Ormat Technologies, Inc 10-Q for FY2025 Q1

Ormat Technologies, Inc. (ORA)

10-Q 2025-05-08 For: 2025-03-31

Added on April 11, 2026

About this 10-Q

Ormat Technologies, Inc filed this 10-Q on May 8, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $229.76M; up 2.5% from $224.17M a year earlier
Net income: $40.36M; up 4.6% from net income of $38.59M a year earlier
Diluted EPS: $0.66; up 3.1% from $0.64 a year earlier

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Delaware			88-0326081
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)
6884 Sierra Center Parkway,, Reno,, Nevada			89511-2210
(Address of principal executive offices)			(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ORA	NYSE


PART I — FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	4
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	43
ITEM 4.	CONTROLS AND PROCEDURES	43
PART II — OTHER INFORMATION		44
ITEM 1.	LEGAL PROCEEDINGS	44
ITEM 1A.	RISK FACTORS	44
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	44
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	44
ITEM 4.	MINE SAFETY DISCLOSURES	45
ITEM 5.	OTHER INFORMATION	45
ITEM 6.	EXHIBITS	45
SIGNATURES		46


	March 31, 2025		December 31, 2024
	(Dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	112,704	$	94,395


Restricted cash and cash equivalents (primarily related to VIEs)	112,001		111,377
Receivables:
Trade less allowance for credit losses of $249 and $163, respectively (primarily related to VIEs)	173,590		164,050

Other	45,489		50,792

Inventories	42,107		38,092
Costs and estimated earnings in excess of billings on uncompleted contracts	20,940		29,243

Prepaid expenses and other	94,023		59,173
Total current assets	600,854		547,122


Investment in unconsolidated companies	158,618		144,585
Deposits and other	89,021		75,383
Deferred income taxes	165,983		153,936

Property, plant and equipment, net ($3,261,700 and $3,271,248 related to VIEs, respectively)	3,497,915		3,501,886
Construction-in-process ($370,762 and $251,442 related to VIEs, respectively)	844,873		755,589
Operating leases right of use ($13,725 and $13,989 related to VIEs, respectively)	32,232		32,114
Finance leases right of use (none related to VIEs)	2,935		2,841

Intangible assets, net	295,225		301,745
Goodwill	151,291		151,023
Total assets	$	5,838,947	$	5,666,224

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	201,354	$	234,334


Commercial paper (less deferred financing costs of $22 and $23, respectively)	99,978		99,977
Billings in excess of costs and estimated earnings on uncompleted contracts	52,198		23,091
Current portion of long-term debt:
Limited and non-recourse (primarily related to VIEs)	70,453		70,262


Full recourse	184,227		161,313
Financing liability	5,905		4,093
Operating lease liabilities	3,657		3,633
Finance lease liabilities	1,451		1,375
Total current liabilities	619,223		598,078
Long-term debt, net of current portion:
Limited and non-recourse (primarily related to VIEs and less deferred financing costs of $8,216 and $8,849, respectively)	560,824		578,204
Full recourse (less deferred financing costs of $4,782 and $4,671, respectively)	957,027		822,828
Convertible senior notes (less deferred financing costs of $6,138 and $6,820, respectively)	470,299		469,617
Financing liability	213,810		216,476
Operating lease liabilities	22,722		22,523
Finance lease liabilities	1,544		1,529


Liability associated with sale of tax benefits	144,081		152,292

Deferred income taxes	71,479		68,616
Liability for unrecognized tax benefits	6,481		6,272
Liabilities for severance pay	11,147		10,488
Asset retirement obligation	131,431		129,651
Other long-term liabilities	33,533		29,270
Total liabilities	3,243,601		3,105,844

Commitments and contingencies (Note 9)

Redeemable noncontrolling interest	9,573		9,448

Equity:
The Company's stockholders' equity:
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,662,626 and 60,500,580 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	61		61
Additional paid-in capital	1,640,910		1,635,245
Treasury stock, at cost (258,667 shares held as of March 31, 2025 and December 31, 2024, respectively)	(17,964)		(17,964)
Retained earnings	847,607		814,518
Accumulated other comprehensive income (loss)	(9,410)		(6,731)
Total stockholders' equity attributable to Company's stockholders	2,461,204		2,425,129
Noncontrolling interest	124,569		125,803
Total equity	2,585,773		2,550,932
Total liabilities, redeemable noncontrolling interest and equity	$	5,838,947	$	5,666,224


