Abstract

Ormat Technologies, Inc. will report fourth-quarter 2025 results on February 25, 2026 Post Market, with consensus pointing to year-over-year growth in revenue and adjusted EPS and investors weighing recent long-term contracting momentum.

Market Forecast

Consensus for Ormat Technologies, Inc.’s current quarter points to revenue of $258.04 million, up 9.76% year over year, and adjusted EPS of $0.63, up 24.21% year over year, while EBIT is expected near $59.82 million with a modest year-over-year decline of 4.01%. Margin guidance was not provided for the quarter; the last reported gross margin was 25.64% and the net profit margin was 9.67%, which together frame how investors will interpret the coming results alongside the expected EPS expansion.

The company’s core power business is positioned to carry the quarter, supported by contracted revenue visibility and steady plant operations, while ongoing commercial momentum around new power purchase agreements underpins a constructive medium-term outlook. The most promising area from a growth potential standpoint is the long-duration contract pipeline tied to data center demand, with the power segment’s last quarter revenue at $167.11 million; near-term revenue in the energy storage and management services business stood at $20.37 million.

Last Quarter Review

In the previous quarter, Ormat Technologies, Inc. delivered revenue of $249.73 million (up 17.92% year over year), a gross profit margin of 25.64%, GAAP net profit attributable to the parent company of $24.14 million, a net profit margin of 9.67%, and adjusted EPS of $0.41 (up 13.89% year over year). Quarter on quarter, net profit declined by 13.94%, reflecting operating mix and timing effects.

A notable financial highlight was top-line outperformance versus the prior estimate, with revenue exceeding expectations by $15.42 million, while adjusted EPS exceeded by $0.04. The power segment contributed $167.11 million, the products segment generated $62.25 million, and energy storage and management services contributed $20.37 million, establishing a mix where power represented 66.92% of last quarter revenue, products 24.93%, and energy storage and management services 8.16%.

Current Quarter Outlook (with major analytical insights)

Power Segment

The power segment remains Ormat Technologies, Inc.’s main earnings driver this quarter, and its forward visibility is based on contracted sales and asset operations across the portfolio. The quarter’s consensus revenue of $258.04 million and adjusted EPS of $0.63 embed expectations of stable generation and minimal downtime, as well as the benefit of contracted pricing. While gross margin guidance has not been issued for the period, last quarter’s 25.64% level provides a benchmark investors will use to gauge whether operational efficiencies and pricing are sustaining margin resilience. The current quarter forecast for EBIT shows a 4.01% year-over-year decline, signaling that operating expenses, depreciation schedules, or mix may exert some pressure even as EPS rises solidly; markets will look for color on how operating costs, maintenance schedules, and accruals flow through the quarter’s results.

From a commercial standpoint, announcements in mid-February highlight the company’s execution in signing long-term agreements for new geothermal capacity that will be added to its portfolio beginning as early as 2028 and scaling through 2030. Although the newly signed long-term contracts do not contribute to revenue in the current quarter, they materially reinforce visibility beyond the quarter and validate Ormat’s commercial pathway to grow within contracted power. In assessing this quarter’s numbers, investors will seek clarity on any small-scale additions, optimization initiatives, or incremental revenue from recently commissioned assets that can offset typical seasonal and maintenance-related variability in the power fleet. Transparency on contracted pricing, resource factors, and plant availability will be key to understanding whether the margin trajectory can remain close to the 25.64% benchmark and if net profit margin can sustain near last quarter’s 9.67%.

Energy Storage and Management Services

Energy storage and management services represent an area with promising growth potential and an increasingly strategic role in the portfolio mix, even though last quarter revenue of $20.37 million remains a relatively modest share of total sales. For the quarter under review, investors will be focused on how the business executes contracted obligations and merchant opportunities, and on the cadence of deployments and service contracts that translate into recognizable revenue. Because the forecast does not provide a segment-level breakdown, the headline revenue and EPS expectations will be parsed to isolate storage contributions by comparing year-over-year movements and management’s commentary around deliveries, deployments, and multi-year service contracts.

Operationally, the segment’s contribution is leveraged by service quality, uptime commitments, and project delivery milestones, which can create quarter-to-quarter lumpiness. The expected decline in EBIT year over year in the consolidated forecast implies that operating mix could be a swing factor; therefore, the storage business will be assessed for margin accretion or dilution depending on cost structures and contractual pass-through clauses. Longer-term, the alignment of asset operations with contracted frameworks should support incremental profitability as project scopes expand; in the near term, investors will look for details on contracted backlog, revenue recognition timing for services, and how management plans to balance growth with margins given last quarter’s consolidated gross margin of 25.64%.

