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ORMAT TECHNOLOGIES, INC.

ORMAT TECHNOLOGIES, INC.ORAEarnings & Financial Report

NYSE

Ormat Technologies, Inc. is an international company based in Reno, Nevada, United States. Ormat supplies alternative and renewable geothermal energy technology. The company has built over 190 power plants and installed over 3,200 MW of output. As of January 2021 it owns and operates 933 MW of geothermal and recovered energy based power plants. Ormat has supplied over 1000 turbochargers worldwide, in North America, South America, Europe, Australia, and Asia. The company's products also includ...

What changed in ORMAT TECHNOLOGIES, INC.'s 10-K — 2024 vs 2025

Top changes in ORMAT TECHNOLOGIES, INC.'s 2025 10-K

570 paragraphs added · 647 removed · 418 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

185 edited+63 added−104 removed155 unchanged
The number of production wells varies from plant to plant depending on, among other things, the geothermal resource, the projected capacity of the power plant, the power generation equipment to be used and the way geothermal fluids will be re-injected through injection wells to maintain the geothermal resource and surface conditions.
The number of production and injection wells varies from plant to plant depending on, among other things, the geothermal resource, the projected capacity of the power plant, the power generation equipment to be used and the way geothermal fluids will be re-injected through injection wells to maintain the geothermal resource and surface conditions.
The 80 MW size limitation, however, does not apply to a facility if (i) it produces electric energy solely by the use, as a primary energy input, of solar, wind, waste or geothermal resources; and (ii) an application for certification or a notice of self-certification of qualifying status of the facility was submitted to not later than December 31, 1994, and construction of the facility commenced not later than December 31, 1999.
The 80 MW size limitation, however, does not apply to a facility if (i) it produces electric energy solely by the use, as a primary energy input, of solar, wind, waste or geothermal resources; and (ii) an application for certification or a notice of self-certification of qualifying status of the facility was submitted not later than December 31, 1994, and construction of the facility commenced not later than December 31, 1999.
Indonesia The Electricity Law No. 32 of 2009 (in conjunction with Government Regulation In Lieu of Law No. 2 of 2022 on Job Creation*/Omnibus Law) is the principal regulation for the electricity industry in Indonesia which divides the industry into two broad categories: (1) electrical power provision, covering electric power generation, transmission, distribution and sales, and (2) electrical power support such as services (consulting, construction, installation, operation & maintenance, certification & training, testing etc.) and industry (manufacture of tools, power plant equipment, cables, electrical 45 equipment, etc.).
Indonesia The Electricity Law No. 32 of 2009 (in conjunction with Government Regulation In Lieu of Law No. 2 of 2022 on Job Creation*/Omnibus Law) is the principal regulation for the electricity industry in Indonesia which divides the industry into two broad categories: (1) electrical power provision, covering electric power generation, transmission, distribution and sales, and (2) electrical power support such as services (consulting, construction, installation, operation & maintenance, certification & training, testing etc.) and industry (manufacture of tools, power plant equipment, cables, electrical equipment, etc.).
In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance. The first phase of the recovery plan included the drilling of an additional production well that was successful, and certain modifications to surface equipment that are still underway.
In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance. The first phase of the recovery plan included the drilling of an additional production well, which was successful, and certain modifications to surface equipment are still underway.
The Electrical power provision business is dominated by PLN (a state-owned enterprise), which is the sole owner of transmission and distribution assets and 91.6%** of the power generation assets as per 2023. Private sector participation in power generation is allowed through an IPP scheme, mostly done through tenders or direct appointment for some power sources such as geothermal.
The Electrical power provision business is dominated by PLN (a state-owned enterprise), which is the sole owner of transmission and distribution assets and 91.6% of the power generation assets as per 2023. Private sector participation in power generation is allowed through an IPP scheme, mostly done through tenders or direct appointment for 43 some power sources such as geothermal.
We are pursuing the development of additional grid-connected BESS projects in multiple regions, with expected revenues coming from providing energy, capacity and/or ancillary services on a merchant basis, or through long term bilateral contracts with load serving entities, e.g., investor-owned utilities, publicly owned utilities and community choice aggregators.
We are pursuing the development of additional grid-connected BESS projects in multiple regions, with expected revenues coming from providing energy, capacity and/or ancillary services on a merchant basis, or through long-term contracts with load serving entities, e.g., investor-owned utilities, publicly owned utilities and community choice aggregators.
Laws provide certain benefits to companies that generate power through renewable sources, including a 10-year exemption from corporate income tax and VAT on imports and customs duties, a fast-track process for certain permits and a Sovereign Guaranty by the Central Government for the 46 payments of the off-taker, the Public Utility Company, ENEE.
Laws provide certain benefits to companies that generate power through renewable sources, including a 10-year exemption from corporate income tax and VAT on imports and customs duties, a fast-track process for certain permits and a Sovereign Guaranty by the Central Government for the payments of the off-taker, the Public Utility Company, ENEE.
As the ACC is a significant piece of equipment involved in the ORC process, we focus our efforts on improving ACC performance and reduce its cost, such as the wind guiding vanes for wind effects mitigation, inclined ACC and tubes geometry variation. We also devote resources to research and development related to our energy storage segment.
As the ACC is a significant piece of equipment involved in the ORC process, we focus our efforts on improving ACC performance and reduce its cost, such as the wind guiding vanes for wind effects mitigation, inclined ACC and tubes geometry variation. We also devote resources to research and development for our Energy Storage segment.
By contrast, our binary and combined cycle geothermal power plants have a low profile with minimal visual impact and do not emit a plume when they use air-cooled condensers. Our binary and combined cycle geothermal power plants reinject all of the geothermal fluids utilized in the respective processes into the geothermal reservoir. Consequently, such processes generally have no emissions.
By contrast, our binary and combined cycle geothermal power plants have a low profile with minimal visual impact and do not emit a plume when they use air-cooled condensers. Our binary and combined cycle geothermal power plants reinject all of the geothermal fluids utilized in the respective processes into the geothermal reservoir. Consequently, such processes generally have minimal emissions.
In addition, our technology allows for better load following than conventional steam turbines, requires no water treatment (since it is air-cooled and organic fluid motivated), and does not require the continuous presence of a licensed steam boiler operator on site. 21 Our REG technology is depicted in the diagram below.
In addition, our technology allows for better load following than conventional steam turbines, requires no water treatment (since it is air-cooled and organic fluid motivated), and does not require the continuous presence of a licensed steam boiler operator on site. Our REG technology is depicted in the diagram below.
FERC's regulations under PURPA allow FERC, 41 upon request of a utility, to terminate a utility’s obligation to purchase energy from Qualifying Facilities upon a finding that Qualifying Facilities have nondiscriminatory access to: (i) independently administered, auction-based day ahead, and real time markets for electric energy and wholesale markets for long-term sales of capacity and electric energy; (ii) transmission and interconnection services provided by a FERC-approved regional transmission entity and administered under an open-access transmission tariff that affords nondiscriminatory treatment to all customers, and competitive wholesale markets that provide a meaningful opportunity to sell capacity, including long-term and short-term sales, and electric energy, including long-term, short-term, and real-time sales, to buyers other than the utility to which the Qualifying Facility is interconnected; or (iii) wholesale markets for the sale of capacity and electric energy that are at a minimum of comparable competitive quality as markets described in (i) and (ii) above.
FERC's regulations under PURPA allow FERC, upon request of a utility, to terminate a utility’s obligation to purchase energy from Qualifying Facilities upon a finding that Qualifying Facilities have nondiscriminatory access to: (i) independently administered, auction-based day ahead, and real time markets for electric energy and wholesale markets for long-term sales of capacity and electric energy; (ii) transmission and interconnection services provided by a FERC-approved regional transmission entity and administered under an open-access 39 transmission tariff that affords nondiscriminatory treatment to all customers, and competitive wholesale markets that provide a meaningful opportunity to sell capacity, including long-term and short-term sales, and electric energy, including long-term, short-term, and real-time sales, to buyers other than the utility to which the Qualifying Facility is interconnected; or (iii) wholesale markets for the sale of capacity and electric energy that are at a minimum of comparable competitive quality as markets described in (i) and (ii) above.
Even if a power plant does not lose Qualifying Facility status, the owner of a Qualifying Facility/power plant in excess of 20 MW will become subject to rate regulation under the FPA for sales of energy or capacity pursuant to a contract executed after March 17, 2006 or not pursuant to a state regulatory authority’s implementation of PURPA.
Even if a power plant does not lose Qualifying Facility status, the owner of a Qualifying Facility/power plant in excess of 20 MW will become subject to rate regulation under the FPA for 40 sales of energy or capacity pursuant to a contract executed after March 17, 2006 or not pursuant to a state regulatory authority’s implementation of PURPA.
We determine the generating capacity of these power plants by taking into account resource and power plant capabilities. In any given year, the actual power generation of a particular power plant may differ from that power plant’s generating capacity due to variations in ambient temperature, the availability of the geothermal resource, and operational issues affecting performance during that year.
We determine the generating capacity of these power plants by taking into account resource and power plant capabilities. In any given year, the actual power generation of a particular power plant may differ from that power plant’s generating capacity due to variations in ambient temperature, the availability of the geothermal resource, and operational issues affecting performance during that year. 3.
Additionally, we hold patents in other energy storage solutions, including a mechanical energy storage system, which is currently under design and feasibility examination. A preliminary trial of this system in a small-scale unit 22 was performed, and testing remains ongoing. Initial results obtained high RTE values compared to other mechanical energy storage solutions.
Additionally, we hold patents in other energy storage solutions, including a mechanical energy storage system, which is currently under design and feasibility examination. A preliminary trial of this system in a small-scale unit was performed, and testing remains ongoing. Initial results obtained high RTE values compared to other mechanical energy storage solutions.
If the project subsidiary has not commenced any such operations on said land (or on the unit area, if the lease has been unitized), or terminated the lease within the primary term, the project subsidiary must pay to the lessor, in order to maintain its lease position, annually in advance, a rental fee until operations are commenced on the leased land.
If the project subsidiary has not commenced any such operations on said land (or on the unit area, if the lease has been 30 unitized), or terminated the lease within the primary term, the project subsidiary must pay to the lessor, in order to maintain its lease position, annually in advance, a rental fee until operations are commenced on the leased land.
The designs vary based on various factors, including local laws, required permits, the geothermal resource, the expected capacity of the power plant and the way geothermal fluids will be re-injected to maintain the geothermal resource and surface conditions. ▪ Obtaining any required permits, electrical interconnection and transmission agreements.
The designs vary based on various factors, including local laws, required permits, the geothermal resource, the expected capacity of the 27 power plant and the way geothermal fluids will be re-injected to maintain the geothermal resource and surface conditions. ▪ Obtaining any required permits, electrical interconnection and transmission agreements.
We do not regard any property that we lease as material unless and until we begin construction of a power plant on the property. Description of Our Power Plants Domestic Operating Power Plants The following descriptions summarize certain industry metrics for our domestic operating power plants: 32 Power plants in the U.S.
We do not regard any property that we lease as material unless and until we begin construction of a power plant on the property. Description of Our Power Plants Domestic Operating Power Plants The following descriptions summarize certain industry metrics for our domestic operating power plants: Power plants in the U.S.
Workforce Health and Safety The health and safety of our employees, subcontractors, the public, and the environment is our overarching priority. We proactively identify, assess and manage risks in the facilities and offices that we own and operate. Our goal is to report, 39 analyze, learn and improve performance to reduce the number of safety incidents.
Workforce Health and Safety The health and safety of our employees, subcontractors, the public, and the environment is our overarching priority. We proactively identify, assess and manage risks in the facilities and offices that we own and operate. Our goal is to report, analyze, learn and improve performance to reduce the number of safety incidents.
We operate our facilities in three main areas in the U.S., California, Texas and the East Coast and generate our revenues mainly from the sale of ancillary services in the merchant market and /or tolling agreements and RA contracts.
We operate our facilities in three main areas in the U.S., California, Texas and the East Coast (mainly in the PJM market) and generate our revenues mainly from the sale of ancillary services in the merchant market and /or tolling agreements and RA contracts.
Leveraged financing also means that distributions of dividends or other distributions by our subsidiaries to us are contingent on compliance with financial and other covenants contained in the applicable finance documents. In 2024, we entered into several corporate and project finance loans, commercial papers and expanded and renewed our revolving credit facilities to support our geothermal and storage growth.
Leveraged financing also means that distributions of dividends or other distributions by our subsidiaries to us are contingent on compliance with financial and other covenants contained in the applicable finance documents. In 2025, we entered into several corporate and project finance loans, renewed our commercial papers and expanded our revolving credit facilities to support our geothermal and storage growth.
FERC has granted the request of California investor-owned utilities for a waiver of the mandatory purchase obligation for Qualifying Facilities larger than 20 MW in size. In addition, FERC recently amended its PURPA regulations to reduce the rebuttable presumption that small power production facilities in organized markets have nondiscriminatory access to markets from 20MW to 5MW.
FERC has granted the request of California investor-owned utilities for a waiver of the mandatory purchase obligation for Qualifying Facilities larger than 20 MW in size. In addition, FERC subsequently amended its PURPA regulations to reduce the rebuttable presumption that small power production facilities in organized markets have nondiscriminatory access to markets from 20MW to 5MW.
We list 100% of the generating capacity of the Bouillante power plant, the Neal Hot Springs power plant and the Puna power plant in the table above because we control their operations.
We list 100% of the generating capacity of the Bouillante power plant, the Zunil power plant, the Neal Hot Springs power plant and the Puna power plant in the table above because we control their operations.
Additionally, FERC possesses civil penalty authority, up to approximately $1.5 million per violation of the FPA per day. FERC can also require the disgorgement of unjust profits earned in connection with such violations of the FPA and revoke the right of the power plants to make sales at market-based rates.
Additionally, FERC possesses civil penalty authority, up to approximately $1.6 million per violation of the FPA per day. FERC can also require the disgorgement of unjust profits earned in connection with such violations of the FPA and revoke the right of the power plants to make sales at market-based rates.
How We Finance Our Power Plants We have funded our power plants with different sources of liquidity such as a non-recourse or limited recourse debt, lease financing, tax monetization transactions, internally generated cash, which includes funds from operations, as well as proceeds from loans under corporate credit facilities, green convertibles corporate bonds, public debt and equity offerings, senior unsecured corporate bonds, and the sale of equity interests and other securities.
How We Finance Our Power Plants 28 We have funded our power plants with different sources of liquidity such as a non-recourse or limited recourse debt, lease financing, tax monetization transactions, internally generated cash, which includes funds from operations, as well as proceeds from loans under corporate credit facilities, bonds (including green bonds), public debt and equity offerings, senior unsecured corporate bonds, and the sale of equity interests and other securities.
The practical effect of these regulations is to require owners of Qualifying Facilities that are larger than 20MW in size to obtain market-based rate authority from FERC if they seek to sell energy or capacity other than pursuant to a contract executed on or before March 17, 2006 or pursuant to a state regulatory authority’s implementation of PURPA.
The practical effect of these regulations is to require owners of Qualifying Facilities that are larger than 20 MW in size to obtain market-based rate authority from FERC if they seek to sell energy or capacity other than pursuant to a contract executed on or before March 17, 2006 or pursuant to a state regulatory authority’s implementation of PURPA.
Today, enforcement of the mandatory reliability standards, including the protection of critical energy infrastructure, is a substantial function of the ERO and of FERC, which may impose penalties of up to approximately $1.5 million a day for violating mandatory reliability standards.
Today, enforcement of the mandatory reliability standards, including the protection of critical energy infrastructure, is a substantial function of the ERO and of FERC, which may impose penalties of up to approximately $1.6 million a day for violating mandatory reliability standards.
We continue to develop greenfield projects with great emphasis on the quality of the location and other characteristics that will make for highly profitable projects as well as targeting strategic acquisitions of development assets or platforms.
We continue to develop greenfield projects with great emphasis on the quality of the location and other characteristics that will make for highly profitable projects as well as targeting strategic acquisitions of development assets.
Collective Bargaining Agreements & Employee Unions As of December 31, 2024, the only employees currently represented by a labor union are the employees of our Bouillante power plant located in Guadeloupe and our battery and maintenance employees in Philadelphia.
Collective Bargaining Agreements & Employee Unions As of December 31, 2025, the only employees currently represented by a labor union are the employees of our Bouillante power plant located in Guadeloupe and our battery and maintenance employees in Philadelphia.
We expect to continue to explore these and other opportunities for expansion so long as they continue to meet our business objectives and investment criteria. However, we prioritize our investments based on their readiness for continued construction and expected economics and therefore we are not planning to invest in all of such projects in 2025.
We expect to continue to explore these and 35 other opportunities for expansion so long as they continue to meet our business objectives and investment criteria. However, we prioritize our investments based on their readiness for continued construction and expected economics and therefore we are not planning to invest in all of such projects in 2026.
We provide the purchaser with performance guarantees (usually in the form of standby letters of credit), which partially terminates upon delivery of the equipment to the site and terminates in full at the end of the warranty period.
We provide the purchaser with performance guarantees 44 (usually in the form of standby letters of credit), which partially terminate upon delivery of the equipment to the site and terminates in full at the end of the warranty period.
I n New Zealand , where we have been actively providing geothermal power plant solutions since 1988, the government’s policies to fight climate change include a net zero GHG emissions reduction target by 2050 and a renewable electricity generation target of 90% of New Zealand’s total electricity generation by 2035.
In New Zealand , where we have been actively providing geothermal power plant solutions since 1988, the government’s policies to fight climate change include a net zero GHG emissions reduction target by 2050 and a renewable electricity generation target of 90% of New Zealand’s total electricity generation by 2035.
Our competitors among power plant equipment suppliers are divided by technology, steam turbines and binary power plant manufacturers. Our main steam turbine competitors are industrial steam turbine manufacturers such as Mitsubishi Heavy Industries, Fuji Electric Co., Ltd. and Toshiba Corporation of Japan, GE/Nuovo Pignone and Ansaldo Energia of Italy.
Our competitors among power plant equipment suppliers are divided by technology, steam turbines and binary power plant manufacturers. Our main steam turbine competitors are industrial steam turbine manufacturers such as Mitsubishi Heavy Industries, Fuji Electric Co., Ltd. and Toshiba Corporation of Japan, GE/Nuovo Pignone and Ansaldo Energia of Italy. Our binary technology competitors are manufacturers using the ORC technology.
In the Energy Storage segment, we own and operate grid-connected In Front of the Meter (IFM) BESS facilities, which provide capacity, energy and ancillary services directly to the electric grid.
In the Energy Storage segment, we own and operate grid-connected, stand alone In Front of the Meter (IFM) BESS facilities, which provide capacity, energy and ancillary services directly to the electric grid.
Our current land position is comprised of various leases, concessions and private land for geothermal resources in 44 prospects across the western U.S., Latin America and Africa.
Our current land position is comprised of various leases, concessions and private land for geothermal resources in 50 prospects across the western U.S., Latin America and Africa.
We own a 63.75% equity interest in the Bouillante power plant, a 60% equity interest in the Neal Hot Spring power plant and a 63.25% direct equity interest in the Puna plant.
We own a 63.75% equity interest in the Bouillante power plant, a 97% equity interest in the Zunil power plant, a 60% equity interest in the Neal Hot Spring power plant, and a 63.25% direct equity interest in the Puna plant.
