Ormat Technologies (ORA) Stock Forecast & Price Target

Ormat Technologies Inc. has demonstrated strong performance, particularly in its Product and Energy Storage segments, with a notable Q3 revenue of $250 million exceeding consensus expectations. The Product segment backlog has surged by 12% quarter-over-quarter and 79% year-over-year, reaching $295 million, indicating robust demand and growth potential. Additionally, the company has increased its 2025 revenue guidance to a range of $960–980 million, reflecting optimism about continued momentum and higher expected earnings in upcoming years.

Ormat Technologies Inc. has reported a year-over-year decline in electricity revenue for Q4, primarily due to ongoing upgrades at the Stillwater project and remaining curtailments, resulting in actual revenues of $167 million that fell short of consensus expectations. The company's gross margin has also declined to 25.6%, below both consensus and estimates, attributed to a lower mix of high-margin electricity sales and weaker electricity gross margins, projected to be significantly lower in Q4'25. Additionally, despite an increase in product and storage revenues, the anticipated gross margins for Q4'25 reflect a continued downward trend, resulting in a lowered adjusted margin forecast that raises concerns about the company's profitability trajectory moving forward.