Ormat Technologies, Inc. (ORA): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and understand the actual engine driving Ormat Technologies, Inc. (ORA) in this energy market, and frankly, their business model is a textbook example of vertical integration meeting aggressive, modern scaling. As someone who spent a decade analyzing power generators at BlackRock, what stands out is how they pair their proprietary geothermal tech-managing a portfolio approaching 1.6 GW-with a rapidly expanding Battery Energy Storage Systems (BESS) arm, projecting revenues from Power Purchase Agreements (PPAs) between $700M and $705M for 2025. This isn't just about generating electrons; it's about owning the equipment, securing long-term contracts, and managing significant capital, evidenced by their debt load near $2.6 billion as of Q1 2025. To see the complete strategic map-from their key partnerships to their diverse revenue streams-dive into the nine building blocks detailed below.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Key Partnerships

You're looking at how Ormat Technologies, Inc. builds its growth engine through strategic alliances, which is key to funding its dual focus on scaling battery storage and pioneering next-gen geothermal. Honestly, these partnerships are where the real financial leverage happens.

The financing side is definitely active. For instance, Ormat Technologies, Inc. signed a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. on May 27, 2025. This deal is structured to support the development of two specific energy storage projects: the Lower Rio 60MW/120MWh facility and the Arrowleaf 35MW/140MWh storage and 42MW solar projects, both slated for Commercial Operation Date (COD) by the end of 2025. Chief Executive Officer Doron Blachar noted this was part of an explicit goal to monetize $160 million of tax benefits that year. To be precise, this specific transaction is reported to monetize the 40% Investment Tax Credit (ITC) for approximately $25 million in proceeds.

It's not just one-offs; Ormat Technologies, Inc. is clearly tapping a broad base of capital providers. Beyond Morgan Stanley Renewables, Inc., we see institutional backing like the $144 million investment from PGIM Private Capital supporting the geothermal asset portfolio. Overall, the company raised $300 million in Q2 2025, which included tax equity and project finance to fuel new developments.

Here's a quick look at the major financial partnerships driving the 2025 growth strategy:

On the technology front, Ormat Technologies, Inc. is making big bets on next-generation geothermal capabilities through strategic collaborations. These aren't just handshake deals; they come with specific rights and pilot commitments.

The focus on future-proofing geothermal involves two major players:

• SLB (formerly Schlumberger): A partnership announced on October 27, 2025, to accelerate Enhanced Geothermal Systems (EGS) development, including plans to construct an EGS pilot project at an Ormat facility.
• Sage Geosystems Inc.: A strategic commercial agreement signed in August 2025 to pilot its Pressure Geothermal technology at an existing Ormat power plant. Successful completion grants Ormat the right to develop, build, own, and operate future geothermal power plants and energy storage projects using Sage's techniques.

Also, you can't build power plants without the necessary government buy-in. Ormat Technologies, Inc. maintains ongoing relationships with local governments and regulatory bodies to secure project permitting and land leases across its 1,538MW total generating portfolio, which is spread across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Key Activities

You're looking at the core engine of Ormat Technologies, Inc. (ORA), the activities that actually make the money and build the future capacity. It's a mix of owning power plants, building equipment for others, and developing new resources. Here's the quick math on what they were actively doing as of late 2025.

Owning and operating a global portfolio of geothermal and storage assets.

Ormat Technologies, Inc. (ORA) operates a globally spread portfolio, focusing on continuous, baseload power from geothermal assets alongside its growing energy storage segment. As of the second quarter of 2025, the company's total generating portfolio stood at 1,558MW. This breaks down into a 1,268MW geothermal and solar generation portfolio across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe. The U.S. energy storage portfolio contributed 290MW to the total capacity. The flagship Heber complex in Southern California, for instance, delivers 91MW of carbon-free electricity, with the Heber 1 facility alone accounting for 52MW under a long-term agreement. The Electricity segment generated $167.1 million in revenue for the third quarter of 2025, while the Energy Storage segment brought in $20.4 million for the same period.

Manufacturing proprietary Ormat Energy Converter (OEC) power plant equipment.

