Ormat Technologies, Inc. (ORA): History, Ownership, Mission, How It Works & Makes Money

When you look at the energy transition, how does a company like Ormat Technologies, Inc. (ORA) manage to be a geothermal leader while simultaneously driving explosive growth in battery storage?

This vertically integrated powerhouse, which just raised its 2025 full-year revenue guidance to between $960 million and $980 million, is the only player that designs, builds, and operates its own clean energy plants globally, so understanding its unique business model is defintely crucial.

We're going to break down how Ormat's proprietary Ormat Energy Converter technology works, what its mission is in the shifting power landscape, and how it's translating a 108.1% increase in its energy storage segment revenue from Q3 2024 to Q3 2025 into a competitive edge against traditional utilities.

Ormat Technologies, Inc. (ORA) History

You're looking for the foundational story of Ormat Technologies, Inc., and honestly, it's a classic innovator's tale: a brilliant engineer, a big idea, and a huge personal risk. The company didn't start in the US, but in Israel, built on a core technology-the Organic Rankine Cycle (ORC)-that is still its competitive edge today. This history shows a consistent pivot from equipment supplier to a vertically integrated power plant owner and operator, culminating in its current aggressive push into energy storage.

Given Company's Founding Timeline

Year established

The company was established in 1965 as Ormat Turbines Ltd..

Original location

The original location was Yavne, Israel.

Founding team members

The founding team members were the husband-and-wife duo, Lucien Bronicki and Yehudit (Dita) Bronicki. Lucien, an engineer, drove the technology, while Dita served as the long-time CEO until 2014.

Initial capital/funding

Initial capital details aren't widely publicized, but the funding was deeply personal: Lucien Bronicki sold his apartment to secure the seed money and continue his research after a government lab abandoned his project. This is a powerful, concrete example of a founder's commitment.

Given Company's Evolution Milestones

Given Company's Transformative Moments

Ormat's trajectory is defined by two major transformative shifts: becoming a power plant owner/operator and the recent, aggressive pivot into energy storage. The first shift, in the 1990s, was crucial because it moved the company from a capital-expenditure-reliant equipment manufacturer to a stable, revenue-generating utility owner, which is a much more attractive model for long-term investors. This is why you should be Exploring Ormat Technologies, Inc. (ORA) Investor Profile: Who's Buying and Why?

The second major transformation is happening right now, in 2025, and it's about managing intermittency. The company is strategically integrating its reliable geothermal baseload with flexible battery storage (BESS).

• Vertical Integration (1990s): The decision to evolve from simply selling equipment to owning and operating power plants (Build, Own, Operate - BOO) created a predictable, long-term revenue stream through Power Purchase Agreements (PPAs). This was defintely a game-changer.
• The 2025 Storage Pivot: The Energy Storage segment revenue share doubled to 11.9% in Q2 2025, showing this strategy is working. Securing $300 million in funding in Q2 2025, including tax equity, directly supports this accelerated growth in both geothermal and storage assets.
• Geographic and Asset Expansion (2025): The $88 million acquisition of the 20MW Blue Mountain geothermal plant in Nevada, coupled with the plan to add a 13MW solar facility, shows a concrete move toward hybrid, optimized assets. This is Ormat's realist approach: use the geothermal core but add solar and storage to maximize grid value.

Here's the quick math on the current scale: The company's market capitalization sits at approximately $6.54 billion as of November 2025, with management guiding for full-year 2025 revenue between $935 million and $975 million. That size and growth projection tell you this is no longer a small, niche player; it's a global renewable energy force.

Ormat Technologies, Inc. (ORA) Ownership Structure

Ormat Technologies, Inc. is overwhelmingly controlled by institutional investors, which hold nearly all of the company's equity, leaving a small percentage for insiders and the general public to trade.

Ormat Technologies' Current Status

Ormat Technologies, Inc. is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol ORA. This public status means its financials, like the updated 2025 revenue guidance of between $960 million and $980 million, are transparently reported to the Securities and Exchange Commission (SEC). The company's market capitalization stands at approximately $6.54 billion as of November 2025, reflecting its position as a leading vertically integrated player in the geothermal and energy storage sectors.

To understand the strategic direction and long-term goals that drive this valuation, you should review the company's core principles: Mission Statement, Vision, & Core Values of Ormat Technologies, Inc. (ORA).

Ormat Technologies' Ownership Breakdown

The company's stock structure is heavily weighted toward large financial institutions, which gives them defintely significant influence over governance and strategic decisions. Institutional ownership is exceptionally high, a common trait for stable utility and infrastructure-focused companies.

