Ormat Technologies Reports $229.8 Million Revenue in Q1 2025, Plans Acquisition of Blue Mountain Geothermal Plant

Ormat Technologies, Inc. reported a total revenue of $229.8 million for the first quarter of 2025, reflecting a 2.5% increase from $224.2 million in the same period of 2024. The company's electricity segment generated $180.2 million, down 5.8% from $191.3 million, primarily due to curtailments and maintenance issues at several power plants. In contrast, the product segment saw a significant revenue increase of 27.9%, reaching $31.8 million, while the energy storage segment experienced a substantial growth of 119.7%, totaling $17.8 million, driven by new facilities coming online.

The company's gross profit for the quarter was $72.9 million, a decrease from $78.8 million year-over-year, with the gross margin dropping from 35.2% to 31.7%. Operating income also fell to $50.9 million from $52.6 million in the previous year. The decline in profitability was attributed to increased costs in the electricity segment, which rose to 66.5% of revenues compared to 61.0% in the prior year. Notably, the company reported a net income of $41.0 million, slightly up from $40.4 million, with earnings per share increasing to $0.67 from $0.64.

In terms of strategic developments, Ormat announced plans to acquire the Blue Mountain geothermal power plant for $88 million, expected to close in the second quarter of 2025. The company also secured two 15-year tolling agreements for energy storage facilities in Israel, enhancing its operational capacity. Additionally, Ormat successfully commenced operations at the Ijen geothermal power plant in Indonesia, contributing to its international growth strategy.

Operationally, Ormat's total assets increased to $5.84 billion as of March 31, 2025, up from $5.67 billion at the end of 2024. The company reported a cash and cash equivalents balance of $112.7 million, alongside $364.8 million in unused corporate borrowing capacity. The total employee headcount remained stable, supporting ongoing projects and operational needs. The company continues to monitor geopolitical risks, particularly in Israel, where ongoing conflicts have not yet impacted its facilities or supply chains.

Looking ahead, Ormat anticipates continued growth in its energy storage and product segments, bolstered by new contracts and strategic acquisitions. The company expects to finance its capital needs through operational cash flows and project financing, while maintaining compliance with its financial covenants. Management remains optimistic about the long-term outlook, despite potential challenges from market volatility and geopolitical factors.