The Product segment is key to Ormat Technologies, Inc. (ORA)'s vertical integration, involving the design, manufacture, and construction of its proprietary Ormat Energy Converter (OEC) power plant equipment. This activity supports both owned projects and third-party developers globally. The backlog for this segment shows strong forward visibility; as of November 3, 2025, the product segment backlog was approximately $295 million. This followed a record backlog of approximately $340.0 million as of February 25, 2025. A significant portion of that earlier backlog, about $210.0 million, was tied to the Engineering, Procurement, and Construction (EPC) contract for the Te Mihi Stage 2 geothermal plant in New Zealand. Product segment revenues for the third quarter of 2025 were $62.2 million, a substantial increase year-over-year.

• Product Segment Backlog (Nov 3, 2025): $295 million
• Product Segment Revenue (Q3 2025): $62.2 million
• Te Mihi Stage 2 EPC Contract Value: Approximately $210.0 million
• Product Gross Margin (Q3 2025): Data not explicitly stated for Q3, but Q2 2025 was 27.7%.

Geothermal resource exploration, drilling, and reservoir management.

This activity focuses on expanding the core geothermal asset base and optimizing existing reservoirs. A major step in late 2025 was the successful acquisition of the 20MW Blue Mountain geothermal power plant in June for $88 million, with plans to add an incremental 3.5 MW capacity. Furthermore, Ormat Technologies, Inc. (ORA) released 25 MW of new geothermal capacity for construction, primarily at its Heber Complex in California, alongside 22 MW of Solar PV capacity. The company also commenced commercial operations at the 35MW Ijen geothermal power plant in Indonesia in February 2025, where it holds a 49% equity interest. The company is also advancing its development pipeline, benefiting from accelerated permit approvals due to recent federal permitting reforms.

Developing and constructing Battery Energy Storage Systems (BESS) projects.

Ormat Technologies, Inc. (ORA) is aggressively building out its energy storage footprint, particularly in the U.S. In July 2025, the company signed a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. to support two key projects expected to reach Commercial Operation Date (COD) by the end of 2025. These include the Lower Rio 60MW/120MWh storage facility in Texas and the Arrowleaf hybrid facility with 35MW/140MWh of storage. Additionally, subsequent to quarter end, the company was awarded tolling agreements for two energy storage facilities in Israel with a combined capacity of approximately 300MW/1200MWh, in which Ormat retains a 50% equity interest. Energy Storage segment revenues for Q3 2025 reached $20.4 million.

Securing long-term Power Purchase Agreements (PPAs) and tolling contracts.

Securing long-term contracts locks in revenue streams for the owned assets. In August 2025, Ormat Technologies, Inc. (ORA) signed a 25-year extension to its PPA with the Southern California Public Power Authority (SCPPA) for 52MW from the Heber 1 facility, extending service through 2052, effective February 2026. Earlier in 2025, in January, the company signed a 10-year PPA with Calpine Energy Solutions to purchase up to 15 MW from the Mammoth 2 geothermal plant, starting in the first quarter of 2027, which replaces an existing PPA with Southern California Edison Company (SCE) at a higher price point. The company also noted being in advanced negotiations for 250MW with hyper-scalers and utilities at rates exceeding $100 per MWh.

Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Key Resources

When you look at what makes Ormat Technologies, Inc. (ORA) tick, it really comes down to owning the whole process, which is pretty unique in the geothermal space. You're not just buying power; you're looking at a company that controls the technology, the resource access, and the power generation itself. That vertical integration is a core asset you need to factor in.

The heart of their product offering is the proprietary Ormat Energy Converter (OEC) binary-cycle technology. This isn't just some off-the-shelf gear; it's a field-proven, mature commercial product based on the Organic Rankine Cycle (ORC) thermodynamic process. What this means for you is that the technology is designed to convert low, medium, and high-temperature heat into electricity efficiently, using a non-polluting organic working fluid. To be fair, this intellectual property is heavily protected, with more than 71 US patents safeguarding their OEC power plant systems and equipment designs.

Let's look at the scale of the assets they control as of late 2025. The generating portfolio is substantial, and the latest figures from the third quarter of 2025 show a total capacity of 1,618 MW. The geothermal and solar portion, which is the core renewable base, sits at 1,268 MW. This capacity is spread globally across several key geographies.

Also critical are the geothermal resource rights and land leases they hold across multiple countries. This access is the lifeblood of their baseload power segment. For instance, in the US, Ormat Technologies Inc. has paid more than $3.5 million to lease over 140,000 acres of land since 2014, securing future development potential. Their operational footprint includes assets in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.

