It has been about a month since the last earnings report for Ormat Technologies (ORA). Shares have added about 1.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ormat Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Ormat Technologies Q3 Earnings Beat Estimates, '25 Revenue View Raised
Ormat Technologies reported third-quarter 2025 adjusted earnings per share of 41 cents, which surpassed the Zacks Consensus Estimate of 37 cents by 10.8%. However, the bottom line decreased 2.4% from 42 cents in the year-ago quarter.
The company reported GAAP earnings of 39 cents compared with 36 cents in the year-ago quarter.
ORA’s Total Revenues
ORA generated revenues of $249.7 million, which topped the Zacks Consensus Estimate of $233 million by 7%. The top line also increased 17.9% year over year, driven by higher revenues from its electricity, product and energy storage segments.
ORA’s Segmental Performance
Electricity: Revenues in this segment amounted to $167.1 million, up 1.5% year over year. This upside was primarily due to contributions from the recent Blue Mountain acquisition and the improved performance at Dixie Valley.
Product: This segment’s revenues surged 66.6% to $62.2 million from the year-ago quarter’s level. The improvement was due to the timing of revenue recognition from manufacturing and construction progress.
Energy: Revenues in this division amounted to $20.4 million, up 108.1% from the prior-year quarter’s figure. This was driven by the contribution of the of the Bottleneck facility as well as Montague, which both came online last year, and Lower Rio, which commenced operation in August.
ORA’s Operational Update
Ormat’s total operating expenses (research and development, selling and marketing, as well as general and administrative expenses) were $26.4 million, which declined 9.2% from the year-ago quarter’s level.
The operating income climbed 13.3% year over year to $40.4 million.
The total cost of revenues was $185.7 million, up 21.4% year over year.
Net interest expenses were $35.7 million, which rose 2.5% year over year.
Ormat’s Financial Condition
ORA had cash and cash equivalents of $79.6 million as of Sept. 30, 2025 compared with $94.4 million as of Dec. 31, 2024.
ORA’s 2025 Guidance
The company updated its guidance for 2025. It now expects to generate revenues in the range of $960-$980 million compared with the previous range of $935-$975 million. The Zacks Consensus Estimate is pegged at $956.4 million, which is below the company’s guided range.
Revenues for the Electricity segment are now anticipated in the band of $700-$705 million. The Product segment’s revenues are now expected in the range of $190-$200 million. Revenues for the Energy Storage segment are now projected between $70 million and $75 million.
ORA now anticipates annual adjusted EBITDA in the band of $575-$593 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in estimates revision.
The consensus estimate has shifted -5.48% due to these changes.
VGM Scores
Currently, Ormat Technologies has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Ormat Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ormat Technologies is part of the Zacks Alternative Energy - Other industry. Over the past month, Cheniere Energy Partners, L.P. (CQP), a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended September 2025 more than a month ago.
Cheniere Energy Partners, L.P. reported revenues of $2.4 billion in the last reported quarter, representing a year-over-year change of +17%. EPS of $0.81 for the same period compares with $0.84 a year ago.
Cheniere Energy Partners, L.P. is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of -1.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -8%.
Cheniere Energy Partners, L.P. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Ormat Technologies, Inc. (ORA): Free Stock Analysis Report Cheniere Energy Partners, L.P. (CQP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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