Ormat Technologies, Inc. (ORA) AI Stock Analysis

Ormat Technologies, Inc. is actively involved in the geothermal and recovered energy power sectors across a global footprint encompassing the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, and Honduras. The company operates through three primary segments: Electricity, Product, and Energy Storage. The Electricity segment develops, constructs, owns, and operates geothermal, solar photovoltaic, and recovered energy power plants to sell electricity. The Product segment designs, manufactures, and services equipment for geothermal and recovered energy generation, including turbo-generators and direct-current generators. The Energy Storage segment delivers energy storage solutions, engineering, procurement, construction, operation, and maintenance services.

Revenue expanded from $663.1M in FY2021 to $989.5M in FY2025, delivering a 5-year revenue CAGR of 7.0%. Over the same period, net income rose from $62.1M to $123.9M, while EPS grew from $1.38 to $2.24. However, gross margin contracted from 39.9% in FY2021 to 27.6% in FY2025, and operating margin declined from 25.5% to 18.5%. For the trailing twelve months ending June 30, 2026, revenue totaled $1.19B, and EPS reached $2.04. In the latest quarter, quarterly revenue grew 10.6% year-over-year, while quarterly earnings fell 6.5%.

As of June 30, 2026, Ormat held $513.7M in cash and short-term investments against $3.41B in total debt, leaving net debt at $2.90B. Shareholders' equity stood at $2.60B, resulting in a debt-to-equity ratio of 1.31 and a current ratio of 1.05. In FY2025, operating cash flow was $335.1M, but capital expenditures of $619.8M resulted in free cash flow of -$284.7M. The company paid $29.1M in dividends during FY2025, while its share count expanded 10.9% over five years.

Ormat trades at a trailing P/E of 43.8x and a forward P/E of 35.8x, both above the median of its US-listed Utilities peers at 20.6x and 17.2x, respectively. Its enterprise value of $8.88B translates to an EV/EBITDA of 15.7x, compared to the peer median of 12.1x. Ormat's price-to-sales ratio is 4.6x, versus 2.4x for the peer group. Over the past year, the stock fell 18.8%, underperforming the S&P 500 (SPY) gain of 16.8%. Over five years, the stock gained 28.9% compared to 83.0% for the S&P 500.

Ormat pays a forward annual dividend of $0.48 per share, yielding 0.54% with a payout ratio of 16.7%. The dividend is distributed quarterly and has been paid for 22 consecutive years, posting a 5-year annualized growth rate of 1.8%. The company's last ex-dividend date was August 19, 2026.

Wall Street coverage includes 4 Strong Buy, 3 Buy, and 6 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $126.33, representing a 41.5% premium over the last close of $89.31. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.18B and EPS of $2.68, reflecting 19.6% EPS growth. Ormat has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Ormat Technologies, Inc. (ORA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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