Ormat Technologies Inc (ORA) Q2 2025 Earnings Call Highlights: Record Revenue Growth Amid Challenges
Net Income: $28 million, a 26.1% increase from the prior year.
Adjusted Net Income: $29.1 million, reflecting a 19.8% increase.
Adjusted EBITDA: $134.6 million, a 6.7% increase year-over-year.
Gross Profit: $56.9 million, down 7.3% from $61.4 million in the previous year.
Gross Margin: 24.3%, down from 28.8% last year.
Electricity Segment Revenue: $159.9 million, a 3.8% decrease due to maintenance and energy curtailment.
Product Segment Revenue: $59.6 million, a 57.6% increase driven by strong backlog.
Energy Storage Segment Revenue: $14.5 million, a 62.7% increase due to new operations and strong merchant prices.
Cash and Cash Equivalents: Approximately $206 million as of June 30, 2025.
Total Debt: Approximately $2.7 billion with a cost of debt at 4.95%.
Net Debt: Approximately $2.5 billion, equivalent to 4.4x net debt to EBITDA.
Dividend: Quarterly dividend of $0.12 per share declared, payable on September 3, 2025.
2025 Revenue Guidance: Expected to range between $935 million and $975 million.
2025 Adjusted EBITDA Guidance: Expected to range between $563 million and $593 million.
Warning! GuruFocus has detected 12 Warning Signs with ORA.
Release Date: August 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Ormat Technologies Inc (NYSE:ORA) reported a record second quarter with a 9.9% increase in revenue and a 26.1% rise in net income.
The company completed the acquisition of the Blue Mountain geothermal power plant, enhancing its generating capacity.
Ormat secured $300 million in funding through tax equity transactions and project finance debt to support future development.
The company is benefiting from expedited federal permitting reforms, accelerating its geothermal development pipeline.
Ormat's energy storage segment demonstrated robust growth with a 62.7% increase in revenue, driven by new projects and higher merchant prices.
Negative Points
The electricity segment experienced a 3.8% decrease in revenue due to ongoing maintenance work and energy curtailment in the U.S.
Gross profit for the second quarter decreased by 7.3%, with a decline in consolidated gross margin from 28.8% to 24.3%.
The company faced a temporary reduction in electricity segment profitability, impacting overall financial performance.
Ormat's energy storage industry remains heavily dependent on batteries sourced from China, posing potential risks due to FEOC provisions.
The company experienced a $12 million reduction in EBITDA due to energy curtailment and well field work at the Puna power plant.
Q & A Highlights
Q: Can you discuss the opportunity for expedited permitting in geothermal development and its impact on project timelines? A: Doron Blachar, CEO: The support from the administration has significantly accelerated permitting processes, allowing us to advance multiple projects. This has enabled us to start full-sized drilling and plan new projects for release in the coming years. For example, the expansion of the Heber project, which began permitting several years ago, has now moved forward due to these changes.
Q: Could you clarify the status of safe harboring for your energy storage projects and any concerns regarding FEOC implications? A: Doron Blachar, CEO: We have safe harbored projects that will come online by 2028 or 2029, with batteries already in the U.S. for those under construction. We are actively safe harboring additional projects, ensuring compliance with current regulations and mitigating FEOC concerns.
Q: What progress has been made in enhanced geothermal systems (EGS), and what is the potential opportunity? A: Doron Blachar, CEO: We have appointed a Senior VP to lead EGS efforts and are exploring multiple technologies. Initially, EGS will enhance production at existing facilities, but long-term, it could significantly expand Ormat's growth potential in both development and product segments.
Q: How have recent legislative changes, like tax credits and BLM permitting, affected your development strategy? A: Doron Blachar, CEO: The extended PTC and ITC benefits provide a clear runway for geothermal projects until 2033, with minimal impact from FEOC rules. This clarity supports our development strategy, allowing us to accelerate projects and maintain our 2028 targets.