Finally, you have to account for the forward-looking revenue visibility provided by the product segment backlog. While the backlog stood at approximately $263.0 million as of August 6th, 2025, it actually grew to approximately $295 million following a large new contract signed in the third quarter of 2025. This backlog represents future revenue recognition from manufacturing and construction progress for third parties.

• Proprietary technology protected by over 71 US patents.
• Enables 100% reinjection of geothermal fluid to maintain reservoir pressure.
• Geothermal/Solar portfolio stands at 1,268 MW as of Q3 2025.
• Product segment backlog was $263.0 million as of August 6th, 2025.
• Latest reported product backlog reached $295 million as of November 3rd, 2025.
• Secured over 140,000 acres of land leases since 2014.

Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Value Propositions

You're looking at the core offerings that make Ormat Technologies, Inc. stand out in the energy landscape as of late 2025. It's about providing firm, clean power and the reliable equipment to build it.

Baseload, 24/7, carbon-free power from geothermal assets.

Ormat Technologies, Inc. delivers always-on, zero-emission electricity, which is a huge value proposition given the grid's need for firm capacity. Their current total generating portfolio stands at approximately 1,558 MW, with the geothermal and solar generation portfolio making up about 1,268 MW globally as of August 2025. They are actively planning for significant geothermal growth, anticipating an addition of 240 MW to 340 MW by the end of 2028. A concrete example of this is the Ijen geothermal power plant in Indonesia, which started commercial operation in February 2025, delivering 35 MW to the Java grid, with Ormat Technologies, Inc.'s share being 17 MW.

Grid stability and ancillary services from flexible energy storage (BESS).

The Battery Energy Storage Systems (BESS) segment is scaling fast, proving its value in providing grid flexibility. Ormat Technologies, Inc.'s U.S. energy storage portfolio is currently 290 MW. The company has secured major international contracts, including two 15-year tolling agreements in Israel for facilities totaling 300 MW/1200 MWh. Domestically, a facility in Texas operates under a seven-year tolling agreement with a capacity of 60 MW / 120 MWh. This segment is showing massive financial traction, with Energy Storage segment revenues increasing by 108.1% year-over-year in the third quarter of 2025.

De-risked, long-term contracted revenue via 15-25 year PPAs.

Securing long-term contracts is how Ormat Technologies, Inc. de-risks its assets and ensures predictable cash flow. You see this across both geothermal and storage assets.

• The Heber 1 geothermal facility is secured by a 25-year Power Purchase Agreement (PPA) extension with the Southern California Public Power Authority (SCPPA), effective February 2026, for 52 MW.
• The Ijen geothermal plant in Indonesia operates under a 30-year PPA.
• New Geothermal Exploration and Energy Conversion Agreements (GEECA) in Indonesia include a 23-year operating term.
• The company is actively pursuing new PPAs with data centers and hyperscalers at rates exceeding $100 per MWh.
• In 2024, Ormat Technologies, Inc. secured three new PPAs for projects totaling up to 77 MW.

Conversion of industrial waste heat into electricity (Recovered Energy Generation).

The Recovered Energy Generation (REG) capability is a key part of their base, leveraging existing heat sources. As of 2025, approximately 200 MW of Ormat Technologies, Inc.'s total power generation assets, which exceed 1,200 MW, come from solar PV and recovered heat sources. This showcases the versatility of their core technology beyond just traditional geothermal reservoirs.

High-efficiency, modular power plant equipment for third-party developers.

The Product segment provides the technology that powers their own fleet and that of others globally. Ormat Technologies, Inc. has engineered, manufactured, and constructed power plants worldwide totaling approximately 3,400 MW of gross capacity. The current backlog for this segment is robust, standing at approximately $295 million as of November 3rd, 2025. This includes a major Engineering, Procurement, and Construction (EPC) contract for the Te Mihi Stage 2 geothermal plant in New Zealand, valued at approximately $210.0 million. This segment saw significant growth, with Q3 2025 revenues increasing by 66.6% year-over-year.

Here's a quick look at the scale of the Electricity segment's contracted revenue visibility as of late 2025:

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Customer Relationships

You're managing relationships with customers who need reliable, baseload, carbon-free power, which means long-term commitments are the bedrock of Ormat Technologies, Inc. (ORA)'s stability.

Dedicated account management is essential for these long-haul Power Purchase Agreement (PPA) contracts. The value locked in these agreements provides a predictable revenue stream, underpinning the company's market capitalization of $5.62 billion as of September 2025. Ormat Technologies, Inc. (ORA) is actively securing these long-term relationships, which management noted can command PPA pricing over $100/MWh.

