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    How Strong Q3 Beat and Raised 2025 Outlook At Ormat Technologies (ORA) Has Changed Its Investment Story

    Simply Wall St·12/07/2025 00:26:59
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    • In the third quarter of 2025, Ormat Technologies reported earnings per share of US$0.41, beating expectations and raising its 2025 revenue outlook to US$960 million–US$980 million, supported by growth in its electricity, product, and energy storage segments.
    • An interesting takeaway is that operating income rose 13.3% year over year, highlighting how recent acquisitions and new facilities are already contributing meaningfully to Ormat’s profitability.
    • Next, we’ll consider how Ormat’s raised 2025 revenue guidance interacts with its existing investment narrative around growth and policy support.

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    Ormat Technologies Investment Narrative Recap

    To own Ormat, you need to believe in long term demand for reliable, low carbon baseload power and grid storage, supported by policy incentives and contracted revenues. The Q3 2025 earnings beat and higher revenue guidance reinforce that narrative in the near term, but they do not remove key risks around capital intensity, balance sheet leverage, and potential margin pressure from operational issues in the electricity segment.

    Among recent announcements, the Lower Rio storage project entering commercial operations in Texas stands out as highly relevant. It directly supports the higher 2025 revenue outlook, showcases growing scale in storage capacity, and taps into tax equity partnerships that can help fund Ormat’s sizeable capex program. For investors, it ties the current earnings momentum to one of the core growth catalysts in the story: expanding U.S. storage and monetizing available policy support.

    Yet this growth story sits alongside a funding and leverage profile that investors should be aware of, especially if...

    Read the full narrative on Ormat Technologies (it's free!)

    Ormat Technologies' narrative projects $1.2 billion revenue and $171.7 million earnings by 2028. This requires 9.4% yearly revenue growth and about a $40.4 million earnings increase from $131.3 million today.

    Uncover how Ormat Technologies' forecasts yield a $117.60 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    ORA Community Fair Values as at Dec 2025
    ORA Community Fair Values as at Dec 2025

    Four fair value estimates from the Simply Wall St Community span roughly US$24 to US$118 per share, showing just how far apart individual views can be. When you set that against Ormat’s higher 2025 revenue guidance and ongoing capex needs, it underlines why many investors choose to weigh several perspectives before forming a view on the company’s long term performance.

    Explore 4 other fair value estimates on Ormat Technologies - why the stock might be worth less than half the current price!

    Build Your Own Ormat Technologies Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.