Campbell Complex (1) 28 Geothermal air-cooled binary system 4°F per year SCPPA Phase 1 - 2034 Phase 2 -2035 Heber Complex 91 Geothermal dual flash and binary systems using a water-cooled system 1 ° F to 2 ° per year SCPPA and Peninsula Clean Energy (PCE), CPA Heber 1 — 2051 Heber 2 — end of 2038 Heber South — End of 2037 Jersey Valley 8 Geothermal air-cooled binary system Under 2°F per year Nevada Power Company 2032 Mammoth Complex 65 Geothermal air-cooled binary system 1 ° F per year PG&E and Southern California Edison (will be replaced by a PPA with Calpine).
Campbell Complex (1) 28 Geothermal air-cooled binary system Declining at 3-4°F per year SCPPA Phase 1 - 2034 Phase 2 -2035 Heber Complex 91 Geothermal binary systems using both water and air-cooled systems 1 ° F to 2 ° per year SCPPA and Peninsula Clean Energy (PCE), CPA Heber 1 — 2051 Heber 2 — end of 2038 Heber South — End of 2037 Jersey Valley 8 Geothermal air-cooled binary system Under 2°F per year Nevada Power Company 2032 Mammoth Complex 65 Geothermal air-cooled binary system 1 ° F per year PG&E and Southern California Edison (will be replaced by a PPA with Calpine).
In the last five years, our typical cost for each production and injection well ranged between $1.0 million to $13.0 million. An average cost for a domestic well was approximately $3.5 million and $8.0 million for international wells. ▪ Designing the well field, power plant, equipment, controls, and transmission facilities.
In the last five years, our cost for each production and injection well ranged between $2.1 million to $13.0 million. An average cost for a domestic well was approximately $4.3 million and $8.0 million for international wells. ▪ Designing the well field, power plant, equipment, controls, and transmission facilities.
Therefore, the California investor-owned utilities may have a basis to further reduce their mandatory purchase obligation. We expect that our power plants in the U.S will continue to meet all criteria required for Qualifying Facility status under PURPA.
Therefore, the California investor-owned utilities may have a basis to further reduce their mandatory purchase obligation. With certain limited exceptions, we expect that our power plants in the U.S will continue to meet all criteria required for Qualifying Facility status under PURPA.
Internationally, our land position includes approximately 59,154 acres in various countries. 30 BLM Geothermal Leases Certain of our domestic project subsidiaries have entered into geothermal resource leases with the U.S. government, pursuant to which they have obtained the right to conduct their geothermal development and operations on federally-owned land. These leases are made pursuant to the Geothermal Steam Act.
Internationally, our land position includes approximately 5,006 acres in various countries. BLM Geothermal Leases Certain of our domestic project subsidiaries have entered into geothermal resource leases with the U.S. government, pursuant to which they have obtained the right to conduct their geothermal development and operations on federally-owned land. These leases are made pursuant to the Geothermal Steam Act.
Neal Hot Springs 22 Geothermal air-cooled binary system 1.5 °F over the past year Idaho Power Company 2038 OREG 1 22 Geothermal air-cooled binary system NA Basin Electric Power Cooperative 2031 OREG 2 22 Geothermal air-cooled binary system NA Basin Electric Power Cooperative 2034 OREG 3 5.5 Geothermal air-cooled binary system NA Great River Energy. 2029 Ormesa Complex 36 Geothermal water-cooled binary system and water-cooled flash system. 1°F to 2°F per year SCPPA under a single PPA. 2042 33 Project Name Size (MW) Technology Resource Cooling Customer PPA Expiration Puna Complex 38 Geothermal combined cycle and air-cooled binary system The resource temperature is stable HELCO 2027 Raft River 12 Geothermal water-cooled binary system The resource temperature is stable Idaho Power Company 2032 San Emidio Complex 39 Geothermal- water-cooled binary system Temperature declining in response to recent increase in flow from North Valley Plant.
Phases 1 and 2 - 2033 Phase 3 - 2043. 31 Project Name Size (MW) Technology Resource Cooling Customer PPA Expiration Neal Hot Springs 22 Geothermal air-cooled binary system 1.5 °F over the past year Idaho Power Company 2038 OREG 1 22 Geothermal air-cooled binary system NA Basin Electric Power Cooperative 2031 OREG 2 22 Geothermal air-cooled binary system NA Basin Electric Power Cooperative 2034 OREG 3 5.5 Geothermal air-cooled binary system NA Great River Energy. 2029 Ormesa Complex 40 Geothermal water-cooled binary system. 1°F to 2°F per year SCPPA under a single PPA. 2042 Puna Complex 38 Geothermal combined cycle and air-cooled binary system The resource temperature is stable HELCO 2027 Raft River 12 Geothermal water-cooled binary system The resource temperature is stable Idaho Power Company 2032 San Emidio Complex 39 Geothermal- water-cooled binary system Temperature declining in response to recent increase in flow from North Valley Plant.
Southern California Edison BBB (Stable) Baa1 (Stable) HELCO B- (Negative watch) Ba3 (Stable) Sierra Pacific Power Company A- (Stable) Baa2 (Stable) Nevada Power Company A- (Stable) Baa1 (Stable) SCPPA AA+ (Stable) Stable PG&E BB (Positive) Ba1 (Positive) EDF BBB (Positive) Baa1 (Stable) The credit ratings of any power purchaser may change from time to time.
Southern California Edison BBB- (Negative) Baa1 (Stable) HELCO B+ (Positive watch) Ba2 (Positive) Sierra Pacific Power Company A- (Stable) Baa2 (Stable) Nevada Power Company A- (Stable) Baa1 (Stable) SCPPA AA+ (Stable) Stable PG&E BB (Positive) Baa3 (Positive) EDF BBB+ (Stable) Baa1 (Stable) The credit ratings of any power purchaser may change from time to time.
Unlike electricity produced by burning fossil fuels, electricity produced from geothermal energy sources is produced without emissions of certain pollutants such as nitrogen oxide, and with far lower emissions of other pollutants such as carbon dioxide.
Unlike electricity produced by burning fossil fuels, geothermal energy is produced without emissions of certain pollutants such as nitrogen oxide, and with far 12 lower emissions of other pollutants such as carbon dioxide.
With the successful COD of the 15MW Salak binary power plant in early Februar 2025 which uses the Ormat system and is the first full single phase binary power plant in Indonesia, we will continue to develop and capture the binary market in Indonesia with geothermal and REG power plants.
With the successful COD of the 15MW Salak binary power plant in early February 2025 which uses the Ormat system and is the first full single phase binary power plant in Indonesia, we plan to continue to develop and capture the binary market in Indonesia with geothermal and REG power plants.
It generally takes two to five years from the time we start active exploration of a particular geothermal resource to the time we have resource confirmation through drilling and testing. This timeframe assumes the resource is commercially viable and there is an intention to pursue its development. Exploration activities generally involve the phases described below.
It generally takes two to five years from the time we start active exploration of a particular geothermal resource to the time we have resource confirmation through drilling and testing. This timeframe assumes the resource is commercially viable and there is an intention to pursue its development.
Our Geothermal Combined Cycle technology, that we have deployed in previous years, is depicted in the diagram below. In the conversion of geothermal energy into electricity, our technology has a number of advantages over conventional geothermal steam turbine plants.
Our Geothermal Combined Cycle technology, that we have deployed in previous years, is depicted in the diagram below. 20 In the conversion of geothermal energy into electricity, our technology has several advantages over conventional geothermal steam turbine plants.
Backlog We have a product backlog of approximately $340.0 million as of February 25, 2025, which includes revenues for the period between January 1, 2025 and February 25, 2025, compared to $152.0 million as of February 22, 2024, which included revenues for the period between January 1, 2024 and February 26, 2024.
Backlog We have a product backlog of approximately $352.0 million as of February 25, 2026, which includes revenues for the period between January 1, 2026 and February 25, 2026, compared to $340.0 million as of February 22, 2025, which included revenues for the period between January 1, 2025 and February 26, 2025.
The approximate breakdown between federal, state and private leases and owned land is as follows: • ~82% of the acreage under our control is leased from the U.S. government, mainly through the BLM. Roughly 18% of that acreage is currently suspended; • ~15% is leased or subleased from private landowners and/or leaseholders; and • ~3% is owned by us.
The approximate breakdown between federal, state and private leases and owned land is as follows: • ~78% of the acreage under our control is leased from the U.S. government, mainly through the BLM. Roughly 3% of that acreage is currently suspended; • ~18% is leased or subleased from private landowners and/or leaseholders; and • ~4% is owned by Ormat.
When deciding whether to continue holding lease rights and/or to pursue exploration activity, we diligently prioritize our prospective investments, taking into account resource and probability assessments in order to make informed decisions about whether a particular project will support commercial operation.
When deciding whether to continue holding lease rights and/or to pursue exploration activity, we diligently prioritize our prospective investments, taking into account resource and probability assessments in order to make informed decisions about whether a particular project will support commercial operation. We may conclude that a prospective geothermal resource will not support commercial operations.
The employees in Guadeloupe are represented by the Confédération Générale du Travail de Guadeloupe and those in Philadelphia by the IBEW Local 777. We have no collective bargaining agreements for our Israeli employees.
The employees in Guadeloupe are represented by the Confédération Générale du Travail de Guadeloupe and those in Philadelphia by the IBEW Local 777. We do not maintain collective bargaining agreements for our Israeli employees.
In addition, with our binary design, there is no contact between the turbine blade and geothermal fluids, which can often be very erosive and corrosive. Instead, the geothermal fluids pass through a heat exchanger, which is less susceptible to erosion and can adapt much better to corrosive fluids.
In addition, with our binary design, there is no contact between the turbine blades and the geothermal fluids, which can often be very erosive and corrosive. Instead, the geothermal fluids pass through heat exchangers, which are less susceptible to erosion and can adapt much better to corrosive fluids.
The resource temperature is stable EDF pursuant to a PPA. 2030 Olkaria III Complex (Kenya) (2) 150 Geothermal air-cooled binary system Temperature stabilized in 2024 KPLC Plant 2 - 2033 Plant 1&3 - 2034 Plant 4 - 2036 Platanares (Honduras) (3) 30 (4) Geothermal air-cooled binary system 5°F per year ENEE 2047 Zunil (Guatemala) 20 Geothermal air-cooled binary system The resource temperature is stable INDE 2034 Sarulla Complex - (Indonesia) 42 Geothermal Combined Cycle steam and binary systems NIL power plant - 3°F per year and SIL - about 1°F per year PLN 2047 Ijen (Indonesia) 17 (9) Geothermal Combined Cycle steam and binary systems NA (8) PLN 2055 1.
End of 2027 Bouillante (France) 15 Geothermal direct steam turbines with sea-water cooling system The resource temperature is stable EDF pursuant to a PPA. 2030 Olkaria III Complex (Kenya) (2) 150 Geothermal air-cooled binary system Temperature stabilized in 2024 KPLC Plant 2 - 2033 Plant 1&3 - 2034 Plant 4 - 2036 Platanares (Honduras) (3) 30 (4) Geothermal air-cooled binary system 4°F to 5°F per year ENEE 2047 Zunil (Guatemala) 20 Geothermal air-cooled binary system The resource temperature is stable INDE 2034 Sarulla Complex - (Indonesia) 42 Geothermal Combined Cycle steam and air cooled binary systems NIL power plant - 3°F per year and SIL - about 1°F per year PLN 2047 Ijen (Indonesia) 17 (9) Geothermal air-cooled binary system NA (8) PLN 2055 1.
We have a substantial pipeline of approximately 2.9GW/10.7GWh of projects in different stages of development for future growth in the U.S. and Israel that will support our target to reach an energy storage portfolio of between 950-1050MW/2,500-2,900MWh by the end of 2028. 48
We have a substantial pipeline of approximately 2.7GW/10.0GWh of projects in different stages of development for future growth in the U.S. and Israel that we expect will help support our target to reach an energy storage portfolio of between 950-1050MW/2,500-2,900MWh by the end of 2028. 46
Capacity payments are normally calculated based on the generating capacity or the declared capacity of a power plant available for delivery to the purchaser, regardless of the amount of electrical output actually produced or delivered.
Capacity payments, on the other hand, are calculated based on the generating capacity or declared capacity of a power plant available for delivery to the customer, regardless of the amount of electrical output actually produced or delivered.
However, on average, exploration costs, prior to drilling of a full-size well, are approximately $1.0 million to $5.0 million for each site, not including land acquisition, and depending on the success we see in the early stages of exploration. Outside the U.S. exploration costs can be higher. Pending successful results, a full-size drilling campaign is recommended.
However, exploration costs, prior to drilling of a full-size well, are $1.0 million to $5.0 million for each site, not including land acquisition, and depending on the success we see in the early stages of exploration. Outside the U.S. exploration costs can be higher.
For more information, see Part I of this Annual Report, Item 1A “Risk Factors—Risks Related to the Company’s Business and Operation—We could be impacted by regulatory and other responses to climate change” and “—Risks Related to Governmental Regulations, Laws and Taxation—The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.” Geothermal energy provides numerous benefits to the U.S. grid and economy.
For more information, see Part I of this Annual Report, Item 1A “Risk Factors—Risks Related to the Company’s Business and Operation—We could be impacted by regulatory and other responses to climate change” and “—Risks Related to Governmental Regulations, Laws and Taxation—The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows”.
Our operations and maintenance practices for geothermal power plants seek to preserve the sustainable characteristics of the geothermal resources we use to produce electricity and maintain steady-state operations within the constraints of those resources reflected in our relevant geologic and hydrologic studies.
Our operations and maintenance practices for geothermal power plants seek to preserve the sustainable characteristics of the geothermal resources we use to produce electricity and maintain steady-state operations within the constraints of those resources reflected in our relevant geologic and hydrologic studies. Safety is a key area of concern to us.
In addition, the counterparties to our PPAs in the United States have a credit rating of between Ba1 to Baa2 (stable) by Moody's and AA+ to B- by S&P. The purchasers of electricity from our foreign power plants are mainly state-owned entities in countries with below investment grade rating.
The counterparties to our PPAs in the United States have a credit rating of between Baa1 to Ba2 (stable) by Moody's and AA+ to B+ by S&P. The purchasers of electricity from our foreign power plants are primarily state-owned entities in countries with below investment grade ratings.
Solar PV Although there is a renewed focus on fossil fuel energy sources by the new presidential administration, the solar PV market continues to grow and is benefited from the general desire to replace fossil fuel generation with renewable resources.
Solar PV Although there is a renewed focus on fossil fuel energy sources by the new presidential administration, the solar PV market continues to grow and benefits from state renewable portfolio targets as well as the general desire to replace fossil fuel generation with renewable resources.
We are also pursuing the development and construction of hybrid solar PV and BESS facilities. We believe that the key bottleneck for storage development in the U.S. remains interconnection.
We are also pursuing the development and construction of additional hybrid solar PV and BESS facilities. We believe that interconnection remains the key bottleneck for storage development in the U.S., and a primary driver of project timelines.
We currently own and operate 16 grid-scale BESS facilities, where revenues are derived from selling energy, capacity and/or ancillary services in merchant markets like PJM, ISO-NE, ERCOT and CAISO.
We currently own and operate 17 grid-scale BESS facilities and two hybrid solar PV and BESS facilities, where revenues are derived from selling energy, capacity and/or ancillary services in merchant markets like PJM, ISO-NE, ERCOT, CAISO and Hawaii.
The percentage of total revenues above 5% is detailed in the table below: Utility % of total revenues for the year ended December 31, 2024 SCPPA (U.S.) 20.6% NV Energy (U.S.) 15.1% KPLC (Kenya) 13.0% Based on publicly available information, as of December 31, 2024, the credit ratings of our rated electric utility customers are as set forth below: Issuer Standard & Poor’s Ratings Services Moody’s Investors Service Inc .
The percentage of total revenues above 5% is detailed in the table below: Utility % of total revenues for the year ended December 31, 2025 SCPPA (U.S.) 17.8% NV Energy (U.S.) 13.8% KPLC (Kenya) 11.9% Based on publicly available information, as of December 31, 2025, the credit ratings of our rated electric utility customers are as set forth below: 37 Issuer Standard & Poor’s Ratings Services Moody’s Investors Service Inc .
These projects are expected to have a total geothermal generating capacity of between 92MW (representing our interest) and solar PV projects with a total capacity of 42MW.
These projects are expected to have a total geothermal generating capacity of between 101MW and 106MW (representing our interest) and solar PV projects with a total capacity of 36MW.
Monterey Bay, SCPPA and SVCE G-1 and G-3 - 2033 CD4 - 2047 G-2 plant - 2037 McGinness Hills Complex (7) 146 Geothermal air-cooled binary system 5°F to 6°F per year Nevada Power Company and SCPPA. Phases 1 and 2 - 2033 Phase 3 - 2043.
Monterey Bay, SCPPA and SVCE G-1 and G-3 - 2033 CD4 - 2047 G-2 plant - 2037 McGinness Hills Complex (7) 141(4) Geothermal air-cooled binary system 5°F per year Nevada Power Company and SCPPA.
Campbell 100% 28 (4) 10 Tungsten Mountain (5) 100% 41 19 Dixie Valley 100% 64 14 Beowawe (5) 100% 20 30 North West Region Neal Hot Springs (6) 60% 22 13 90% Raft River 100% 12 9 San Emidio (7),(5) 100% 39 19 Still Water Complex (8),(5) 100% 12 5 Salt Wells (8) 100% 9 5 Hawaii Puna (9) 63.3% 38 28 78% Utah Cove Fort (8) 100.0% 18 9 77% International Amatitlan (Guatemala) 100% 20 4 84% (10) Zunil (Guatemala) 97% 20 10 Olkaria III Complex (Kenya) 100% 150 10 Bouillante (Guadeloupe, France) 63.75% (11) 15 6 Platanares (Honduras) 100% 30 (4) 8 Total Consolidated Geothermal 1,011 84% REG OREG 1 100.0% 22 7 OREG 2 100.0% 22 10 OREG 3 100.0% 5.5 6 Total REG 50 70% Solar Tungsten Mountain 100% 12 NA Wister 100% 20 18 Steamboat Solar 100% 17 NA Stillwater Solar PV (8) 100% 20 NA Stillwater Solar PV II (8) 100% 20 1 Woods Hill (8) 100% 20 14 North Valley 100% 7 NA Beowawe 100% 6 NA Brady 100% 6 NA Total Solar 128 Unconsolidated Geothermal Indonesia Sarulla Complex 12.75% 42 23 Indonesia Ijen (14) 49% 17 Total Unconsolidated Geothermal 57 Total 1,248 14 1.
Campbell 100% 28 9 Tungsten Mountain (5) 100% 41 18 Dixie Valley 100% 64 13 Blue Mountain (7) 100% 22 4 Beowawe (5) 100% 20 28 North West Region Neal Hot Springs 60% 22 12 74% Raft River 100% 12 8 San Emidio (6),(5) 100% 39 18 Still Water Complex (5) 100% 14 4 Salt Wells 100% 10 25 Hawaii Puna 63.3% 38 27 63% 13 Type Region Plant Ownership (1) Generating capacity (MW) (2) PPA Tenure Capacity Factor (3) Utah Cove Fort 100.0% 18 8 90% International Amatitlan (Guatemala) 100% 20 3 84% Zunil (Guatemala) 97% 20 9 Olkaria III Complex (Kenya) 100% 150 9 Bouillante (Guadeloupe, France) 63.75% 15 5 Platanares (Honduras) 100% 30 7 Total Consolidated Geothermal 1,031 84% REG (8) OREG 1 100.0% 22 6 OREG 2 100.0% 22 9 OREG 3 100.0% 5.5 5 Total REG 50 70% Solar Tungsten Mountain 100% 12 NA Wister 100% 20 17 Steamboat Solar 100% 17 NA Stillwater Solar PV 100% 20 NA Stillwater Solar PV II 100% 20 0 Woods Hill 100% 20 13 North Valley 100% 7 NA Beowawe 100% 6 NA Arrowleaf (10) 100% 42 20 Brady 100% 6 NA Hoku (11) 100% 30 25 Total Solar 200 Unconsolidated Geothermal Indonesia Sarulla Complex 12.75% 42 22 Indonesia Ijen (9) 49% 17 30 Total Unconsolidated Geothermal 59 Total (12) 1,340 1.