Here's a look at some of the recent long-term contract activity that defines these customer relationships:

Strategic partnerships are key to evolving the offering beyond current hydrothermal assets, especially for co-development of next-generation technologies like Enhanced Geothermal Systems (EGS). This approach is designed to de-risk and accelerate commercialization for future utility and large-scale energy users, like data-center operators.

The relationships with technology leaders are critical for this pivot:

• Strategic collaboration with SLB to fast-track EGS development and deployment, including the design and construction of an EGS pilot at an Ormat site.
• Strategic commercial agreement with Sage Geosystems Inc. to pilot their Pressure Geothermal advanced technology.

The transactional sales model for the Product segment equipment and Engineering, Procurement, and Construction (EPC) contracts shows strong, project-based customer engagement. The Product segment backlog is a direct measure of this transactional relationship health. As of August 6th, 2025, the backlog stood at approximately $263.0 million. This figure grew to $295 million in Q3 2025, driven by a new contract that added approximately $86 million.

The transactional pipeline is substantial, as seen in the following figures:

For the equipment and EPC business, the relationship is highly technical and project-specific. This necessitates a high-touch approach for technical support related to power plant troubleshooting and upgrades, especially given the complexity of geothermal and the integration of new storage assets. The company's 2025 guidance reflects this activity, projecting total revenues between $960 million and $980 million.

This high-touch support is implicitly required for maintaining the performance of assets like the 20MW Blue Mountain geothermal power plant, acquired for $88 million, and ensuring the successful operation of the 60MW/120MWh Lower Rio energy storage facility in Texas. Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Channels

You're looking at how Ormat Technologies, Inc. (ORA) gets its power generation projects, manufactured products, and energy storage solutions into the hands of customers and financiers. It's a mix of direct selling, large-scale construction contracts, and sophisticated financial structuring, all designed to lock in long-term revenue.

Direct sales team for Power Purchase Agreements (PPAs) with utilities

The direct sales channel focuses heavily on securing long-term, stable revenue streams through Power Purchase Agreements (PPAs) for the Electricity segment. This team directly engages with utilities and power authorities. For instance, Ormat Technologies, Inc. secured a 25-year PPA extension with the Southern California Public Power Authority (SCPPA) in August 2025, covering 52MW from the Heber 1 geothermal facility, ensuring continued service through 2052. The Heber 1 plant, part of the Heber complex which delivers 91 MW of carbon-free power, will continue serving customers like the Los Angeles Department of Water and Power and the Imperial Irrigation District. Furthermore, in 2025, the company signed a 10-year PPA with Calpine Energy Solutions for up to 15MW of geothermal capacity, set to begin in the first quarter of 2027. Internationally, Ormat Technologies, Inc. signed two novel Geothermal Exploration and Energy Conversion Agreements (GEECA), a PPA variant, with the Indonesian utility PLN, each for up to 20 MW of geothermal capacity, featuring a 23-year operating term.

Engineering, Procurement, and Construction (EPC) contracts for product sales

The Product segment channels sales primarily through Engineering, Procurement, and Construction (EPC) contracts, which are recognized as revenue based on manufacturing and construction progress. This segment saw its revenues increase by 66.6% in the third quarter of 2025 compared to the third quarter of 2024. The backlog for this segment is a key indicator of future revenue flow. As of November 3rd, 2025, the Product segment backlog stood at approximately $295 million, following a large new contract signed in the third quarter of 2025. This figure followed a record backlog of approximately $340.0 million as of February 25, 2025. The backlog as of May 7th, 2025, was approximately $314 million, which included the EPC contract for the Te Mihi Stage 2 geothermal plant in New Zealand and a Build-Operate-Transfer (BOT) project in Dominica.

Here's a look at the Product Segment Backlog progression:

Direct engagement with Independent System Operators (ISOs) for BESS market access

For the rapidly growing Energy Storage segment, direct engagement with Independent System Operators (ISOs) and market operators is the primary channel, often secured through tolling agreements or Resource Adequacy (RA) contracts. This strategy shifted the segment away from pure merchant exposure toward more predictable revenue. The success of this channel is clear in the financial results: Energy Storage segment revenues increased 108.1% in the third quarter of 2025 versus the third quarter of 2024. The segment's revenue share doubled year-over-year to 11.9% in the second quarter of 2025. Ormat Technologies, Inc. won 15-year tolling agreements in Israel for two facilities totaling approximately 300MW/1200MWh, where Ormat holds a 50% equity interest. In the U.S., the company signed its first-ever tolling agreements in the ERCOT market for two BESS projects totaling 120 MW. The company aims to have between 600MW/1470MWh and 670MW/1700MWh in its total operating portfolio by the end of 2025.