Q: Can you provide an update on the Blue Mountain acquisition and its expected contributions? A: Assaf Ginzburg, CFO: Blue Mountain is expected to contribute approximately $4 million in EBITDA for the second half of the year. We plan to increase capacity by 15% by 2027, and the PPA expiring in 2029 should allow for better pricing, enhancing future revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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Meetings with Alaska Native Corporations, government officials and key stakeholders underscore positive momentum for the new Donlin Gold partnership and its updated project development plan. Donlin Gold contract awarded to prepare the Request for Proposals (RFP) to commence the updated Bankable Feasibility Study (BFS) and expects to select top-tier qualified engineering firm(s) by the fourth quarter of 2025. Constructive discussions were held with natural gas pipeline developers and distributors exploring different avenues to bring natural gas to Southcentral Alaska that could be very beneficial for Donlin Gold. Donlin Gold identified hiring priorities and initiated efforts to fill critical roles to support project development. VANCOUVER, British Columbia, Aug. 20, 2025 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. 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Representatives from TKC, Donlin Gold, NOVAGOLD, Paulson, and Electrum – Visit to a local fish camp on the Kuskokwim River TKC – President & CEO, Andrea Gusty; Vice-President of Operations, Megan Leary; Land Consultant, Rachel Klein; Shareholders & Fish Camp Owners – Johnny & Tamara Sakar; Donlin Gold – General Manager, Todd Dahlman, Permitting & Environmental Manager, Enric Fernandez; External Affairs Manager, Wendy Lindskoog; Assistant Manager Community Relations, Rebecca Wilmarth; Human Resources, Shaun Tygart; Paulson – John Paulson; Partners, Marcelo Kim and Michael Waldorf; NOVAGOLD – Chairman, Dr. Thomas S. Kaplan; Director, Ali Erfan; President & CEO, Greg Lang; VP & COO, Richard Williams, VP & General Counsel, Ben Machlis; and VP Corporate Communications, Mélanie Hennessey; and Electrum – Mark Wallace and Arezo Kohistany. Representatives of Calista's Board of Directors, NOVAGOLD, Paulson, and Electrum – Alaska site tour July 2025 Calista – Board of Directors – Willie Kasayulie, Ron Hoffman, Audrey Alstrom, Johnnie Evan, George Guy; President & CEO, Andrew Guy; NOVAGOLD – Chair, Dr. Thomas S. Kaplan and President & CEO, Greg Lang; John Paulson; and Donlin Gold's General Manager, Todd Dahlman. In addition, highly collaborative meetings were held with key government representatives in Alaska, including Governor Mike Dunleavy, Department of Natural Resources Commissioner John Boyle, and former Department of Revenue Commissioner Adam Crum in addition to state leaders to introduce the new Donlin Gold ownership and discuss specific focus areas for the State of Alaska and Donlin Gold. As the second largest gold-producing state in the U.S., Alaska offers superb opportunities for the responsible development of employment-generating projects like Donlin Gold. 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About NOVAGOLD NOVAGOLD is a well-financed precious metals company focused on the development of the Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the Measured and Indicated Mineral Resource categories (541 million tonnes at an average grade of approximately 2.24 grams per tonne, in the Measured and Indicated Mineral Resource categories on a 100% basis)1, inclusive of Proven and Probable Mineral Reserves, the Donlin Gold project is regarded to be one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world. According to the 2021 Technical Report and the S-K 1300 Technical Report Summary, once in production, the Donlin Gold project is expected to produce an average of more than one million ounces per year over a 27-year mine life on a 100% basis. NOVAGOLD Contacts: Mélanie Hennessey Vice President, Corporate Communications Frank GagnonManager, Investor Relations 604-669-6227 or 1-866-669-6227info@ Cautionary Note Regarding Forward-Looking Statements This media release includes certain 'forward-looking information' and 'forward-looking statements' (collectively 'forward-looking statements') within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. Forward- looking statements are frequently, but not always, identified by words such as 'expects', 'continue', 'ongoing', 'anticipates', 'believes', 'intends', 'estimates', 'potential', 'possible', and similar expressions, or statements that events, conditions, or results 'will', 'may', 'could', 'would' or 'should' occur or be achieved. Forward-looking statements contained in this media release are based on a number of material assumptions, including but not limited to the following, which could prove to be significantly incorrect: our ability to achieve production at Donlin Gold; the cost estimates and assumptions contained in the 2021 Technical Report and the S-K 1300 Technical Report Summary; estimated metal pricing, metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying our resource and reserve estimates; our expected ability to develop adequate infrastructure and that the cost of doing so will be reasonable; assumptions that all necessary permits and governmental approvals will be obtained and the timing