The map below shows our worldwide portfolio of operating geothermal, solar PV and recovered energy power plants as of February 25, 2025. * In the Sarulla (Indonesia) complex, Indonesia, we include our 12.75% share only. 19 The map below shows our portfolio of operating storage facilities as of February 25, 2025.
The map below shows our worldwide portfolio of operating geothermal, solar PV and recovered energy power plants as of February 25, 2026. *In Indonesia, in the Sarulla complex and in Ijen power plant we include our 12.75% and 49% share only, respectively.
Patents As of December 31, 2024, we had 190 patents and patent applications worldwide, including 55 patents issued in the U.S. and 28 pending patent applications worldwide with 2 of them U.S. patent applications.These patents and patent applications cover our products (mainly power units based on the ORC) and systems (mainly geothermal power plants and industrial waste heat recovery plants for electricity production).
Patents As of December 31, 2025, we had 182 active patents and patent applications worldwide, including 52 patents issued in the U.S. and 12 pending patent applications worldwide. These patents and patent applications cover our products (mainly power units based on the ORC) and systems (mainly geothermal power plants and industrial waste heat recovery plants for electricity production).
Throughout 2024, Ormat won three tenders of fields with the potential of 80MW in total to expand our exploration field portfolio in Indonesia. 25 In the Product segment, we see increasing market demand for our binary technology.
Throughout 2024 and 2025, Ormat won four tenders of fields with the potential of 122MW in total to expand our exploration field portfolio in Indonesia for up to 182MW of geothermal capacity. In the Product segment, we see increasing market demand for our binary technology.
The system-related patents also cover subjects such as waste heat recovery related to gas pipeline compressors and industrial waste heat, solar power systems, disposal of non-condensable gases present in geothermal fluids, reinjection of other geothermal fluids ensuring geothermal resource sustainability, power plants for very high-pressure geothermal resources, two-phase fluids, low temperature geothermal brine as well as processes related to EGS.
The system-related patents cover not only particular components but also the overall energy conversion system from the “fuel supply” (e.g., geothermal fluid, waste heat, biomass or solar) to electricity production. 21 The system-related patents also cover subjects such as waste heat recovery related to gas pipeline compressors and industrial waste heat, solar power systems, disposal of non-condensable gases present in geothermal fluids, reinjection of other geothermal fluids ensuring geothermal resource sustainability, power plants for very high-pressure geothermal resources, two-phase fluids, low temperature geothermal brine as well as processes related to EGS.
We are looking for opportunities to expand in Europe, primarily in our Product segment. Since 2004, we have established strong business relationships in the Turkish geothermal market and provided our wide range of solutions, including our binary systems, to over 40 geothermal power plants with a total capacity of over 900MW.
Since 2004, we have established strong business relationships in the Turkish geothermal market and provided our wide range of solutions, including our binary systems, to over 40 geothermal power plants with a total capacity of over 900MW and 96 MW under construction.
Currently, in the United States, 30 states plus the District of Colombia and two U.S. territories have enacted an RPS, renewable portfolio goals, or similar laws or incentives (such as clean energy standards or goals) requiring or encouraging load-serving entities in such states to generate or buy a certain percentage of their electricity from renewable energy or recovered heat sources.
Currently, 30 states plus the District of Colombia and two U.S. territories have enacted an RPS, renewable portfolio goals, or similar laws or incentives (including clean energy standards or goals) requiring or encouraging load-serving entities to procure a specified percentage of electricity from renewable energy or recovered heat sources. Additionally, three states and one territory have voluntary renewable energy goals.
Represents Ormat’s 49% equity share in the project Future Projects Projects Released for Construction We have several projects in various stages of construction, including 8 projects that we have fully released for construction with a total capacity of 134MW and one project with capacity of 10MW to 15MW that is in the early stages of construction.
Future Projects Projects Released for Construction We have several projects in various stages of construction, including 11 projects that we have released for construction with a total capacity of 136.5MW and one project with capacity of 10MW to 15MW that is in the early stages of construction.
The following is a breakdown of the Product segment backlog amount (in millions)by countries as of February 25, 2025: Country Backlog Amount Percentage of Backlog New Zealand $251.8 74.0% Dominica Island 46.0 13.5% Portugal 22.5 6.6% Turkey 5.0 1.5% Guatemala 8.1 2.4% U.S. 3.0 0.9% Israel 1.9 0.6% 47 Country Backlog Amount Percentage of Backlog Others 1.8 0.5% Total $340.1 100% The following is a breakdown of the Product segment backlog by technology as of February 25, 2025: % of Total Backlog Latest Expected Completion Geothermal 98.1% 2026 Recovered Energy 1.2% 2025 Others 0.7% 2025 Operations of our Energy Storage Segment Storage Projects In addition to our Geothermal activity, we own, operate and develop energy storage projects in the U.S. at a total capacity of 290MW/658MWh.
The following is a breakdown of the Product segment backlog amount (in millions)by country as of February 25, 2026: Country Backlog Amount Percentage of Backlog New Zealand $238.0 67.7% Asia 90.5 25.7% Dominica 6.6 1.9% Portugal 5.2 1.5% Guatemala 8.0 2.3% U.S. 2.8 0.8% Others 0.6 0.2% Total $351.7 100% 45 The following is a breakdown of the Product segment backlog by technology as of February 25, 2026: % of Total Backlog Latest Expected Completion Geothermal 99.3% 2026 Recovered Energy 0.1% 2026 Others 0.6% 2026 Operations of our Energy Storage Segment Storage Projects In addition to our Geothermal activity, we own, operate and develop energy storage projects in the U.S. at a total capacity of 415MW/1,540MWh.
New realms for innovation include implementation of predictive maintenance software and automation of power plants performance analysis. As part of our continuous cost reduction and performance enhancement, we developed and patented the extraction ORC, extraction and injection turbines that allow bleed or injection of motive fluid between stages from or to the organic turbine.
As part of our continuous cost reduction and performance enhancement, we developed and patented the extraction ORC, extraction and injection turbines that allow bleed or injection of motive fluid between stages from or to the organic turbine.
Each of our current geothermal power plants sells substantially all of their output pursuant to long-term, and in most cases, fixed price PPAs to various counterparties denominated in or linked to the U.S. dollar or Euro. These contracts had a total weighted average remaining term, based on contributions to segment revenue, of approximately 15 years as of December 31, 2024.
Our geothermal power plants sell substantially all of their output under long-term PPAs, most with fixed prices, denominated in or linked to the U.S. dollar or Euro. As of December 31, 2025, these contracts had a weighted average remaining term of approximately 14 years based on contributions to segment revenue.
We may conclude that a prospective geothermal resource will not support commercial operations. In such case, costs associated with exploration activities will be expensed accordingly under the Write-off of Unsuccessful Exploration Activities line item in the consolidated statements of operations in our financial statements.
In such case, costs associated with exploration activities will be expensed accordingly under the Write-off of Unsuccessful Exploration Activities line item in the consolidated statements of operations in our financial statements.
Construction materials (such as concrete, rebar etc.), construction equipment (cranes, forklifts etc.) and tools are provided by us to the subcontractors in some cases or provided by the subcontractors. In recent years, it has taken approximately two to three years from the time we drill a production well until a power plant becomes operational.
Construction materials (such as concrete and rebar), equipment (including cranes and forklifts), and tools are supplied as necessary to complete the work. In general, it has taken approximately two to three years from the time we drill a production well until a power plant becomes operational.
The generating capacity of certain of our power plants and complexes listed below has been updated from our 2023 disclosure to reflect changes in the resource temperature and other factors that impact resource capabilities: Type Region Plant Ownership (1) Generating capacity (MW) (2) PPA Tenure Capacity Factor (3) Geothermal California Ormesa Complex 100% 36 18 86% Heber Complex 100% 91 18 Mammoth Complex 100% 65 14 Brawley 100% 7 7 West Nevada Steamboat Complex (5) 100% 79 22 83% Brady Complex (5) 100% 24 25 13 Type Region Plant Ownership (1) Generating capacity (MW) (2) PPA Tenure Capacity Factor (3) East Nevada Tuscarora 100% 17 9 81% (13) Jersey Valley 100% 8 8 McGinness Hills 100% 146 14 Don A.
Generating capacity figures have been updated from our 2024 disclosure to reflect changes in resource temperature and other factors that impact resource capabilities: Type Region Plant Ownership (1) Generating capacity (MW) (2) PPA Tenure Capacity Factor (3) Geothermal California Ormesa Complex 100% 40 17 86% Heber Complex 100% 91 17 Mammoth Complex 100% 65 13 Brawley 100% 3 (4) 6 West Nevada Steamboat Complex (5) 100% 79 21 81% Brady Complex (5) 100% 24 23 East Nevada Tuscarora 100% 17 8 88% Jersey Valley 100% 8 7 McGinness Hills 100% 141 (4) 13 Don A.
The table below summarizes certain key non-financial information relating to our BESS projects as of February 25, 2025: 16 Project Name Customer Location Size (MW) MWh Type of contract ACUA PJM NJ 1 1 Merchant Plumsted PJM NJ 20 20 Merchant Stryker PJM NJ 20 20 Merchant Hinesburg ISONE VT 2 5 Merchant Rabbit Hill ERCOT TX 10 10 Merchant Pomona SCE/CAISO CA 20 80 Capacity PPA and Merchant Vallecito CAISO and SCE CA 10 40 Capacity PPA and Merchant Tierra Buena CAISO, RCEA and VCE CA 5 20 Capacity PPA and Merchant Upton ERCOT TX 23 23 Merchant Andover PJM NJ 20 20 Merchant Howell PJM NJ 7 7 Merchant Bowling Green PJM OH 12 12 Capacity and Merchant Pomona 2 SCE/CAISO CA 20 40 Full Tolling East Flemington PJM NJ 20 20 Merchant Bottleneck SDG&E CA 80 320 Full Tolling Montague PJM NJ 20 20 Merchant Total 290 658 New BESS Projects We are currently in the process of constructing six additional energy storage projects with a total capacity of 385MW/1,300MWh in California, Texas and New Jersey.
The following table summarizes key information regarding these projects as of February 25, 2026: 16 Project Name Customer Location Size (MW) MWh Type of contract ACUA PJM NJ 1 1 Merchant Plumsted PJM NJ 20 20 Merchant Stryker PJM NJ 20 20 Merchant Hinesburg ISONE VT 2 5 Merchant Rabbit Hill ERCOT TX 10 10 Merchant Pomona SCE/CAISO CA 20 80 Capacity contract and merchant Vallecito SCE/CAISO CA 10 40 Capacity contract and merchant Tierra Buena RCEA/VCE/CAISO CA 5 20 Capacity contract and merchant Upton ERCOT TX 23 23 Merchant Andover PJM NJ 20 20 Merchant Howell PJM NJ 7 7 Merchant Bowling Green BGMU/PJM OH 12 12 Capacity contract and merchant Pomona 2 SCE/CAISO CA 20 40 Full tolling East Flemington PJM NJ 20 20 Merchant Bottleneck SDG&E CA 80 320 Full tolling Montague PJM NJ 20 20 Merchant Lower Rio ERCOT TX 60 120 Merchant Arrowleaf SDCP CA 35 140 Full tolling Hoku HECO HI 30 120 PPA Total 415 1,038 New BESS Projects We are constructing 8 additional energy storage projects with a total capacity of 410MW/1,540MWh in California, Texas and Israel.
Project Name Size (MW) Technology Resource Cooling Customer PPA Expiration Brawley 7 Geothermal water-cooled binary system Depends on the mix of used production wells , with current decline rate around 1°F per year SCE 2031 Brady Complex 24 Geothermal air and water-cooled binary system Brady and Desert Peak 2 - less than 3 ° F per year (DP2 is declining less than 1 ° F per year) Brady - SCPPA DP2 - NV Energy Brady — 2043 Desert Peak 2 — end of 2027 Brady Solar 6 Solar PV System NA Internal use (5) NA Don A.
Project Name Size (MW) Technology Resource Cooling Customer PPA Expiration Blue Mountain 22 Geothermal water-cooled binary system 3 to 4°F per year NV Energy 2047 Brawley 3 Geothermal water-cooled binary system Depends on the mix of used production wells , with current decline rate around 1°F per year SCE 2031 Brady Complex 24 Geothermal air and water-cooled binary system Brady and Desert Peak 2 - declining at less than 2°F per year.
Multiple sources of supply are typically available for all other equipment we do not manufacture. ▪ Assembling and constructing the well field, power plant, transmission facilities, and related facilities. We use our own employees to manage construction work. The construction and installation works (such as site grading, civil, structural, mechanical, insulation, electrical, control and communication works) are normally subcontracted.
Multiple sources of supply are typically available for all other equipment we do not manufacture. ▪ Assembling and constructing the well field, power plant, transmission facilities, and related facilities. We perform site grading and civil, structural, mechanical, insulation, electrical, control, and communication works required for project execution.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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In particular, the legal and regulatory systems in the foreign jurisdictions where we operate can be characterized by one or more of the following: • Selective or inconsistent enforcement of laws or regulations, sometimes in ways that have been perceived as being motivated by political or financial considerations; • A perceived lack of judicial and prosecutorial independence from political, social and commercial forces; • A high degree of discretion on the part of the judiciary and governmental authorities; • Legal and bureaucratic obstacles and corruption; 52 • Rapidly evolving legal systems may not always coincide with market developments.
In particular, the legal and regulatory systems in the foreign jurisdictions where we operate can be characterized by one or more of the following: • Selective or inconsistent enforcement of laws or regulations, sometimes in ways that have been perceived as being motivated by political or financial considerations; • A perceived lack of judicial and prosecutorial independence from political, social and commercial forces; • A high degree of discretion on the part of the judiciary and governmental authorities; • Legal and bureaucratic obstacles and corruption; • Rapidly evolving legal systems may not always coincide with market developments.
Our completion of these facilities’ development and/or enhancement is subject to substantial risks, including: • inability to secure a PPA; • inability to secure transmission services agreements; • inability to secure the required financing; • cost increases and delays due to unanticipated shortages of adequate resources to execute the project such as equipment, material and labor; • work stoppages resulting from force majeure events including riots, strikes and weather conditions; • inability or delays in obtaining permits, licenses and other regulatory approvals; 56 • inability to satisfactorily complete field development and testing; • failure to secure sufficient land positions for the wellfield, power plant and rights of way; • failure by key contractors and vendors to timely and properly perform, including where we use equipment manufactured by others; • inability to secure or delays in securing the required transmission line and/or capacity; • adverse environmental and geological conditions (including, but not limited to, discoveries of contamination, protected plant or animal species or habitat, archaeological or cultural resources, or inclement weather conditions); • adverse local business law; • our attention to other projects and activities, including those in the solar energy and energy storage sectors; and • changes in laws that mandate, incentivize or otherwise favor renewable energy sources (for more information, see “–We could be impacted by regulatory and other responses to climate change”).
Our completion of these facilities’ development and/or enhancement is subject to substantial risks, including: • inability to secure a PPA; • inability to secure transmission services agreements; • inability to secure the required financing; • cost increases and delays due to unanticipated shortages of adequate resources to execute the project such as equipment, material and labor; • work stoppages resulting from force majeure events including riots, strikes and weather conditions; • inability or delays in obtaining permits, licenses and other regulatory approvals; • inability to satisfactorily complete field development and testing; • failure to secure sufficient land positions for the wellfield, power plant and rights of way; • failure by key contractors and vendors to timely and properly perform, including where we use equipment manufactured by others; • inability to secure or delays in securing the required transmission line and/or capacity; • adverse environmental and geological conditions (including, but not limited to, discoveries of contamination, protected plant or animal species or habitat, archaeological or cultural resources, or inclement weather conditions); • adverse local business law; • our attention to other projects and activities, including those in the solar energy and energy storage sectors; and 54 • changes in laws that mandate, incentivize or otherwise favor renewable energy sources (for more information, see “–We could be impacted by regulatory and other responses to climate change”).
In the event that a lease is terminated and we determine that we will need that lease once the applicable power plant is operating, we would need to enter into one or more new leases 55 with the owner(s) of the premises that are the subject of the terminated lease(s) in order to develop geothermal resources from, or inject geothermal resources into, such premises or secure rights to alternate geothermal resources or lands suitable for injection.
In the event that a lease is terminated and we determine that we will need that lease once the applicable power plant is operating, we would need to enter into one or more new leases with the owner(s) of the premises that are the subject of the terminated lease(s) in order to develop geothermal resources from, or inject geothermal resources into, such premises or secure rights to alternate geothermal resources or lands suitable for injection.
Even 62 if a power plant does not lose its Qualifying Facility status, pursuant to regulations issued by FERC for Qualifying Facility power plants above 20MW, if a power plant’s PPA is terminated or otherwise expires, and the subsequent sales are not made pursuant to a state’s implementation of PURPA, that power plant will become subject to FERC’s ratemaking jurisdiction under the FPA.
Even if a power plant does not lose its Qualifying Facility status, pursuant to regulations issued by FERC for Qualifying Facility power plants above 20MW, if a power plant’s PPA is terminated or otherwise expires, and the subsequent sales are not made pursuant to a state’s implementation of PURPA, that power plant will become subject to FERC’s ratemaking jurisdiction under the FPA.
In addition, we are subject to various legislation, regulations, directives and guidelines from federal, state, local and foreign agencies, such as FERC, that are intended to strengthen cybersecurity measures required for information and operational technology and critical energy infrastructure and that apply to the collection, use, retention, protection, 61 disclosure, transfer and other processing of personal information.
In addition, we are subject to various legislation, regulations, directives and guidelines from federal, state, local and foreign agencies, such as FERC, that are intended to strengthen cybersecurity measures required for information and operational technology and critical energy infrastructure and that apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal information.
Global events, such as U.S. tariffs on Canada, Mexico and China that were recently imposed or are set to take effect, and the uncertainty surrounding the possibility of expanded trade restrictions among the governments of the U.S. and countries where our suppliers operate, could result in delays in supply and increased costs.
Global events, such as U.S. tariffs on Canada, Mexico and China that were recently imposed or are set to take effect, and the uncertainty surrounding the possibility of expanded trade restrictions among the governments of the U.S. and countries where our suppliers operate, could result in delays in supply 64 and increased costs.
Liability under these laws can be joint and several. The cost of any remediation activities in connection with a spill or other release of such substances could be significant and could expose us to significant liability. U.S. federal, state and international income tax law changes could adversely affect us.
Liability under these laws can be joint and several. The cost of any remediation activities in connection with a spill or other release of such substances could be significant and could expose us to significant liability. 62 U.S. federal, state and international income tax law changes could adversely affect us.
Environmental Protection Agency (the “EPA”) has adopted rules that, among other things, establish construction and operating permit reviews for GHG emissions from certain large stationary sources, require the monitoring and reporting of GHG emissions from certain sources and implement standards directing the reduction of methane from 58 certain facilities in the oil and gas sector.
Environmental Protection Agency (the “EPA”) has adopted rules that, among other things, establish construction and operating permit reviews for GHG emissions from certain large stationary sources, require the monitoring and reporting of GHG emissions from certain sources and implement standards directing the reduction of methane from certain facilities in the oil and gas sector.
Also, in the absence of favorable financing options, we may decide not to build new plants or acquire facilities from third parties. Any of these alternatives could have a material adverse effect on our growth prospects. We may also need additional financing to implement our strategic plan.
