Ormat Technologies Raises Full-Year Guidance as Storage Revenue Climbs
The company increased its full-year revenue outlook to as high as $1.2 billion following a 10.6% rise in quarterly sales.
Ormat Technologies (ORA), the geothermal energy company, reported total revenues of $258.8 million for the second quarter of 2026, an increase of 10.6% from $234.0 million in the prior-year period.
The results reflected a shift in the company's revenue mix, as rapid growth in energy storage offset a decline in product sales. This trajectory was supported by new capacity additions and favorable merchant pricing in the PJM market.
Energy storage revenues rose 195.1% year-over-year to $42.8 million. This growth contributed to a significant expansion in the segment's gross margin, which rose to 56.2% from 11.9% in the second quarter of 2025.
Electricity segment revenues grew 5.8% year-over-year to $169.3 million. This performance was driven by the Blue Mountain acquisition and improved operations at its Puna and Olkaria plants.
Product segment revenues fell 21.6% to $46.7 million from $59.6 million a year earlier, due to the timing of construction progress and manufacturing. Gross margins for the product segment compressed to 9.7% from 27.7% in the prior-year quarter, impacted by exchange rates and construction costs for projects in Europe.
Adjusted EBITDA grew 6.9% year-over-year to $143.9 million. However, GAAP net income attributable to stockholders decreased 3.4% to $27.1 million, following a $6.6 million write-off of storage projects.
Ormat raised its full-year 2026 revenue guidance to a range between $1.15 billion and $1.2 billion. The company also increased its full-year Adjusted EBITDA guidance to between $630 million and $650 million.
The company reported a product backlog of approximately $202.8 million as of August 5, 2026.