Ormat Technologies (ORA): Assessing Valuation After Strong Earnings, 2025 Outlook, and New SLB Partnership

Ormat Technologies (ORA) just posted another round of solid results, with both revenue and net income on the rise for the third quarter and year to date. In addition, the company issued fresh revenue guidance for 2025, suggesting further growth ahead.

See our latest analysis for Ormat Technologies.

Ormat’s recent results, upbeat 2025 revenue guidance, and collaboration with SLB have all helped boost sentiment, and the stock has certainly reflected that momentum. After a stellar year-to-date share price return of 64.15%, Ormat’s total shareholder return over the last year hit 37.35%, a marked improvement that points to building enthusiasm around its growth and innovation story.

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With shares riding high after an impressive year, investors are now weighing whether Ormat Technologies has more room to run or if the recent gains already reflect all the good news. Is this a genuine buying opportunity, or is future growth fully priced in?

Most Popular Narrative: 7% Overvalued

Despite recent momentum, the most widely followed narrative sees Ormat Technologies’ fair value at $105.70, just below the latest close of $113.48. This modest premium sets up a debate over whether growth expectations fully justify the recent surge or if there is room for further upside.

Sustained high growth in Ormat's product and energy storage segments, reflected by 57.6% and 62.7% year-over-year revenue increases, respectively, highlights both broader adoption of energy storage solutions as grid reliability becomes critical and Ormat's ability to leverage its vertical integration for margin improvement.

Read the complete narrative.

Want to know what’s fueling this confident valuation? The key: sharp investment in high-growth operations and profit assumptions that rival top market players. Discover the surprising forecasts and bold estimates behind the calculation. What are the growth and earnings numbers that power this narrative?

Result: Fair Value of $105.70 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reliance on Chinese-made batteries and potential policy shifts could create headwinds and raise uncertainty around Ormat’s long-term profit trajectory.

Find out about the key risks to this Ormat Technologies narrative.

Build Your Own Ormat Technologies Narrative

If you have a different perspective or want to dig deeper into Ormat Technologies' numbers, you can build your own narrative in just a few minutes. Do it your way

A great starting point for your Ormat Technologies research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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