Also, in the absence of favorable financing options, we may decide not to build new plants or acquire facilities from third parties. Any of these alternatives could have a material adverse effect on our growth prospects. 63 We may also need additional financing to implement our strategic plan.
Our geothermal energy power plants may also suffer an unexpected decline in the capacity of their respective geothermal wells and are exposed to a risk of geothermal reservoirs not being sufficient for sustained 49 generation of the electrical power capacity desired over time.
Our geothermal energy power plants may also suffer an unexpected decline in the capacity of their respective geothermal wells and are exposed to a risk of geothermal reservoirs not being sufficient for sustained generation of the electrical power capacity desired over time.
Our continued access to 65 capital on acceptable or favorable terms to us is necessary for the success of our growth strategy, particularly in enhancing our portfolio through M&A activities. Our attempts to obtain future financings may not be successful or on favorable terms.
Our continued access to capital on acceptable or favorable terms to us is necessary for the success of our growth strategy, particularly in enhancing our portfolio through M&A activities. Our attempts to obtain future financings may not be successful or on favorable terms.
Furthermore, attempts to enforce our intellectual property rights against third parties could also provoke these third parties to assert their own intellectual property or other rights against us, or result in a holding that invalidates or narrows the scope of our rights, in 60 whole or in part.
Furthermore, attempts to enforce our intellectual property rights against third parties could also provoke these third parties to assert their own intellectual property or other rights against us, or result in a holding that invalidates or narrows the scope of our rights, in whole or in part.
In addition, some of the environmental permits and governmental approvals that have been issued to the power plants contain conditions and restrictions, including restrictions or limits on emissions and discharges of pollutants and 64 contaminants, or may have limited terms.
In addition, some of the environmental permits and governmental approvals that have been issued to the power plants contain conditions and restrictions, including restrictions or limits on emissions and discharges of pollutants and contaminants, or may have limited terms.
An inability to obtain sufficient and adequate insurance to cover all book net equity may cause us to self-insure some or all of a particular location and losses, causing us to experience higher than expected insurance costs.
An inability to obtain sufficient and adequate 65 insurance to cover all book net equity may cause us to self-insure some or all of a particular location and losses, causing us to experience higher than expected insurance costs.
The viability of geothermal power plants depends on different factors directly related to the geothermal resource (such as the temperature, pressure, storage capacity, transmissivity, and recharge) as well as operational factors relating to the extraction or reinjection of geothermal fluids.
The viability of geothermal power plants depends on different factors directly related to the geothermal resource (such as the temperature, pressure, storage capacity, transmissivity, and recharge) as well as operational factors relating to the extraction or 47 reinjection of geothermal fluids.
While those PPAS were initially required to file for QF or EWG status with the FERC, the PPAs and their related prices for the term of the PPA were not approved by the FERC pursuant to PURPA.
While those PPAS were initially required to file for QF or EWG status with the FERC, the PPAs and their related prices for the term of the PPA were not approved by the FERC pursuant 60 to PURPA.
A failure to receive adequate judicial or enforcement protection of our contractual rights abroad may adversely affect our ability to fulfill our contracts successfully and generate revenues therefrom.
A failure to receive adequate judicial or enforcement protection of our contractual rights abroad 50 may adversely affect our ability to fulfill our contracts successfully and generate revenues therefrom.
Finally, political conditions within Israel could affect our operations or negatively impact the business environment in Israel due to the reluctance of foreign investors to invest or conduct business in Israel, increased currency fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets, adverse impacts on the labor market, and other related changes in macroeconomic conditions.
Political conditions within Israel could also affect our operations or negatively impact the business environment in Israel due to the reluctance of foreign investors to invest or conduct business in Israel, increased currency fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets, adverse impacts on the labor market, and other related changes in macroeconomic conditions.
In addition, we generate a significant portion of our revenue from our two largest projects, the McGinness Hills complex in east Nevada and the Olkaria III Complex in Kenya, which together accounted for approximately 23.7% of the total generating capacity of our Electricity segment in 2024.
In addition, we generate a significant portion of our revenue from our two largest projects, the McGinness Hills complex in east Nevada and the Olkaria III Complex in Kenya, which together accounted for approximately 23.7% of the total generating capacity of our Electricity segment in 2025.
For more information, see “Risks Related to the Company’s Business and Operation—We could be impacted by regulatory and other responses to climate change.” Pursuant to the terms of some of our PPAs with investor-owned electric utilities and publicly-owned electric utilities in states that have renewable portfolio standards, the failure to supply the contracted capacity and energy thereunder may result in the imposition of penalties.
For more information, see “Risks Related to the Company’s Business and Operation—We could be impacted by regulatory and other responses to climate change and sustainability-related initiatives.” 59 Pursuant to the terms of some of our PPAs with investor-owned electric utilities and publicly-owned electric utilities in states that have renewable portfolio standards, the failure to supply the contracted capacity and energy thereunder may result in the imposition of penalties.
For information on our recently dismissed and ongoing securities class actions, see “Commitments and Contingencies” in Note 21 to the consolidated financial statements contained in Item 8 of this Annual Report. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
For information on our recently dismissed and ongoing securities class actions, see “Commitments and Contingencies” in Note 20 to the consolidated financial statements contained in Item 8 of this Annual Report. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
We could also face an increase in competition as a result of the energy transition, as new entrants of disruptive technologies and/or competitors, including in the solar, wind, and storage sectors, could adversely impact our ability to renew existing PPAs or sign new contracts.
We could also face an increase in competition due to the energy transition, as new entrants of disruptive technologies and/or competitors, including in the solar, wind, and storage sectors, could adversely impact our ability to renew existing PPAs or sign new contracts.
Our power plants have generally been financed through a combination of our corporate funds and limited or non-recourse project finance debt and lease financing.
Our power plants have generally been financed using a combination of our corporate funds and limited or non-recourse project finance debt or lease financing.
In Kenya, any break-up or potential privatization of KPLC, the power purchaser for our power plants located in Kenya, may adversely affect our Olkaria III complex and our overall results of operations. Product Segment. With respect to our Product segment, 94% of our Product segment revenues in 2024 came from international sales, primarily New Zealand.
In Kenya, any break-up or potential privatization of KPLC, the power purchaser for our power plants located in Kenya, may adversely affect our Olkaria III complex and our overall results of operations. Product Segment. With respect to our Product segment, 95% of our Product segment revenues in 2025 came from international sales, primarily New Zealand.
Similarly, any such changes that affect the geothermal energy industry in a manner that is different from other sources of renewable energy, such as wind or solar, may put us at a competitive disadvantage compared to businesses engaged in the development, construction and operation of renewable power projects using such other resources.
Similarly, any such changes that affect the geothermal energy industry differently from other renewable energy sources, such as wind or solar, may put us at a competitive disadvantage compared to businesses engaged in the development, construction and operation of renewable power projects using such other resources.
Despite our implementation of security measures and safeguards, any failure to comply with FERC or any of these legal requirements could result in enforcement action against us, including fines, imprisonment of company officials and public censure, any of which could harm our reputation and have a material adverse effect on our financial condition, results of operations, liquidity, and cash flows.
Any failure to comply with FERC or any of these legal requirements could result in enforcement action against us, including fines, imprisonment of company officials and public censure, any of which could harm our reputation and have a material adverse effect on our financial condition, results of operations, liquidity, and cash flows.
Therefore, we may be unable to anticipate these techniques and may not become aware in a timely manner of such a security breach, which could exacerbate any damage we experience.
We may be unable to anticipate techniques used to breach and may not become aware in a timely manner of such a security breach, which could exacerbate any damage we experience.
Before the eruption in 2018, 68 we obtained natural disasters business interruption and property damage insurance coverage of up to approximately $100 million compared to $30 million, with portions of the risk self-insured, secured in 2022 and 2023.
Before the eruption in 2018, we obtained natural disasters business interruption and property damage insurance coverage of up to approximately $100 million compared to $30 million, with portions of the risk self-insured.
As such, our ownership of assets in joint ventures is subject to risks that may not be present with other methods of ownership, including: • we could experience an impasse on certain decisions because we do not have sole decision-making authority, which could require us to expend additional resources on resolving such impasses or potential disputes, including arbitration or litigation; • our joint venture partners could have investment goals that are not consistent with our investment objectives, including the timing, terms and strategies for any investments in the projects that are owned by the joint ventures, 57 which could affect decisions about future capital expenditures, major operational expenditures and retirement of assets, among other things; • our ability to transfer our interest in a joint venture to a third-party may be restricted and the market for our interest may be limited; • our joint venture partners may be structured differently than us for tax purposes, and this could impact our ability to fully take advantage of federal tax incentives available for renewable energy projects; • our joint venture partners might become bankrupt, fail to fund their share of required capital contributions or fail to fulfill their obligations as a joint venture partner, which may require us to infuse our own capital into the venture on behalf of the partner despite other competing uses for such capital; and • our joint venture partners may have competing interests in our markets and investments in companies that compete directly or indirectly with us that could create conflict of interest issues.
As such, our ownership of assets in joint ventures is subject to risks that may not be present with other methods of ownership, including: • we could experience an impasse on certain decisions because we do not have sole decision-making authority, which could require us to expend additional resources on resolving such impasses or potential disputes, including arbitration or litigation; • our joint venture partners could have investment goals that are not consistent with our investment objectives, including the timing, terms and strategies for any investments in the projects that are owned by the joint ventures, which could affect decisions about future capital expenditures, major operational expenditures and retirement of assets, among other things; • our ability to transfer our interest in a joint venture to a third-party may be restricted and the market for our interest may be limited; • our joint venture partners may be structured differently than us for tax purposes, and this could impact our ability to fully take advantage of federal tax incentives available for renewable energy projects; • our joint venture partners might become bankrupt, fail to fund their share of required capital contributions or fail to fulfill their obligations as a joint venture partner, which may require us to infuse our own capital into the venture on behalf of the partner despite other competing uses for such capital; and • our joint venture partners may have competing interests in our markets and investments in companies that compete directly or indirectly with us that could create conflict of interest issues. 55 For example, we hold a 12.75% minority interest in the Sarulla complex and, as a result, cannot control the development of its remediation plan, pace of exploration or development or major drilling decisions.
We have partners in several of our plants and we may continue in the future to develop and/or acquire and/or hold properties in joint ventures with other entities when circumstances warrant the use of these structures.
Our use of joint ventures may limit our flexibility with jointly owned investments. We have partners in several of our plants and we may continue in the future to develop and/or acquire and/or hold properties in joint ventures with other entities when circumstances warrant the use of these structures.
In addition, the imposition by foreign governments of restrictions on the transfer of foreign currency abroad, or restrictions on the conversion of local currency into foreign currency, would have an adverse effect on the operations of our foreign power plants and foreign manufacturing operations, and may limit or diminish the amount of cash and income that we receive from such foreign power plants and operations.
In addition, the imposition by foreign governments of restrictions on the transfer of foreign currency abroad, restrictions on the conversion of local currency into foreign currency, or the local currency has strengthened significantly against the U.S. dollar, would have an adverse effect on the operations of our foreign power plants and foreign manufacturing operations, and may limit or diminish the amount of cash and income that we receive from such foreign power plants and operations.
For example, we may face significant challenges and risks expanding into the energy storage market (or expanding our core geothermal business), including: • our ability to compete with the large number of other companies pursuing similar business opportunities in energy storage and solar PV power generation, many of which already have established businesses in these areas and/or have greater financial, strategic, technological or other resources than we have; • our ability to obtain financing on terms we consider acceptable, or at all, which we may need, for example, to develop new projects, to obtain any technology, personnel, intellectual property, or to acquire one or more existing businesses as a platform for our expansion, or to fund internal research and development, for energy storage and solar PV electric power generation products and services; • our ability to provide energy storage services that keep pace with rapidly changing technology, customer preferences, equipment costs, increasing raw materials and transportation costs, market conditions and other factors that are unknown to us now that will impact these markets; • our ability to manage the risks and uncertainties associated with our operating storage facilities and future development of storage and geothermal projects which may operate as facilities without long-term sales agreements, including the variability of revenues and profitability of such projects; 50 • our ability to devote the amount of management time and other resources required to implement this plan, while continuing to grow our core geothermal and recovered energy businesses; and • our ability to recruit appropriate employees and labor market challenges.
For example, we may face significant challenges and risks expanding into the energy storage market (or expanding our core geothermal business), including our ability to: • compete with the large number of other companies pursuing similar business opportunities in energy storage and solar PV power generation, many of which already have established businesses in these areas and/or have greater financial, strategic, technological or other resources than we have; • obtain financing on terms we consider acceptable, or at all, which we may need, for example, to develop new projects, to obtain any technology, personnel, intellectual property, or to acquire one or more existing businesses as a platform for our expansion, or to fund internal research and development, for energy storage and solar PV electric power generation products and services; • provide energy storage services that keep pace with rapidly changing technology, customer preferences, equipment costs, increasing raw materials and transportation costs, market conditions and other factors that are unknown to us now that will impact these markets; • manage the risks and uncertainties associated with our operating storage facilities and future development of storage and geothermal projects which may operate as facilities without long-term sales agreements, including the variability of revenues and profitability of such projects; • devote the amount of management time and other resources required to implement this plan, while continuing to grow our core geothermal and recovered energy businesses; and • recruit appropriate employees and labor market challenges. 48 Implementing the plan may also involve various costs, including, among other things: opportunity costs associated with forgone alternative uses of our resources, various expense items that will impact our current financial results, and asset revaluations (for example, businesses or other assets acquired for new energy storage or solar PV power generation products or services may suffer impairment charges, as a result of rapidly changing technology, market conditions or otherwise).
We are also exposed to the credit and financial condition of SCPPA and its municipal utility members that account for 20.6% of our total revenues in 2024, as customers that buy the output from seven of our geothermal power plants.
We are also exposed to the credit and financial condition of SCPPA and its municipal utility members that account for 17.8% of our total revenues in 2025, as customers that buy the output from seven of our geothermal power plants.
In addition, our investments and profitability may be negatively affected by a number of factors, including increases in storage costs, expanded trade restrictions, risk of fire and volatility in merchant prices.
Our investments and profitability in battery Energy Storage System (BESS) may be negatively affected by a number of factors, including increases in storage costs, expanded trade restrictions, risk of fire and volatility in merchant prices.
In addition, KPLC recently requested more favorable rates on its existing PPAs with it. Any change in KPLC’s financial condition or the terms of our agreement with KPLC, may adversely affect us. In Honduras, as of December 31, 2024, the total amount overdue from ENEE was $16.2 million of which $2.5 million was collected in January and February of 2025.
In addition, KPLC recently requested more favorable rates on its existing PPAs with it. Any change in KPLC’s financial condition or the terms of our agreement with KPLC, may adversely affect us. In Honduras, as of December 31, 2025, the total amount overdue from ENEE was $20.3 million of which $1.0 million was collected in January and February of 2026.
Construction and operation of our geothermal power plants and recovered energy-based power plants has benefited, and may benefit in the future, from public policies and government incentives that support energy production (including, in certain cases, renewable energy and enhance the economic feasibility of these projects in regions and countries where we operate.
Construction and operation of our geothermal power plants, battery energy storage systems and solar PV facilities has benefited, and may benefit in the future, from public policies and government incentives that support energy production (including, in certain cases, renewable energy and enhance the economic feasibility of these projects in regions and countries where we operate.
If this were to happen, the competitive advantage of our power plants may be significantly impaired and will cause reduction and/or inability to sign new PPAs for our Electricity segment and new supply and EPC contracts for our Products segment. Our intellectual property rights may not be adequate to protect our business.
If this were to happen, the competitive advantage of our power plants may be significantly impaired and will cause reduction and/or inability to sign new PPAs for our Electricity segment and new supply and EPC contracts for our Products segment.
These two facilities accounted for 23.5% of our total revenues for the year ended December 31, 2024. Any disruption to the operation of these facilities would have a disproportionately adverse effect on our revenues and on our profitability.
These two facilities accounted for 20.7% of our total revenues for the year ended December 31, 2025. Any disruption to the operation of these facilities would have a disproportionately adverse effect on our revenues and on our profitability.
Our and our third-party vendors’ technology systems can be damaged by malicious events such as cyber and physical attacks, computer viruses, malicious and destructive code, phishing attacks, denial of service or information, as well as security breaches, natural disasters, fire, power loss, telecommunications failures, employee misconduct, human error, and third parties such as traditional computer hackers, persons involved with organized crime or foreign state or foreign state-supported actors.
In addition, we often rely on third-party vendors to host, maintain, modify and update our systems. 58 Our and our third-party vendors’ technology systems can be damaged by malicious events such as cyber and physical attacks, computer viruses, malicious and destructive code, phishing attacks, denial of service or information, as well as security breaches, natural disasters, fire, power loss, telecommunications failures, employee misconduct, human error, and third parties such as traditional computer hackers, persons involved with organized crime or foreign state or foreign state-supported actors.
Our failure to renew, maintain or obtain required permits or governmental approvals, including the permits and approvals necessary for operating power plants under development, construction or enhancement, could cause our operations to be limited or suspended resulting in fines under the PPA.
Our failure to renew, maintain or obtain required permits or governmental approvals, including the permits and approvals necessary for operating power plants under development, construction or enhancement, could cause our operations to be limited or suspended resulting in fines under the PPA. Permits and governmental approvals may also be delayed during periods of government shutdowns.
If our project subsidiaries default on their obligations under such limited or non-recourse debt or lease financing, we may be required to make certain payments to the relevant debt holders, and if the collateral supporting such leveraged financing structures is foreclosed upon, we may lose certain of our power plants. 66 Our power plants have generally been financed using a combination of our corporate funds and limited or non-recourse project finance debt or lease financing.
If our project subsidiaries default on their obligations under such limited or non-recourse debt or lease financing, we may be required to make certain payments to the relevant debt holders, and if the collateral supporting such leveraged financing structures is foreclosed upon, we may lose certain of our power plants.
If an option counterparty becomes subject to insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal to our exposure at the time under the capped call transactions with such option counterparty.
We are also subject to counterparty risk under the capped call transactions entered into in connection with the Notes. If an option counterparty becomes subject to insolvency proceedings, we will become an unsecured creditor with a claim equal to our exposure at the time under the capped call transactions with such option counterparty.
The cost of operation and maintenance and the operating performance of our geothermal power, REG, and solar PV power plants and our storage facilities may be adversely affected by a variety of factors, including: • regular and unexpected maintenance and replacement expenditures; • shutdowns due to the breakdown or failure of our equipment or third-party equipment of the transmission serving utility; • labor disputes or collective bargaining arrangements with employees that successfully unionize; • labor market risk; • the presence of hazardous materials on our power plant sites; • continued availability of cooling water supply; • catastrophic events such as fires, explosions, earthquakes, volcanic activity, landslides, floods, releases of hazardous materials, severe weather storms or other weather events (including weather conditions associated with climate change, or similar occurrences affecting our power plants or any of the power purchasers or other third parties providing services to our power plants, such as the 2018 volcanic eruption that occurred in Hawaii's Big Island that impacted our Puna project; • the aging of power plants (which may reduce their availability and increase the cost of their maintenance); • unsuccessful augmentation of batteries or other necessary equipment; and • cyber-attacks that may interrupt the operation of our power plants.