Stock Price Drivers This Quarter

Two quantitative anchors will likely drive the stock reaction on February 25, 2026: the degree to which revenue matches or exceeds the $258.04 million consensus, and whether adjusted EPS prints at or above $0.63, with investors sensitive to the 24.21% year-over-year EPS expansion implied by the forecast. Given that the EBIT forecast indicates a 4.01% decline year over year, the market will dissect the interplay between operating income and EPS, watching for the influence of financial line items such as interest and tax expense, as well as any share count effects. This tension between a slightly softer EBIT trend and stronger EPS growth sets up a close read of margin components and cost control, and how these reconcile with the last quarter’s net profit margin of 9.67%.

The visibility of margin dynamics will be assessed against last quarter’s performance profile: gross margin at 25.64% and net profit margin at 9.67% offer a baseline to evaluate operating mix in the power segment, product deliveries, and service contracts. Investors will likely focus on comments regarding fleet performance and planned maintenance timetables to gauge whether operational uptime supports margin stability. The stock’s near-term direction will also be influenced by qualitative signals around commercial milestones; while new long-term contracts commencing in 2028–2030 do not impact current quarter revenue, they enhance medium-term expectations and can bolster sentiment if management offers stronger clarity on development timelines, permitting progress, and financing pathways.

Another driver will be the company’s execution against prior quarter patterns of outperformance. Last quarter, Ormat Technologies, Inc. topped revenue estimates by $15.42 million and exceeded EPS expectations by $0.04, a combination that tends to raise the bar for investor expectations; a repeat on both top and bottom line would likely be viewed favorably. Conversely, if reported EBIT aligns with the forecasted year-over-year decline and margins compress, investors will probe whether this is mix-related and temporary or if it indicates broader operating cost pressures. The market will look for detailed commentary on cost drivers, maintenance schedules, and the extent to which contract terms provide cushion against input variability, with special attention to whether consolidated margins can remain close to the recent historical range.

Analyst Opinions

Across the collected views for Ormat Technologies, Inc., the majority opinion is bullish. Among six recent published positions, five are Buy and one is Hold, indicating approximately 83% bullish and 17% neutral; no Sell calls were identified in the period assessed. Analysts point to the durability of contracted power revenue, robust recent commercial execution, and identifiable EPS upside in the current quarter versus last year as core pillars supporting the constructive stance.

Notably, one major global bank raised its price target to $148 and reiterated a Buy rating, highlighting strengthening confidence in Ormat Technologies, Inc.’s growth trajectory and capital deployment discipline. Other well-known institutions have maintained Buy ratings with targets clustered between $89 and $125, including firms citing the combination of recurring power revenue, improving earnings quality, and the reinforcement of long-term demand through recently announced portfolio agreements. Another household-name bank maintained a Hold with a $116 target, emphasizing valuation discipline and suggesting a balanced approach to potential near-term EBIT pressure against medium-term contracted growth visibility.

The analytical focus among the bullish cohort centers on the current quarter’s expected outperformance in adjusted EPS—forecast to rise 24.21% year over year to $0.63—relative to the slight year-over-year EBIT decline of 4.01%. In their view, the implied EPS strength despite modest EBIT pressure underscores elements such as operating efficiencies, favorable financial line items, and a supportively contracted revenue base. Several analysts also highlight the significance of February’s long-term contracting milestones, arguing that multi-year portfolio agreements demonstrate commercial momentum and expand visibility into capacity additions that will be accretive in future years; even though these do not impact the quarter being reported, they reinforce confidence in revenue durability and scope for margin maintenance as assets scale.

In terms of valuation framing, the bullish institutions argue that an average price target in the mid-$120s and an aggregated overweight stance reflect expectations for multi-year earnings expansion driven by contracted projects, complemented by a disciplined approach to investment in technology and capacity. They emphasize that last quarter’s results—$249.73 million in revenue, a 25.64% gross margin, $24.14 million in net profit, a 9.67% net margin, and adjusted EPS of $0.41—indicate stable execution from which the current quarter is poised to advance. The key, in their analysis, will be whether Ormat Technologies, Inc. can align reported margins with the historical range while delivering the consensus revenue of $258.04 million and EPS of $0.63, thereby validating the thesis that near-term earnings growth is on track and medium-term contracted additions can sustain expansion.

Taken together, the majority of analysts interpret the current setup as favorable: contracted power provides dependable cash flow, recent commercial wins strengthen multi-year visibility, and the forecasted EPS growth this quarter offers a clear quantitative anchor. They expect management commentary to provide nuanced detail on operating costs, maintenance planning, and the progression of contracted projects, which will help investors reconcile the EBIT forecast with the expected EPS trajectory. The consensus bullish view thus ties short-term execution to medium-term capacity growth, forming a narrative that supports price targets above the recent trading range and maintains confidence in earnings delivery on February 25, 2026 Post Market.