The strong adjusted EPS beat and guidance raise confirm the market thesis from Q1 — energy storage is scaling rapidly and driving margin expansion. However, the product segment margin compression and declining GAAP net income warrant monitoring. Traders should watch the Q2 conference call for details on Product segment margin recovery in H2 and the pace of 202 MW generation / 497 MW storage construction pipeline conversion to revenue. The raised guidance provides near-term support but the stock may be pricing in continued execution.
Price Chart
Executive Summary
Ormat Technologies reported Q2 2026 adjusted diluted EPS of $0.50, beating the $0.29 consensus by 72.4%, and raised its full-year revenue and Adjusted EBITDA guidance. Revenue grew 10.6% YoY to $258.8M, driven by energy storage revenues nearly tripling (+195.1%), though Product segment revenue fell 21.6% and GAAP net income declined 3.4% due to a $6.6M project write-off.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $0.50 beat consensus of $0.29 by 72.4%
- Total revenue $258.8M (+10.6% YoY) powered by Energy Storage +195.1% to $42.8M
- Full-year revenue guidance raised to $1,150M-$1,200M (from $1,110M-$1,160M)
- Adjusted EBITDA guidance raised to $630M-$650M (from $615M-$645M)
- Adjusted EBITDA grew 6.9% to $143.9M in the quarter
- GAAP diluted EPS fell to $0.43 from $0.46 due to $6.6M storage project write-off
- Product segment gross margin collapsed to 9.7% from 27.7% on European project costs and FX
- Product backlog stood at ~$202.8M as of August 5
- Energy Storage segment gross margin expanded to 56.2% from 11.9% a year ago
Financial Impact
Adjusted diluted EPS beat consensus by $0.21 ($0.50 vs $0.29), representing a 72% upside surprise. Full-year revenue guidance raised by $40M at the midpoint and Adjusted EBITDA guidance raised by $10M at the midpoint.
Risk Factors
- Product segment gross margin fell to 9.7% from 27.7% with no clear recovery timeline beyond management's H2 expectation
- GAAP net income and EPS declined YoY due to $6.6M write-off and $4.9M interest expense increase
- Elevated leverage from $1B convertible notes offering may pressure future earnings coverage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-025961 |
| Document: ora20260805_8k.htm | 0001437749-26-025961 |
| Document: 0001437749-26-025961-index-headers.html | 0001437749-26-025961 |
| Document: 0001437749-26-025961-index.html | 0001437749-26-025961 |
| Document: 0001437749-26-025961.txt | 0001437749-26-025961 |
| 8-K Data (Synthetic) | 0001437749-26-025961 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $107.38 $113.52 | ▲ +5.72% | ▲ +4.51% | $87.13 (−18.86%) |
May 29, 2026 21w ago | Insider Cluster | $136.61 $140.00 | ▲ +2.48% | ▲ +5.23% | $87.13 (−36.22%) |
May 27, 2026 21w ago | 144 | $137.68 $142.45 | ▲ +3.46% | ▲ +3.15% | $87.13 (−36.72%) |
May 21, 2026 22w ago | Insider Cluster | $133.46 $136.61 | ▲ +2.36% | ▲ +0.70% | $87.13 (−34.71%) |
May 15, 2026 23w ago | Insider Cluster | $129.12 $139.08 | ▲ +7.71% | ▲ +6.09% | $87.13 (−32.52%) |
May 15, 2026 23w ago | 144 | $129.12 $139.08 | ▲ +7.71% | ▲ +6.09% | $87.13 (−32.52%) |
May 6, 2026 24w ago | 8-K | $122.52 $133.39 | ▲ +8.87% | ▲ +7.37% | $87.13 (−28.89%) |
Apr 21, 2026 26w ago | DEFA14A | $107.00 $112.40 | ▲ +5.04% | ▲ +4.99% | $87.13 (−18.57%) |
Mar 31, 2026 29w ago | Press Release | $111.92 $113.48 | ▲ +1.39% | ▼ −2.55% | $87.13 (−22.15%) |
Mar 23, 2026 31w ago | 8-K | $109.14 $109.44 | ▲ +0.27% | ▲ +3.84% | $87.13 (−20.17%) |
US Market Status
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