Key BESS Capacity Milestones and Targets:

• Total operational BESS assets as of mid-2024: 190MW/318MWh.
• Lower Rio facility capacity: 60MW/120MWh.
• Montague facility capacity: 20MW/20MWh.
• Israeli BESS projects capacity: 300MW/1200MWh (15-year tolling agreements).
• Target total operating portfolio by end of 2025: 600MW/1470MWh to 670MW/1700MWh.

Investor Relations for securing tax equity and project financing

The Investor Relations function is critical for channeling external capital, particularly tax equity, to fund the growing portfolio, especially for the storage assets eligible for Investment Tax Credits (ITCs) under the Inflation Reduction Act. Ormat Technologies, Inc. has an explicit goal of monetizing $160 million of tax benefits in 2025. The company expects approximately $160 million on an annual basis from both tax equity transactions and PTC/ITC transfers. In May 2025, the company announced a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc.. This deal covers the Lower Rio 60MW/120MWh storage facility and the Arrowleaf 35MW/140MWh storage and solar projects, with expected Commercial Operation Dates (COD) by the end of 2025. In the first quarter of 2025 alone, $13.9 million of ITC cash proceeds were recorded. This financing channel helps support the company's growth, including the $88 million agreement to acquire the 20MW Blue Mountain geothermal power plant.

Financing Channel Metrics (2025 Estimates/Results):

Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Ormat Technologies, Inc. (ORA) as of late 2025. Their customer base is clearly segmented across their three main revenue streams: Electricity, Product, and Energy Storage.

For the nine months ended September 30, 2025, Ormat Technologies, Inc. generated total revenues of $713.5 million, with the Electricity segment contributing $507.3 million of that total. The Product segment brought in $153.6 million, and the Energy Storage segment added $52.6 million for the nine-month period. The full-year 2025 revenue guidance projects total revenues between $960 million and $980 million.

Here is a look at the segment revenue performance for the third quarter of 2025:

The Product segment backlog, which represents future sales to these customers, stood at approximately $295 million as of November 3rd, 2025.

The specific customer types driving this revenue include:

• Electric utility companies, such as the Southern California Public Power Authority (SCPPA), which signed a 25-year Power Purchase Agreement (PPA) extension for 52MW from the Heber 1 facility.
• Other utility counterparties include Calpine Energy Solutions, which signed a 10-year PPA in January 2025 for up to 15MW.
• Grid operators and regional transmission organizations, evidenced by the Energy Storage segment benefiting from strong merchant pricing in the PJM market.
• Governments and state-owned power companies internationally, exemplified by the agreements with the Indonesian utility (PLN) for up to 20 MW each under two Geothermal Exploration and Energy Conversion Agreements (GEECA).
• Independent Power Producers (IPPs) and developers are engaged through strategic alliances, like the commercial agreement signed in August 2025 with Sage Geosystems Inc. to pilot next-generation geothermal technology.

The international customer base is expanding significantly; Ormat Technologies, Inc. secured 15-year tolling agreements for 300 MW / 1,200 MWh of Battery Energy Storage Systems (BESS) in Israel. Furthermore, the company holds a 49% equity interest in the 35 MW Ijen geothermal facility that commenced operations in Indonesia in February 2025.

For Recovered Energy Generation (REG) projects and general product sales, the customer base is broad, as indicated by the $210.0 million portion of the Product segment backlog related to the Te Mihi Stage 2 geothermal plant EPC contract in New Zealand. This shows that large-scale engineering, procurement, and construction (EPC) contracts are a key component of the Product segment customer relationship.

Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Ormat Technologies, Inc.'s vertically integrated model running, which is a mix of heavy upfront investment and ongoing operational upkeep. It's not just about generating power; it's about the upfront capital to build the plants and the continuous cost to keep the reservoirs producing.

The capital intensity is clear in their project pipeline. For instance, the acquisition of the 20MW Blue Mountain geothermal power plant was an $88.7 million outlay in Q2 2025. Furthermore, the company has specific guidance for maintenance CapEx, which was noted at approximately $24 million for 2025.