The cost of operation and maintenance and the operating performance of our geothermal power, REG, and solar PV power plants and our storage facilities, or of third service providers, may be adversely affected by a variety of factors, including: • regular and unexpected maintenance and replacement expenditures; • shutdowns due to the breakdown or failure of our equipment or third-party equipment of the transmission serving utility; • labor disputes or collective bargaining arrangements with employees that successfully unionize; • labor market risk; • the presence of hazardous materials on our power plant sites; • continued availability of cooling water supply; • low run times of compressors at recovered energy-based plants (such as low run times of the compressor stations heating our OREG power plants, which led to power generation and the likely loss of a customer agreement at one of these plants); • catastrophic events such as fires, explosions, earthquakes, volcanic activity, landslides, floods, releases of hazardous materials, severe weather storms or other weather events (including weather conditions associated with climate change or similar occurrences, such as the 2018 volcanic eruption that occurred in Hawaii's Big Island impacting our Puna project); • the aging of power plants (which may reduce their availability and increase the cost of their maintenance); • unsuccessful augmentation of batteries or other necessary equipment; and • cyber-attacks that may interrupt the operation of our power plants.
Our foreign operations and our exposure to foreign customers that are in most cases, government owned utilities, subject us to significant political, economic and financial risks, which vary by country, and include: • changes in government policies or personnel; • changes in general economic conditions; • restrictions on currency transfer or convertibility; • the adoption or expansion of trade restrictions, such as Turkey’s ban on trade with Israel, the occurrence or escalation of a “trade war,” or other governmental action related to tariffs or trade agreements or policies among the governments of the U.S. and countries where we operate (such as ones similar to the tariffs imposed by the U.S. in early 2025 on Canada and Mexico, which were subsequently paused, and on China, despite not being countries where we do business, could be illustrative of trade wars with countries where we do have operations and/or customers); 53 • reduced protection for intellectual property rights in some countries; • changes in labor relations; • political instability and civil unrest, and risk of war; • terrorist acts or other similar events; • changes in the local electricity and/or geothermal markets; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • breach or repudiation of important contractual undertakings by governmental entities; and • expropriation and confiscation of assets and facilities, including without adequate compensation.
Our foreign operations and our exposure to foreign customers that are in most cases, government owned utilities, subject us to significant political, economic and financial risks, which vary by country, and include: • changes in government policies or personnel; • changes in general economic conditions; 51 • restrictions on currency transfer or convertibility; • the adoption or expansion of trade restrictions, such as Turkey’s ban on trade with Israel, the occurrence or escalation of a “trade war,” or other governmental action related to tariffs or trade agreements or policies among the governments of the U.S. and countries where we operate; • reduced protection for intellectual property rights in some countries; • changes in labor relations; • political instability and civil unrest, and risk of war; • terrorist acts or other similar events; • changes in the local electricity and/or geothermal markets; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • breach or repudiation of important contractual undertakings by governmental entities; • attempts by state customers of ours to renegotiate or use political leverage to renegotiate power purchase rates in existing contracts; and • expropriation and confiscation of assets and facilities, including without adequate compensation.
If we choose to raise capital by selling shares of our common stock, or securities convertible into shares of our common stock, or additional shares are issued for the reasons described above or otherwise, the issuance could have a dilutive effect on the holders of our common stock and could have a material negative effect on the market price of our common stock.
If we choose to raise capital by selling shares of our common stock, or securities convertible into shares of our common stock, or additional shares are issued for the reasons described above or otherwise, the issuance could have a dilutive effect on the holders of our common stock and could have a material negative effect on the market price of our common stock. 66 The price of our common stock has in the past and may in the future fluctuate substantially, and your investment may decline in value.
In connection with such operations, we derived 79.8% of our total revenues for the year ended December 31, 2024 from the sale of electricity and 4.3% from the sale of services in the Storage segment.
In connection with such operations, we derived 70.1% of our total revenues for the year ended December 31, 2025 from the sale of electricity and 8.0% from the sale of services in the Storage segment.
The price of our common stock has in the past and may in the future fluctuate substantially, and your investment may decline in value. 69 The market price of our common stock has in the past and may in the future be highly volatile and may fluctuate substantially due to many factors, including: • actual or anticipated fluctuations in our results of operations including as a result of seasonal variations in our Electricity segment-based revenues or variations from year-to-year in our Product segment-based revenues; • variance in our financial performance from the expectations of market analysts; • conditions and trends in the end markets we serve, and changes in the estimation of the size and growth rate of these markets; • our ability to integrate acquisitions; • announcements of significant contracts by us or our competitors; • changes in our pricing policies or the pricing policies of our competitors; • restatements of historical financial results and changes in financial forecasts; • loss of one or more of our significant customers; • legislation; • changes in market valuation or earnings of our competitors; • the trading volume of our common stock; • the trading of our common stock on multiple trading markets, which takes place in different currencies and at different times; and • general economic conditions.
The market price of our common stock has in the past and may in the future be highly volatile and may fluctuate substantially due to many factors, including: • actual or anticipated fluctuations in our results of operations including as a result of seasonal variations in our Electricity segment-based revenues or variations from year-to-year in our Product segment-based revenues; • variance in our financial performance from the expectations of market analysts; • conditions and trends in the end markets we serve, and changes in the estimation of the size and growth rate of these markets; • our ability to integrate acquisitions; • announcements of significant contracts by us or our competitors; • changes in our pricing policies or the pricing policies of our competitors; • restatements of historical financial results and changes in financial forecasts; • loss of one or more of our significant customers; • legislation; • changes in market valuation or earnings of our competitors; • the trading volume of our common stock; • under the capped call transactions we entered into in connection with the Notes, modifications by the option counterparties or their affiliates of their hedge positions which cause them to enter into or unwind derivatives in our common stock or purchase or sell our common stock or other securities; • the trading of our common stock on multiple trading markets, which takes place in different currencies and at different times; and • general economic conditions.
In 2024, KPLC accounted for 13.0% of our total revenues. There has been a deterioration in the collection from KPLC that became slower than in the past, and as of December 31, 2024, the amount overdue from KPLC in Kenya was $38.3 million of which $20.0 million was paid in January and February of 2025.
In 2025, KPLC accounted for 11.9% of our total revenues. There has been a deterioration in the collection from KPLC that became slower than in the past, and as of December 31, 2025, the amount overdue from KPLC in Kenya was $29.5 million of which $21.1 million was paid in January and February of 2026.
Integrating our acquired companies involves a number of risks that could materially and adversely affect our business, including: • failure of the acquired companies to achieve the results we expect; • inability to retain key personnel of the acquired companies; • risks associated with unanticipated events or liabilities; and • the difficulty of establishing and maintaining uniform standards, controls, procedures and policies, including accounting controls and procedures. 59 If any of our acquired companies suffers customer dissatisfaction or performance problems, this could adversely affect the reputation of our group of companies and could materially and adversely affect our business, financial condition, future results and cash flow.
Integrating our acquired companies involves a number of risks that could materially and adversely affect our business, including: • failure of the acquired companies to achieve the results we expect; • inability to retain key personnel of the acquired companies; • risks associated with unanticipated events or liabilities; and • the difficulty of establishing and maintaining uniform standards, controls, procedures and policies, including accounting controls and procedures.
Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an increase in the market price and in the volatility of our common stock. In addition, upon a default by an option counterparty, we may suffer adverse tax consequences and more dilution than we currently anticipate with respect to our common stock.
Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an increase in the market price and in the volatility of our common stock. A default by an option counterparty may also cause adverse tax consequences and dilution in the value our common stock.
Electricity Segment . In 2024, the international operations of the Electricity segment accounted for 22% of our total revenues, but accounted for 39% of our gross profit, 78% of our net income and 31% of our EBITDA.
Electricity Segment . In 2025, the international operations of the Electricity segment accounted for 20% of our total revenues, but accounted for 39% of our gross profit, 49% of our net income and 29% of our EBITDA.
These costs, or the failure to implement successfully one or more elements of the plan, could adversely affect our reputation and the reputation of our subsidiaries and could materially and adversely affect our business, financial condition, future results and cash flow.
These costs may not be recovered, in whole or in part, if one or more elements of the plan are not successfully implemented. These costs, or the failure to implement successfully one or more elements of the plan, could adversely affect our reputation and could materially and adversely affect our business, financial condition, future results and cash flow.
Apart from the risks associated with implementing the plan, the plan itself will expose us to other risks and uncertainties once implemented. Expanding our customer base may expose us to customers with different credit profiles than our current customers.
Apart from the risks associated with implementing the plan, the plan itself will expose us to other risks and uncertainties once implemented. Expanding our customer and/or geographic base may expose us to customers with different credit profiles than our current customers or foreign countries in which we will have to learn the business and political environment.
We may issue additional shares of our common stock in the future pursuant to current or future equity compensation plans, upon conversions of preferred stock or debt, including the Notes, or in connection with future acquisitions or financings. We may also seek to raise additional funds, finance acquisitions or develop strategic relationships by issuing additional shares of our common stock.
We may issue additional shares of our common stock in the future pursuant to current or future equity compensation plans, upon conversions of preferred stock or debt, or in connection with future acquisitions or financings.
Accordingly, a default by the lessor (or sublessor) under any such loan could result in a foreclosure on the underlying fee interest in the property and thereby terminate our leasehold interest and result in the shutdown of the power plant located on the relevant property and/or terminate our right of access to the underlying geothermal resources required for our operations.
Accordingly, a default by the lessor (or sublessor) under any such loan could result in a foreclosure on the underlying fee interest in the property and thereby terminate our leasehold interest and result in the shutdown of the power plant located on the relevant property and/or terminate our right of access to the underlying geothermal resources required for our operations. 53 Our business development activities may not be successful and our projects under construction or facilities undergoing enhancement and repowering may encounter delays, which may impact our future growth.
On the other hand, anti-ESG related policies, legislation, initiatives, litigation, legal opinions, and scrutiny could result in the Company facing additional compliance obligations, becoming the subject of investigations and enforcement actions, or sustaining reputational harm. In addition, the SEC proposed rules in 2022 that would require public companies to include extensive climate-related disclosures in their SEC filings.
On the other hand, anti-ESG related policies, legislation, initiatives, litigation, legal opinions, and scrutiny could result in the Company facing additional compliance obligations, becoming the subject of investigations and enforcement actions, or sustaining reputational harm.
The PURPA and QF risks described above also are not likely to affect our Nevada and California based projects that have their PPAs with the SCPPA because SCPPA is not a regulated public utility under PURPA. The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.
The PURPA and QF risks described above also are not likely to affect our Nevada and California based projects that have their PPAs with the SCPPA because SCPPA is not a regulated public utility under PURPA.
Conditions in and around Israel, where the majority of our senior management and our main production and manufacturing facilities are located, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.
Any or all of the changes discussed above could materially and adversely affect our business, financial condition, future results and cash flow. 52 Conditions in and around Israel, where the majority of our senior management and our main product segment production and manufacturing facilities are located, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.
The revenues from our BESS facilities fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent. This volatility in merchant prices may adversely effect our Energy Storage profitability. Developments in alternative technologies may materially and also adversely affect demand for battery energy storage.
The revenues from our BESS facilities fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent. This volatility in merchant prices may adversely effect our Energy Storage profitability. We are also experiencing intense competition in the energy storage market from independent power producers, developers, and third-party investors.
Our indebtedness may limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general business purposes, limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other general business purposes, require us to use a substantial portion of our cash flow from operations to make debt service payments, limit our flexibility to plan for, or react to, changes in our business and industry, place us at a competitive disadvantage compared to our less leveraged competitors and increase our vulnerability to the impact of adverse economic and industry conditions.
Our indebtedness may limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general business purposes, limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other general business purposes, require us to use a substantial portion of our cash flow from operations to make debt service payments, limit our flexibility to plan for, or react to, changes in our business and industry, place us at a competitive disadvantage compared to our less leveraged competitors and increase our vulnerability to the impact of adverse economic and industry conditions.Additionally, under the Notes, if we undergo a “fundamental change,” subject to certain conditions, holders may require us to repurchase for cash all or part of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, and if we undergo a “make-whole fundamental change”, the conversion rate for the Notes may be increased.
These cybersecurity, data protection and privacy law regimes continue to evolve and may result in ever-increasing public scrutiny and escalating levels of capital expenditures, regulatory enforcement, sanctions and fines and increased costs for compliance. We have instituted security measures and safeguards to protect our operational systems and information technology assets, including certain safeguards required by FERC.
These cybersecurity, data protection and privacy law regimes continue to evolve and may result in ever-increasing public scrutiny and escalating levels of capital expenditures, regulatory enforcement, sanctions and fines and increased costs for compliance.
However, a prolonged war could result in further military reserve duty call-ups as well as irregularities to our supply chain and to our ability to ship our products from Israel, which could disrupt the operations of our Product segment and potentially delay some of its growth plans in the Electricity segment, materially impacting our financial position and results of operations.
Wars could result in military reserve duty call-ups and to our ability to ship our products from Israel, which could disrupt the operations of our Product segment and potentially delay some of our growth plans in the Electricity segment.
Our disclosures on these matters, a failure to meet evolving stakeholder expectations for ESG practices and reporting, or expenses required to carry on sustainability reporting and/or meet customer requirements or sustainability targets, may potentially harm our customer relationships and/or subject us to significant costs and liabilities and reputational risks, any of which could adversely affect our business, financial condition and results of operations.
The related reduction or elimination of government incentives around renewable energy may also harm us, as described in “Risks Related to Governmental Regulations, Laws and Taxation—The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.” Lastly, our sustainability disclosures, a failure to meet evolving stakeholder expectations for sustainability practices and reporting, or expenses required to carry on sustainability reporting and/or meet customer requirements or sustainability targets, may potentially harm our customer relationships and/or subject us to significant costs and liabilities and reputational risks, any of which could adversely affect our business, financial condition and results of operations.
There are uncertainties and risks associated with our strategic plan, including with respect to implementation and outcome. We may decide to change, or to not implement, one or more elements of the plan over time or we may not be successful in implementing one or more elements of the plan, in each case for a number of reasons.
We may decide to change, or to not implement, one or more elements of the plan over time or we may not be successful in implementing one or more elements of the plan, in each case for several reasons.
In the fourth quarter of 2024, we experienced high curtailments in the McGinness Hills complex related mostly to third party grid maintenance that impacted our revenues by approximately $3.2 million. We expect these curtailments to continue also in 2025.
In 2025, we experienced high curtailments in the McGinness Hills complex related mostly to third party grid maintenance that impacted our revenues by approximately $6.3 million. Our international operations expose us to risks related to the application of international laws and regulations.
The trading price of our common stock could decline if securities, industry analysts or our investors disagree with our strategic plan or the way we implement it. Accordingly, there is no assurance that the plan will enhance shareholder value through long-term growth of the Company to the extent currently anticipated by our management or at all.
There is no assurance that the plan will enhance shareholder value through long-term growth of the Company to the extent currently anticipated by our management or at all.
We have shelter-in-place and work-from-home measures, government-imposed restrictions on movement and travel and other precautions taken to address the ongoing conflict and which have temporarily and may continue to disrupt our management and employees’ ability to effectively perform their daily tasks.
Government-imposed restrictions on movement and travel and other precautions in wartime taken to address the ongoing conflict have in the past disrupted and may in any future conflicts disrupt our management and employees’ ability to effectively perform their jobs.
Some of our leases will terminate if we do not extract geothermal resources in “commercial quantities”, if we fail to comply with the terms or stipulations of such leases or any of the provisions of the Geothermal Steam Act or if the lessor under any such lease defaults on any debt secured by the relevant property, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on terms as favorable to us as any such terminated lease, if at all.
Some of our leases will terminate if we do not extract geothermal resources in “commercial quantities” or fail to comply with such leases or applicable law or if the lessor under any such lease defaults on any debt secured by the relevant property.
Also, insurance may not be available in the future with the scope of coverage and in amounts of coverage adequate to insure against such risks and disturbances. Any or all of the changes discussed above could materially and adversely affect our business, financial condition, future results and cash flow.
Also, insurance may not be available in the future with the scope of coverage and in amounts of coverage adequate to insure against such risks and disturbances.
We are a holding company and our cash depends substantially on the performance of our subsidiaries and the power plants they operate, most of which are subject to restrictions and taxation on dividends and distributions. We are a holding company whose primary assets are our ownership of the equity interests in our subsidiaries.
Our operations are primarily conducted through our subsidiaries, which are separate legal entities, and our cash depends substantially on the performance of our subsidiaries and the power plants they operate, most of which are subject to restrictions and taxation on dividends and distributions. 61 Our operations are primarily conducted through our subsidiaries.
Our exploration, development, and operation of geothermal energy resources are subject to geological risks and uncertainties, which may result in insufficient prospects to support our growth, decreased performance or increased costs for our power plants. Our primary business involves the exploration, development, and operation of geothermal energy resources.
Our exploration, development, and operation of geothermal energy resources are subject to geological risks and uncertainties. Our primary business involves the exploration, development, and operation of geothermal energy resources.
In the U.S., where we have a significant portion of our operations, no comprehensive climate change legislation has been implemented federally. To date, the U.S.
In the U.S., where we have a significant portion of our operations, the U.S.
Similarly, various states have adopted or are considering adopting legislation and regulation focused on GHG cap-and-trade programs, carbon taxes, reporting and tracking programs and emissions limits. The recent change in the U.S. presidential administration increases the prospect of further regulatory ambiguity and change.
Similarly, various states have adopted or are considering adopting legislation and regulation focused on GHG cap-and-trade programs, carbon taxes, reporting and tracking programs and emissions limits. At the same time, no comprehensive climate change legislation has been implemented federally.
Thus, disturbances to and challenges facing our foreign operations, especially in Kenya, could have impacts on our business ranging from moderate to severe.
In 2025, 40.3% of our total revenues were derived from international operations, and our Electricity segment international operations had higher gross profit than our U.S. operations. Thus, disturbances to and challenges facing our foreign operations, especially in Kenya, could have impacts on our business ranging from moderate to severe.
As of December 31, 2024, we had $476.4 million outstanding aggregate principal amount of Notes.
As of December 31, 2025, we had $2,659.6 million outstanding aggregate principal amount of long-term debt.
We rely on cross-currency swap contracts to effectively manage our currency risk related to our Senior Unsecured Bonds - Series 4 issued in July 2020.
These outcomes may, in certain circumstances, delay or prevent a takeover of us that might otherwise be beneficial to our stockholders. We are exposed to various credit risks. We rely on cross-currency swap contracts to effectively manage our currency risk related to our Senior Unsecured Bonds - Series 4 issued in July 2020.
While the first order suggests a positive posture of the Trump administration toward geothermal energy in contrast to other renewable sources, we cannot currently make any assurance regarding the influence of the policies or political stances of the Trump administration or current U.S. Congress on our business.
For instance, while executive orders of the Trump administration from early 2025 suggest a positive posture of the administration toward geothermal energy relative to other renewable sources, the impact of these orders, in the absence of any substantive change in regulation since such orders were issued, remains unclear, and we cannot currently make any assurance about the influence of the policies or political stances of the Trump administration on our business.
Relatedly, in recent years, specifically in the U.S., “anti-ESG” sentiment has gained momentum, with several states and Congress having proposed or enacted “anti-ESG” policies, legislation, or initiatives or issued related legal opinions.
Additionally, in recent years, “anti-ESG” sentiment has gained momentum, with several U.S. states and the federal government having proposed or enacted “anti-ESG” policies, legislation, or initiatives or issued related legal opinions, such as the EPA’s recent determination that it lacks the authority to regulate certain GHG emissions and would no longer stand behind its prior findings that GHG emissions are harmful.
As such, political, economic and security conditions in Israel and the Middle East region directly affect our operations.
As such, political, economic and security conditions in Israel and the Middle East region directly affect our operations. Military conflicts involving Israel, such as a re-escalation of the wars in the Middle East that lasted between 2023 and 2025, could have adverse impacts on our business.
