Ormat Technologies, Inc. Q3 2026 Earnings Recap

Ormat’s shares fell 1.4% after earnings, a roughly flat reaction. Revenue and adjusted EBITDA grew, but performance was uneven: energy storage drove growth while electricity revenue and product-segment margins declined, and Puna’s outage and planned well cleanouts weigh on the near-term electricity outlook.

Key Takeaways

• Q3 revenue rose 10.2% to $275 million; adjusted EBITDA increased 11.1% to a record $153.8 million. The company raised the midpoint of its full-year revenue and adjusted EBITDA guidance.
• Energy storage revenue surged 145.2% to $49.9 million, with a 62.1% gross margin, supported by capacity additions, high availability and favorable PJM merchant pricing.
• Electricity revenue fell 2.1% to $163.7 million. Puna’s hurricane-related outage reduced quarterly revenue by $5.1 million; planned Q4 well cleanouts will temporarily reduce revenue, with management expecting them to support higher generation in 2027.
• Electricity gross margin declined to 22.2% from 25.4%; excluding the Puna impact, it would have been approximately 24.5%. Product revenue slipped 1.2% to $61.5 million, and product gross margin fell to 16.5% from 21.7%.
• Net income attributable to shareholders rose to $31.9 million, or $0.51 per diluted share, from $24.1 million, or $0.39. Adjusted net income increased 39.8% to $34.8 million.