of such approvals; assumptions made in the interpretation of drill results, the geology, grade and continuity of our mineral deposits; our expectations regarding demand for equipment, skilled labor and services needed for exploration and development of mineral properties; our ability to improve our ESG initiatives and goals; and that our activities will not be adversely disrupted or impeded by development, operating or regulatory risks. Forward-looking statements are necessarily based on several opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements include statements regarding plans for and the estimated timing of an updated Bankable Feasibility Study (BFS) on the Donlin Gold project; our goals and planned activities for 2025; ongoing support provided to key stakeholders including Native Corporation landowners; Donlin Gold's continued support for the state and federal permitting process; the potential development and construction of the Donlin Gold project; the timing and ability for the Donlin Gold project to hit critical milestones; the ability for the Donlin Gold development project to hit the anticipated projects; the sufficiency of funds to continue to advance development of Donlin Gold, including to a construction decision; perceived merit of properties; mineral reserve and mineral resource estimates; and Donlin Gold's ability to secure the permits needed to construct and operate the Donlin Gold project in a timely manner, if at all; legal challenges to Donlin Gold's existing permits and the timing of decisions in those challenges; plans to continue to advance the Donlin Gold project safely, socially responsibly and to sustainably generate value for our stakeholders; continued cooperation between the Owners of Donlin Gold LLC to advance the project; the Company's ability to deliver on its strategy with the Donlin Gold project, increasing the value of the project; the success of the strategic mine plan for the Donlin Gold project, the success of the Donlin Gold community relations plan; the anticipated outcome of exploration drilling at the Donlin Gold project and the timing thereof; the completion of the test work and modeling and the timing thereof, including expected production and mine life, the ability and merit of delivering natural gas to South Central Alaska, the timing to select the firms for the feasibility study, and the timing of drill result updates. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not historical facts but instead represent the expectations of NOVAGOLD management's estimates and projections regarding future events or circumstances on the date the statements are made. Important factors that could cause actual results to differ materially from expectations include the need to obtain additional permits and governmental approvals; the timing and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to complete an updated BFS and to explore and develop properties; availability and limitations on methods of financing in the debt and capital markets; disease pandemics; uncertainties involved in the interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and exploration successes; changes in national and local government legislation, taxation, trade policies, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States or Canada; the need for continued cooperation between the owners of Donlin Gold LLC to advance the project; the need for cooperation of government agencies and Native groups in the development and operation of properties; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, disease pandemics, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases, which could include significant increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; whether or when a positive construction decision will be made regarding the Donlin Gold project; and other risks and uncertainties disclosed in NOVAGOLD's most recent reports on Forms 10-K and 10-Q, particularly the 'Risk Factors' sections of those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained by visiting NOVAGOLD's website at or the SEC's website at or on SEDAR+ at The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law. 1 Donlin Gold data as per the report titled 'NI 43-101 Technical Report on the Donlin Gold project, Alaska, USA' with an effective date of June 1, 2021 (the '2021 Technical Report') and the report titled 'S-K 1300 Technical Report Summary on the Donlin Gold project, Alaska, USA' (the 'S-K 1300 Technical Report Summary'), dated November 30, 2021. Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 5 Mt of Measured Resources and approximately 320 Mt of Indicated Resources inclusive of Reserves is currently attributable to NOVAGOLD through its 60% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves, Donlin Gold possesses Measured Resources of approximately 0.9 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of Measured Resources and approximately 42 Mt of Indicated Resources exclusive of Mineral Reserves is currently attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 5 Mt of Proven Reserves and approximately 298 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Reserves and Resources have been estimated in accordance with NI 43-101 and S-K 1300. Photos accompanying this announcement are available at: in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