Ormat Technologies' Leadership

The company is steered by an experienced management team with an average tenure of 4.6 years, led by a CEO who has been in his role since mid-2020. The recent strategic appointments in 2025 show a clear focus on scaling the Electricity Segment and advancing next-generation geothermal drilling technologies like Enhanced Geothermal Systems (EGS).

• Doron Blachar: Chief Executive Officer (CEO). He has been in the CEO role since July 2020, leading the company's overall strategy.
• Assaf Ginzburg: Chief Financial Officer (CFO). He manages the company's financials, including the projected 2025 Earnings Per Share (EPS) of $1.94.
• Aron Willis: Executive Vice President, Electricity Segment. Appointed in June 2025, he focuses on optimizing plant performance and integrating advanced AI tools into operations.
• Ofer Ben Yosef: Executive Vice President of Energy Storage & Business Development. He drives the growth in the high-potential energy storage market, which is a key part of the 2025 revenue guidance.
• Daniel Moelk: Senior Vice President, Resources, Drilling & EGS. Joined in July 2025 to lead the global drilling roadmap and implement innovative geothermal technologies.

Ormat Technologies, Inc. (ORA) Mission and Values

Ormat Technologies, Inc. stands for more than just a balance sheet; its core purpose is to deliver reliable, baseload renewable energy globally, which is a critical need as grid stability becomes a bigger challenge. This commitment is reflected in their goal to build a geographically balanced portfolio that hit a total generating capacity of 1,618MW by the third quarter of 2025.

You're looking for the cultural DNA of the company, and that's exactly what the mission and values tell you. They map their long-term aspirations directly to the global transition away from fossil fuels, which is a defintely smart strategic move.

Given Company's Core Purpose

Official mission statement

The company's mission is clear: to become a leading global provider of renewable energy, while building a geographically balanced portfolio of geothermal, recovered energy generation (REG), and energy storage assets. This isn't just about being green; it's about being a reliable, 24/7 power source, which is where geothermal shines.

Here's the quick math on their focus: their 2025 revenue guidance, lifted to between $960 million and $980 million, shows a strong push into all three segments, especially with the Energy Storage segment reporting a massive 108.1% revenue increase in Q3 2025 year-over-year.

• Become a leading global renewable energy provider.
• Build a balanced portfolio of geothermal, REG, and storage.
• Deliver reliable, sustainable power solutions.

Vision statement

Ormat Technologies, Inc.'s vision centers on driving innovation and solidifying its leadership in the geothermal market, which means constantly improving their proprietary Ormat Energy Converter technology. The company wants to expand its global footprint and accelerate its growth in the energy storage market, which is now a 350MW portfolio in the U.S.

Their vision is backed by concrete environmental action, too. In the 2024 Sustainability Report, released in September 2025, they highlighted helping to avoid approximately 2,488,811 metric tons of CO2e emissions, which is over 11 times their own emissions. That's a powerful ESG (Environmental, Social, and Governance) metric.

If you want to understand the people behind these numbers, you should be Exploring Ormat Technologies, Inc. (ORA) Investor Profile: Who's Buying and Why?

Given Company Core Values

The company's operations are guided by five core values that shape their cultural DNA and strategic decisions, ensuring they maintain their position as a vertically integrated leader in the sector.

• Stability: Defines their workforce, technology, and firm financial foundation.
• Constant Renewal: Seeking new challenges and advancing new technologies.
• Full Commitment: Dedicated to stakeholders and building a sustainable future.
• Courage: Acting with certainty from knowledge and prudent risk management.
• Creativity: Appreciating the uniqueness of customers and finding the right solutions.

Given Company slogan/tagline

The most commonly used phrasing that captures their value proposition is: 'we're always on; delivering renewable power and energy solutions to our customers around the clock and around the world.' They focus on the reliability of geothermal, which is a key differentiator from intermittent renewables like solar and wind. That's a strong, simple message.

Ormat Technologies, Inc. (ORA) How It Works

Ormat Technologies, Inc. operates as a vertically integrated renewable energy company, primarily generating and selling clean power from geothermal and recovered energy generation (REG) sources, and increasingly from its utility-scale energy storage solutions. The company's core value proposition is its proprietary technology-the Ormat Energy Converter-which it uses to both build and operate its own global portfolio of power plants, providing a stable, baseload (24/7 reliable) power supply that is essential for modern grids.

