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Dec 31, 2024
Ormat Q4 2024 Earnings Report
Ormat reported a decline in Q4 2024 revenue but strong profitability improvements.
Key Takeaways
Ormat Technologies reported Q4 2024 revenue of $230.7 million, a 4.4% decline year-over-year, primarily due to lower electricity and product segment revenue. Net income increased by 14.3% to $40.8 million, with adjusted EPS rising to $0.72. Energy storage revenue grew significantly by 56.7%, reflecting the company's strategic focus on expanding capacity.
Total revenue decreased 4.4% year-over-year to $230.7 million.
Net income rose 14.3% to $40.8 million, driven by improved cost efficiencies.
Adjusted EPS increased 7.5% to $0.72 from $0.67 in Q4 2023.
Energy storage revenue surged 56.7%, supported by new capacity additions.
Revenue by Segment
Forward Guidance
Ormat expects revenue growth in 2025, with total revenue projected between $935 million and $975 million, driven by expansions in electricity and energy storage segments.
Positive Outlook
- Expected total revenue between $935 million and $975 million in 2025.
- Electricity segment revenue projected to grow to $710 million - $725 million.
- Energy storage revenues forecasted to rise to $53 million - $63 million.
- Recent acquisitions and capacity expansions to support revenue growth.
- Continued margin improvements from cost efficiencies and pricing adjustments.
Challenges Ahead
- Declining revenue in the product segment due to project timing.
- Potential disruptions from maintenance and transmission curtailments.
- Dependency on regulatory and PPA pricing changes for future earnings.
- Higher interest expenses impacting profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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