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Ormat reported second-quarter revenue of $258.8 million, up 10.6% from $234.0 million a year earlier and above the $235.9 million consensus. Diluted earnings per share fell to $0.43 from $0.46.
The filing said electricity revenue rose 5.80%, helped by contributions from Blue Mountain and higher generation at Olkaria. Energy storage revenue increased 195.1%; Ormat attributed the rise primarily to higher energy rates at PJM facilities and new storage assets. Product revenue declined, which the company linked to project progress and the timing of revenue recognition.
Ormat reported gross margin of 26.5%, up from 24.3% a year earlier, while operating margin fell to 13.2% from 15.1%. The company reported free cash flow of −$180.5 million, compared with −$37.9 million in the year-ago quarter.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $258.8 million | $234.0 million | 10.6% |
| Diluted EPS | $0.43 | $0.46 | −6.52% |
| Gross margin | 26.5% | 24.3% | 2.2 percentage points |
| Operating margin | 13.2% | 15.1% | −1.9 percentage points |
| Free cash flow | −$180.5 million | −$37.9 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $258.8 million | $235.9 million | Beat by 9.70% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Ormat’s filing said battery storage investments and profitability could be affected by merchant-price volatility, competition, storage costs and changes in battery technology. The filing also cited fire risk and expanded trade restrictions.
Guidance
Ormat raised its 2026 revenue outlook and now expects adjusted EBITDA of $630.0 million to $650.0 million. The company lowered its electricity revenue range to $710.0 million–$725.0 million and raised its storage revenue range to $140.0 million–$155.0 million.
Ormat now expects full-year storage gross margin of 40.0%–50.0% and product gross margin of approximately 18.0%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Gross margin, Electricity | FY2026 | Ormat expects electricity gross margin to improve toward the end of FY2026. | — | — |
| EBITDA, Non Gaap Minority Interest | FY2026 | $17.0 million | — | New |
| EBITDA, non-GAAP | FY2026 | $630.0 million–$650.0 million | $615.0 million–$645.0 million | Raised |
| Revenue, Energy Storage | FY2026 | $140.0 million–$155.0 million | $95.0 million–$110.0 million | Raised |
| Revenue, Product | FY2026 | $300.0 million–$320.0 million | $300.0 million–$320.0 million | Held |
| Revenue, Electricity | FY2026 | $710.0 million–$725.0 million | $715.0 million–$730.0 million | Cut |
| Revenue | FY2026 | $1.2 billion–$1.2 billion | $1.1 billion–$1.2 billion | Raised |
| Units, Operating Portfolio Gigawatts | FY2028 | 2.6–2.8 | — | — |
| Dividend | Q3 FY2026 | $0.12 | — | New |
| Capex, Egs | FY2026 | $20.0 million | $20.0 million | Held |
| Capex, Energy Storage | FY2026 | $129.0 million | $111.0 million | Raised |
| Capex, Electricity | FY2026 | $281.0 million | $436.0 million | Cut |
| Capex | FY2026 | $449.0 million | $587.0 million | Cut |
| Tax rate | FY2026 | 15.0% | −20.0%–−15.0% | Raised |
| Gross margin, Energy Storage | FY2026 | 40.0%–50.0% | 35.0%–40.0% | Raised |
| Gross margin, Product | FY2026 | 18.0% | 18.0%–20.0% | Cut |
| Units, Egs Pilot Capacity Megawatts Each | FY2027 | 2–4 | — | — |
| Units, Generating Capacity Additions Megawatts | FY2028 | 216 | — | — |
| Units, Portfolio Capacity Gigawatts | FY2028 | 2.6–2.8 | — | — |
| Gross margin, Electricity Margin Increase | FY2027 | 1.00%–2.00% | — | New |
| Gross margin, Electricity Margin Increase | FY2026 | 1.00%–2.00% | — | New |
| Dividend, Per Share | Q4 FY2026 | $0.12 | Q3 FY2026: $0.12 | Held |
| Dividend, Per Share | Q3 FY2026 | $0.12 | Q2 FY2026: $0.12 | Held |