Ormat Technologies, Inc.'s Product/Service Portfolio

Ormat's business is split into three core segments, which is how they hit their projected full-year 2025 total revenue of between $960 million and $980 million. The Electricity segment is the main revenue driver, but the Product and Energy Storage segments are showing significant growth, with Energy Storage revenue expected to hit between $70 million and $75 million in 2025.

Ormat Technologies, Inc.'s Operational Framework

The company's operational strength comes from its unique, fully integrated business model. They control the entire value chain-from initial resource exploration and equipment manufacturing to the long-term operation of the power plant. This helps them manage costs and quality far better than competitors who rely on external suppliers, and it's why the Electricity segment is projected to bring in up to $705 million in 2025.

• Resource Control: Identify and develop geothermal and REG (Recovered Energy Generation) resources, which are essentially waste heat from industrial processes.
• Proprietary Manufacturing: Design and manufacture the core power generation equipment, the Ormat Energy Converter, in-house. This is a crucial step for quality and cost control.
• Build, Own, and Operate (BOO): For the Electricity segment, Ormat builds the plant, owns the asset, and operates it under long-term Power Purchase Agreements (PPAs) with utilities, locking in stable cash flows for 20+ years.
• Sell and Transfer (Product): For the Product segment, they sell the OEC equipment and provide EPC services to third parties, generating upfront revenue, like the $62.2 million in Q3 2025.
• Grid Services: The Energy Storage segment uses large battery facilities to provide fast-response services to the grid, balancing supply and demand, which is a high-growth, high-margin area right now.

Here's the quick math: the Electricity segment's stable, recurring revenue is the foundation, but the Energy Storage segment, which saw a 108.1% revenue increase in Q3 2025 year-over-year, is the clear growth accelerator.

Ormat Technologies, Inc.'s Strategic Advantages

You're not just buying a power plant operator; you're investing in a technology company with a half-century head start in a niche, high-barrier-to-entry market. That's the real edge. Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors

• Vertical Integration: Ormat is the only company in the geothermal and REG space that designs, manufactures, owns, and operates its own power plants, giving it superior control over project economics and execution risk.
• Proprietary Technology: The Ormat Energy Converter is a proven, patented technology that can efficiently convert low-to-medium temperature heat into electricity, expanding the addressable geothermal market far beyond traditional high-temperature steam fields.
• Baseload Renewable Power: Geothermal power is a 24/7 baseload resource, unlike intermittent solar or wind, making it highly valuable to utilities for grid stability and allowing Ormat to negotiate favorable, long-term PPAs.
• EGS Innovation: Strategic partnerships, such as the one with SLB, are focused on accelerating the development of Enhanced Geothermal Systems (EGS), which could unlock vast, non-traditional geothermal resources globally and provide a defintely significant future competitive advantage.
• Diversification into Storage: The rapid expansion into energy storage diversifies their revenue stream beyond just geothermal, positioning them to capitalize on the massive U.S. grid modernization trend and providing a hedge against potential volatility in the core electricity segment.

Ormat Technologies, Inc. (ORA) How It Makes Money

Ormat Technologies, Inc. makes money primarily through its portfolio of geothermal and recovered energy power plants, selling the generated electricity under long-term contracts. The company also generates significant revenue by manufacturing and selling its proprietary power generation equipment and, increasingly, from its rapidly growing energy storage projects.

Ormat Technologies, Inc.'s Revenue Breakdown

You need to see where the cash flow is actually coming from, not just the headlines. For the 2025 fiscal year, based on the company's latest guidance, the revenue mix clearly shows the dominance of the Electricity segment, but also the accelerating growth of the Energy Storage business. Here's the quick math on the segment midpoints of the updated 2025 guidance, which totals between $960 million and $980 million.

The Electricity segment, projected at $700 million to $705 million for 2025, is the core, but its revenue growth has been slightly negative year-to-date, showing a (2.8%) decline through the first nine months of 2025. That's a near-term risk you can't ignore. The Product segment, which is the manufacturing arm, is expected to bring in $190 million to $200 million, with a strong year-to-date growth of 53.6% through Q3 2025. Honestly, the Energy Storage segment is the most dynamic part of the business, with revenues expected to be between $70 million and $75 million, nearly doubling with 96.5% growth in the first nine months of 2025.

Business Economics

The economics of Ormat Technologies, Inc. are built on two distinct models: the steady, long-term contracted revenue of geothermal power, and the high-growth, merchant-risk model of energy storage and equipment sales.