Geothermal exploration and reservoir management are long-term cost centers. You see this in their land commitments; since 2014, Ormat Technologies, Inc. has paid more than US$3.5 million to lease over 140,000 acres of land for development potential. New agreements, like the two Geothermal Exploration and Energy Conversion Agreements (GEECA) signed in Indonesia, involve Ormat undertaking the exploration drilling and financing, with the utility reimbursing the cost of successful drilling.

Financing these large projects drives up the interest burden. As you noted, the total debt figure is significant; interest expense on the debt load, which is around $2.6 billion as of Q1 2025, is a major outflow. Looking at the actual reported figures, the interest expense, net (including amortization of deferred financing costs), was $33,160 thousand in Q1 2025 and rose to $36.7 million in Q2 2025. Net debt as of March 31, 2025, was reported at $2,338 million.

Manufacturing costs are tied directly to the Product segment, which supplies the proprietary Ormat Energy Converter (OEC) equipment. The gross margin on this segment shows the cost efficiency of their production. For Q2 2025, the Product segment gross margin improved to 27.7%, up from 18.4% for the full year 2024. The Product segment backlog as of August 6th, 2025, stood at approximately $263.0 million.

Operational costs cover the entire global portfolio, which includes maintenance, labor, and land leases across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, totaling a 1,268MW geothermal and solar generation portfolio as of Q3 2025. The overall cost of keeping the lights on is substantial, with total cost of revenues reaching $177 million in Q2 2025.

Here's a breakdown of key cost-related financial metrics from the first half of 2025:

The operational cost structure varies significantly by segment, reflecting the different business drivers:

• Electricity segment cost percentage was 75.8% of its total revenues in Q2 2025.
• Product segment gross margin was 27.7% in Q2 2025.
• Energy Storage segment saw a revenue increase of 62.7% in Q2 2025, reflecting operational costs associated with new asset contributions.
• The company is managing costs while executing on major projects, such as the $88 million Blue Mountain acquisition.

Finance: draft 13-week cash view by Friday.

Ormat Technologies, Inc. (ORA) - Canvas Business Model: Revenue Streams

You're looking at how Ormat Technologies, Inc. brings in cash, which is a mix of long-term contracts and more dynamic market sales as of late 2025. Honestly, the stability comes from the power purchase agreements (PPAs), but the growth story is in storage and products.

The core revenue streams for Ormat Technologies, Inc. are segmented across its operational areas, with the company updating its full-year 2025 guidance in November 2025 following the third-quarter results.

The expected revenue breakdown for the full fiscal year 2025 is laid out below:

The company also realizes significant, though sometimes less predictable, income from financial mechanisms and services. You need to track these closely, as they can impact net income significantly.

• Sale of tax benefits through tax equity partnerships: Ormat Technologies expects to book about $167 million from tax equity financing and tax credit transfer transactions in 2025, which is higher than previously forecast.
• Services revenue from facility upgrades and technical assistance: This is generally captured within the Product segment or as other operating revenue, and a specific standalone 2025 projection isn't separately itemized in the latest guidance summaries.

To give you a sense of the recent momentum driving these expectations, the third quarter of 2025 saw total revenue hit $249.7 million, a nearly 18% increase year-over-year. That growth wasn't even across the board, though.

Here's the quick math on the Q3 2025 segment performance:

• Electricity Segment Revenue (Q3 2025): $167.1 million, showing modest growth of 1.5% compared to Q3 2024.
• Products Segment Revenue (Q3 2025): $62.2 million, driven by a 66.6% increase due to contract timing and a backlog of approximately $295 million as of November 3rd, 2025.
• Energy Storage Segment Revenue (Q3 2025): $20.4 million, which was a standout with revenue more than doubling, up 108.1% year-over-year, thanks to new assets like Lower Rio coming online in August.

What this estimate hides is the volatility in the Electricity segment, which saw lower revenues in the quarter due to a September storm in California and curtailments in Nevada. Still, the Product segment backlog provides strong visibility for future revenue growth in that area.

For context on tax benefits, the company previously noted receiving $77 million from tax equity partnerships related to projects like Heber 1 & 2, but the 2025 expectation for tax credit transfers is now projected at $50.4 million in net tax benefits from the Inflation Reduction Act of 2022, as extended by the One Big Beautiful Bill Act of 2025, on top of the larger cash proceeds figure. Finance: draft 13-week cash view by Friday.