In addition, new customers may be reluctant to do business with us, and existing customers may be reluctant to renew their agreements with us, due to their uncertainty regarding our ability to perform under our commitments. Limitations on travel to Israel from abroad could make it harder for us to secure contracts in the Product segment with new business partners.
New business partners may be reluctant to do business with us, and existing partners may hesitate to renew their agreements with us, due to their uncertainty regarding our ability to perform under our commitments in Israel, and/or claim they are not obligated to perform their commitments under those agreements pursuant to force majeure.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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While we have experienced cybersecurity 70 incidents, to date, we are not aware that we have experienced a material cybersecurity incident.The sophistication of cybersecurity threats continues to increase, and the controls and preventative actions we take to reduce the risk of cybersecurity incidents and protect our systems, including the regular testing of our cybersecurity incident response plan, may be insufficient.
While we have experienced cybersecurity incidents, to date, we are not aware that we have experienced a material cybersecurity incident. The sophistication of cybersecurity threats continues to increase, and the controls and preventative actions we take to reduce the risk of cybersecurity incidents and protect our systems, including the regular testing of our cybersecurity incident response plan, may be insufficient.
We also restrict vendors’ access to our organizational systems through a segmented and controlled environment which is monitored by us, and perform detailed and customized risk assessments of certain vendors, including their ability to protect data from unauthorized access.
We also restrict vendors’ access to our organizational systems through a segmented and controlled environment, which is monitored by us, and perform detailed and customized risk assessments of certain vendors, including their ability to protect data from unauthorized access. 68
Our Chief Information Security Officer (“CISO”), who has been a chief information security officer at Ormat for seven years, is certified by the International Information System Security Certification Consortium as an Information Systems Security Management Professional (“ISSMP”), as an Information Systems Security Architecture Professional (“ISSAP”), and as a Certified Information Systems Security Professional (“CISSP”).
Our Chief Information Security Officer (“CISO”), who has been a chief information security officer at Ormat for eight years, is certified by the International Information System Security Certification Consortium as an Information Systems Security Management Professional (“ISSMP”), as an Information Systems Security Architecture Professional (“ISSAP”), and as a Certified Information Systems Security Professional (“CISSP”).
We conduct internal and external penetration testing and risk assessments on a regular basis, and have engaged consultants, auditors and other relevant third parties to assist us with cybersecurity risk management processes. Our operations rely on the secure processing, storage and transmission of confidential and other information in our computer systems and networks.
We monitor the privacy and security regulations applicable to us in the regions where we do business as well as proposed privacy and security regulations and emerging risks. 67 We conduct internal and external penetration testing and risk assessments on a regular basis, and have engaged consultants, auditors and other relevant third parties to assist us with cybersecurity risk management processes.
As a foundation of this approach, our privacy and security policies govern our business lines and subsidiaries. We monitor the privacy and security regulations applicable to us in the regions where we do business as well as proposed privacy and security regulations and emerging risks.
As a foundation of this approach, our privacy and security policies govern our business lines and subsidiaries.
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Our operations rely on the secure processing, storage and transmission of confidential and other information in our computer systems and networks.

Item 2. Properties

Properties — owned and leased real estate

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See Item 13 — “Certain Relationships and Related Transactions”. In Turkey, we established and leased a facility to locally produce power plant components to our local customers.
See Item 13 — “Certain Relationships and Related Transactions”. In Turkey, we established and leased a facility to locally produce power plant components to our local customers. We believe that our current offices and manufacturing facilities will be adequate for our operations as currently conducted.
We believe that our current offices and manufacturing facilities will be adequate for our operations as currently conducted. 71 Each of our power plants is located on property leased or owned by us or one of our subsidiaries or is a property that is subject to a concession agreement.
Each of our power plants is located on property leased or owned by us or one of our subsidiaries or is a property that is subject to a concession agreement. Information and descriptions of our plants and properties are included in Item 1 — “Business”.
Removed
Information and descriptions of our plants and properties are included in Item 1 — “Business”.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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The data assumes that $100 was invested at the market close on December 31, 2019 in our common stock, the Standard and Poor’s Composite 500 Index, the S&P Global Clean Energy Index and the PBW - Invesco WilderHill Clean Energy ETF, and assumes reinvestments of dividends, if any.
The data assumes that $100 was invested at the market close on December 31, 2020 in our common stock, the Standard and Poor’s Composite 500 Index, the S&P Global Clean Energy Index and the PBW - Invesco WilderHill Clean Energy ETF, and assumes reinvestments of dividends, if any.
Stock Performance Graph The following performance graph represents the cumulative total shareholder return for the period December 31, 2019 through December 31, 2024 for our common stock, compared to the Standard and Poor’s Composite 500 Index, S&P Global Clean Energy Index and PBW - Invesco WilderHill Clean Energy ETF.
Stock Performance Graph The following performance graph represents the cumulative total shareholder return for the period December 31, 2020 through December 31, 2025 for our common stock, compared to the Standard and Poor’s Composite 500 Index, S&P Global Clean Energy Index and PBW - Invesco WilderHill Clean Energy ETF.
Effective on February 10, 2015, our common stock also began trading on the TASE under the same symbol. Record Holders As of February 25, 2025, there were 15 record holders of our common stock, including Cede & Co., the nominee of the Depository Trust Company.
Effective on February 10, 2015, our common stock also began trading on the TASE under the same symbol. Record Holders As of February 25, 2026, there were 14 record holders of our common stock, including Cede & Co., the nominee of the Depository Trust Company.
Issuer Purchases of Equity Securities None. Sales of Unregistered Equity Securities None. 74 ITEM 6. [RESERVED]
Issuer Purchases of Equity Securities None. Sales of Unregistered Equity Securities None. 71 ITEM 6. [RESERVED]
On February 25, 2025, the closing price of our common stock as reported on the NYSE was $68.51 per share. 73 Comparison of Cumulative Returns (%) for the Period December 31, 2019 through December 31, 2024 2020 2021 2022 2023 2024 Ormat Technologies, Inc 21.10 6.40 16.00 1.70 -9.10 Standard & Poor's Composite 500 Index 16.30 47.50 18.80 47.60 82.00 PBW - Invesco WilderHill Clean Energy ETF 202.00 108.60 12.00 -13.20 -41.50 S&P Global Clean Energy Index 138.20 80.20 69.30 33.00 -2.80 Equity Compensation Plan Information For information on our equity compensation plan, see “Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”.
On February 25, 2026, the closing price of our common stock as reported on the NYSE was $117.06 per share. 70 Comparison of Cumulative Returns (%) for the Period December 31, 2020 through December 31, 2025 2021 2022 2023 2024 2025 Ormat Technologies, Inc (12.2) % (4.2) % (16.1) % (25.0) % 22.4 % Standard & Poor's Composite 500 Index 26.9 % 2.2 % 27.0 % 56.6 % 82.3 % PBW - Invesco WilderHill Clean Energy ETF (30.9) % (62.9) % (71.3) % (80.6) % (70.5) % S&P Global Clean Energy Index (24.4) % (28.9) % (44.2) % (59.2) % (41.4) % Equity Compensation Plan Information For information on our equity compensation plan, see “Part III, Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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These write-offs are primarily related to geothermal exploration projects that the Company decided to no longer pursue, as well as costs related to a number of battery energy storage projects that the Company decided to no longer pursue and develop.
These write-offs are primarily related to geothermal exploration projects that the Company decided to no longer pursue, as well as costs related to a number of battery energy storage projects that the Company decided to no longer develop and pursue.
In connection with this transaction, the Company entered into a guarantee in favor of the administrative agent for the benefit of the banks, pursuant to which the Company agreed to guarantee Ormat Nevada’s obligations under the credit agreement. Ormat Nevada’s obligations under the credit agreement are otherwise unsecured.
In connection with this transaction, the Company entered into a guarantee in favor of the administrative agent for the benefit of the banks, pursuant to which the Company agreed to guarantee Ormat Nevada’s obligations under the credit agreement. Ormat Nevada’s obligations under the credit agreement are otherwise unsecured.
Net cash provided by operating activities for the year ended December 31, 2024, was primarily attributable to net income of $131.2 million adjusted for certain non-cash items such as depreciation and amortization, stock-based compensation, and income attributable to sale of tax benefits, among others, as well as primarily by: (i) cash inflow related to the net decrease in trade receivables of $27.2 million, due to the timing of collection from our customers; (ii) a net increase in accounts payable and accrued expenses of $11.4 million as a result of timing of payments to our suppliers, and a payment related to recovery of damages received from a third-party battery systems supplier as part of a settlement agreement; (iii) a net increase in prepaid expenses and other of $8.5 million, primarily as a result of timing of prepayments to our suppliers and governmental authorities; and (iv) a net decrease of $6.9 million in inventory, primarily related to the progress of our Product projects and timing of allocating costs to such projects.
Net cash provided by operating activities for the year ended December 31, 2024, was primarily attributable to net income of $131.2 million adjusted for certain non-cash items such as depreciation and amortization, 91 stock-based compensation, and income attributable to sale of tax benefits, among others, as well as primarily by: (i) cash inflow related to the net decrease in trade receivables of $27.2 million, due to the timing of collection from our customers; (ii) a net increase in accounts payable and accrued expenses of $11.4 million as a result of timing of payments to our suppliers, and a payment related to recovery of damages received from a third-party battery systems supplier as part of a settlement agreement; (iii) a net increase in prepaid expenses and other of $8.5 million, primarily as a result of timing of prepayments to our suppliers and governmental authorities; and (iv) a net decrease of $6.9 million in inventory, primarily related to the progress of our Product projects and timing of allocating costs to such projects.
The principal factors that affected the decrease in net cash provided by financing activities during the year ended December 31, 2024 were: (i) net proceeds of $514.6 million from long-term loans entered into during the period such as the Hapoalim 2024 Loan, the HSBC 2024 Loan, the Mammoth Senior Secured Notes, the DEG 4 Loan, the Discount 2024 Loan, the Discount 2024 II Loan, and the Bottleneck Loan; (ii) net proceeds of $44.0 million related to proceeds from issuance of the Additional Notes; and (iii) cash received from noncontrolling interest in the amount of $12.3 million.
The principal factors that affected net cash provided by financing activities during the year ended December 31, 2024 were: (i) net proceeds of $514.6 million from long-term loans entered into during the period such as the Hapoalim 2024 Loan, the HSBC 2024 Loan, the Mammoth Senior Secured Notes, the DEG 4 Loan, the Discount 2024 Loan, the Discount 2024 II Loan, and the Bottleneck Loan; (ii) net proceeds of $44.0 million related to proceeds from issuance of the Additional Notes; and (iii) cash received from noncontrolling interest in the amount of $12.3 million.
Breakdown of Cost of Revenues Electricity Segment The principal cost of revenues attributable to our operating power plants are operation and maintenance expenses comprised of salaries and related employee benefits, equipment expenses, costs of parts and chemicals, costs related to third-party services, lease expenses, royalties, startup and auxiliary electricity purchases, property taxes, insurance, depreciation and amortization and, for some of our projects, purchases of make-up water for use in our cooling towers.
Breakdown of Cost of Revenues Electricity Segment The principal cost of revenues attributable to our operating power plants are operation and maintenance expenses comprised of salaries and related employee benefits, equipment expenses, costs of parts and chemicals, costs related to 77 third-party services, lease expenses, royalties, startup and auxiliary electricity purchases, property taxes, insurance, depreciation and amortization and, for some of our projects, purchases of make-up water for use in our cooling towers.
These include, among other things, a prohibition on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) 89 guaranteeing the liabilities of any third-party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure.
These include, among other things, a prohibition on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third-party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure.
Other operating income represents the non-refundable portion of the recovery of damages received from a third-party battery systems supplier as part of a settlement agreement entered into in August 2024 for which all contingency conditions have been met, as further described under Note 1 to the consolidated financial statements.
Other operating income primarily represents the non-refundable portion of the recovery of damages received from a third-party battery systems supplier as part of a settlement agreement entered into in August 2024 for which all contingency conditions have been met, as further described under Note 1 to the consolidated financial statements.
Such cost estimates are made by management based on prior operations and specific project characteristics and designs. If management’s estimates of total estimated costs with respect to our Product segment are inaccurate, then the percentage of completion is inaccurate resulting in an 80 over- or under-estimate of revenue and gross margin.
Such cost estimates are made by management based on prior operations and specific project characteristics and designs. If management’s estimates of total estimated costs with respect to our Product segment are inaccurate, then the percentage of completion is inaccurate resulting in an over- or under-estimate of revenue and gross margin.
Lease payments are generally fixed, while royalty payments are generally calculated as a percentage of revenues and therefore are not significantly impacted by inflation. In our Product segment, inflation may directly impact fixed and variable costs incurred in the construction of third-party power plants, thereby lowering our profit margins at the Product segment.
Lease 95 payments are generally fixed, while royalty payments are generally calculated as a percentage of revenues and therefore are not significantly impacted by inflation. In our Product segment, inflation may directly impact fixed and variable costs incurred in the construction of third-party power plants, thereby lowering our profit margins at the Product segment.
Our critical accounting policies include: Revenues and Cost of Revenues Revenues generated from the construction of geothermal and recovered energy-based power plant equipment and other equipment on behalf of third parties (Product revenues) are recognized using the percentage of completion method, which requires estimates of future costs over the full term of product delivery.
Our critical accounting estimates include: Revenues and Cost of Revenues Revenues generated from the construction of geothermal and recovered energy-based power plant equipment and other equipment on behalf of third parties (Product revenues) are recognized using the percentage of completion method, which requires estimates of future costs over the full term of product delivery.
Such estimates are made by management based on factors such as prior operations, the terms of the underlying PPAs, geothermal resources, the location of the assets and specific power plant characteristics and designs. Changes in such estimates could result in useful lives which are either longer or shorter than the depreciable lives of such assets.
Such estimates are made by management based on factors such as prior operations, the terms of the underlying PPAs, geothermal resources, the location of the assets and 78 specific power plant characteristics and designs. Changes in such estimates could result in useful lives which are either longer or shorter than the depreciable lives of such assets.
Property, Plant and Equipment We capitalize all costs associated with the acquisition, development and construction of power plant facilities. Major improvements are capitalized and repairs and maintenance (including major maintenance) costs are expensed. We estimate the useful life of our power plants to range between 15 and 30 years.
Electricity Property, Plant and Equipment We capitalize all costs associated with the acquisition, development and construction of power plant facilities. Major improvements are capitalized and repairs and maintenance (including major maintenance) costs are expensed. We estimate the useful life of our power plants to range between 15 and 30 years.
The prices paid for electricity under the PPAs for the Mammoth Complex 79 and the North Brawley power plant in California, the Raft River power plant in Idaho, the Neal Hot Springs power plant in Oregon and Dixie Valley power plant in Nevada, are higher in the months of June through September.
The prices paid for electricity under the PPAs for the Mammoth Complex and the North Brawley power plant in California, the Raft River power plant in Idaho, the Neal Hot Springs power plant in Oregon and Dixie Valley power plant in Nevada, are higher in the months of June through September.
We test for impairment of our operating plants which are not operated as a complex, as well as our projects 81 under exploration, development or construction that are not part of an existing complex, at the plant or project level.
We test for impairment of our operating plants which are not operated as a complex, as well as our projects under exploration, development or construction that are not part of an existing complex, at the plant or project level.
Derivatives and foreign currency transaction losses primarily includes losses from foreign currency forward contracts which were not accounted for as hedge transactions, and the impact of changes in foreign currency exchange rates against the U.S. Dollar.
Derivatives and foreign currency transaction gains (losses) primarily includes gains and losses from foreign currency forward contracts which were not accounted for as hedge transactions, and the impact of changes in foreign currency exchange rates against the U.S. Dollar.
Product segment revenues fluctuate between periods, primarily based on our ability to receive customer orders, the status and timing of such orders, delivery of raw materials and the completion of manufacturing.
Product segment revenues fluctuate between periods, primarily based on our ability to receive customer orders, the status and timing of such orders, delivery of raw 75 materials and the completion of manufacturing.
Some of the credit agreements, the term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third-party.
Some of the credit agreements, the 87 term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third-party.
These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $209.3 million; (ii) cash dividend payments of $29.1 million; (iii) cash paid persuant to a transaction with noncontrolling interest of $9.8 million; and (iv) net repayments of revolving credit lines with banks of $20.0 million.
These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $209.3 million; (ii) cash dividend payments of $29.1 million; (iii) cash paid pursuant to a transaction with noncontrolling interest of $9.8 million; and (iv) net repayments of revolving credit lines with banks of $20.0 million.
This liability is included in long-term liabilities in our consolidated balance sheet, because we generally do not anticipate that settlement of the liability will require payment of cash within the 93 next 12 months. We are not able to reasonably estimate when we will make any cash payments required to settle this liability.
This liability is included in long-term liabilities in our consolidated balance sheet, because we generally do not anticipate that settlement of the liability will require payment of cash within the 90 next 12 months. We are not able to reasonably estimate when we will make any cash payments required to settle this liability.
However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do. 95 This information should not be considered in isolation from, or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP or other non-GAAP financial measures.
However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do. 92 This information should not be considered in isolation from, or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP or other non-GAAP financial measures.
This Form 10-K for the fiscal year ended December 31, 2023 is available free of charge on the SECs website at www.sec.gov and at www.Ormat.com, by clicking “Investors” located at the top of the home page.
This Form 10-K for the fiscal year ended December 31, 2024 is available free of charge on the SECs website at www.sec.gov and at www.Ormat.com, by clicking “Investors” located at the top of the home page.
We believe that for the year ended December 31, 2024, no impairment exists for any of our long-lived assets; however, estimates as to the recoverability of such assets may change based on revised circumstances. Estimates of the fair value of assets require estimating useful lives and selecting a discount rate that reflects the risk inherent in future cash flows.
We believe that for the year ended December 31, 2025, no impairment exists for any of our long-lived assets; however, estimates as to the recoverability of such assets may change based on revised circumstances. 79 Estimates of the fair value of assets require estimating useful lives and selecting a discount rate that reflects the risk inherent in future cash flows.
Liquidity and Capital Resources Overview of Sources and Uses of Cash Our principal sources of liquidity have been derived from cash flows from operations, proceeds from third-party debt such as borrowings under our credit facilities and issuances of debt securities, equity offerings, project financing and tax monetization transactions, short term borrowing under our lines of credit, and proceeds from the sale of equity interests in 88 one or more of our projects.
Liquidity and Capital Resources Overview of Sources and Uses of Cash Our principal sources of liquidity have been derived from cash flows from operations, proceeds from third-party debt such as borrowings under our credit facilities and issuances of debt securities, equity offerings, project financing and tax monetization transactions, short term borrowing under our lines of credit, proceeds from the sale of equity interests in one or more of our projects and sale of transferable PTCs.
The current expiration date of the facility under this credit agreement is October 31, 2025. On December 31, 2024, the aggregate amount available under the credit agreement was $35.0 million. This credit line is limited to the issuance, extension, modification or amendment of letters of credit.
The current expiration date of the facility under this credit agreement is October 31, 2026. On December 31, 2025, the aggregate amount available under the credit agreement was $35.0 million. This credit line is limited to the issuance, extension, modification or amendment of letters of credit.
For the Year Ended December 31, 2023 A discussion of changes in our cash flows in 2023 compared to 2022 has been omitted from this Form10-K, but may be found in “Item 7.
For the Year Ended December 31, 2024 A discussion of changes in our cash flows in 2024 compared to 2023 has been omitted from this Form10-K, but may be found in “Item 7.
Royalty payments, included in cost of revenues, are made as compensation for the right to use certain geothermal resources and are paid as a percentage of the revenues derived from the associated geothermal rights. Royalties constituted approximately 4.6% and 4.6% of Electricity segment revenues for the years ended December 31, 2024 and 2023, respectively.
