Ormat Technologies (ORA) Is Up 6.2% After Revenue Growth and Geothermal Partnership Announcement – What's Changed

• Ormat Technologies recently reported growth in third quarter revenue and net income, issued 2025 revenue guidance of US$960 million to US$980 million, and declared a US$0.12 quarterly dividend payable in December 2025.
• In addition, Ormat and SLB announced a partnership to accelerate development of enhanced geothermal systems, expanding opportunities to deploy next-generation geothermal technology beyond conventional resource areas.
• Next, we'll consider how the joint venture with SLB to develop enhanced geothermal systems could influence Ormat's long-term growth outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Ormat Technologies Investment Narrative Recap

Being a shareholder in Ormat Technologies means believing in the expanding demand for renewable baseload power and the pivotal role of geothermal innovation in clean energy. The recent joint venture with SLB to develop enhanced geothermal systems could help unlock new project opportunities, but the most immediate catalyst remains Ormat’s ability to efficiently execute on its U.S. pipeline in the face of policy support and faster permitting. However, high capital intensity and exposure to interest rate shifts continue to pose substantial financial risk in the short term, the partnership itself does not materially mitigate these challenges.

Among recent developments, Ormat’s updated 2025 revenue guidance to US$960 million–US$980 million stands out. This higher outlook aligns with short-term drivers like new project delivery and policy tailwinds, but any setbacks in funding access or cost controls could quickly override these near-term positives for investors.

By contrast, investors should not overlook Ormat’s dependency on affordable financing and what rising interest rates could mean for...

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

Ormat Technologies' outlook projects $1.2 billion in revenue and $171.7 million in earnings by 2028. This requires 9.4% annual revenue growth and a $40.4 million earnings increase from the current $131.3 million.

Uncover how Ormat Technologies' forecasts yield a $105.70 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Four community members from Simply Wall St estimate Ormat’s fair value anywhere between US$1.26 and US$236.13. While optimism about accelerated geothermal development is evident, opinions diverge sharply, reflecting uncertainty around long-term earnings growth and capital requirements.

Explore 4 other fair value estimates on Ormat Technologies - why the stock might be worth over 2x more than the current price!

Build Your Own Ormat Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Ormat Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ormat Technologies' overall financial health at a glance.

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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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