Ormat Technologies Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Shares of Ormat Technologies Inc. ORA rose 2.5% to $74.11 on May 8, following the company’s first-quarter 2025 results.

Ormat reported first-quarter 2025 adjusted earnings per share of 68 cents, which beat the Zacks Consensus Estimate of 58 cents by 17.2%. The bottom line also increased 4.6% from 65 cents in the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The company reported GAAP earnings of 66 cents compared with 64 cents in the year-ago quarter.

ORA’s Total Revenues

ORA generated revenues of $229.8 million, which lagged the Zacks Consensus Estimate of $233 million by 1.4%. However, the top line increased 2.5% year over year, driven by higher revenues from its product and energy storage segments.

ORA’s Segmental Performance

Electricity: Revenues in this segment amounted to $180.2 million, down 5.8% year over year. This downside was primarily due to energy curtailments, mainly at the company’s McGinness complex, maintenance on the transmission line by the local grid operator, and wildfires in California, which forced grid operators to curtail part of the supplied power.

Product: This segment’s revenues increased 27.9% to $31.8 million from the year-ago quarter’s level. The improvement was due to the timing of revenue recognition and a higher backlog.

Energy: Revenues in this division amounted to $17.8 million, up 119.7% from the prior-year quarter’s figure. This was driven by a strong performance in the PJM merchant market, where a spike in cold weather along the East Coast contributed to elevated merchant pricing.

ORA’s Operational Update

Ormat’s total operating expenses (research and development, selling and marketing, as well as general and administrative expenses) were $24.6 million, which rose 1.6% from the year-ago quarter’s level.

The operating income declined 3.2% year over year to $50.9 million.

The total cost of revenues was $156.8 million, up 7.9% year over year.

Net interest expenses were $34.5 million, up 11.3% year over year.

Ormat’s Financial Condition

ORA had cash and cash equivalents of $112.7 million as of March 31, 2025 compared with $94.4 million as of Dec. 31, 2024.

ORA’s 2025 Guidance

The company reiterated its guidance for 2025. It still expects to generate revenues in the range of $935-$975 million. The Zacks Consensus Estimate is pegged at $953.6 million, lower than the midpoint of the guided range.

Revenues for the Electricity segment are still anticipated in the band of $710-$725 million. The Product segment’s revenues are still expected to be in the range of $172-$187 million. Revenues for the Energy Storage segment are still expected between $53 million and $63 million.

ORA still anticipates annual adjusted EBITDA in the band of $563-$593 million.

ORA’s Zacks Rank

Ormat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Sector Releases

CNX Resources Corporation CNX reported first-quarter 2025 operating earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 21.9%. The bottom line also increased 73.3% from 45 cents in the year-ago quarter.

The company reported revenues of $441 million, which missed the Zacks Consensus Estimate of $492 million by 10.4%. However, the top line increased 15.7% from the prior-year quarter’s $381 million.

ONEOK Inc. OKE reported first-quarter 2025 operating earnings per share of $1.04, which missed the Zacks Consensus Estimate of $1.23 by 15.4%. The bottom line also declined 4.6% from the year-ago quarter’s figure of $1.09.

Operating revenues for the quarter totaled $8.04 billion, which surpassed the Zacks Consensus Estimate of $7 billion by 14.9%. The top line also improved 68.2% from $4.78 billion in the prior-year quarter.

TotalEnergies SE TTE reported first-quarter 2025 operating earnings of $1.83 (€1.74) per share, which lagged the Zacks Consensus Estimate of $1.88 by 2.65%. The bottom line also declined 3.7% from the year-ago figure of $1.90 (€1.78).

Total revenues for the first quarter were $47.89 billion, which declined from the year-ago reported figure of $51.88 billion by 8%. However, the figure surpassed the Zacks Consensus Estimate of $45.5 billion by 5.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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