Ormat has a perfect four-quarter earnings beat streak and notable analyst upside after a 40% drawdown, but negative free cash flow, high leverage and a 70% electricity segment concentration keep quality below the floor.
Thesis pillars
- Perfect Earnings Beat Streak→Stable
- Negative Cash Conversion→Stable
- Electricity Segment Concentration↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Oct 24, 2026, based on the 10-K filed Feb 26, 2026
Ormat Technologies, Inc. (ORA) Stock Analysis
Recovery setup
Utilities · Utilities - Renewable
Sell if holding. Engine safety override at $91.66: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 8.87; Below-average business quality.
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 $91.66: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 8.87; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 57. Score 4.5/10, moderate confidence.
Passes 7/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news boost earnings 0.70, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA) and earnings proximity 6d<=7d. 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.
Show full overview
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 2026-10-29Recent Developments — Ormat Technologies, Inc.
Latest news
- NEWS Orange Reports Solid Q3 Revenue Growth and Raises Full-Year EBITDAaL Target — fiscal.ai Oct 27, 2026 positive
- NEWS Orange, Deutsche Telekom, Telefónica, and Vodafone Plan Joint Bid for Mobile Satellite Services Spectrum — fiscal.ai Oct 24, 2026 neutral
- NEWS Orange Introduces New Voice Intelligence Services Powered by NVIDIA Infrastructure — fiscal.ai Oct 21, 2026 positive
- NEWS JP Morgan Maintains Neutral on Ormat Technologies, Lowers Price Target to $98 — benzinga Oct 19, 2026 neutral
- NEWS Ormat Technologies Reports Q2 2026 Results: Full Earnings Call Transcript — benzinga Oct 9, 2026 neutral
Generated 2026-10-29T10:28:32Z.
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. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals 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 $91.66: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 8.87; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 57. Prior stop was $86.16. Score 4.5/10, moderate confidence.
Analyst target: $107.52 (+17.3% upside). Prior stop was $86.16. Stop-loss: $86.16.
Concentration risk — Product: Electricity segment (70.1%); Quality below floor (3.2 < 4.0); Value-trap signals (2/5): High leverage (D/E 2.0), Negative free cash flow.
Ormat Technologies, Inc. trades at a P/E of 44.9 (forward 35.7). TrendMatrix value score: 4.4/10. Verdict: Sell.
17 analysts cover ORA with a consensus score of 3.8/5. Average price target: $124.
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%).