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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.
Ormat
Ormat
Ormat Revenue by Segment
Revenue by Segment
Electricity Revenue
CapyFin.comProduct Revenue
CapyFin.comEnergy Storage Revenue
CapyFin.com 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.
- Uncertainty around renewable energy policy and incentive changes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income