	Three Months Ended March 31,
		2025		2024
	(Dollars in thousands, except per share data)
Revenues:
Electricity		$	180,241	$	191,253
Product		31,769		24,832
Energy storage		17,752		8,081
Total revenues		229,762		224,166
Cost of revenues:
Electricity		119,833		116,730
Product		24,684		21,154
Energy storage		12,318		7,472
Total cost of revenues		156,835		145,356
Gross profit		72,927		78,810
Operating expenses:
Research and development expenses		2,542		1,564
Selling and marketing expenses		4,172		5,126
General and administrative expenses		17,909		19,537

Other operating income		(3,125)		—

Write-off of unsuccessful exploration and storage activities		516		—
Operating income		50,913		52,583
Other income (expense):
Interest income		1,313		1,839
Interest expense, net		(34,473)		(30,968)
Derivatives and foreign currency transaction gains (losses)		2,060		(1,582)

Income attributable to sale of tax benefits		17,571		17,476


Other non-operating income, net		222		26
Income from operations before income tax and equity in earnings of investees		37,606		39,374
Income tax (provision) benefit		3,795		147
Equity in earnings (losses) of investees		(367)		829
Net income		41,034		40,350





Net income attributable to noncontrolling interest		(672)		(1,763)
Net income attributable to the Company's stockholders		$	40,362	$	38,587
Comprehensive income:
Net income		41,034		40,350
Other comprehensive income (loss), net of related taxes:
Change in foreign currency translation adjustments		2,761		(2,163)
Change in unrealized gains or losses in respect of the Company's share in derivatives instruments of an unconsolidated investment that qualifies as a cash flow hedge		(896)		510
Change in unrealized gains or losses in respect of a cross currency swap derivative instrument that qualifies as a cash flow hedge		(3,466)		561
Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge		(512)		1,066

Other changes in comprehensive income		12		53
Total other comprehensive income (loss), net of related taxes:		(2,101)		27
Comprehensive income		38,933		40,377
Comprehensive income attributable to noncontrolling interest		(1,250)		(1,301)
Comprehensive income attributable to the Company's stockholders		$	37,683	$	39,076


Earnings per share attributable to the Company's stockholders:


Basic:		$	0.67	$	0.64


Diluted:		$	0.66	$	0.64
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic		60,559		60,386
Diluted		60,840		60,536


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to


	The Company's Stockholders' Equity
										Accumulated
				Additional						Other
	Common Stock			Paid-in		Treasury		Retained		Comprehensive				Noncontrolling		Total
	Shares	Amount		Capital		Stock		Earnings		Income (Loss)		Total		Interest		Equity
	(Dollars in thousands, except per share data)
Balance at December 31, 2023	60,359	$	60	$	1,614,769	$	(17,964)	$	719,894	$	(1,332)	$	2,315,427	$	125,560	$	2,440,987


Stock-based compensation	—	—		4,769		—		—		—		4,769		—		4,769
Exercise of stock-based awards by employees and directors (*)	63	—		55		—		—		—		55		—		55


Cash paid to noncontrolling interest	—	—		—		—		—		—		—		(2,587)		(2,587)
Cash dividend declared, $0.12 per share	—	—		—		—		(7,243)		—		(7,243)		—		(7,243)







Net income	—	—		—		—		38,587		—		38,587		1,924		40,511
Other comprehensive income (loss), net of related taxes:
Currency translation adjustments	—	—		—		—		—		(1,701)		(1,701)		(462)		(2,163)

Change in unrealized gains or losses in respect of the Company's share in derivative instruments of an unconsolidated investment that qualifies as a cash flow hedge	—	—		—		—		—		510		510		—		510
Change in unrealized gains or losses in respect of a cross currency swap derivative instrument that qualifies as a cash flow hedge	—	—		—		—		—		561		561		—		561
Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge	—	—		—		—		—		1,066		1,066		—		1,066
Other	—	—		—		—		—		53		53		—		53

Balance at March 31, 2024	60,422	$	60	$	1,619,593	$	(17,964)	$	751,238	$	(843)	$	2,352,084	$	124,435	$	2,476,519



















