• Electricity Pricing: The majority of the Electricity segment's revenue comes from Power Purchase Agreements (PPAs), which are long-term contracts-often 15 to 25 years-to sell power to utilities at a fixed or escalating price. This provides incredibly stable, predictable cash flow, which is the bedrock of the company's valuation.
• Product Sales Cycle: The Product segment revenue, which involves selling the company's proprietary Ormat Energy Converters (OECs) to third parties, is inherently lumpy. Revenue recognition depends on the timing of manufacturing and construction progress, which is why you see big quarterly swings. The backlog, however, is strong, standing at approximately $295 million as of November 3, 2025.
• Energy Storage Volatility: The Energy Storage segment operates in both contracted and merchant markets. Merchant operations, like those in the PJM market, expose the company to market price volatility, but also offer higher margins, as demonstrated by the segment's gross margin hitting 39.4% in Q3 2025, driven by strong prices and seasonal effects.
• Capital Intensity: Geothermal development is highly capital-intensive, requiring significant upfront investment in drilling and plant construction. This high barrier to entry is what keeps competition low, but it also makes the company sensitive to interest rate changes and financing costs.

The core business is a utility-like annuity, but the growth engine is a high-margin equipment and storage play. Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors

Ormat Technologies, Inc.'s Financial Performance

The company's financial health in 2025 shows a clear trend: the diversification strategy is working, offsetting some of the headwinds in the core geothermal business.

• Adjusted EBITDA: The company raised its full-year guidance, projecting Adjusted EBITDA to be between $575 million and $593 million. This is the key metric for a power generation company, showing strong operational cash flow generation.
• Net Income and EPS: Net income attributable to stockholders grew 11.6% to $92.5 million for the first nine months of 2025 compared to the same period in 2024. Analysts forecast a full-year diluted Earnings Per Share (EPS) of $1.94 for 2025.
• Gross Margin Shifts: While the overall gross margin for the first nine months of 2025 was 27.2%, the segment margins tell the real story. Electricity gross margin compressed to 27.9% (down from 34.5% in 9M 2024), while Energy Storage gross margin expanded dramatically to 28.9% (up from 11.5% in 9M 2024). That margin expansion in storage is defintely a bullish signal.
• Balance Sheet Strength: Operating cash flow for the first quarter of 2025 was up 32.81% year-over-year, supported by better collections and tax credit monetization. This cash generation is crucial for funding the capital expenditures required for new geothermal and storage projects.

The strong performance in Product and Energy Storage is compensating for the slight softness in the legacy Electricity segment, creating a more balanced and resilient revenue profile.

Ormat Technologies, Inc. (ORA) Market Position & Future Outlook

Ormat Technologies is firmly positioned as the world's largest vertically integrated geothermal power provider, but its future growth hinges on successfully pivoting into the high-growth Battery Energy Storage Systems (BESS) market and scaling next-generation Enhanced Geothermal Systems (EGS). The company's financial trajectory for 2025 is strong, with full-year revenue guidance set between $935 million and $975 million and adjusted EBITDA projected to be between $563 million and $593 million, reflecting confidence in its diversified strategy.

That BESS segment is defintely the near-term engine, having seen a revenue increase of 108.1% in Q3 2025 alone. The goal is aggressive: expand the total portfolio capacity from around 1.5 GW today to between 2.6 GW and 2.8 GW by 2028.

Competitive Landscape

In the geothermal generation market, Ormat, along with two other major operators, controls nearly 60% of the installed capacity, making it a moderately concentrated field. Our analysis shows Ormat's core strength is its end-to-end control-designing, building, owning, and operating its plants-plus its leadership in the Binary Cycle technology, which can use lower-temperature geothermal resources than traditional methods.

Opportunities & Challenges

The market is sending clear signals: baseload, carbon-free power is in high demand, and Ormat is uniquely positioned to deliver. But, like any aggressive growth strategy, the execution risk is real. You need to keep an eye on the BESS supply chain. For a deeper look at the financials supporting this growth, check out Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors.

Industry Position

Ormat is transitioning from a geothermal specialist to an integrated, diversified energy player, a move that is critical for long-term stability and growth. The company's core geothermal segment provides stable, baseload revenue, which is highly valued by utilities and increasingly by hyperscaler data centers.

• Dominates the Binary Cycle market, a key technology for utilizing lower-temperature geothermal resources globally.
• The Energy Storage segment is the fastest-growing unit, with Q1 2025 revenue surging 120% year-over-year.
• Strategic partnerships with companies like SLB NV are essential for staying competitive against emerging EGS disruptors like Fervo Energy.
• Product segment backlog was approximately $340.0 million as of February 2025, providing strong near-term revenue visibility.

The ability to integrate firm geothermal with flexible battery storage creates an unparalleled clean energy solution for the modern grid.