Royalty payments, included in cost of revenues, are made as compensation for the right to use certain geothermal resources and are paid as a percentage of the revenues derived from the associated geothermal rights. Royalties constituted approximately 4.5% and 4.6% of Electricity segment revenues for the years ended December 31, 2025 and 2024, respectively.
Inflation may directly impact an expense we incur for the operation of our projects, thereby increasing our overall operating costs and reducing our profit and gross margin. The negative impact of inflation would be partially offset by price adjustments built into some of our PPAs that could be triggered upon such occurrences.
Inflation may directly impact the expenses we incur for the operation of our projects, thereby increasing our overall operating costs and reducing our profit and gross margin. The negative impact of inflation would be partially offset by price adjustments built into some of our PPAs that could be triggered upon such occurrences.
The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below. Electricity Segment Our Electricity segment domestic revenues were approximately 73%, 71% and 71% of our total Electricity segment for the years ended December 31, 2024, 2023 and 2022, respectively.
The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below. Electricity Segment Our Electricity segment domestic revenues were approximately 72%, 73% and 71% of our total Electricity segment for the years ended December 31, 2025, 2024 and 2023, respectively.
The tax benefit of lower effective tax rate is reflected in the 2021 net income. 100
The tax benefit of lower effective tax rate is reflected in the 2021 net income.
In addition, Ormat Nevada has an uncommitted discretionary demand line of credit in the aggregate amount of $65.0 million available for letters of credit including up to $20 million of credit.
In addition, Ormat Nevada has an uncommitted discretionary demand line of credit in the aggregate amount of $65.0 million available for letters of credit including up to $40 million of credit.
Campbell Senior Secured Notes 92.5 52.2 4.03 September, 2033 Don A. Campbell Complex United States Idaho Refinancing Note (1) 61.6 55.9 6.26 March, 2038 Neal Hot Springs, Raft River United States U.S.
Campbell Senior Secured Notes 92.5 46.9 4.03 September, 2033 Don A. Campbell Complex United States Idaho Refinancing Note (1) 61.6 52.4 6.26 March, 2038 Neal Hot Springs, Raft River United States U.S.
In applying these critical accounting estimates and assumptions, our management uses its judgment to determine the appropriate assumptions to be used in making certain estimates.
In applying critical accounting estimates and assumptions to our policies, our management uses its judgment to determine the appropriate assumptions to be used in making certain estimates.
We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation; (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) costs related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items.
We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation; (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) costs related to settlement agreements; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; (viii) allowance for bad debts; and (ix) other unusual or non-recurring items.
The decrease in this line item is primarily related to a decrease in net income generated by the Ijen project in 2024, compared to 2023. In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance.
The increase in this line item is primarily related to an increase in net income generated by the Ijen project in 2025, compared to 2024. In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance.
Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 23, 2024, which is incorporated by reference herein .
Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 27, 2025, which is incorporated by reference herein .
Other Third-Party Debt Balance as of Annual Maturity Loan December 31, 2024 Interest Rate Date (Dollar in millions) Financing Liability - Dixie Valley (1) $ 220.6 6.11% June 2038 Convertible Senior Notes (2) 476.4 2.50 July 2027 Commercial Paper (3) 100.0 * (3) * (3) (1) Final maturity date of the financing liability is assuming execution of the buy-out option in June 2038.
Other Third-Party Debt Balance as of Annual Maturity Loan December 31, 2025 Interest Rate Date (Dollar in millions) Financing Liability - Dixie Valley (1) $ 216.4 6.01% June 2038 Convertible Senior Notes (2) 476.4 2.50 July 2027 Commercial Paper (3) 100.0 * (3) * (3) (1) Final maturity date of the financing liability is assuming execution of the buy-out option in June 2038.
Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 23, 2024, which is incorporated by reference herein .
Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 27, 2025, which is incorporated by reference herein .
Third-Party Debt Our third-party debt consists of (i) non-recourse and limited-recourse project finance debt or acquisition financing that we or our subsidiaries have obtained for the purpose of developing and constructing, refinancing or acquiring our various projects; (ii) full-recourse debt incurred by us or our subsidiaries for general corporate purposes; (iii) convertible senior notes; (iv) commercial paper; (iv) financing liability assumed as part of the TG Geothermal Portfolio, LLC acquisition; and (v) short term revolving credit lines with banks.
Third-Party Debt Our third-party debt consists of (i) non-recourse and limited-recourse project finance debt or acquisition financing that we or our subsidiaries have obtained for the purpose of developing and constructing, refinancing or acquiring our various projects; (ii) full-recourse debt incurred by us or our subsidiaries for general corporate purposes; (iii) convertible senior notes; (iv) commercial paper; (iv) financing liability; and (v) short term revolving credit lines with banks.
The sensitivity analysis involved increasing and decreasing forward rates at December 31, 2024 and 2023 by a hypothetical 10% and calculating the resulting change in the fair values. At this time, the development of our strategic plan has not exposed us to any additional market risk.
The sensitivity analysis involved increasing and decreasing forward rates at December 31, 2025 and 2024 by a hypothetical 10% and calculating the resulting change in the fair values. Currently, the development of our strategic plan has not exposed us to any additional market risk.
Interest Income Interest Income for the year ended December 31, 2024 was $7.9 million, compared to $12.0 million for the year ended December 31, 2023. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period.
Interest Income Interest Income for the year ended December 31, 2025 was $6.0 million, compared to $7.9 million for the year ended December 31, 2024. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period.
Liquidity Impact of Uncertain Tax Positions As discussed in Note 16 - Income Taxes, to our consolidated financial statements set forth in Item 8 of this Annual Report, we have a liability associated with unrecognized tax benefits and related interest and penalties in the amount of approximately $6.3 million as of December 31, 2024.
Liquidity Impact of Uncertain Tax Positions As discussed in Note 16 - Income Taxes, to our consolidated financial statements set forth in Item 8 of this Annual Report, we have a liability associated with unrecognized tax benefits and related interest and penalties in the amount of approximately $10.4 million as of December 31, 2025.
Additionally, our short-term commercial paper, which was issued on October 23, 2023, bears an annual interest of three months SOFR +1.1%, and therefore presents an exposure to interest rate volatility. The outstanding amount of the short-term commercial paper as of December 31, 2024 was $100.0 million. Our cash equivalents are subject to interest rate risk.
Additionally, our short-term commercial paper, which was issued on October 23, 2023, bears an annual interest of 3-months SOFR+1.1%, and therefore present an exposure to interest rate volatility. The outstanding amount of the short-term commercial paper as of December 31, 2025 was $100.0 million. Our cash equivalents are subject to interest rate risk.
We will continue to analyze this new provision under the IRA and determine if an election is appropriate as it relates to our business needs. The new presidential administration may take action to revise, repeal, or otherwise modify existing rules and regulations, including various tax incentives, and the potential impact on the Company remains uncertain at this time.
We will continue to analyze the current provision under the OBBBA and determine if an election is appropriate as it relates to our business needs. Future presidential administrations may take action to revise, repeal, or otherwise modify existing rules and regulations, including various tax incentives, and the potential impact on the Company remains uncertain at this time.
While approximately 81.3% of our Electricity revenues for the year ended December 31, 2024 were derived from PPAs with fixed price components, we have a variable price PPA in Hawaii, which provide for payments based on the local utilities’ avoided cost.
While approximately 93.8% of our Electricity revenues for the year ended December 31, 2025 were derived from PPAs with fixed price components, we have a variable price PPA in Hawaii, which provide for payments based on the local utilities’ avoided cost.
Product Segment Our Product segment foreign revenues were 94%, 94% and 90% of our total Product segment revenues for the years ended December 31, 2024, 2023 and 2022, respectively. Energy Storage Segment Our Energy Storage segment domestic revenues were 100.0% of our total Energy storage segment revenues for years ended December 31, 2024, 2023 and 2022, respectively.
Product Segment Our Product segment foreign revenues were 95%, 94% and 94% of our total Product segment revenues for the years ended December 31, 2025, 2024 and 2023, respectively. Energy Storage Segment Our Energy Storage segment domestic revenues were 100.0% of our total Energy storage segment revenues for years ended December 31, 2025, 2024 and 2023, respectively.
In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an 77 extension of the term until 2052. Accordingly, our revenues from this power plant may fluctuate. Our Electricity segment revenues are also subject to seasonal variations, as more fully described in “Seasonality” below.
Accordingly, our revenues from this power plant may fluctuate. In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an extension of the term until 2052, which we expect to be in effect in early 2027. Our Electricity segment revenues are also subject to seasonal variations, as more fully described in “Seasonality” below.
As of December 31, 2024, letters of credit in the aggregate amount of $86.7 million were issued and outstanding under this credit agreement. Credit Agreement with HSBC Bank USA N.A. Ormat Nevada has a credit agreement with HSBC Bank USA, N.A for one year with annual renewals.
As of December 31, 2025, letters of credit in the aggregate amount of $80.0 million were issued and outstanding under this credit agreement. Credit Agreement with HSBC Bank USA N.A. Ormat Nevada has a credit agreement with HSBC Bank USA, N.A for one year with annual renewals.
Our capital expenditures primarily relate to the enhancement of our existing power plants and the construction of new power plants. We have budgeted approximately $460.0 million in capital expenditures for construction of new projects and enhancements to our existing power plants, of which we had invested $135.0 million as of December 31, 2024.
Our capital expenditures primarily relate to the enhancement of our existing power plants and the construction of new power plants. We have budgeted approximately $808.0 million in capital expenditures for construction of new projects and enhancements to our existing power plants, of which we had invested $208.0 million as of December 31, 2025.
To address the possibility of rising inflation, some of our contracts include certain provisions that mitigate inflation risk. In connection with the Electricity segment, none of our U.S. PPAs, including the SCPPA Portfolio PPA, are directly linked to the Consumer Price Index ("CPI").
To address the possibility of rising inflation, some of our contracts include certain provisions that mitigate inflation risk. In connection with the Electricity segment, none of our U.S. PPAs, including the SCPPA Portfolio PPA, are directly linked to the Consumer Price Index ("CPI"), although some of them have a fixed annual indexation.
General and administrative expenses for the year ended December 31, 2024 constituted 9.1% of total revenues for such period, compared to 8.2%, for the year ended December 31, 2023. Other Operating Income Other operating income for the year ended December 31, 2024 was $9.4 million compared to none for the year ended December 31, 2023.
General and administrative expenses for the year ended December 31, 2025 constituted 8.0% of total revenues for such period, compared to 9.1%, for the year ended December 31, 2024. Other Operating Income Other operating income for the year ended December 31, 2025 was $14.8 million compared to $9.4 million for the year ended December 31, 2024.
As a percentage of total Electricity revenues, the total cost of revenues attributable to our Electricity segment for the year ended December 31, 2024 was 65.4%, compared to 63.4% for the year ended December 31, 2023.
As a percentage of total Electricity revenues, the total cost of revenues attributable to our Electricity segment for the year ended December 31, 2025 was 71.5%, compared to 65.4% for the year ended December 31, 2024.
Impairment of long-lived assets Impairment of long-lived assets for the year ended December 31, 2024 was $1.3 million compared to none for the year ended December 31, 2023.
Impairment of long-lived assets Impairment of long-lived assets for the year ended December 31, 2025 was $12.1 million compared to $1.3 million for the year ended December 31, 2024.
In some cases, we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6.
In some cases, including the credit agreements with MUFG Union Bank and with HSBC Bank USA N.A., we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6.
As of December 31, 2024: (i) total equity was $2,550.9 million and the actual equity to total assets ratio was 45.0%; and (ii) the 12-month debt, net of cash and cash equivalents to Adjusted EBITDA ratio was 4.03. During the year ended December 31, 2024, we distributed interim dividends in an aggregate amount of $29.1 million.
As of December 31, 2025: (i) total equity was $2,680.9 million and the actual equity to total assets ratio was 42.9%; and (ii) the 12-month debt, net of cash and cash equivalents to Adjusted EBITDA ratio was 4.36. During the year ended December 31, 2025, we distributed interim dividends in an aggregate amount of $29.1 million.
The cost of revenues attributable to our international power plants was 18.3% of our Electricity segment cost of revenues for the year ended December 31, 2024, compared to 18.0% for the year ended December 31, 2023.
The cost of revenues attributable to our international power plants was 17.8% of our Electricity segment cost of revenues for the year ended December 31, 2025, compared to 18.3% for the year ended December 31, 2024.
As of December 31, 2024, $286.6 million in the aggregate was outstanding under credit agreements with several banks as detailed below under “Letters of Credits under the Credit Agreements”.
As of December 31, 2025, $286.0 million in the aggregate was outstanding under different credit agreements with several banks as detailed below under “Letters of Credits under the Credit Agreements”.
As of December 31, 2024, we had access to: (i) $94.4 million in cash and cash equivalents, of which $73.9 million was held by our foreign subsidiaries; and (ii) $374.1 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.
As of December 31, 2025, we had access to: (i) $147.4 million in cash and cash equivalents, of which $75.4 million was held by our foreign subsidiaries; and (ii) $388.9 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.
Adjusted EBITDA for the year ended December 31, 2024 was $550.5 million, compared to $481.7 million for the year ended December 31, 2023 and $435.5 million for the year ended December 31, 2022.
Adjusted EBITDA for the year ended December 31, 2025 was $582.0 million, compared to $550.5 million for the year ended December 31, 2024 and $481.7 million for the year ended December 31, 2023.
Our estimated capital needs for 2025 include approximately $570.0 million for capital expenditures on new projects under development or construction including storage projects, exploration activity and maintenance capital expenditures for our existing projects. In addition, we expect $235.7 million for long-term debt repayments.
Our estimated capital needs for 2026 include approximately $675.0 million for capital expenditures on new projects under development or construction including storage projects, exploration activity, investment in EGS pilot and maintenance capital expenditures for our existing projects. In addition, we expect $303.7 million for long-term debt repayments.
For the year ended December 31, 2024, our Electricity segment generated 79.8% of our total revenues, compared to 80.4% in the previous year, while our Product segment generated 15.9% of our total revenues, compared to 16.1% in the previous year, and our Energy Storage segment generated 4.3% of our total revenues, compared to 3.5% in the previous year.
For the year ended December 31, 2025, our Electricity segment generated 70.1% of our total revenues, compared to 79.8% in the previous year, while our Product segment generated 21.9% of our total revenues, compared to 15.9% in the previous year, and our Energy Storage segment generated 8.0% of our total revenues, compared to 4.3% in the previous year.
Energy Storage Segment The principal cost of revenues attributable to our Energy Storage segment are direct costs of the BESS that we own, and depreciation and amortization. Direct costs include the labor associated with operations and maintenance of owned BESS.
Energy Storage Segment The principal cost of revenues attributable to our Energy Storage segment are direct costs of the BESS that we own, and depreciation and amortization. Direct costs include the labor associated with operations and maintenance of owned BESS. In addition, the cost of revenue includes insurance and property tax expenses.
Included in construction-in-process are costs related to projects in exploration and development of $193.7 million and $162.5 million at December 31, 2024 and 2023, respectively.
Included in construction-in-process are costs related to projects in exploration and development of $286.9 million and $193.7 million at December 31, 2025 and 2024, respectively.
The following are the dividends declared by us during the past two years, as of December 31, 2024: Date Declared Dividend Amount per Share Record Date Payment Date February 22, 2023 $ 0.12 March 8, 2023 March 22, 2023 May 9, 2023 $ 0.12 May 23, 2023 June 6, 2023 August 2, 2023 $ 0.12 August 16, 2023 August 30, 2023 November 8, 2023 $ 0.12 November 22, 2023 December 6, 2023 February 21, 2024 $ 0.12 March 6, 2024 March 20, 2024 May 8, 2024 $ 0.12 May 22, 2024 June 5, 2024 August 6, 2024 $ 0.12 August 20, 2024 September 3, 2024 November 6, 2024 $ 0.12 November 20, 2024 December 4, 2024 February 26, 2025 $ 0.12 March 12, 2025 March 26, 2025 Historical Cash Flows The following table sets forth the components of our cash flows for the relevant periods indicated: Year Ended December 31, 2024 2023 2022 (Dollars in thousands) Net cash provided by operating activities $ 410,919 $ 309,401 $ 280,974 Net cash used in investing activities (780,254) (628,343) (523,406) Net cash provided by financing activities 287,916 379,964 126,273 Translation adjustments on cash and cash equivalents (579) 72 (609) Net change in cash and cash equivalents and restricted cash and cash equivalents $ (81,998) $ 61,094 $ (116,768) For the Year Ended December 31, 2024 Net cash provided by operating activities for the year ended December 31, 2024 was $410.9 million, compared to $309.4 million for the year ended December 31, 2023, representing a net increase of $101.5 million.
The following are the dividends declared by us during the past two years, as of December 31, 2025 : Date Declared Dividend Amount per Share Record Date Payment Date February 21, 2024 $ 0.12 March 6, 2024 March 20, 2024 May 8, 2024 $ 0.12 May 22, 2024 June 5, 2024 August 6, 2024 $ 0.12 August 20, 2024 September 3, 2024 November 6, 2024 $ 0.12 November 20, 2024 December 4, 2024 February 26, 2025 $ 0.12 March 12, 2025 March 26, 2025 May 7, 2025 $ 0.12 May 21, 2025 June 4, 2025 August 6, 2025 $ 0.12 August 20, 2025 September 3, 2025 November 3, 2025 $ 0.12 November 17, 2025 December 1, 2025 February 24, 2026 $ 0.12 March 10, 2026 March 24, 2026 Historical Cash Flows The following table sets forth the components of our cash flows for the relevant periods indicated: Year Ended December 31, 2025 2024 2023 (Dollars in thousands) Net cash provided by operating activities $ 335,101 $ 410,919 $ 309,401 Net cash used in investing activities (726,435) (780,254) (628,343) Net cash provided by financing activities 465,746 287,916 379,964 Translation adjustments on cash and cash equivalents 682 (579) 72 Net change in cash and cash equivalents and restricted cash and cash equivalents $ 75,094 $ (81,998) $ 61,094 For the Year Ended December 31, 2025 Net cash provided by operating activities for the year ended December 31, 2025 was $335.1 million, compared to $410.9 million for the year ended December 31, 2024, representing a net decrease of $75.8 million.
Consequently, in 2024 and 2023, our foreign operations of the segment accounted for 39% and 44% of our total gross profits, 78% and 63% of our net income (considering the majority of corporate operating and financing expenses are recorded under our domestic operations), and 31% and 36% of our EBITDA, respectively.
Consequently, in 2025 and 2024, our foreign operations of the segment accounted for 39% and 39% of our total gross profits, 49% and 48% of our net income (considering the majority of corporate operating and financing expenses are recorded under our domestic operations), and 29% and 31% of our EBITDA, respectively.
However, we believe that our results of operations and financial condition for the foreseeable future will be primarily affected by the following trends, factors and uncertainties that are from time to time also subject to market cycles: • Increased Demand for Baseload and Data Centers: There has been increased demand for energy generated from geothermal and other renewable resources in the U.S. driven by both baseload requirements and the growing energy needs of data centers..
However, we believe that our results of operations and financial condition for the foreseeable future will be primarily affected by the following trends, factors and uncertainties that are from time to time also subject to market cycles: • Increased Demand for Baseload and Data Centers: Demand for electricity generated from geothermal and other renewable resources in the United States has increased due to the need for reliable baseload power and the growing energy requirements of data centers.
Income Taxes Income tax (provision) benefit for the year ended December 31, 2024, was a benefit of $16.3 million, a decrease of $22.3 million compared to an income tax provision of $(6.0) million for the year ended December 31, 2023. Our effective tax rate for the year ended December 31, 2024 and 2023, was (14.1)% and 4.3%, respectively.