Balance at December 31, 2024	60,501	$	61	$	1,635,245	$	(17,964)	$	814,518	$	(6,731)	$	2,425,129	$	125,803	$	2,550,932


Stock-based compensation	—	—		4,911		—		—		—		4,911		—		4,911
Exercise of stock-based awards by employees and directors (*)	162	—		754		—		—		—		754		—		754


Cash paid to noncontrolling interest	—	—		—		—		—		—		—		(2,767)		(2,767)
Cash dividend declared, $0.12 per share	—	—		—		—		(7,273)		—		(7,273)		—		(7,273)







Net income	—	—		—		—		40,362		—		40,362		955		41,317
Other comprehensive income (loss), net of related taxes:
Currency translation adjustments	—	—		—		—		—		2,183		2,183		578		2,761

Change in unrealized gains or losses in respect of the Company's share in derivative instruments of an unconsolidated investment that qualifies as a cash flow hedge	—	—		—		—		—		(896)		(896)		—		(896)
Change in unrealized gains or losses in respect of a cross currency swap derivative instrument that qualifies as a cash flow hedge	—	—		—		—		—		(3,466)		(3,466)		—		(3,466)
Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge	—	—		—		—		—		(512)		(512)		—		(512)
Other	—	—		—		—		—		12		12		—		12

Balance at March 31, 2025	60,663	$	61	$	1,640,910	$	(17,964)	$	847,607	$	(9,410)	$	2,461,204	$	124,569	$	2,585,773


	March 31,		December 31,
	2025		2024
	(Dollars in thousands)
Cash and cash equivalents	$	112,704	$	94,395
Restricted cash and cash equivalents	112,001		111,377
Total cash and cash equivalents and restricted cash and cash equivalents	$	224,705	$	205,772


			March 31, 2025
			Fair Value
	Carrying Value at March 31, 2025		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (primarily restricted cash accounts)	$	56,523	$	56,523	$	56,523	$	—	$	—


Derivatives: interest rate swap (3)	83		83		—		83		—







Liabilities:
Current liabilities:





Derivatives: cross-currency swap (1)	(3,661)		(3,661)		—		(3,661)		—
Derivatives: currency forward contracts (2)	(389)		(389)		—		(389)		—
Long term liabilities:
Derivatives: interest rate swap (3)	(480)		(480)		—		(480)		—
Derivatives: cross-currency swap (1)	(13,624)		(13,624)		—		(13,624)		—
	$	38,452	$	38,452	$	56,523	$	(18,071)	$	—


			December 31, 2024
			Fair Value
	Carrying Value at December 31, 2024		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (primarily restricted cash accounts)	$	52,031	$	52,031	$	52,031	$	—	$	—


Derivatives: interest rate swap (3)	180		180		—		180		—



Derivatives: currency forward contracts (2)	550		550		—		550		—


Liabilities:
Current liabilities:




Derivatives: cross-currency swap (1)	(3,500)		(3,500)		—		(3,500)		—
Long-term liabilities:
Derivatives: cross-currency swap (1)	(6,653)		(6,653)		—		(6,653)		—



	$	42,607	$	42,607	$	52,031	$	(9,424)	$	—


		Amount of recognized gain (loss)
Derivative instruments	Location of recognized gain (loss)	Three Months Ended March 31,
			2025		2024
		(Dollars in thousands)







Derivatives not designated as hedging instruments
Currency forward contracts (1)	Derivative and foreign currency transaction gains (losses)		$	(347)	$	1,078
Derivatives designated as cash flow hedging instruments
Cross currency swap (2)	Derivative and foreign currency transaction gains (losses)		$	(3,665)	$	(3,236)
Interest rate swap (2)	Interest expense, net		101		457
Total			$	(3,564)	$	(2,779)


	Fair Value Hierarchy Level	Fair Value				Carrying Amount (*)
		March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
		(Dollars in millions)				(Dollars in millions)
Limited and non-recourse loans: fixed rate	3	$	621.8	$	636.5	$	639.8	$	657.3
Full recourse loans:
Fixed-rate	3	883.6		920.4		897.4		940.4
Variable-rate	3	252.9		48.5		248.4		48.4
Financing liability: fixed-rate	3	220.2		223.4		219.7		220.6
Convertible senior note	2	492.3		471.2		476.4		476.4


