# Ormat Technologies, Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Ormat Technologies, Inc).

## Overview

Ormat Technologies is a U.S.-based renewable energy company built around geothermal power generation, geothermal equipment, and energy storage. Its business combines ownership and operation of power plants with the design and supply of geothermal and power-plant equipment, serving projects in the United States and multiple international markets.

## Products & services

• Geothermal electricity generation
• Geothermal power plant equipment and ORC systems
• Energy storage facilities and tolling services
• Recovered energy generation (REG) projects
• Solar PV generation and hybrid projects
• Production pumps and related support systems

- **Electricity Segment** (70%) — Owns and operates geothermal, REG, and solar PV power plants that sell electricity under PPAs and tolling arrangements.
- **Product Segment** (22%) — Designs and supplies geothermal power plant equipment, ORC systems, pumps, and related components and services.
- **Energy Storage Segment** (8%) — Develops and operates utility-scale battery storage projects and provides storage capacity under long-term contracts.

- Geothermal electricity generation
- Geothermal power plant equipment and ORC systems
- Energy storage facilities and tolling services
- Recovered energy generation (REG) projects
- Solar PV generation and hybrid projects
- Production pumps and related support systems

## Customers

Ormat sells electricity primarily to utilities, grid operators, and energy marketers under long-term PPAs or tolling agreements. Its product customers include geothermal developers, utilities, and engineering/EPC counterparties that buy plant equipment, pumps, and system integration services. Energy storage customers are typically utilities or infrastructure partners seeking dispatchable capacity and grid flexibility.

- **Electric utilities and power purchasers** (primary) — Buy geothermal electricity and storage capacity to secure firm, renewable supply under long-term contracts.
- **Geothermal project developers** (primary) — Buy ORC systems, pumps, and plant equipment for new geothermal builds and expansions.
- **Infrastructure and energy partners** (secondary) — Co-invest in storage and geothermal projects or sign tolling agreements to access capacity and flexibility.
- **Engineering and EPC contractors** (secondary) — Purchase equipment or subcontract project execution for geothermal and hybrid energy projects.

- Utilities buying baseload geothermal power under long-term PPAs
- Grid operators and offtakers seeking dispatchable renewable capacity
- Geothermal developers purchasing ORC equipment and plant systems
- EPC and engineering firms needing project equipment and integration
- Storage counterparties and infrastructure partners for tolling deals

## Geography

Ormat operates a global portfolio with power plants in the United States, Kenya, Guatemala, Honduras, Guadeloupe, and Indonesia, and it also sells product segment equipment internationally. The company’s foreign electricity assets are concentrated in lower-cost operating regions, while the product business is heavily export-oriented, with most product revenues generated outside the United States. Backlog disclosures also show meaningful project concentration in New Zealand and Asia for the product segment.

- **United States** (60%) — Estimated from disclosure that 40% of total revenues were derived from foreign locations in 2025.
- **Foreign locations** (40%) — Estimated from disclosure that 40% of total revenues were derived from foreign locations in 2025.

- U.S. is the core operating base and a major electricity market
- Foreign geothermal plants are in Kenya, Guatemala, Honduras, Guadeloupe, Indonesia
- Product segment revenues are mostly outside the U.S.
- Product backlog is concentrated in New Zealand and Asia
- Lower-cost foreign sites can improve plant economics and availability

## Strategy

Ormat is expanding its geothermal platform through acquisitions, new plant development, and upgrades to existing assets. It is also broadening beyond pure geothermal into utility-scale storage, hybrid geothermal-solar projects, and emerging enhanced geothermal systems, while using its equipment business to support both internal projects and third-party customers.

- **Expand geothermal generation capacity** (medium-term) — Own and operate more baseload renewable assets with long-duration contracted cash flows.
- **Build utility-scale storage portfolio** (medium-term) — Storage adds flexible, dispatchable revenue streams and complements intermittent renewables.
- **Develop hybrid and solar-adjacent projects** (medium-term) — Hybrid assets can improve plant utilization and diversify site economics.
- **Advance next-generation geothermal technologies** (long-term) — EGS and other new approaches could expand the addressable geothermal resource base.

- Acquire and upgrade geothermal assets to add capacity
- Expand utility-scale energy storage through tolling contracts
- Develop hybrid geothermal-solar projects
- Advance enhanced geothermal system pilots and collaborations
- Use product segment expertise to support external and internal projects

## Risks

Ormat’s results depend on the performance of operating power plants, storage assets, and project execution across multiple jurisdictions. The company also faces competition in geothermal equipment and development, regulatory and permitting risk, and technology risk as new geothermal entrants pursue advanced subsurface systems and alternative drilling methods.

- **Operational outages and maintenance disruptions** [high] — Electricity revenue depends on continuous plant availability and storage uptime.
- **Geothermal resource and drilling risk** [high] — Project economics depend on finding and sustaining viable geothermal reservoirs.
- **Competitive pressure in product and development markets** [medium] — More suppliers and developers can reduce order wins and pricing power.
- **Regulatory, permitting, and PPA approval risk** [high] — Projects require permits, interconnection, and contract approvals before monetization.
- **Foreign country and operating-jurisdiction risk** [medium] — A meaningful share of operations and backlog is outside the U.S.

- Plant outages or equipment failures can reduce electricity output
- Geothermal development depends on resource quality and drilling success
- Competition is increasing in both product and project development
- Permitting, PPA, and regulatory approvals can delay projects
- Foreign operations add country-specific operating and political risk
- Cybersecurity and critical-infrastructure compliance are ongoing risks

## Accounting

Revenue recognition depends on contract structure, with electricity sales often tied to PPAs and storage to tolling or service arrangements. Investors should also watch estimates around project development costs, asset impairments, derivatives used in non-GAAP adjustments, and the timing of revenue and margin recognition across the electricity, product, and storage segments.

- **Revenue recognition under PPAs and tolling agreements** — Affects reported revenue timing and segment comparability
- **Project accounting for product segment orders** — Can move revenue and gross margin between periods
- **Derivative mark-to-market adjustments** — Creates earnings volatility and reconciliation complexity
- **Impairment and write-offs for exploration/storage activities** — Can materially affect reported earnings and asset values

- PPA and tolling contracts drive revenue timing and pricing
- Product segment revenue may depend on project milestones and delivery
- Derivatives can create mark-to-market volatility in adjusted results
- Impairment and write-off risk exists for exploration and storage projects
- Seasonality and geography can shift quarterly mix and margins

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*Last updated: 2026-09-24T11:13:55.177407+00:00*