Income Taxes Income tax (provision) benefit for the year ended December 31, 2025, was a benefit of $20.3 million, an increase of $4.0 million compared to an income tax benefit of $16.3 million for the year ended December 31, 2024. Our effective tax rate for the year ended December 31, 2025 and 2024, was (19.2)% and (14.1)%, respectively.
Income Attributable to Sale of Tax Benefits Income attributable to the sale of tax benefits for the year ended December 31, 2024 was $73.1 million, compared to $61.2 million for the year ended December 31, 2023.
Income Attributable to Sale of Tax Benefits Income attributable to the sale of tax benefits for the year ended December 31, 2025 was $66.7 million, compared to $73.1 million for the year ended December 31, 2024.
Net cash provided by financing activities for the year ended December 31, 2024 was $287.9 million, compared to $380.0 million for the year ended December 31, 2023.
Net cash provided by financing activities for the year ended December 31, 2025 was $465.7 million, compared to $287.9 million for the year ended December 31, 2024.
Net income for the year ended December 31, 2024 was $131.2 million, compared to $133.1 million for the year ended December 31, 2023 and $77.8 million for the year ended December 31, 2022.
Net income for the year ended December 31, 2025 was $127.0 million, compared to $131.2 million for the year ended December 31, 2024 and $133.1 million for the year ended December 31, 2023.
The following table sets forth a breakdown of our revenues for the years indicated: Revenues % of Revenues for Period Indicated Year Ended December 31, Year Ended December 31, 2024 2023 2022 2024 2023 2022 Revenues: (Dollars in thousands) Electricity $ 702,264 $ 666,767 $ 631,727 79.8 % 80.4 % 86.0 % Product 139,661 133,763 71,414 15.9 16.1 9.7 Energy Storage 37,729 28,894 31,018 4.3 3.5 4.2 Total revenues $ 879,654 $ 829,424 $ 734,159 100.0 % 100.0 % 100.0 % 78 Geographic Breakdown of Results of Operations The following table sets forth the geographic breakdown of the revenues attributable to our Electricity, Product and Energy Storage segments for the years indicated: Revenues % of Revenues for Period Indicated Year Ended December 31, Year Ended December 31, 2024 2023 2022 2024 2023 2022 Electricity Segment: (Dollars in thousands) United States $ 510,645 $ 473,323 $ 446,000 72.7 % 71.0 % 70.6 % International 191,619 193,444 185,727 27.3 29.0 29.4 Total $ 702,264 $ 666,767 $ 631,727 100.0 % 100.0 % 100.0 % Product Segment: United States $ 8,969 $ 7,610 $ 7,037 6.4 % 5.7 % 9.9 % International 130,692 126,153 64,377 93.6 94.3 90.1 Total $ 139,661 $ 133,763 $ 71,414 100.0 % 100.0 % 100.0 % Energy Storage Segment: United States $ 37,729 $ 28,894 $ 31,018 100.0 % 100.0 % 100.0 % International — — — — — — Total $ 37,729 $ 28,894 $ 31,018 100.0 % 100.0 % 100.0 % In 2024, 2023 and 2022, 37%, 39% and 34% of our total revenues were derived from foreign locations, respectively, and our foreign operations had higher gross margins than our U.S. operations in each of those years.
The following table sets forth a breakdown of our revenues for the years indicated: Revenues % of Total Revenues Year Ended December 31, Year Ended December 31, 2025 2024 2023 2025 2024 2023 Revenues: (Dollars in thousands) Electricity $ 693,900 $ 702,264 $ 666,767 70.1 % 79.8 % 80.4 % Product 216,686 139,661 133,763 21.9 15.9 16.1 Energy Storage 78,957 37,729 28,894 8.0 4.3 3.5 Total revenues $ 989,543 $ 879,654 $ 829,424 100.0 % 100.0 % 100.0 % Geographic Breakdown of Results of Operations The following table sets forth the geographic breakdown of the revenues attributable to our Electricity, Product and Energy Storage segments for the years indicated: Revenues % of Total Revenues Year Ended December 31, Year Ended December 31, 2025 2024 2023 2025 2024 2023 Electricity Segment: (Dollars in thousands) United States $ 500,377 $ 510,645 $ 473,323 72.1 % 72.7 % 71.0 % International 193,523 191,619 193,444 27.9 27.3 29.0 Total $ 693,900 $ 702,264 $ 666,767 100.0 % 100.0 % 100.0 % 76 Product Segment: United States $ 10,954 $ 8,969 $ 7,610 5.1 % 6.4 % 5.7 % International 205,732 130,692 126,153 94.9 93.6 94.3 Total $ 216,686 $ 139,661 $ 133,763 100.0 % 100.0 % 100.0 % Energy Storage Segment: United States $ 78,957 $ 37,729 $ 28,894 100.0 % 100.0 % 100.0 % International — — — — — — Total $ 78,957 $ 37,729 $ 28,894 100.0 % 100.0 % 100.0 % In 2025, 2024 and 2023, 40%, 37% and 39% of our total revenues were derived from foreign locations, respectively, and our foreign operations had higher gross margins than our U.S. operations in each of those years.
Refer to Note 12 to our consolidated financial statements as set forth in Item 8 of this Annual Report for additional discussion of our liability associated with the sale of tax benefits.
The above table does not reflect a liability associated with the sale of tax benefits of $190.2 million. Refer to Note 12 to our consolidated financial statements as set forth in Item 8 of this Annual Report for additional discussion of our liability associated with the sale of tax benefits.
Creditors of a project financing of a particular power plant may have direct recourse to us to the extent of these limited recourse obligations. 91 Non-Recourse and Limited-Recourse Third-Party Debt: Balance as of Annual Loan Amount Issued December 31, 2024 Interest rate Maturity Date Related Project Location (Dollars in millions) Mammoth Senior Secured Notes $ 135.1 $ 129.2 6.73 % July, 2047 Mammoth Complex United States Bottleneck Loan 72.6 72.6 6.31 November, 2039 Bottleneck United States OFC 2 Senior Secured Notes – Series A 151.7 56.2 4.69 December, 2032 McGinness Hills phase 1, Tuscarora United States OFC 2 Senior Secured Notes – Series B 140.0 70.7 4.61 December, 2032 McGinness Hills phase 2 United States Olkaria III Financing Agreement with DFC – Tranche 1 85.0 28.3 6.34 December, 2030 Olkaria III Complex Kenya Olkaria III Financing Agreement with DFC – Tranche 2 180.0 58.2 6.29 June, 2030 Olkaria III Complex Kenya Olkaria III Financing Agreement with DFC – Tranche 3 45.0 16.1 6.12 December, 2030 Olkaria III Complex Kenya Don A.
Creditors of a project financing of a particular power plant may have direct recourse to us to the extent of these limited recourse obligations. 88 Non-Recourse and Limited-Recourse Third-Party Debt: Balance as of Annual Loan Amount Issued December 31, 2025 Interest rate Maturity Date Related Project Location (Dollars in millions) Mammoth Senior Secured Notes 2025 $ 23.4 $ 23.4 6.95 % July, 2034 Mammoth Complex United States Geothermie Bouillante tranche 1 39.2 35.7 (3) December, 2030 Geothermie Bouillante Guadeloupe Geothermie Bouillante tranche 2 55.7 56.3 (4) June, 2046 Geothermie Bouillante Guadeloupe Dominica Loan 37.6 37.6 2.40 September, 2042 Dominica Dominica Bottleneck Loan 72.6 68.9 6.31 November, 2039 Bottleneck United States Mammoth Senior Secured Notes 135.1 120.4 6.73 July, 2047 Mammoth Complex United States OFC 2 Senior Secured Notes – Series A 151.7 48.6 4.69 December, 2032 McGinness Hills phase 1, Tuscarora United States OFC 2 Senior Secured Notes – Series C 140.0 62.6 4.61 December, 2032 McGinness Hills phase 2 United States Olkaria III Financing Agreement with DFC – Tranche 1 85.0 23.6 6.34 December, 2030 Olkaria III Complex Kenya Olkaria III Financing Agreement with DFC – Tranche 2 180.0 47.6 6.29 June, 2030 Olkaria III Complex Kenya Olkaria III Financing Agreement with DFC – Tranche 3 45.0 13.4 6.12 December, 2030 Olkaria III Complex Kenya Don A.
The decrease in interest income is primarily related to lower balances of cash and cash equivalents in 2024 compared to 2023. Interest Expense, Net Interest expense, net, for the year ended December 31, 2024 was $134.0 million, compared to $98.9 million for the year ended December 31, 2023, representing a 35.5% increase.
The decrease in interest income is primarily related to lower balances of cash and cash equivalents during 2025 compared to 2024, as well as lower average interest rate, year-over-year. Interest Expense, Net Interest expense, net, for the year ended December 31, 2025 was $141.9 million, compared to $134.0 million for the year ended December 31, 2024, representing a 5.8% increase.
The impairment of long-lived assets is related to the termination of the waste heat agreement between the Company's wholly-owned subsidiary, OREG4, and Highline Electric Association, Inc., effective May 2024 Write-off of Unsuccessful Exploration and Storage Activities Write-offs of unsuccessful exploration and storage activities for year ended December 31, 2024 were $3.9 million compared to $3.7 million for the year ended December 31, 2023.
The impairment of long-lived assets in 2024 is related to the termination of the waste heat agreement between the Company's wholly-owned subsidiary, OREG4, and its customer. Write-off of Unsuccessful Exploration and Storage Activities Write-offs of unsuccessful exploration and storage activities for year ended December 31, 2025 were $1.4 million compared to $3.9 million for the year ended December 31, 2024.
Product Segment Total cost of revenues attributable to our Product segment for the year ended December 31, 2024 was $113.9 million, compared to $115.8 million for the year ended December 31, 2023, representing a 1.6% decrease from the prior year.
Product Segment Total cost of revenues attributable to our Product segment for the year ended December 31, 2025 was $170.7 million, compared to $113.9 million for the year ended December 31, 2024, representing a 49.8% increase from the prior year.
Year Ended December 31, 2024 2023 2022 (Dollars in thousands, except earnings per share data) Revenues: Electricity $ 702,264 $ 666,767 $ 631,727 Product 139,661 133,763 71,414 Energy Storage 37,729 28,894 31,018 Total revenues 879,654 829,424 734,159 Cost of revenues: Electricity 459,526 422,549 380,361 Product 113,911 115,802 60,479 Energy storage 33,598 27,055 24,495 Total cost of revenues 607,035 565,406 465,335 Gross profit Electricity 242,738 244,218 251,366 Product 25,750 17,961 10,935 Energy storage 4,131 1,839 6,523 Total gross profit 272,619 264,018 268,824 Operating expenses: Research and development expenses 6,501 7,215 5,078 Selling and marketing expenses 17,694 18,306 16,193 General and administrative expenses 80,119 68,179 61,274 Other operating income (9,375) — — Impairment of long-lived assets 1,280 — 32,648 Write-off of unsuccessful exploration and storage activities 3,930 3,733 828 Operating income 172,470 166,585 152,803 Other income (expense): Interest income 7,883 11,983 3,417 83 Interest expense, net (134,031) (98,881) (87,743) Derivatives and foreign currency transaction gains (losses) (4,187) (3,278) (6,044) Income attributable to sale of tax benefits 73,054 61,157 33,885 Other non-operating income (expense), net 188 1,519 (709) Income from operations before income tax and equity in earnings (losses) of investees 115,377 139,085 95,609 Income tax (provision) benefit 16,289 (5,983) (14,742) Equity in earnings (losses) of investees (425) 35 (3,072) Net Income 131,241 133,137 77,795 Net income attributable to noncontrolling interest (7,508) (8,738) (11,954) Net income attributable to the Company's stockholders $ 123,733 $ 124,399 $ 65,841 Earnings per share attributable to the Company's stockholders: Basic: $ 2.05 $ 2.09 $ 1.17 Diluted: $ 2.04 $ 2.08 $ 1.17 Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: Basic 60,455 59,424 56,063 Diluted 60,790 59,762 56,503 Results as a percentage of revenues Year Ended December 31, 2024 2023 2022 Revenues: Electricity 79.8 % 80.4 % 86.0 % Product 15.9 16.1 9.7 Energy storage 4.3 3.5 4.2 Total revenues 100.0 100.0 100.0 Cost of revenues: Electricity 65.4 63.4 60.2 Product 81.6 86.6 84.7 Energy storage 89.1 93.6 79.0 Total cost of revenues 69.0 68.2 63.4 Gross profit (loss): Electricity 34.6 36.6 39.8 Product 18.4 13.4 15.3 Energy storage 10.9 6.4 21.0 Total gross profit 31.0 31.8 36.6 Operating expenses: Research and development expenses 0.7 0.9 0.7 Selling and marketing expenses 2.0 2.2 2.2 General and administrative expenses 9.1 8.2 8.3 Other operating income (1.1) 0.0 0.0 Impairment of long-lived assets 0.1 0.0 4.4 Write-off of unsuccessful exploration and storage activities 0.4 0.5 0.1 Operating income 19.6 20.1 20.8 Other income (expense): 84 Interest income 0.9 1.4 0.5 Interest expense, net (15.2) (11.9) (12.0) Derivatives and foreign currency transaction gains (losses) (0.5) (0.4) (0.8) Income attributable to sale of tax benefits 8.3 7.4 4.6 Other non-operating income (expense), net — 0.2 (0.1) Income from continuing operations before income tax and equity in earnings (losses) of investees 13.1 16.8 13.0 Income tax (provision) benefit 1.9 (0.7) (2.0) Equity in earnings (losses) of investees 0.0 — (0.4) Net Income 14.9 16.1 10.6 Net income attributable to noncontrolling interest (0.9) (1.1) (1.6) Net income attributable to the Company's stockholders 14.1 % 15.0 % 9.0 % Comparison of the year ended December 31, 2023 and the year ended December 31, 2022 A discussion of changes in our results of operations in 2023 compared to 2022 has been omitted from this Form 10-K, but may be found in “Item 7.
Year Ended December 31, 2025 2024 2023 (Dollars in thousands, except earnings per share data) Revenues: Electricity $ 693,900 $ 702,264 $ 666,767 Product 216,686 139,661 133,763 Energy Storage 78,957 37,729 28,894 Total revenues 989,543 879,654 829,424 80 Cost of revenues: Electricity 495,989 459,526 422,549 Product 170,671 113,911 115,802 Energy storage 50,198 33,598 27,055 Total cost of revenues 716,858 607,035 565,406 Gross profit Electricity 197,911 242,738 244,218 Product 46,015 25,750 17,961 Energy storage 28,759 4,131 1,839 Total gross profit 272,685 272,619 264,018 Operating expenses: Research and development expenses 6,304 6,501 7,215 Selling and marketing expenses 18,898 17,694 18,306 General and administrative expenses 79,592 80,119 68,179 Other operating income (14,844) (9,375) — Impairment of long-lived assets 12,064 1,280 — Write-off of unsuccessful exploration and storage activities 1,446 3,930 3,733 Operating income 169,225 172,470 166,585 Other income (expense): Interest income 6,015 7,883 11,983 Interest expense, net (141,851) (134,031) (98,881) Derivatives and foreign currency transaction gains (losses) 5,248 (4,187) (3,278) Income attributable to sale of tax benefits 66,726 73,054 61,157 Other non-operating income (expense), net 385 188 1,519 Income from operations before income tax and equity in earnings (losses) of investees 105,748 115,377 139,085 Income tax (provision) benefit 20,282 16,289 (5,983) Equity in earnings (losses) of investees 960 (425) 35 Net Income 126,990 131,241 133,137 Net income attributable to noncontrolling interest (3,092) (7,508) (8,738) Net income attributable to the Company's stockholders $ 123,898 $ 123,733 $ 124,399 Earnings per share attributable to the Company's stockholders: Basic: $ 2.04 $ 2.05 $ 2.09 Diluted: $ 2.02 $ 2.04 $ 2.08 Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: Basic 60,705 60,455 59,424 Diluted 61,362 60,790 59,762 Results as a percentage of revenues Year Ended December 31, 2025 2024 2023 Revenues: Electricity 70.1 % 79.8 % 80.4 % Product 21.9 15.9 16.1 Energy storage 8.0 4.3 3.5 Total revenues 100.0 100.0 100.0 81 Cost of revenues: Electricity 71.5 65.4 63.4 Product 78.8 81.6 86.6 Energy storage 63.6 89.1 93.6 Total cost of revenues 72.4 69.0 68.2 Gross profit (loss): Electricity 28.5 34.6 36.6 Product 21.2 18.4 13.4 Energy storage 36.4 10.9 6.4 Total gross profit 27.6 31.0 31.8 Operating expenses: Research and development expenses 0.6 0.7 0.9 Selling and marketing expenses 1.9 2.0 2.2 General and administrative expenses 8.0 9.1 8.2 Other operating income (1.5) (1.1) 0.0 Impairment of long-lived assets 1.2 0.1 0.0 Write-off of unsuccessful exploration and storage activities 0.1 0.4 0.5 Operating income 17.1 19.6 20.1 Other income (expense): Interest income 0.6 0.9 1.4 Interest expense, net (14.3) (15.2) (11.9) Derivatives and foreign currency transaction gains (losses) 0.5 (0.5) (0.4) Income attributable to sale of tax benefits 6.7 8.3 7.4 Other non-operating income (expense), net — — 0.2 Income from continuing operations before income tax and equity in earnings (losses) of investees 10.7 13.1 16.8 Income tax (provision) benefit 2.0 1.9 (0.7) Equity in earnings (losses) of investees 0.1 — — Net Income 12.8 14.9 16.1 Net income attributable to noncontrolling interest (0.3) (0.9) (1.1) Net income attributable to the Company's stockholders 12.5 % 14.1 % 15.0 % Comparison of the year ended December 31, 2024 and the year ended December 31, 2023 A discussion of changes in our results of operations in 2024 compared to 2023 has been omitted from this Form 10-K, but may be found in “Item 7.
We are currently permitted to depreciate most of the cost of a new geothermal power plant. In cases where we claim ITCs, our tax basis in the plant that is eligible for depreciation is reduced by one-half of the ITC amount. In cases where we claim the PTC, there is no reduction in the tax basis for depreciation.
In cases where we claim ITCs, our tax basis in the plant that is eligible for depreciation is reduced by one-half of the ITC amount. In cases where we claim the PTC, there is no reduction in the tax basis for depreciation.
Selling and marketing expenses constituted 2.0% and 2.2% of total revenues for the years ended December 31, 2024 and 2023, respectively. General and Administrative Expenses General and administrative expenses for the year ended December 31, 2024 were $80.1 million, compared to $68.2 million for the year ended December 31, 2023, representing a 17.5% increase.
Selling and Marketing Expenses Selling and marketing expenses for the year ended December 31, 2025 were $18.9 million, compared to $17.7 million for the year ended December 31, 2024, representing a 6.8% increase. Selling and marketing expenses constituted 1.9% and 2.0% of total revenues for the years ended December 31, 2025 and 2024, respectively.
Future minimum payments Future minimum payments under long-term obligations as of December 31, 2024, are detailed under the caption Contractual Obligations and Commercial Commitments, below.
Future minimum payments Material future minimum payments under long-term obligations as of December 31, 2025, are detailed under the caption Contractual Obligations and Commercial Commitments, below and under Note 11 to the consolidated financial statements.
Although we see a moderation in the rate of inflation, if inflation continues to rise, it may increase expenses and impact profit margins.
While most international-based contracts are indexed to inflation, U.S. contracts are not. Although we see a moderation in the rate of inflation, if inflation continues to rise, it may increase expenses and impact profit margins.

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