Ormat Technologies, Inc. (ORA): A Bull Case Theory

We came across a bullish thesis on Ormat Technologies, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on ORA. Ormat Technologies, Inc.'s share was trading at $92.54 as of September 17th. ORA’s trailing and forward P/E were 42.15 and 34.84 respectively according to Yahoo Finance.

Ormat Technologies (ORA) is a vertically integrated global renewable energy company specializing in geothermal and waste-heat recovery, with a growing presence in energy storage that provides exposure to the lithium-ion battery niche. Unlike traditional grid power, which takes years to connect, ORA delivers carbon-free electricity at source, making it an attractive partner for data center operators seeking fast, reliable, and clean energy solutions. In Q2, revenue rose 9.9% to $234M, while EPS increased 20% to $0.48 from $0.40 in Q2 2024.

Product revenue surged 58% and energy storage revenue grew 63%, offsetting a 4% decline in electricity revenue due to maintenance. The company-maintained guidance, supported by a strong $263M backlog and $300M in secured development funding. ORA also expanded its geothermal footprint with the acquisition of a Nevada-based plant adding 3.5MW of capacity, expected to generate ~$4M in EBITDA in 2H 2025, a small contribution to its projected $293M EBITDA for the period.

Geothermal power offers firm, low-carbon baseload energy with high utilization, positioning it favorably against wind and solar. The global geothermal market is forecast to grow ~5% annually through 2030, reaching ~$15B, with ORA producing 1.6 GW of capacity, making it one of the world’s largest operators.

Despite strong fundamentals, valuation remains a concern, with the stock trading at 8.1x sales, 13.6x EBITDA, and 40.2x P/E, levels that appear expensive on revenue and EBITDA metrics but more defensible on EPS growth, which is projected at +45% in 2026. A more attractive entry point could be near $70 per share, where valuation better aligns with long-term growth expectations.

Previously we covered a bullish thesis on Ormat Technologies, Inc. (ORA) by Canopy Research in May 2025, highlighting its leadership in geothermal power, stable long-term contracts, and predictable cash flows. The stock has appreciated ~28% since then as the thesis played out. Oliver | MMMT Wealth shares a similar perspective but emphasizes recent Q2 performance, acquisitions, and growing energy storage exposure.

Ormat Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held ORA at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the potential of ORA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.