Ormat Technologies, Inc. Q4 FY2025 earnings call

• 2025 was a strong year with revenue up 12.5% to ~$990 million and adjusted EBITDA up 5.7% to $582 million. • Successes include commissioning Air Relief solar and battery project in CA, acquiring Huku solar plus storage project in HI, winning geothermal tender in Indonesia. • Secured ~200 MW of new PPAs with hyperscalers, data centers, etc. • Advancing EGS toward commercialization, co-leading Sage Geosystems Series B financing. • Electricity portfolio at ~1,340 MW globally, added 72 MW in Q4 2025, ~149 MW under construction/development. • Acquired Huku solar plus storage facility in HI, Blue Mountain Power Plant contributing positively, progress on upgrades. • Awarded Telagaranu Geothermal Working Area in Indonesia, signed PPAs with Switch and Google.

Electricity segment revenue in Q4 2025 increased by 3.6% to $186.6 million, full-year electricity revenue decreased by 1.2% to $600.939 million. Product segment revenue in Q4 2025 increased by 59.1% to $63.1 million, full-year product revenue grew by 55.2% to $216.7 million. Energy storage segment revenue in Q4 2025 increased by 140.5%, full-year energy storage revenue grew by 109.3% to $79 million. Electricity segment gross margin in Q4 2025 was 30.2%, full-year 28.5%. Product segment gross margin for the year was 21.2%. Energy storage segment gross margin in Q4 2025 was 51.5%, full-year 36.4%.

• 2026 revenue expected to increase 14.6% y/y at midpoint, range $1,110M - $1,160M. Electricity segment revenues projected $715M - $730M, product segment $300M - $320M, energy storage $95M - $110M. • Adjusted EBITDA expected to increase ~8.2% at midpoint, range $615M - $645M. • Expect first quarter 2026 performance to benefit from ~$100 million in additional product segment revenues with ~20% gross margin related to sale of top two plants. • 2026 capital expenditure expected to be $675 million, net investment around $575 million after sale of top two plants in Q1 2026. • Board declared quarterly dividend of 12 cents per share payable on March 24, 2026, and expects same for next three quarters.

Q: Justin Clare asked about PPAs, curtailments impact in Q4 and 2026, and electricity segment gross margin in 2026.

A: Justin was told blend and extend PPAs in approval phase, Q4 curtailment lessened, 2026 curtailment expected 4 - 5 million, electricity segment gross margin expected 1 - 2% increase.

Q: Noah K. asked about Google PPA structure, optionality.

A: Google aligns with geothermal, PPA structure gives confidence in exploration and investment, could add more with exploration.

Q: Julian Dumoulin-Smith asked about curtailment recovery and EGS partnerships.

A: Some 100 MW is solar, prices in Pune lower, EGS has multiple approaches, ORMAT looking at different players.

Q: Mark Strauss asked about EGS pilot activity and equipment sales to third parties.

A: Expect EPC discussions in 2026, multiple discussions with different companies on EPC, building internal capabilities for EGS.

Q: Ben Callow asked about longer-term targets and EGS infrastructure.

A: Looking at land positions for EGS, planning analyst day in Sept for longer term targets, preparing for EGS success with BD efforts and land positions.