Ormat Technologies delivered 4 consecutive earnings beats and 76% revenue growth, but negative free cash flow, a very expensive valuation at 56x forward earnings, and failing momentum and asymmetry gates make this a hold-at-best, exit-candidate situation.
Thesis pillars
- Perfect Earnings Beat Streak↓Deteriorating
- Revenue Growth Leadership↓Deteriorating
- Negative Free Cash Flow Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Ormat Technologies, Inc. (ORA) Stock Analysis
Utilities · Utilities - Renewable
Sell if holding. Engine safety override at $114.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: Below-average business quality; Rich valuation; Below long-term trend.
Ormat Technologies develops, owns and operates 35 geothermal, solar PV, and recovered energy power plants with 1,340MW of generating capacity globally, plus 415MW/1,038MWh of battery energy storage in the U.S. Electricity sales under long-term PPAs represented 70.1% of 2025... Read more
Sell if holding. Engine safety override at $114.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: Below-average business quality; Rich valuation; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.5/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 82d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Ormat Technologies, Inc.
About Ormat Technologies, Inc.
Ormat Technologies owns 1,340MW of aggregate generating capacity across 35 power plants and complexes globally—geothermal representing 81.3% of Electricity segment capacity, with the balance in solar PV and recovered energy generation—plus 415MW/1,038MWh of grid-connected battery energy storage in the United States. The Electricity segment contributed 70.1% of total 2025 revenues, with 40.3% of all revenues derived from international operations. The two largest facilities, McGinness Hills in Nevada and Olkaria III in Kenya, together accounted for 20.7% of total 2025 revenues.
Long-term power purchase agreements with fixed prices denominated in or linked to the U.S. dollar or Euro underpin the Electricity segment, which carried a weighted average remaining PPA term of approximately 14 years at December 31, 2025. PPA counterparties in the United States hold credit ratings between Baa1 and Ba2 (Moody's) and AA+ to B+ (S&P), while foreign purchasers are primarily state-owned entities in below-investment-grade sovereign environments. SCPPA and its member utilities buy output from seven of Ormat's geothermal plants, representing 17.8% of 2025 revenues; KPLC purchases power from the Olkaria III complex in Kenya, contributing 11.9%. The Product segment—which designs and manufactures OEC power units and provides EPC services—generated 95% of its revenues from international sales in 2025, primarily New Zealand, with approximately $103.5 million in new contract backlog added during the year. The Energy Storage segment operates 19 BESS projects generating revenues through merchant ancillary services and full tolling agreements.
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Exposure to state-owned utility counterparties carries measurable collection risk. At December 31, 2025, KPLC in Kenya had $29.5 million overdue to Ormat Technologies, of which $21.1 million was received by February 2026; KPLC has also requested more favorable rates on its existing PPAs. In Honduras, ENEE had $20.3 million overdue at the same date, with only $1.0 million collected by early 2026. Because both are state-owned entities in below-investment-grade sovereign environments, any adverse change in their financial condition or political stance may impact cash flows from these international operations.
See also: Utilities · Utilities - Renewable
From Ormat Technologies, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-08-15Recent Developments — Ormat Technologies, Inc.
Latest news
- NEWS Barclays Maintains Overweight on Ormat Technologies, Lowers Price Target to $122 — benzinga Aug 10, 2026 neutral
- NEWS Oppenheimer Maintains Outperform on Ormat Technologies, Lowers Price Target to $141 — benzinga Aug 7, 2026 positive
- NEWS Ormat Technologies Raises FY2026 Sales Guidance from $1.110B-$1.160B to $1.150B-$1.200B vs $1.170B Est — benzinga Aug 5, 2026 positive
- NEWS Ormat Technologies Q2 Adj. EPS $0.50 Beats $0.26 Estimate, Sales $258.800M Beat $240.335M Estimate — benzinga Aug 5, 2026 positive
- NEWS Top 2 Utilities Stocks That Could Blast Off In Q3 — benzinga Jul 27, 2026 neutral
Generated 2026-08-15T09:37:17Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerSCPPA18%10-K Item 1A: 'SCPPA and its municipal utility members that account for 17.8% of our total revenues in 2025'
- LOWCustomerKPLC12%10-K Item 1A: 'KPLC accounted for 11.9% of our total revenues'
- HIGHProductElectricity segment70%10-K Item 1A: 'we derived 70.1% of our total revenues for the year ended December 31, 2025 from the sale of electricity'
- MEDIUMGeographicinternational operations40%10-K Item 1A: '40.3% of our total revenues were derived from international operations'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
4 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $114.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: Below-average business quality; Rich valuation; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $106.73. Score 4.5/10, moderate confidence.
Take-profit target: $115.56 (+0.7% upside). Prior stop was $106.73. Stop-loss: $106.73.
Concentration risk — Product: Electricity segment (70.1%); Target reached (0.7% upside); Quality below floor (3.2 < 4.0).
Ormat Technologies, Inc. trades at a P/E of 55.6 (forward 43.1). TrendMatrix value score: 3.1/10. Verdict: Sell.
17 analysts cover ORA with a consensus score of 3.7/5. Average price target: $133.
What does Ormat Technologies, Inc. do?Ormat Technologies develops, owns and operates 35 geothermal, solar PV, and recovered energy power plants with 1,340MW...
Ormat Technologies develops, owns and operates 35 geothermal, solar PV, and recovered energy power plants with 1,340MW of generating capacity globally, plus 415MW/1,038MWh of battery energy storage in the U.S. Electricity sales under long-term PPAs represented 70.1% of 2025 revenues; key PPA counterparties include SCPPA (17.8% of revenues) and KPLC in Kenya (11.9%).