Ormat published its second-quarter report on 5 August 2026. We are writing about it today, 6 August.
What was reported
| Quarter | Year ago | Change | |
|---|---|---|---|
| Revenue | 258.8 | 234.0 | +10.6% |
| Gross profit | +20.8% | ||
| Adjusted EBITDA | 143.9 | +6.9% | |
| Net income attributable | 27.1 | 28.0 | -3.2% |
| EPS | $0.43 | $0.46 | -6.5% |
| Adjusted net income | 31.0 | 29.1 | +6.5% |
| Adjusted EPS | $0.50 | $0.48 | +4.2% |
In millions of dollars except per-share data
And across the half year: revenue of $662.7 million against $463.8 million - up 42.9%.
Meaning the first quarter was far stronger than the second, and the annual growth leans heavily on it.
The gap between gross and net
A $6.6 million write-off
Gross profit rose 20.8% - almost double the revenue rate. That is a genuine margin improvement.
And yet net income fell.
The company explains it explicitly: the decline was driven primarily by a $6.6 million write-off of storage projects it decided to no longer pursue.
And so adjusted net income, which strips the write-off out, actually rose: $31.0 million against $29.1 million, and $0.50 per share against $0.48.
And what is interesting here is the paradox: the same storage segment where projects were written off is the one the company cites as the strong contributor to adjusted EBITDA.
Meaning storage is working - but not every project examined reached the finish line. That is exactly the behaviour expected of a company filtering its pipeline, not a sign of weakness in the field.
The backlog and the guidance
Product segment backlog: roughly $202.8 million as of 5 August.
And the full-year outlook:
| Range | |
|---|---|
| Total revenues | $1,150-1,200 million |
| of which Electricity | 710-725 |
| of which Product | 300-320 |
| of which Energy Storage | 140-155 |
| Adjusted EBITDA | $630-650 million |
Storage is still the smallest of the three, but it is the one the company points to as the engine.
And Indonesia
In May 2026 Ormat secured a unique exploration financing facility of up to $40 million with PT Sarana Multi Infrastruktur (SMI) - Indonesia's state-owned infrastructure financing body.
Exploration financing is the riskiest stage in geothermal: you drill without certainty about what lies below. When a state body carries part of that risk, it lowers the barrier to entering a new market.
My Angle
A personal opinion of Ilan Abramov - not advice, not a recommendation
Ormat is one of the companies validating the electricity thesis we have covered all week, and this quarter also shows the difficulty in it.
What is good: the margin. Gross profit rising 20.8% on revenue up 10.6% means the company is generating power more efficiently. In an infrastructure business, where costs are mostly fixed, that is exactly what should happen as capacity fills.
And what is less good: the write-off. $6.6 million on storage projects that will not proceed is not a dramatic sum, but it does say that not every project entering the pipeline reaches production. At a company selling the market a vision of storage growth, it is worth watching how often that recurs.
And what I note above all: the gap between the half year and the quarter. Growth of 42.9% across the half against 10.6% in the quarter means the first quarter did most of the work. Anyone looking only at the half-year number gets a rosier picture than the most recent quarter supports.
And the detail that interests me most long term is Indonesia. An exploration financing facility from a state body removes the largest risk in geothermal. If that model repeats in other countries, it changes the pace of expansion available to the company.
