Ormat Technologies (ORA) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 13.0% to $829.4M; Adjusted EBITDA increased 10.6% to $481.7M.

• GAAP net income attributable to stockholders increased 88.9% to $124.4M; diluted EPS rose 77.8% to $2.08.

• Added 239 MW since the start of 2023, including 100 MW from acquired assets; global operating portfolio reached 1,215 MW.

Financial highlights

• Q4 revenue rose 17.4% to $241.3M; operating income increased 70.8% to $51.6M.

• Q4 net income attributable to stockholders was $35.7M vs. $18.0M; diluted EPS was $0.59 vs. $0.32.

• Q4 Adjusted EBITDA increased 11.5% to $139.0M; adjusted net income declined 1.7% to $40.5M and adjusted diluted EPS fell 8.2% to $0.67.

• FY adjusted net income rose 32.2% to $121.9M; adjusted diluted EPS rose 25.0% to $2.05.

• FY operating income increased 9.0% to $166.6M; gross profit was $264.0M vs. $268.8M, and gross margin was 31.8% vs. 36.6%.

Outlook and guidance

• 2024 revenue guidance is $860M–$910M; Adjusted EBITDA guidance is $515M–$545M, with $40M expected from lower tax expense related to ITC benefits.

• 2024 segment revenue guidance: Electricity $710M–$730M, Products $115M–$135M, and Storage $35M–$45M.

• Management expects 2024 revenue growth of 7% and Adjusted EBITDA growth of 10%; approximately $18M of guided Adjusted EBITDA is attributable to minority interest.

• End-2026 targets: 2.1–2.3 GW total generating capacity, including 1,450–1,470 MW geothermal and solar and 700–800 MW / 1.9–2.3 GWh of storage.

• 2024 expected CapEx is $550M, including $66M maintenance CapEx; 2023–2026E portfolio CAGR target is 19%–21%.