Ormat Technologies Q2 revenue up 9.9%, beats estimates
Overview
Ormat Q2 revenue rises 9.9%, beating analyst expectations, per LSEG data
Net income for Q2 grows 26.1%, driven by Product and Energy Storage segments
Co secures $300 mln funding for future development, completes 20MW acquisition
Outlook
Ormat sees 2025 total revenues between $935 mln and $975 mln
Company expects electricity segment revenues of $710 mln to $725 mln
Ormat projects adjusted EBITDA between $563 mln and $593 mln
Company anticipates strong growth driven by favorable regulatory developments
Result Drivers
PRODUCT SEGMENT - Revenue increased 57.6% due to better margin contracts and timing of revenue recognition
ENERGY STORAGE - Revenue rose 62.7% driven by new assets and strong merchant pricing in the PJM market
ELECTRICITY SEGMENT - Revenue decreased 3.8% due to planned well-field work and energy curtailments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $234.02 mln | $223.20 mln (9 Analysts) |
Q2 Adjusted EPS | Beat | $0.48 | $0.38 (10 Analysts) |
Q2 Adjusted EBITDA | Miss | $134.60 mln | $135.60 mln (9 Analysts) |
Q2 Gross Margin | 24.3% | ||
Q2 Operating Income | $35.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for Ormat Technologies Inc is $95.00, about 10.3% above its August 5 closing price of $85.23
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 34 three months ago
Press Release:
