Ormat Q2: Energy Storage Revenue Surges 195%, EPS Misses on Higher Interest Costs
ORA sits 27% above its 52-week low of $84.13.
Summary
Ormat Technologies reported Q2 2026 revenue of $258.8 million, up 10.6% year-over-year, driven by a 195% surge in energy storage revenue. Net income fell to $26.0 million as higher interest costs from recent convertible debt weighed on the bottom line.
Key Events · Earnings and Guidance · ORA
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Energy Storage Revenue Surges 195%
Energy storage revenue reached $42.8 million in Q2 2026, up from $14.5 million a year ago, driven by new facilities (Arrowleaf, Lower Rio, Hoku, Shirk) and higher merchant prices at PJM.
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Product Segment Revenue Declines 21.6%
Product segment revenue fell to $46.7 million from $59.6 million, reflecting the timing of project revenue recognition; the segment posted an operating loss of $1.8 million.
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Net Income Dips on Higher Interest Costs
Net income attributable to stockholders was $27.1 million ($0.43 diluted EPS) vs. $28.0 million ($0.46) a year ago, as interest expense rose to $43.9 million from $36.7 million following the $1 billion convertible note issuance.
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Cash Position Strengthens Significantly
Cash and cash equivalents increased to $513.7 million at June 30, 2026, from $147.4 million at year-end 2025, primarily from the convertible note offering proceeds.
Analysis · ORA · Energy & Transportation
Ormat's Q2 results reveal a sharp divergence between its segments. Energy storage revenue nearly tripled to $42.8 million, fueled by new facilities and higher merchant prices, while the legacy product segment contracted 21.6%. Overall revenue grew 10.6% to $258.8 million, but net income slipped to $26.0 million from $28.2 million a year ago as interest expense jumped to $43.9 million following the $1 billion convertible note issuance in March. The balance sheet strengthened with cash more than tripling to $513.7 million, yet the quarter also included $6.6 million in write-offs of unsuccessful projects and an $8.4 million impairment charge. Although results were pre-announced in the August 5 8-K, this 10-Q provides full financial statements and segment detail.
At the time of this filing, ORA was trading at $106.91 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $6.6B. The 52-week trading range was $84.13 to $146.39. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.