Storage revenue significantly grew to $17.8 million from $8.08 million the previous year, exceeding the projection of $11.2 million.
- The adjusted earnings per share (EPS) was 68 cents, improving from 65 cents last year, and exceeding the expected 59 cents.
- Ormat’s annual forecast for adjusted EBITDA remains between $563 million and $593 million, aligning with the market estimate of $576 million.
- The company maintains its revenue forecast between $935 million and $975 million, compared to an estimate of $950.8 million.
- Product revenue for the year is projected to fall between $172 million and $187 million, against a forecasted $178.1 million.
- Projected Energy Storage revenue is targeted between $53 million and $63 million for the year.
- The growth in the Storage segment is attributed to new capacity and higher merchant prices, particularly in the PJM market.
- Ormat’s CEO, Doron Blachar, attributed the growth to improved performances in the Product and Storage segments.
- Despite a decline in the Electricity segment due to curtailments in California and Nevada, the rest of the geothermal operations continued to perform solidly.
- Current analyst recommendations include 4 buys, 7 holds, and 0 sells.
“`
Ormat Technologies on Smartkarma
Independent analyst coverage of Ormat Technologies on Smartkarma is shedding light on the company’s recent financial performance and growth prospects. According to Baptista Research, Ormat Technologies reported solid results for 2024, with a 6.1% year-over-year revenue increase, reaching $879.7 million. The company also saw a 14.3% growth in adjusted EBITDA, driven by performance improvements in certain plants and the acquisition of Enel assets in the Electricity segment. Despite setbacks like U.S. curtailment and an outage at Dixie Valley impacting fourth-quarter performance, capacity expansion in core segments remains a critical factor driving growth.
Another report from Baptista Research highlights Ormat Technologies‘ operational expansion as a key growth lever. In the third quarter of 2024, the company saw a 16.3% increase in adjusted EBITDA, reaching $137.7 million. This growth was attributed to a growing operating portfolio and stable operational performance, particularly in the Electricity segment, bolstered by the acquisition of assets from Enel and operational improvements at the Puna facility. Analyst sentiment leans bullish on Ormat Technologies, emphasizing both the strengths and challenges the company faces as it navigates its growth trajectory.
A look at Ormat Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ormat Technologies, Inc., a company specializing in renewable energy projects, presents a promising long-term outlook according to Smartkarma Smart Scores. With a notable Momentum score of 5, Ormat Technologies demonstrates strong potential for future growth and market performance. Additionally, the company secures a Growth score of 4, indicating a positive trajectory in terms of expansion and development within the renewable energy sector.
Although the Dividend score of 2 suggests room for improvement in terms of distribution to shareholders, Ormat Technologies‘ overall outlook remains optimistic. A Resilience score of 3 reflects the company’s ability to withstand volatility and challenges. Moreover, with a Value score of 3, Ormat Technologies signifies a fair valuation in the market. As a global provider of geothermal, recovered energy, and energy management solutions, Ormat Technologies stands well-positioned for long-term success within the renewable energy industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