Risk-free interest rates	3.95%	—	4.08%
Expected life (in years)	1	—	3
Dividend yield	0.69%
Expected volatility (weighted average)	27.0%	—	31.0%


	Revenue				Increase (Decrease)				% of Revenues for Period Indicated
	Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,
	2025		2024		2025				2025		2024
	(Dollars in thousands)
Revenues:
Electricity	$	180,241	$	191,253	$	(11,012)	(5.8)	%	78.4	%	85.3	%
Product	31,769		24,832		6,937		27.9		14		11.1
Other	17,752		8,081		9,671		119.7		8		3.6
Total	$	229,762	$	224,166	$	5,596	2.5	%	100.0	%	100.0	%


Form 10-Q


	Three Months Ended March 31,
		2025		2024
Southern California Public Power Authority (“SCPPA”)		22.0	%	24.7	%
Sierra Pacific Power Company and Nevada Power Company		16.1		16.8

Kenya Power and Lighting Co. Ltd. ("KPLC")		12.1		12.2


	March 31,		December 31,
	2025		2024
	(Dollars in thousands)
Raw materials and purchased parts for assembly	$	17,264	$	20,575
Self-manufactured assembly parts and finished products	24,843		17,517
Total inventories	$	42,107	$	38,092


	Electricity		Product		Energy Storage		Consolidated
	(Dollars in thousands)
Three Months Ended March 31, 2025:
Revenues from external customers:
United States (1)	$	134,213	$	3,239	$	17,752	$	155,204
Foreign (2)	46,028		28,530		—		74,558
Net revenue from external customers	180,241		31,769		17,752		229,762
Less:
Depreciation and amortization expenses (3)	56,870		2,571		6,851		66,293
Other cost of revenues expenses (4)	62,963		22,113		5,467		90,542
Segment gross profit (loss)	60,408		7,085		5,434		72,927
Less:
Segment operating expenses (income) (5)	19,565		3,449		(1,000)		22,014
Segment operating income	$	40,843	$	3,636	$	6,434	$	50,913
Total depreciation and amortization expense (6)	$	59,976	$	2,894	$	6,908	$	69,777
Segment assets at period end (7) (*)	5,124,073		244,796		470,078		5,838,947
Expenditures for long-lived assets	171,350		1,200		20,052		192,602
* Including unconsolidated investments	158,618		—		—		158,618

Three Months Ended March 31, 2024:
Revenues from external customers:
United States (1)	$	143,816	$	876	$	8,081	$	152,773
Foreign (2)	47,437		23,956		—		71,393
Net revenue from external customers	191,253		24,832		8,081		224,166
Less:
Depreciation and amortization expenses (3)	52,189		2,563		4,451		59,203
Other cost of revenues expenses (4)	64,541		18,591		3,021		86,153
Segment gross profit (loss)	74,523		3,678		609		78,810
Less:
Segment operating expenses (5)	21,842		2,836		1,549		26,227
Segment operating income (loss)	$	52,681	$	842	$	(940)	$	52,583
Total depreciation and amortization expense (6)	$	55,049	$	2,873	$	4,429	$	62,351
Segment assets at period end (7) (*)	4,961,483		190,210		365,151		5,516,844
Expenditures for long-lived assets	92,163		1,322		9,901		103,386


Credit Agreements	Amount Issued		Issued and Outstanding as of March 31, 2025		Termination Date
	(Dollars in millions)				364.8
Committed lines for credit and letters of credit	$	533.0	$	168.2	June 2025-March 2026
Committed lines for letters of credit	155.0		84.8		August 2025-March 2026
Non-committed lines	—		45.6		October 2025
Total	$	688.0	$	298.6


	(Dollars in thousands)
Year ending December 31:
2025	$	206,196
2026	282,676
2027	752,446
2028	302,535
2029	279,853
Thereafter	831,624
Total	$	2,655,331


Loan	Amount Outstanding as of March 31, 2025		Interest Rate Range	Maturity Date

Limited and non-recourse loans: fixed rate	$	639.8	1.7% - 7.0%	March-26 - July-47
Full recourse loans:
Fixed-rate	897.4		2.9% - 7.9%	January-28- February-33
Variable-rate	248.4		6.8% - 6.8%	September-28 - April-33
Financing liability (1)	219.7		6.0%	June-38
Convertible senior notes (2)	476.4		2.5%	July-27


	Assuming a 10% Increase in Rates				Assuming a 10% Decrease in Rates
Risk	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024		Change in the Fair Value of:
	(Dollars in thousands)
Foreign currency	$	(738)	$	(700)	$	876	$	2,078	Foreign currency forward contracts
Interest rate	(1,093)		—		1,130		—		Mizrahi 2025 Loan
Interest rate	(1,123)		—		1,161		—		Discount 2025 Loan
Interest rate	(2,149)		—		2,221		—		Hapoalim 2025 Loan
Interest rate	(2,930)		(2,986)		3,117		3,180		Bottleneck Loan
Interest rate	(4,949)		(5,096)		5,307		5,469		Mammoth Senior Secured Notes
Interest rate	(475)		(574)		482		584		Mizrahi Loan
Interest rate	(793)		(886)		817		914		Mizrahi Loan 2023
Interest rate	(580)		(679)		589		691		Hapoalim Loan
Interest rate	(1,683)		(1,708)		1,738		1,762		Hapoalim Loan 2023
Interest rate	(1,213)		(1,295)		1,248		1,333		Hapoalim 2024 Loan
Interest rate	(248)		(289)		252		294		HSBC Loan
Interest rate	(1,043)		(1,213)		1,059		1,233		HSBC Bank 2024 Loan
Interest rate	(665)		(759)		678		776		Discount Loan
Interest rate	(572)		(599)		589		617		Discount 2024 Loan
Interest rate	(782)		(851)		799		871		Discount 2024 II Loan
Interest rate	(9,060)		(9,275)		9,639		9,882		Financing Liability
Interest rate	(2,555)		(2,617)		2,641		2,704		OFC 2 Senior Secured Notes
Interest rate	(1,721)		(1,909)		1,768		1,965		Olkaria III - DFC Loan
Interest rate	(876)		(924)		908		960		DEG 4 Loan
Interest rate	(3,200)		(3,542)		3,301		3,661		Senior Unsecured Bonds
Interest rate	(207)		(240)		212		245		DEG 2 Loan
Interest rate	(1,101)		(1,142)		1,146		1,189		DAC 1 Senior Secured Notes
Interest rate	(2,252)		(2,491)		2,310		2,561		Senior Unsecured Loan (Migdal)
Interest rate	(813)		(835)		862		886		Prudential - NV
Interest rate	(543)		(583)		560		603		DOE Loan
Interest rate	(1,966)		(2,026)		2,098		2,164		Prudential - Idaho Refinancing Loan
Interest rate	(1,458)		(1,517)		1,513		1,574		Platanares DFC Loan
Interest rate	(170)		(197)		173		201		DEG 3 Loan
Interest rate	(22)		(22)		22		22		Commercial paper
Interest rate	(17)		(17)		17		17		Other long-term loans


Exhibit No.			Document
10.1+			Separation Agreement, dated February 25, 2025, between Ormat Systems Ltd. and Shimon Hatzir incorporated by reference to Exhibit 10.41 to Ormat Technologies, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2025 .
31.1*			Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2*			Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1#			Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
32.2#			Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
101.SC*			Inline XBRL Taxonomy Extension Schema Document.
101.CA*			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DE*			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LA*			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PR*			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101)

*			Filed herewith
#			Furnished herewith.
+			Management contract or compensatory plan in which directors and/or executive officers are eligible to participate.


			ORMAT TECHNOLOGIES, INC.


			By:			/s/ ASSAF GINZBURG
			Name:			Assaf Ginzburg
			Title:			Chief Financial Officer and Authorized Signatory


			By: /s/ Doron Blachar
			Name: Doron Blachar Title: Chief Executive Officer
			(Principal Executive Officer)


			By: /s/ Assaf Ginzburg
			Name: Assaf Ginzburg Title: Chief Financial Officer
			(Principal Financial Officer)



			By:			/s/ Doron Blachar
						Name: Doron Blachar
						Title: Chief Executive Officer
						(Principal Executive Officer)